95.859 Retirement annuity -- Rate -- Minimum payment -- Annual cost-of-living increase. - Kentucky Statutes

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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) Within six (6) months after the performance of the actuarial study 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. (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%). Effective: July 14, 2000
History: Amended 2000 Ky. Acts ch. 341, sec. 1, effective July 14, 2000. -- Amended 1996 Ky. Acts ch. 124, sec. 1, effective July 15, 1996; and ch. 132, sec. 1, effective
July 15, 1996. -- Amended 1994 Ky. Acts ch. 50, sec. 1, effective July 15, 1994. --
Amended 1990 Ky. Acts ch. 118, sec. 4, effective July 13, 1990. -- Amended 1984
Ky. Acts ch. 351, sec. 1, effective July 13, 1984. -- Amended 1974 Ky. Acts ch. 396, sec. 2. -- Amended 1972 Ky. Acts ch. 185, sec. 1. -- Created 1956 Ky. Acts ch. 16,
sec. 9, effective July 1, 1956.