KRS 61.599: Calculation of retirement allowance for members of Kentucky Employees

Retirement System.

(1) The annual retirement allowance for a member of the Kentucky Employees

Retirement System shall not exceed the maximum benefit as set forth in the Internal

Revenue Code.

(2) (a) The retirement allowance for a member of the Kentucky Employees

Retirement System shall be calculated by using the member's known

creditable compensation prior to his or her last month's employment and an

estimate of his or her creditab le compensation during the last month he or she

was employed. Based upon this calculation, the State Treasurer shall be

requested to issue the initial retirement payment.

(b) A new calculation shall be made when the official report has been received of

the member's creditable compensation during his or her last month's

employment. However, the retirement allowance determined in accordance

with paragraph (a) of this subsection shall be the official retirement allowance

unless the new calculation derives an amount which is two dollars ($2) greater

or less than the amount of the initial retirement payment. If the member or

beneficiary chose an actuarial equivalent refund payment option, the amount

of estimated retirement allowance shall be the official retireme nt allowance

unless the new calculation produces an amount which is one hundred dollars

($100) greater or less than the amount of the initial retirement payment.