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21.400 Computation of retirement allowance -- Benefit reduction for early retirement.

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21.400 Computation of retirement allowance -- Benefit reduction for early retirement. (1) A member who retires on or after his normal retirement date shall receive a service retirement allowance, payable monthly during his lifetime, in an amount per month <br>equal to two and seventy-five hundredths percent (2.75%) of his final compensation <br>multiplied by the number of years of his service, but in no event to exceed one <br>hundred percent (100%) of final compensation, except that for any service <br>performed while a member prior to July 1, 1978, any service prior to July 1, 1962, <br>creditable under KRS 21.345, and any service performed in continued membership <br>(or allowable under KRS 21.410 or 21.420) after June 30, 1978, by a person who <br>was a member on that date, the monthly percentage figure shall be five percent (5%) <br>of his final compensation multiplied by the number of years of his service, and <br>except that for any service performed by a member who elected membership at an <br>annual accrual rate of four and fifteen one hundredths percent (4.15%) and for any <br>service performed in continued membership thereafter (or allowable under KRS <br>21.410 to 21.420), the benefit, payable monthly during his lifetime shall be an <br>amount equal to four and fifteen one-hundredths percent (4.15%) of his final <br>compensation multiplied by the number of years of his service, and except that <br>allowances heretofore granted, and rights related thereto, shall not be affected by the <br>1978 or 1980 amendments to this section. For this purpose, &quot;final compensation&quot; <br>means the average monthly compensation of the member for the sixty (60) months <br>of service immediately preceding his retirement, including, in the case of a Circuit <br>Judge, compensation received as special commissioner of the former Court of <br>Appeals. If, at the time of retirement or death of a member his total period of <br>service in one or more positions covered by the system has not amounted to sixty <br>(60) months, his &quot;final compensation&quot; shall be computed as if he had served in the <br>first position he occupied under the system for such period of time as to bring his <br>total service (in all positions) to sixty (60) months. If that category of position was <br>not in existence for that period, it shall be treated as though it had been in existence <br>for that period and as if the compensation paid for the presumed period of existence <br>was at the rate provided for the category when it in fact first was created. (2) A member who retires before his normal retirement date shall be vested with the right to receive, when he reaches his normal retirement age, a service retirement <br>allowance computed on the basis of the number of years of his actual service, and <br>payable in accordance with: <br>(a) The provisions of subsection (1) of this section; or <br>(b) KRS 21.580 if the member retires as a Senior Status Special Judge while the pilot program created in KRS 21.580 is in effect. (3) In lieu of the right provided for in subsection (2) of this section, a member who retires before his normal retirement age may elect, at any time before reaching his <br>normal retirement age, to be paid commencing as of the time of the election a <br>monthly service retirement allowance equal in amount to the monthly allowance <br>that would have become payable under subsection (2) of this section when he <br>reached his normal retirement age, reduced at the rate of five percent (5%) for each year by which his actual age at the time the election is made is lower than the <br>normal retirement age. (4) A member who retires before his normal retirement date when his benefit is based on twenty-seven (27) years or more of service in the Judicial Retirement Plan, or if <br>his judicial service credit, when combined with service he has in, or for which he is <br>receiving benefits from, the Legislators' Retirement Plan, the Kentucky Employees <br>Retirement System, County Employees Retirement System, State Police Retirement <br>System, or the Teachers' Retirement System, is equal to twenty-seven (27) years, <br>shall be vested with the right to receive a service retirement allowance computed on <br>the basis of the number of years of his actual service, and payable in accordance <br>with: <br>(a) The provisions of subsection (1) of this section; or <br>(b) KRS 21.580 if the member retires as a Senior Status Special Judge while the pilot program created in KRS 21.580 is in effect. (5) In lieu of the right provided for in subsection (2) of this section, a member who retires before his normal retirement age may elect, at any time before reaching his <br>normal retirement age, to be paid commencing as of the time of the election, a <br>monthly service retirement allowance equal in amount to the monthly allowance <br>that would have become payable under subsection (2) of this section when he <br>reached normal retirement age, reduced at the rate of five percent (5%) for each year <br>by which his years of service or combined service pursuant to subsection (4) of this <br>section are lower than twenty-seven (27). Effective: July 14, 2000 <br>History: Amended 2000 Ky. Acts ch. 305, sec. 2, effective July 14, 2000. - Amended 1996 Ky. Acts ch. 292, sec. 1, effective July 15, 1996. -- Amended 1988 Ky. Acts <br>ch. 299, sec. 7, effective July 15, 1988. -- Amended 1980 Ky. Acts ch. 407, sec. 4, <br>effective July 15, 1980. --Amended 1978 Ky. Acts ch. 193, sec. 5, effective July 1, <br>1978. -- Amended 1962 Ky. Acts ch. 9, sec. 6, effective July 1, 1962. -- Created <br>1960 Ky. Acts ch. 84, Art. III, sec. 6.