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95.859 Retirement annuity -- Rate -- Minimum payment -- Annual cost-of-living increase.

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95.859 Retirement annuity -- Rate -- Minimum payment -- Annual cost-of-living increase. (1) The rate of retirement annuity shall be two and one-half percent (2.5%) of average salary, as defined in KRS 95.851(13), for each year of total service up to and <br>including thirty (30) years, subject to a maximum of seventy-five percent (75%) of <br>average salary. Fractional periods of service shall be considered in the calculation of <br>such annuities according to the aforesaid rate. If the calculated benefit for a member <br>is less than four thousand eight hundred dollars (&#36;4,800) per year, the board may <br>increase the annual benefit to a minimum of four thousand eight hundred dollars <br>(&#36;4,800) if the increase can be supported on an actuarially sound basis by the fund. (2) Any member who retired prior to June 21, 1974, shall receive an increase of ten dollars (&#36;10) per month for each year or part thereof of retirement prior to June 21, <br>1974, with a maximum increase of one hundred seventy dollars (&#36;170) per month. <br>No surviving widow of a retiree shall receive a pension of less than one hundred <br>and fifty dollars (&#36;150) per month. The board may increase the minimum benefit to <br>no more than five hundred dollars (&#36;500) per month if the increase can be supported <br>on an actuarially sound basis by the fund. When Social Security benefits are <br>increased, the surviving widows' minimum shall be increased by a like percentage, <br>but the pension increase shall not exceed five percent (5%). (3) Within six (6) months after the performance of the actuarial study required by KRS 95.872(6), the rate of retirement annuity of each annuitant shall be increased <br>annually by an amount determined by the study to reflect so much of the annual <br>increase in the cost of living of the annuitant as may be supported on an actuarially <br>sound basis by the fund. So long as the same is published, such studies shall rely on <br>the percentage increase in the annual average of the consumer price index for all <br>items for the most recent calendar year as published by the United States <br>Department of Labor's Bureau of Labor Statistics, not to exceed five percent (5%). <br>In any year that the percentage increase in the annual average of the consumer price <br>index for all items is less than five percent (5%), the board may set the annual <br>increase at a rate higher than the increase of the consumer price index but not in <br>excess of five percent (5%), if the board determines that the increase can be <br>supported on an actuarially sound basis by the fund. The increases shall be payable <br>to all members of the fund on the effective date of the increases, and all increases <br>granted on July 15, 1990, or thereafter shall be compounded. (4) A surviving spouse who does not receive a pension increase pursuant to subsection (2) of this section or whose pension increase pursuant to the Social Security <br>increase is less than the cost-of-living increase in subsection (3) of this section shall <br>receive the same increase an annuitant receives pursuant to subsection (3) of this <br>section, not to exceed a total of five percent (5%). Effective: July 14, 2000 <br>History: Amended 2000 Ky. Acts ch. 341, sec. 1, effective July 14, 2000. -- Amended 1996 Ky. Acts ch. 124, sec. 1, effective July 15, 1996; and ch. 132, sec. 1, effective <br>July 15, 1996. -- Amended 1994 Ky. Acts ch. 50, sec. 1, effective July 15, 1994. -- <br>Amended 1990 Ky. Acts ch. 118, sec. 4, effective July 13, 1990. -- Amended 1984 <br>Ky. Acts ch. 351, sec. 1, effective July 13, 1984. -- Amended 1974 Ky. Acts ch. 396, sec. 2. -- Amended 1972 Ky. Acts ch. 185, sec. 1. -- Created 1956 Ky. Acts ch. 16, <br>sec. 9, effective July 1, 1956.