2013 Kentucky Revised Statutes CHAPTER 61 - GENERAL PROVISIONS AS TO OFFICES AND OFFICERS -- SOCIAL SECURITY FOR PUBLIC EMPLOYEES -- EMPLOYEES RETIREMENT SYSTEM 61.635 Optional retirement plans.
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61.635 Optional retirement plans.
(1)
(2)
(3)
(4)
(5)
(6)
(7)
Each member shall have the right to elect to have his retirement allowance
payable under any one (1) of the options set forth in this section in lieu of the
retirement allowance otherwise payable to him upon retirement under any of
the provisions of KRS 16.505 to 16.652, 61.510 to 61.705, and 78.510 to
78.852. The amount of any optional retirement allowance shall be actuarially
equivalent to the amount of retirement allowance otherwise payable to him.
Survivorship one hundred percent (100%). The member may elect to receive a
decreased retirement allowance during his lifetime and have the retirement
allowance continued after his death to his beneficiary during the lifetime of the
person.
Survivorship sixty-six and two-thirds percent (66-2/3%). The member may elect
to receive a decreased retirement allowance during his lifetime and have
two-thirds (2/3) of the retirement allowance continue after his death to his
beneficiary during the lifetime of the person.
Survivorship fifty percent (50%). The member may elect to receive a
decreased retirement allowance during his lifetime and have one-half (1/2) of
the retirement allowance continued after his death to his beneficiary during the
lifetime of the person.
Life with ten (10) years certain. The member less than age seventy-six (76)
may elect to receive a monthly retirement allowance during his lifetime which
shall guarantee payments for one hundred twenty (120) months. If the member
dies before receiving payments for one hundred twenty (120) months, his
beneficiary shall receive the remaining payments monthly, for the duration of
the one hundred twenty (120) months' period. However, if the trust is
designated as beneficiary, the trustee of the trust may elect to receive a
lump-sum payment which shall be the actuarial equivalent to the remaining
payments, or the trustee may elect to continue the remaining monthly
payments to the trust of the member. If the estate is designated as beneficiary,
the estate shall receive a lump-sum payment which shall be the actuarial
equivalent to the remaining payments.
Life with fifteen (15) years certain. The member less than age sixty-eight (68)
may elect to receive a monthly retirement allowance during his lifetime which
shall guarantee payments for one hundred and eighty (180) months. If the
member dies before receiving payments for one hundred and eighty (180)
months, his beneficiary shall receive the remaining payments monthly for the
duration of the one hundred and eighty (180) months' period. However, if the
trust is designated as beneficiary, the trustee of the trust may elect to receive a
lump-sum payment which shall be the actuarial equivalent to the remaining
payments, or the trustee may elect to continue the remaining payments to the
trust of the member. If the estate is designated as beneficiary, the estate shall
receive a lump-sum payment which shall be the actuarial equivalent to the
remaining payments.
Life with twenty (20) years certain. The member less than age sixty-two (62)
may elect to receive a monthly retirement allowance during his lifetime which
shall guarantee payments for two hundred and forty (240) months. If the
member dies before receiving payments for two hundred and forty (240)
months, his beneficiary shall receive the remaining payments for the duration
of the two hundred and forty (240) months period. However, if the trust is
beneficiary, the trustee of the trust may elect to receive a lump-sum payment
which shall be the actuarial equivalent to the remaining payments, or the
trustee may elect to continue the remaining payments to the trust of the
member. If the estate is designated as beneficiary, the estate shall receive a
lump-sum payment which shall be the actuarial equivalent to the remaining
payments.
(8) Social Security adjustment options. These options shall be available to any
member who has not attained age sixty-two (62) as follows:
(a) No survivor rights. The member may elect to receive an increased
retirement allowance from his effective retirement date through the month
he attains age sixty-two (62) at which time his retirement allowance shall
be decreased for the remainder of his lifetime;
(b) Survivor rights. The member may elect to receive an increased retirement
allowance from his effective retirement date through the month he attains
age sixty-two (62) based on the option payable under subsection (2) of
this section, if the retirement allowance shall be decreased in the month
following the month he attains age sixty-two (62), or the month following
the month he would have attained age sixty-two (62), in event of his
death, and have the retirement allowance continue after his death to his
beneficiary during the lifetime of the person.
(9) Beneficiary Social Security adjustment option. This option is available to the
beneficiary of a deceased member if the beneficiary, who is a person, has not
attained age sixty (60), and is eligible to receive Social Security payments at
age sixty (60). The beneficiary may elect to receive during his lifetime an
increased retirement allowance based on his annual benefit payable for life.
The payment shall begin on his effective retirement date and continue through
the month he attains age sixty (60) at which time his retirement allowance shall
be decreased for the remainder of his lifetime.
(10) Pop-up option. The member may elect to receive a decreased retirement
allowance during his lifetime and have the retirement allowance continued after
his death to his beneficiary during the lifetime of the person. If the beneficiary
dies prior to the member, or if the beneficiary is the member's spouse and they
divorce, the member's retirement allowance shall increase to the amount that
would have been payable as a single life annuity.
(11) Actuarial equivalent refund. A member who began participating in the system
prior to January 1, 2014, may elect to receive a one (1) time lump-sum
payment which shall be the actuarial equivalent of the amount payable for a
period of sixty (60) months under KRS 61.595 (1).
(12) Partial lump-sum option.
(a) No survivor rights. A member retiring on or before January 1, 2009, may
elect to receive a one-time lump-sum payment equal to twelve (12),
twenty-four (24), or thirty-six (36) monthly retirement allowances payable
under the applicable retirement formula for the system and receive a
reduced monthly retirement allowance payable for his or her lifetime. The
lump-sum payment shall be paid in the month the first monthly retirement
(13)
(14)
(15)
(16)
allowance is payable.
(b) Survivor rights. A member retiring on or before January 1, 2009, may
elect to receive a one-time lump-sum payment equal to twelve (12),
twenty-four (24), or thirty-six (36) monthly retirement allowances payable
under subsection (2) of this section and receive a reduced monthly
retirement allowance payable for his or her lifetime. The lump-sum
payment shall be paid in the month the first monthly retirement allowance
is payable. The reduced retirement allowance shall be continued after the
member's death to his beneficiary during the lifetime of the person.
The other provisions of this section notwithstanding, the beneficiary of a retired
member of the General Assembly shall, after the member's death, receive
sixty-six and two-thirds percent (66-2/3%) of the member's retirement
allowance during his or her lifetime if the member of the General Assembly
began participating in the system prior to January 1, 2014, and has elected this
option and has made contributions in accordance with subsection (14) of this
section and of KRS 61.560. The retirement allowance of the retired member of
the General Assembly shall not be actuarially reduced to provide for this
survivor benefit.
A member of the General Assembly who began participating in the system
prior to January 1, 2014, who wishes to obtain the survivorship option specified
in subsection (13) of this section shall so notify the Kentucky retirement
systems:
(a) Within thirty (30) days after first becoming a member of the General
Assembly if he is not a member of the General Assembly on July 15,
1980; or
(b) Within thirty (30) days after July 15, 1980, if he is a member of the
General Assembly on July 15, 1980.
The system shall forward to members of the General Assembly a form on
which a member who began participating in the system prior to January 1,
2014, may elect the option provided for in subsections (13) and (14) of this
section.
The options described in subsections (2), (3), (4), (8)(b), (10), (12)(b), and (13)
of this section shall be extended to the member only if the designated
beneficiary is a person.
Effective:July 1, 2013
History: Amended 2013 Ky. Acts ch. 120, sec. 63, effective July 1, 2013. -Amended 2008 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 19, effective June 27,
2008. -- Amended 2002 Ky. Acts ch. 52, sec. 9, effective July 15, 2002. -Amended 1996 Ky. Acts ch. 167, sec. 14, effective July 15, 1996. -- Amended
1992 Ky. Acts ch. 240, sec. 37, effective July 14, 1992. -- Amended 1988 Ky.
Acts ch. 349, sec. 23, effective July 15, 1988. -- Amended 1986 Ky. Acts ch. 90,
sec. 17, effective July 15, 1986. -- Amended 1980 Ky. Acts ch. 97, sec. 1,
effective July 15, 1980; and ch. 186, sec. 11, effective July 15, 1980. -Amended 1978 Ky. Acts ch. 384, sec. 553, effective June 17, 1978. -- Amended
1976 Ky. Acts ch. 321, secs. 26 and 40. -- Amended 1974 Ky. Acts ch. 128,
sec. 23. -- Amended 1972 Ky. Acts ch. 116, sec. 45. -- Amended 1968 Ky. Acts
ch. 26, sec. 4. -- Amended 1964 Ky. Acts ch. 86, sec. 5. -- Amended 1962 Ky.
Acts ch. 58, sec. 17. -- Amended 1960 Ky. Acts ch. 165, Part II, sec. 12. -Created 1956 Ky. Acts ch. 110, sec. 26.
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