KRS § 95.859 — KY Code / Title IX / Chapter 95 / Section 95.859
95.859 Retirement annuity -- Rate -- Minimum payment -- Annual cost-of-living increase
Status: in_force

95.859 Retirement annuity -- Rate -- Minimum payment -- Annual cost-of-living

increase.

(1) The rate of retirement annuity shall be two and one-half percent (2.5%) of average

salary, as defined in KRS 95.851(13), for each year of total service up to and

including thirty (30) years, subject to a maximum of seventy-five percent (75%) of

average salary. Fractional periods of service shall be considered in the calculation of

such annuities according to the aforesaid rate. If the calculated benefit for a member

is less than four thousand eight hundred dollars ($4,800) per year, the board may

increase the annual benefit to a minimum of four thousand eight hundred dollars

($4,800) if the increase can be supported on an actuarially sound basis by the fund.

(2) Any member who retired prior to June 21, 1974, shall receive an increase of ten

dollars ($10) per month for each year or part thereof of retirement prior to June 21,

1974, with a maximum increase of one hundred seventy dollars ($170) per month.

No surviving widow of a retiree shall receive a pension of less than one hundred

and fifty dollars ($150) per month. The board may increase the minimum benefit to

no more than five hundred dollars ($500) per month if the increase can be supported

on an actuarially sound basis by the fund. When Social Security benefits are

increased, the surviving widows' minimum shall be increased by a like percentage,

but the pension increase shall not exceed five percent (5%).

(3) (a) Within six (6) months after the performance of the actuarial valuation required

by KRS 95.872(6), the rate of retirement annuity of each annuitant shall be

increased annually by an amount determined by the study to reflect so much of

the annual increase in the cost of living of the annuitant as may be supported

on an actuarially sound basis by the fund. So long as the same is published,

such studies shall rely on the percentage increase in the annual average of the

consumer price index for all items for the most recent calendar year as

published by the United States Department of Labor's Bureau of Labor

Statistics, not to exceed five percent (5%). In any year that the percentage

increase in the annual average of the consumer price index for all items is less

than five percent (5%), the board may set the annual increase at a rate higher

than the increase of the consumer price index but not in excess of five percent

(5%), if the board determines that the increase can be supported on an

actuarially sound basis by the fund. The increases shall be payable to all

members of the fund on the effective date of the increases, and all increases

granted on July 15, 1990, or thereafter shall be compounded.

(b) If the board determines that no annual cost-of-living adjustment on annuities

can be paid in accordance with paragraph (a) of this subsection, the city may,

by action of the city's legislative body, require the fund to provide an increase

in annuities paid to annuitants of the fund subject to the following conditions:

1. Any cost-of-living adjustment the city directs the fund to pay shall not

exceed the percentage increase in the annual average of the consumer

price index for all items for the most recent calendar year as published

by the United States Department of Labor's Bureau of Labor Statistics or

five percent (5%), whichever is less;

2. Each annual cost-of-living adjustment provided under this paragraph

shall require the action of the city's legislative body before being

provided to annuitants of the fund; and

3. The city's legislative body shall have the authority to suspend, reduce, or

repeal any cost-of-living adjustments approved under this paragraph if in

their judgment the welfare of the city so demands.

(4) A surviving spouse who does not receive a pension increase pursuant to subsection

(2) of this section or whose pension increase pursuant to the Social Security

increase is less than the cost-of-living increase in subsection (3) of this section shall

receive the same increase an annuitant receives pursuant to subsection (3) of this

section, not to exceed a total of five percent (5%).