KRS 67A.690: Increase in retirement annuity.

(1) (a) The increase in retirement annuities provided and authorized by paragraphs

(b) and (c) of this subsection shall be provided when:

1. A member who retired prior to July 1, 2013, has been retired for one (1)

year or attained forty-seven (47) years of age, whichever is later;

2. The member would have been retired for one (1) year or attained forty -

seven (47) years of age, whichever is later, in the event the member died

prior to July 1, 2013;

3. A member who retires on or after July 1, 2013, has been retired f ive (5)

years or attained fifty (50) years of age, whichever is sooner; or

4. The member would have been retired for five (5) years or attained fifty

(50) years of age, whichever is sooner, in the event the member dies on

or after July 1, 2013.

(b) Except as provided by paragraph (c) of this subsection, for each member,

widow, or dependent child who is eligible for an increase in retirement

annuities as provided by paragraph (a) of this subsection, the board shall

increase his or her retirement annuity by:

1. Two percent (2%) per year, compounded annually, if the member,

widow, or dependent child is receiving an annualized retirement annuity

of less than forty thousand dollars ($40,000);

2. One and one -half percent (1.5%) per year, compounded annually, if th e

member, widow, or dependent child is receiving an annualized

retirement annuity of at least forty thousand dollars ($40,000) but less

than seventy-five thousand dollars ($75,000); or

3. One percent (1%) per year, compounded annually, if the member,

widow, or dependent child is receiving an annualized retirement annuity

equal to or greater than seventy -five thousand dollars ($75,000), except

that no member, widow, or dependent child receiving an annualized

retirement annuity equal to or greater than one hu ndred thousand dollars

($100,000) shall receive an increase in his or her retirement annuity until

January 1, 2016.

(c) If the fund has an actuarial funding level greater than eighty -five percent

(85%), as determined by the most recently completed actuaria l valuation of

the fund, the board shall, in lieu of the increase provided by paragraph (b) of

this subsection, increase retirement annuities for members, widows, and

dependent children as follows, provided the increase meets the requirements

of paragraph (d) of this subsection:

1. For members whose participation date in the fund is prior to March 14,

2013, who are eligible for an increase in retirement annuities as provided

by paragraph (a) of this subsection, the board may increase retirement

annuities by an amount not less than two percent (2%) nor more than

five percent (5%) per year, compounded annually;

2. For members whose participation date in the fund is on or after March

14, 2013, who are eligible for an increase in retirement annuities as

provided by paragraph (a) of this subsection, the board may increase

retirement annuities by an amount not more than three percent (3%) per

year, compounded annually; and

3. Increases provided under this paragraph shall be in lieu of the increases

provided under paragraph (b) of this subsection.

(d) The board shall determine annually whether an increase in retirement

annuities can be provided under paragraph (c) of this subsec tion. No increase

in retirement annuities shall be provided under paragraph (c) of this

subsection, if the increase in retirement annuities will reduce the actuarial

funding level of the fund below eighty-five percent (85%).

(2) Beginning July 1, 2001, not withstanding any other provision to the contrary, any

member, retired prior to July 1, 2013, under occupational disability, as provided in

KRS 67A.460, or nonoccupational disability shall be entitled to an increase in his or

her annuity, or in the event of death the annuity paid to his or her spouse or

dependent, after he or she has been retired one (1) year regardless of age or date of

retirement. A member retiring under occupational disability, as provided in KRS

67A.460, or nonoccupational disability, on or after July 1, 2013, shall be entitled to

an increase in his or her annuity as provided by subsection (1) of this section. The

amount of the annual increase shall be the same as described in subsection (1) of

this section, compounded annually, and the i ncrease shall be determined and

granted annually thereafter by the board. For a member retired on occupational

disability for a length of time in excess of one (1) year prior to June 21, 2001, the

board shall increase the member's annuity as described in t his paragraph, on July 1,

2001, and each July 1 thereafter.

(3) (a) A member who retired pursuant to the provisions of KRS 67A.360 to 67A.690

prior to July 15, 1980, or pursuant to KRS 67A.690(2) after July 15, 1980, or

his surviving spouse or eligible sur viving 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 subsection (1) of this section for those same years.

For purposes of calculation, unless the member retired under disability, the

member's or survivor's first increase shall occur after the member was retired

for one (1) year or attained the age of forty-seven (47), whichever was later, or

would have been retired one (1) year or reached the age of forty -seven (47),

whichever was later, in the event the member died before being retired one (1)

year or reaching the age of forty -seven (47). In the case of retirement under

disability, no age or length of retirement criteria shall apply.

(b) After calculation of the new annuity level, members of age forty-seven (47) or

more affected by this subsection, or survivors of a member who would have

been forty-seven (47) or more in the event the member is deceased, shall be

granted the same annual increase granted to retirees who retired July 15, 1980,

or thereaft er, pursuant to subsection (1) of this section, 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

paragraph (a) of this subsection, but not less than the annuity level in effect

prior to July 15, 1990. If the member has not attained the age of forty -seven

(47) or would not have attained the age of forty -seven (47) in the event the

member is deceased, then the member or survivor shall r eceive increases of

two percent (2%) compounded annually until the member attains or would

have attained age forty -seven (47), at which time the same annual increase

granted to retirees who retired July 15, 1980, or thereafter shall apply.

(4) The provisio ns 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 KRS 67A.430. 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 KRS 67A.430.