Jefferson County Sheriff's Office v. Kentucky Retirement SystemsAnnotate this Case
The Supreme Court reversed the judgment of the trial court upholding that decision of the Retirement Systems's Administrative Review Board affirming the decision of the Kentucky Retirement Systems applying the Ky. Rev. Stat. 61.598, the pension-spiking statute, to assess actuarial costs to the Jefferson County Sheriff's Office (JCSO), holding that the Retirement Systems did not properly apply the spiking statute in this case.
The Kentucky Retirement Systems assessed the costs because it found a JCSO employee took unpaid leave for two months, causing a temporary decrease in gross compensation in that year, but then returned to his earlier pay. The circuit court agreement with the Retirement Systems, finding that section 61.598 as applied was not arbitrary, and therefore, the circuit court was bound by the Board's decision. The Supreme Court reversed, holding (1) the plain language of section 61.598 does not direct the retirement System to determine changes in compensation over a five-year period; and (2) the burden of proving a bona fide promotion was properly placed on the employer.