95.862 Permanent occupational disability -- Annuity rate -- Reduction of benefits -- Cost-of-living increases. - Kentucky Statutes

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95.862 Permanent occupational disability -- Annuity rate -- Reduction of benefits -- Cost-of-living increases. (1) In the event a total and permanent occupational disability occurs, the member shall receive an annuity equal to seventy percent (70%) of his last rate of salary. If the
calculated monthly benefit is less than five hundred dollars ($500) per month, the
board may increase the monthly benefit to a minimum of five hundred dollars
($500) monthly if the increase can be supported on an actuarially sound basis by the
fund. This benefit shall begin at such time as his salary may cease, and shall be paid
during his entire lifetime. 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 and
seventy dollars ($170) per month. Upon his death, his eligible widow and minor
children, if any, shall receive the benefits as provided under KRS 95.860. (2) If the member retired for total and permanent occupational disability would receive from a combination of (a) pension disability payments pursuant to subsection (1) of
this section, and (b) workers' compensation payments, excluding spouse or
dependent children's allowances or payments for medical expenses or legal fees
related to the workers' compensation claim, an amount greater than one hundred
percent (100%) of his last rate of salary, then the pension system benefits shall be
reduced to the point that the combined payments equal one hundred percent (100%)
of the last rate of salary. The benefit shall not be reduced, however, below an
amount equal to two and one-half percent (2-1/2%) of average salary for each year
of the member's service. Any reduction in the payment shall be based upon workers'
compensation benefits applicable at the time the payment is granted, and not upon
subsequent increases in either benefit. If workers' compensation benefits are
reduced at a subsequent time, the retiree shall inform the board, and the board shall
increase the benefit by the amount of the reductions, but not by more than an
amount which would increase the benefit to seventy percent (70%) of the last rate of
salary, excluding cost-of-living increases. The board of trustees may pay estimated
benefits to a retiree, upon qualification for the benefits, based upon an estimate of
workers' compensation benefits until such amounts are actually determined, at
which time a final calculation of the actual benefits shall be determined and the
account corrected retroactive to the effective date of the benefit. If workers'
compensation benefits are paid in lump sums, the board shall reduce the disability
retirement annuity on a monthly rather than a lump-sum basis. The amount of the
monthly reduction shall be based upon the life expectancy of the retired member.
The board may request the assistance of the general manager of Kentucky
Retirement Systems to calculate the reduction in the retirement benefit when lump
sum payments are involved, and the general manager shall provide such assistance
upon request. (3) Any member retired pursuant to this section shall receive the same cost-of-living increases granted to other retirees pursuant to the terms of KRS 95.859(3). Effective: July 14, 2000 History: Amended 2000 Ky. Acts ch. 341, sec. 4, effective July 14, 2000. -- Amended 1996 Ky. Acts ch. 132, sec. 2, effective July 15, 1996. -- Amended 1992 Ky. Acts
ch. 84, sec. 1, effective March 24, 1992. -- Amended 1984 Ky. Acts ch. 351, sec. 4,
effective July 13, 1984. -- Amended 1980 Ky. Acts ch. 367, sec. 3, effective July 15,
1980. -- Amended 1974 Ky. Acts ch. 396, sec. 5. -- Created 1956 Ky. Acts ch. 16,
sec. 12, effective July 1, 1956.