21.405 Increase of retirement benefits. - Kentucky Statutes

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21.405 Increase of retirement benefits. (1) As of July 1, 1982, the board of trustees of the Kentucky Judicial Form Retirement System shall recompute the monthly benefits of persons then receiving benefits
under the Judicial Retirement Plan by using the same service credit rate and the
same number of years of service that were used in computing the benefits then
being received but substituting, in lieu of the "final compensation" that was used in
the computation of the benefit then being received an amount equal to fifty-five
percent (55%) of the final compensation of the office in which the credit was earned
for a person retiring as of June 30, 1982. (2) As of July 1, 1983, and as of July 1 of each year thereafter, the board of trustees of the Kentucky Judicial Form Retirement System shall recompute the monthly
benefits of persons then receiving benefits under the Judicial Retirement Plan by
using the following formula: two and three-fourths percent (2.75%) times fifty-five
percent (55%) of the final compensation of the office in which the retirement credit
was earned for a person retiring as of the recomputation date, times the number of
years of service credit (not to exceed thirty-six (36) years). (3) In making the recomputations provided for in subsections (1) and (2) of this section, the same reduction factor, in case of an actuarially reduced benefit or a surviving
spouse's benefit, shall be used as was used in determining the benefit then being
received. If the benefit as recomputed in accordance with subsection (1) or (2) of
this section is higher than the benefit then being received, the recomputed benefit
shall thereafter be paid monthly, commencing as of the date specified for the
recomputation, subject to future adjustment at ensuing annual recomputations in
accordance with subsection (2) of this section. For the purposes of this section, the
following office equivalents shall be used: Judge of former Court of Appeals -
Justice of Supreme Court; any position other than judge or justice that was covered
by the Judicial Retirement System - Judge of the present Court of Appeals. (4) Effective August 1, 1998, to July 1, 2008, a recipient of a monthly pension benefit from the Kentucky Judicial Retirement Plan shall have his or her benefit increased
on July 1 of each year by the percentage increase in the annual average of the
consumer price index for all urban consumers for the most recent calendar year as
published by the Federal Bureau of Labor Statistics, not to exceed five percent
(5%). In determining the state's appropriation to the Judicial Retirement Fund, only
the costs of increases granted as of the most recent valuation date shall be
recognized. The benefits of this subsection as provided on August 1, 1998, to July
1, 2008, shall not be considered as benefits protected by the inviolable contract
provisions of KRS 21.480. The General Assembly reserves the right to suspend or
reduce the benefits conferred in this subsection if in its judgment the welfare of the
Commonwealth so demands. (5) Effective July 1, 2009, and on July 1 of each year thereafter, a recipient of a monthly pension benefit from the Kentucky Judicial Retirement Plan shall have his
or her benefit increased by one and one-half percent (1.5%), provided the recipient
has been receiving a benefit for at least twelve (12) months prior to the effective
date of the increase. If the recipient has been receiving a benefit for less than (12) months prior to the effective date of the increase provided by this subsection, the
increase shall be reduced on a pro rata basis for each month the recipient has not
been receiving benefits in the twelve (12) months preceding the effective date of the
increase. In determining the state's appropriation to the Judicial Retirement Fund,
only the costs of increases granted as of the most recent valuation date shall be
recognized. The benefits of this subsection as provided on July 1, 2009, and
thereafter shall not be considered as benefits protected by the inviolable contract
provisions of KRS 21.480. The General Assembly reserves the right to suspend or
reduce the benefits conferred in this subsection if in its judgment the welfare of the
Commonwealth so demands. (6) In addition to the increase to a recipient's retirement allowance as provided by subsection (5) of this section, the General Assembly may, by subsequent legislation,
provide supplemental increases to a recipient's retirement allowance to help adjust
for actual changes in the recipient's cost of living if the General Assembly
appropriates sufficient funds to fully prefund the benefit in the year the increase is
provided. Effective: June 27, 2008
History: Amended 2008 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 4, effective June 27, 2008. -- Amended 1998 Ky. Acts ch. 360, sec. 1, effective July 15, 1998. -- Amended
1984 Ky. Acts ch. 111, sec. 26, effective July 13, 1984. -- Created 1982 Ky. Acts
ch. 380, sec. 1, effective July 15, 1982.