KRS 67A.600: Fund to supersede prior pension funds -- Increase in retirement annuity.

(1) It is the intention of KRS 67A.360 to 67A.690 that the fund herein created shall

supersede and take the place of the pension fund established under KRS 95.851 to

95.884 inclusive, for cities becoming urban -county governments, which sections

shall be wi thout force and effect, insofar as applicable to such urban -county

governments.

(2) The fund created by KRS 67A.360 to 67A.690 shall succeed to and assume as of

July 1, 1974, all assets of such pension funds, and shall continue to make payment

of all annui ties, pensions, and benefits granted by superseded pension funds at the

rates previously fixed and under the conditions previously in effect, except as

provided in subsection (3) of this section.

(3) (a) Persons who retired under the provisions of KRS 95.5 20 to 95.620, or 95.851

to 95.884 in a city which subsequently was merged into an urban -county

government, or their surviving spouses or eligible children, shall receive an

upward adjustment in their retirement or survivor's annuity by calculation of a

two percent (2%) annual increase compounded, from July 1, 1974, until July

15, 1980, and annual increases compounded, from July 15, 1980, until July

15, 1990, in the same percentage amount by which the pension board

increased other pensions pursuant to KRS 67 A.690(1) for those same years.

The survivor's annuity shall be determined as if the retired member's annuity

had been increased annually by two percent (2%) compounded from July 1,

1974, until July 15, 1980, and annual increases compounded, from July 15,

1980, until July 15, 1990, in the same percentage amount by which the

pension board increased other pensions pursuant to KRS 67A.690(1) for those

same years. For purposes of calculation, the member's or survivor's first

increase shall occur July 1, 1974, bu t only after the member was retired for

one (1) year or attained age fifty-one (51), whichever was later, or would have

been retired one (1) year or reached the age of fifty -one (51), whichever was

later, in the event the member died before being retired o ne (1) year or

reaching the age of fifty -one (51), unless retirement was under disability, in

which case age and length of retirement criteria shall not apply.

(b) After calculation of the new annuity level, persons affected by this section

shall be granted the same annual increase granted to retirees pursuant to KRS

67A.690(1), and the annuity on which this cost -of-living increment is based

shall be the annuity level reached through the addition of annual compounded

increases calculated pursuant to paragra ph (a) of this subsection. If the

member has not attained the age of fifty -one (51) or would not have attained

the age of fifty-one (51) in the event the member is deceased, then the member

or survivor shall receive increases of two percent (2%) compounded annually

until the member attains or would have attained age fifty -one (51), at which

time the same annual increase granted to retirees who retired pursuant to KRS

67A.690(1) shall apply. In addition, each annuitant or surviving spouse or

eligible child s hall receive a one -time lump -sum payment of five hundred

dollars ($500).

(4) The provisions of subsection (3) of this section shall not apply to any retiree or

surviving spouse who receives a minimum retirement annuity, annually adjusted,

pursuant to 1972 Acts Chapter 185, Section 1, but each such retiree or surviving

spouse shall receive a one -time lump-sum payment of five hundred dollars ($500).

If, in the future, any retiree or spouse annuity granted pursuant to this section falls

below the adjusted minimum annuity, the affected retiree or spouse shall be granted,

from that time forward, the adjusted minimum annuity calculated pursuant to 1972

Acts Chapter 185, Section 1.