KRS § 16.576 — KY Code / Title III / Chapter 16 / Section 16.576
16.576 Normal retirement for members who began participating before January 1, 2014 -- Election regarding payment of retirement allowance
Status: in_force

16.576 Normal retirement for members who began participating before

January 1, 2014 -- Election regarding payment of retirement allowance.

(1) (a) Any member who begins participating before September 1, 2008, who

has at least five (5) years of service credit may retire at his normal

retirement date, or subsequent thereto, upon written notification to the

system, setting forth at what date the retirement is to become effective, if

the effective date shall be after his last day of service and subsequent to

the filing of the notice at the retirement office.

(b) Any member who begins participating on or after September 1, 2008,

who has at least five (5) years of service credited under KRS 16.543(1),

61.543(1), or another state-administered retirement system may retire at

his or her normal retirement date, or subsequent thereto, upon written

notification to the system, setting forth what date the retirement is to

become effective, if the effective date shall be after his or her last day of

service and subsequent to the filing of the notice at the retirement office.

(2) The member shall have the right to elect to have his retirement allowance

payable under subsection (3), (4), or (6) of this section or any one (1) of the

plans set forth in KRS 61.635.

(3) (a) Effective August 1, 1990, a member of the Kentucky State Police

Retirement System may elect to receive an annual retirement allowance,

payable monthly during his lifetime, equal to two and five-tenths percent

(2.5) of final compensation for each year of service credit. Effective

August 1, 1988, a member of the Kentucky Employees Retirement

System covered by this section may elect to receive an annual retirement

allowance, payable monthly during his lifetime, equal to two and forty-nine

hundredths percent (2.49) of final compensation for each year of

service credit. The annual retirement allowance for a member covered by

this section shall not exceed the maximum benefit as set forth in the

Internal Revenue Code.

(b) A member of the State Police Retirement System or a member of the

Kentucky Employees Retirement System covered by this section, whose

participation begins on or after September 1, 2008, but prior to January 1,

2014, shall receive an annual retirement allowance, payable monthly

during his or her lifetime, equal to:

1. One and three-tenths percent (1.3) of final compensation for each

year of service credit if the employee has earned ten (10) or less

years of service at retirement;

2. One and one-half percent (1.5) of final compensation for each

year of service credit if the employee has earned greater than ten

(10) but no more than twenty (20) years of service at retirement;

3. Two and one-quarter percent (2.25) of final compensation for

each year of service credit if the employee has earned greater than

twenty (20) but less than twenty-five (25) years of service at

retirement; or

4. Two and one-half percent (2.5) of final compensation for each

year of service credit if the employee has earned twenty-five (25) or

more years of service at retirement.

(4) The member may elect to receive a monthly retirement allowance payable for

ten (10) years certain, actuarially equivalent to the retirement allowance

payable under subsection (3) of this section. If the member should become

deceased prior to the expiration of ten (10) years, his beneficiary, unless the

beneficiary is the member's estate, shall receive the remaining payments

monthly for the duration of the ten (10) years. If the member's estate is the

beneficiary, the member's estate shall receive a lump-sum payment which shall

be the actuarial equivalent to the remaining payments. The provisions of KRS

61.702 notwithstanding, the member who retired on June 17, 1978, or

thereafter, and his spouse and eligible dependents shall continue to receive the

insurance benefits to which they are entitled pursuant to KRS 61.702 after the

expiration of ten (10) years. Effective with any insurance contract procured, or

self-insurance plan instituted, after July 15, 1990, a member who retired prior

to June 17, 1978, and his spouse and eligible dependents shall receive

insurance benefits pursuant to KRS 61.702 upon payment by the member or

beneficiary of the entire cost of the required insurance premium.

(5) Notwithstanding any other provisions of this section, upon written notification to

the system, a member shall have the option to defer his election to receive his

retirement allowance. The retirement allowance payable under a deferred

option shall be increased to reflect the deferred receipt of benefits.

(6) In lieu of any other benefits due under KRS 16.505 to 16.652, a member who

begins participating before September 1, 2008, who has attained age fifty-five

(55) and who has attained at least one (1) month of service credit but no more

than fifty-nine (59) months of service credit may elect to receive an annual

retirement allowance, payable monthly or less frequently as determined by the

board, which shall be determined by multiplying his accumulated contributions

by two (2) and converting this amount to an annual retirement allowance based

on an annuity rate adopted by the board which would pay the actuarial

equivalent of twice his accumulated contributions over the lifetime of the retired

member.

(7) Subsections (1) to (6) of this section shall not apply to members who begin

participating in the system on or after January 1, 2014. Members who begin

participating in the system on or after January 1, 2014, shall receive the

retirement benefit calculation prescribed by KRS 16.583.