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6.521 Increase of retirement benefits.
(1)
(2)
(3)
(4)
As of July 1 of each year, the board of trustees of the Kentucky Judicial Form
Retirement System shall recompute the monthly benefits of persons then receiving
benefits under the Legislators' Retirement Plan, by using the following formula:
three and one-half percent (3.5%) times fifty-five percent (55%) of the final
compensation of the office in which the credit was earned for a person retiring as of
the recomputation date, times the number of years of service credit (not to exceed
twenty-eight (28) years). In making the recomputation, 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 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
recomputations in accordance with this section.
Effective August 1, 1998, to July 1, 2008, a recipient of a monthly pension benefit
from the Legislators' 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 Legislators' 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
6.505. 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.
Effective July 1, 2009, and on July 1 of each year thereafter, a recipient of a
monthly pension benefit from the Legislators' Retirement Plan shall have his or her
benefit increased by one and one-half percent (1.5%), provided the recipient has
been receiving a retirement 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 twelve (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 a benefit in the twelve (12) months preceding the
effective date of the increase. In determining the state's appropriation to the
Legislators' 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 6.505. 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.
In addition to the increase to a recipient's retirement allowance as provided by
subsection (3) 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. 2, effective June 27,
2008. -- Amended 1998 Ky. Acts ch. 360, sec. 2, effective July 15, 1998. -- Created
1982 Ky. Acts ch. 380, sec. 2, effective July 15, 1982.
2012-2014 Budget Reference. See Legislative Branch Budget, 2012 Ky. Acts ch. 19, Pt.
I, 1, (1) at 506.
2012-2014 Budget Reference. See Legislative Branch Budget, 2012 Ky. Acts ch. 19, Pt.
I, 1, (4) at 506
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