{"data":{"id":"us-ky/krs-161.620","jurisdiction":"us-ky","citation":"KRS 161.620","heading":"Retirement allowances for university and nonuniversity retirees -- Amount","body":"-- Increases -- Payments for adult dependents.\n(1) The retirement allowance, in the form of a life annuity with refundable balance, of a\nmember retiring for service shall be calculated as follows:\n(a) For retirements effective July 1, 1998, and thereafter, except as otherwise\nprovided by this section, the annual allowance for each year of service shall\nbe two percent (2%) of the final average salary for service perfo rmed prior to\nJuly 1, 1983, and two and one -half percent (2.5%) of the final average salary\nfor service performed after July 1, 1983, for all nonuniversity members.\nExcept as otherwise provided by this section, the annual retirement allowance\nfor each year  of service performed by members of the Teachers' Retirement\nSystem who are university members shall be two percent (2%) of the final\naverage salary. Actuarial discounts due to age or service credit at retirement\nmay be applied as provided in this section;\n(b) For individuals who become nonuniversity members of the Teachers'\nRetirement System on or after July 1, 2002, and before July 1, 2008, who\nupon retirement have earned less than ten (10) full years of service credit, the\nretirement allowance shall be t wo percent (2%) of the member's final average\nsalary for each year of service. For individuals who become nonuniversity\nmembers of the Teachers' Retirement System on or after July 1, 2002, and\nbefore July 1, 2008, and who upon retirement have earned at least ten (10) full\nyears of service credit, the annual allowance for each year of service shall be\ntwo and one-half percent (2.5%) of the member's final average salary;\n(c) The board of trustees may approve for members who initially retire on or after\nJuly 1, 2004, and who become nonuniversity members before July 1, 2008, a\nretirement allowance of three percent (3%) of the member's final average\nsalary for each year or partial year of service credit earned in excess of thirty\n(30) years.  This three percent ( 3%) factor shall be in lieu of the two and one -\nhalf percent (2.5%) factor provided for in paragraph (b) of this subsection for\nevery year or fraction of a year of service in excess of thirty (30) years. Upon\napproval of this three percent (3%) retirement f actor, the board of trustees\nmay establish conditions of eligibility regarding the type of service credit that\nwill qualify for meeting the requirements of this subsection. This subsection is\noptional with the board of trustees and shall not be subject to KRS 161.714;\n(d) For individuals who become nonuniversity members of the Teachers'\nRetirement System on or after July 1, 2008, but prior to January 1, 2022, the\nretirement allowance shall be:\n1. a. One and seven -tenths percent (1.7%) of the member's final\naverage salary for each year of service if the member has earned\nten (10) or less years of service at retirement;\nb. Two percent (2%) of the member's final average salary for each\nyear of service if the member has earned greater than ten (10) but\nno more than twenty (20) years of service at retirement;\nc. Two and three-tenths percent (2.3%) of the member's final average\nsalary for each year of service if the member has earned greater\nthan twenty (20) but no more than twenty -six (26) years of service\nat retirement; or\nd. Two and one -half percent (2.5%) of the member's final average\nsalary for each year of service if the member has earned greater\nthan twenty-six (26) but no more than thirty (30) years of service\nat retirement; and\n2. Three percent (3%) of the member's final average salary for each year or\npartial year of service earned in excess of thirty (30) years of service at\nretirement subject to the same terms and conditions as set forth in\nparagraph (c) of this subsection;\n(e) For individuals who become university mem bers of the Teachers' Retirement\nSystem on or after July 1, 2008, but prior to January 1, 2022, the retirement\nallowance shall be:\n1. One and one -half percent (1.5%) of the member's final average salary\nfor each year of service if the member has earned ten  (10) or less years\nof service at retirement;\n2. One and seven -tenths percent (1.7%) of the member's final average\nsalary for each year of service if the member has earned greater than ten\n(10) but no more than twenty (20) years of service at retirement;\n3. One and eighty -five hundredths percent (1.85%) of the member's final\naverage salary for each year of service if the member has earned greater\nthan twenty (20) but less than twenty -seven (27) years of service at\nretirement; or\n4. Two percent (2%) of the m ember's final average salary for each year of\nservice if the member has earned twenty -seven (27) or more years of\nservice at retirement;\n(f) For individuals who become nonuniversity members of the Teachers'\nRetirement System on or after January 1, 2022, the retirement allowance shall,\nexcept as adjusted by the board pursuant to KRS 161.633, be the following\npercentage of the member's final average salary for each year of service:\n1. One and seven -tenths percent (1.7%), which shall be increased\nincrementally each month the member's age at retirement is greater than\nsixty (60) so that the incremental increase is four one -hundredths of one\npercent (0.04%) for each complete additional year of age at retirement in\nexcess of sixty (60), not to exceed a value of one and nine-tenths percent\n(1.9%) at age sixty-five (65) or greater; plus\n2. a. One-quarter of one percent (0.25%), if the member has earned at\nleast twenty (20) but less than thirty (30) years of service at\nretirement; or\nb. One-half of one percent (0.50%) , if the member has earned thirty\n(30) or more years of service at retirement;\n(g) For individuals who become university members of the Teachers' Retirement\nSystem on or after January 1, 2022, the retirement allowance shall, except as\nadjusted by the board  pursuant to KRS 161.634, be the following percentage\nof the member's final average salary for each year of service:\n1. Seven-tenths of one percent (0.7%), which shall be increased\nincrementally each month the member's age at retirement is greater than\nsixty (60) so that the incremental increase is four one -hundredths of one\npercent (0.04%) for each complete additional year of age in excess of\nsixty (60), not to exceed a value of nine -tenths of one percent (0.9%) at\nage sixty-five (65) or greater; plus\n2. a. One-quarter of one percent (0.25%), if the member has earned at\nleast twenty (20) but less than thirty (30) years of service at\nretirement; or\nb. One-half of one percent (0.50%), if the member has earned thirty\n(30) or more years of service at retirement; and\n(h) The retirement allowance of a member at retirement, as measured on a life\nannuity, shall not exceed the member's last yearly salary or the member's final\naverage salary, whichever is the greater amount. For purposes of this section,\n\"yearly salary\" means the compensation earned by a member during the most\nrecent period of contributing service, either consecutive or nonconsecutive,\npreceding the member's effective retirement date and shall be subject to the\nprovisions of KRS 161.220(9) and (10). Th is paragraph shall not apply to the\nsupplemental benefit component.\n(2) Effective July 1, 2002, and annually on July 1 thereafter, the retirement allowance\nof each retired member and of each beneficiary of a retirement option shall be\nincreased in the amo unt of one and one -half percent (1.5%), provided the retired\nmember had been retired for at least the full twelve (12) months immediately\npreceding the date that the increase is effective. In the event that the retired member\nhad been retired for less than the full twelve (12) months immediately preceding the\ndate that the increase is effective, then the increase shall be reduced on a pro rata\nbasis by each month that the retired member had not been retired for the full twelve\n(12) months immediately preced ing the effective date of the increase. This\nsubsection shall not apply to benefits from the supplemental benefit component, and\nthe board may adjust this value for individuals who become members on or after\nJanuary 1, 2022, as provided by KRS 161.633 or 161.634, as applicable.\n(3) Any member qualifying for retirement under a life annuity with refundable balance\nshall be entitled to receive an annual allowance amounting to not less than four\nhundred dollars ($400) effective July 1, 2002, and not less than f our hundred forty\ndollars ($440) effective July 1, 2003, multiplied by the service credit years of the\nmember. These minimums shall apply to the retired members receiving annuity\npayments and to those members retiring on or subsequent to the effective date s\nlisted in this subsection, except the following:\n(a) Individuals who become members of the Teachers' Retirement System on or\nafter July 1, 2008; or\n(b) Members whose retirement allowance payment is reduced below the\nminimum allowance as a result of its division in a qualified domestic relations\norder or any other provision permitted under KRS 161.700.\n(4) The minimum retirement allowance provided in this section shall apply in the case\nof members retired or retiring under an option other than a life annui ty with\nrefundable balance in the same proportion to the benefits of the member and his or\nher beneficiary or beneficiaries as provided in the duly -adopted option tables at the\ntime of the member's retirement.\n(5) Effective July 1, 2008, the monthly allowa nce of each retired member and each\nrecipient of a retirement option of the retired member may be increased in an\namount not to exceed three and one -half percent (3.5%) of the monthly allowance\nin effect the previous month, provided the retired member had been retired for at\nleast the full twelve (12) months immediately preceding the date that the increase is\neffective. In the event that the retired member had been retired for less than the full\ntwelve (12) months immediately preceding the date that the inc rease is effective,\nthen the increase shall be reduced on a pro rata basis by each month that the retired\nmember had not been retired for the full twelve (12) months immediately preceding\nthe effective date of the increase. The level of increase provided f or in this\nsubsection shall be determined by the funding provided in the 2008 -2010 biennium\nbudget appropriation.\n(6) Effective July 1, 2009, the monthly allowance of each retired member and each\nrecipient of a retirement option of the retired member may b e increased in an\namount not to exceed seven -tenths of one percent (0.7%) of the monthly allowance\nin effect the previous month, provided the retired member had been retired for at\nleast the full twelve (12) months immediately preceding the date that the i ncrease is\neffective. In the event that the retired member had been retired for less than the full\ntwelve (12) months immediately preceding the date that the increase is effective,\nthen the increase shall be reduced on a pro rata basis by each month that t he retired\nmember had not been retired for the full twelve (12) months immediately preceding\nthe effective date of the increase. The level of increase provided for in this\nsubsection shall be determined by the funding provided in the 2008 -2010 biennium\nbudget appropriation.\n(7) Effective July 1, 1990, monthly payments of two hundred dollars ($200) shall be\npayable for the benefit of an adult child of a member retired for service when the\nchild's mental or physical condition is sufficient to cause dependency  on the\nmember at the time of retirement. Eligibility for this payment shall continue for the\nlife of the child or until the time the mental or physical condition creating the\ndependency no longer exists or the child marries. Benefits under this subsection\nshall apply to legally adopted survivors provided the proceedings for the adoption\nwere initiated at least one (1) year prior to the death of the member. The board of\ntrustees shall be the sole judge of eligibility or dependency and may require formal\napplication or information relating thereto. This payment may be applied for and\nmanaged by the parent who is the retired member without necessity of court order\nor other legal authority.\n(8) Members of the Teachers' Retirement System shall be subject to the annuity income\nlimitations imposed by Section 415 of the Internal Revenue Service Code.\n(9) Compensation in excess of the limitations imposed by Section 401(a)(17) o f the\nInternal Revenue Code shall not be used in determining a member's retirement\nannuity. The limitation on compensation for eligible members shall not be less than\nthe amount which was allowed to be taken into account by the retirement system in\neffect on July 1, 1993. For this purpose, an eligible member is an individual who\nwas a member of the retirement system before the first plan year beginning after\nDecember 31, 1995.","path":["KRS Chapter 161"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=57281","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:51:11Z","sha256":"aa984b4fa7751a7ca6d304db4ee36e10351c821c17bd1dba549be115ff266fda","source_id":"us-ky","stale":false,"prev":"us-ky/krs-161.615","next":"us-ky/krs-161.623"},"notice":"GroundRules: Original legal text. Not legal advice."}