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61.691 Increase of benefits.

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61.691 Increase of benefits. (1) Effective August 1, 1996, to July 1, 2008, a recipient of a retirement allowance under KRS 16.505 to 16.652, 61.510 to 61.705, and 78.510 to 78.852 shall have his <br>retirement allowance increased on July 1 of each year by the percentage increase in <br>the annual average of the consumer price index for all urban consumers for the most <br>recent calendar year as published by the federal Bureau of Labor Statistics, not to <br>exceed five percent (5%). In determining the annual employer contribution rate, <br>only the cost of increases granted as of the most recent valuation date shall be <br>recognized. The benefits of this subsection as provided on August 1, 1996, to July <br>1, 2008, shall not be considered as benefits protected by the inviolable contract <br>provisions of KRS 16.652, 61.692, and 78.852. The General Assembly reserves the <br>right to suspend or reduce the benefits conferred in this subsection if in their <br>judgment the welfare of the Commonwealth so demands. (2) Effective July 1, 2009, and on July 1 of each year thereafter, a recipient of a retirement allowance under KRS 16.505 to 16.652, 61.510 to 61.705, and 78.510 to <br>78.852 shall have his or her retirement allowance increased by one and one-half <br>percent (1.5%), provided the recipient has been receiving a benefit for at least <br>twelve (12) months prior to the effective date of the increase. If the recipient has <br>been receiving a benefit for less than twelve (12) months prior to the effective date <br>of the increase provided by this subsection, the increase shall be reduced on a pro <br>rata basis for each month the recipient has not been receiving benefits in the twelve <br>(12) months preceding the effective date of the increase. In determining the annual <br>employer contribution rate, only the cost of increases granted as of the most recent <br>valuation date shall be recognized. The benefits of this subsection as provided on <br>July 1, 2009, and thereafter shall not be considered as benefits protected by the <br>inviolable contract provisions of KRS 16.652, 61.692, and 78.852. The General <br>Assembly reserves the right to suspend or reduce the benefits conferred in this <br>subsection if, in its judgment, the welfare of the Commonwealth so demands. (3) A reemployed retired member whose payments are suspended as provided under KRS 61.637 shall be eligible for an increase in his suspended retirement allowance <br>as provided under this section, computed as if he were receiving the retirement <br>allowance at the time the increase under this section is effective. (4) In addition to the increase to a recipient's retirement allowance as provided by subsection (2) of this section, the General Assembly may, by subsequent legislation, <br>provide supplemental increases to a recipient's retirement allowance to help adjust <br>for actual changes in the recipient's cost of living if the General Assembly <br>appropriates sufficient funds to fully prefund the benefit in the year the increase is <br>provided. Effective: June 27, 2008 <br>History: Amended 2008 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 23, effective June 27, 2008. -- Amended 1996 Ky. Acts ch. 320, sec. 1, effective July 15, 1996. -- Amended <br>1994 Ky. Acts ch. 105, sec. 1, effective July 1, 1994; ch. 406, sec. 6, effective June <br>30, 1996; and ch. 502, sec. 1, effective April 13, 1994. -- Amended 1992 Ky. Acts <br>ch. 240, sec. 49, effective July 14, 1992. -- Amended 1990 Ky. Acts ch. 489, sec. 3, <br>effective July 13, 1990; and ch. 517, sec. 2, effective July 1, 1990. -- Amended 1988 Ky. Acts ch. 349, sec. 28, effective July 15, 1988. -- Amended 1986 Ky. Acts <br>ch. 293, sec. 2, effective July 15, 1986. -- Amended 1984 Ky. Acts ch. 232, sec. 9, <br>effective July 13, 1984. -- Amended 1982 Ky. Acts ch. 423, sec. 12, effective July <br>15, 1982. -- Amended 1980 Ky. Acts ch. 186, sec. 16, effective July 15, 1980. -- <br>Amended 1978 Ky. Acts ch. 311, sec. 19, effective June 17, 1978; and ch. 384, <br>sec. 554, effective June 17, 1978. -- Amended 1976 Ky. Acts ch. 321, sec. 31. -- <br>Created 1972 Ky. Acts ch. 116, sec. 59. Legislative Research Commission Note (7/15/94). This section was amended by 1994 Ky. Acts chs. 105, 406, and 502. The amendments of this section by 1994 Ky. Acts <br>chs. 105 and 502 are in conflict. Under KRS 446.250, Acts ch. 502 as the last <br>enactment prevails.