{"data":{"id":"us-ky/krs-21.405","jurisdiction":"us-ky","citation":"KRS 21.405","heading":"Increase of retirement benefits.","body":"(1) As of July 1, 1982, the board of trustees of the Kentucky Judicial Form Retirement\nSystem shall recompute the monthly benefits of persons then receiving benefits\nunder the Judicial Retirement Plan, provided the person began participating in the\nplan prior to January 1, 2014, by using the same service credit rate and the same\nnumber of years of service that were used in computing the benefits then being\nreceived but substituting, in lieu of the \"final compensation\" that was used in the\ncomputation of the benefit then being received an amount equal to fifty-five percent\n(55%) of the final compensation of the office in which the credit was earned for a\nperson retiring as of June 30, 1982.\n(2) As of July 1, 1983, and as of July 1 of each year thereafter, the boa rd of trustees of\nthe Kentucky Judicial Form Retirement System shall recompute the monthly\nbenefits of persons then receiving benefits under the Judicial Retirement Plan,\nprovided the person began participating in the plan prior to January 1, 2014, by\nusing the following formula: two and three -fourths percent (2.75%) times fifty -five\npercent (55%) of the final compensation of the office in which the retirement credit\nwas earned for a person retiring as of the recomputation date, times the number of\nyears of service credit (not to exceed thirty-six (36) years).\n(3) In making the recomputations provided for in subsections (1) and (2) of this section\nfor members who began participating in the plan prior to January 1, 2014, the same\nreduction factor, in case of an actuarially reduced benefit or a surviving spouse's\nbenefit, shall be used as was used in determining the benefit then being received. If\nthe benefit as recomputed in accordance with subsection (1) or (2) of this section is\nhigher than the benefit then being received, the recomputed benefit shall thereafter\nbe paid monthly, commencing as of the date specified for the recomputation,\nsubject to future adjustment at ensuing annual recomputations in accordance with\nsubsection (2) of this section. For the pur poses of this section, the following office\nequivalents shall be used: Judge of former Court of Appeals - Justice of Supreme\nCourt; any position other than judge or justice that was covered by the Judicial\nRetirement System - Judge of the present Court of Appeals.\n(4) Effective August 1, 1998, to July 1, 2008, a recipient of a monthly pension benefit\nfrom the Kentucky Judicial Retirement Plan who began participating in the plan\nprior to January 1, 2014, shall have his or her benefit increased on July 1 of e ach\nyear by the percentage increase in the annual average of the consumer price index\nfor all urban consumers for the most recent calendar year as published by the\nFederal Bureau of Labor Statistics, not to exceed five percent (5%). In determining\nthe state's appropriation to the Judicial Retirement Fund, only the costs of increases\ngranted as of the most recent valuation date shall be recognized. The benefits of this\nsubsection as provided on August 1, 1998, to July 1, 2008, shall not be considered\nas bene fits protected by the inviolable contract provisions of KRS 21.480. The\nGeneral Assembly reserves the right to suspend or reduce the benefits conferred in\nthis subsection if in its judgment the welfare of the Commonwealth so demands.\n(5) (a) Effective July 1, 2009, and on July 1 of each year thereafter, a recipient of a\nmonthly pension benefit from the Kentucky Judicial Retirement Plan shall\nhave his or her benefit increased by one and one-half percent (1.5%), if:\n1. The funding level of the plan is greater  than one hundred percent\n(100%) and subsequent legislation authorizes the use of any surplus\nactuarial assets to provide an increase in retirement allowances\ndescribed by this subsection; or\n2. The General Assembly appropriates sufficient funds to fully p refund the\nincrease described by this subsection in the year the increase is\nprovided.\n(b) The board of trustees of the Kentucky Judicial Form Retirement System shall,\nat least thirty (30) days prior to the beginning of regular sessions of the\nGeneral Assembly held in even-numbered years, advise the General Assembly\nof the following:\n1. Whether the plan has a funding level greater than one hundred percent\n(100%) and if the plan can support an increase in recipients' retirement\nallowances as provided by paragraph (a) of this subsection over the next\nbudget biennium without reducing the fun ding level of the plan below\none hundred percent (100%); and\n2. If no surplus actuarial assets are available, the level of funds needed to\nfully prefund an increase for plan recipients over the next budget\nbiennium if a one and one -half percent (1.5%) incr ease is provided\nannually over the biennium.\n(c) For purposes of this subsection, \"funding level\" means the actuarial value of\nassets divided by the actuarially accrued liability expressed as a percentage\nthat is determined and reported by the plan's actua ry in the plan's actuarial\nvaluation.\n(d) The full increase described by this subsection shall only be provided if the\nrecipient has been receiving a benefit for at least twelve (12) months prior to\nthe effective date of the increase. If the recipient has been receiving a benefit\nfor less than (12) months prior to the effective date of the increase provided\nby this subsection, the increase shall be reduced on a pro rata basis for each\nmonth the recipient has not been receiving benefits in the twelve (12) mo nths\npreceding the effective date of the increase.\n(e) In determining the state's appropriation to the Judicial Retirement Fund, only\nthe costs of increases granted as of the most recent valuation date shall be\nrecognized.\n(f) The benefits of this subsecti on as provided on July 1, 2009, and thereafter\nshall not be considered as benefits protected by the inviolable contract\nprovisions of KRS 21.480. The General Assembly reserves the right to\nsuspend or reduce the benefits conferred in this subsection if in i ts judgment\nthe welfare of the Commonwealth so demands.\n(6) In addition to the increase to a recipient's retirement allowance as provided by\nsubsection (5) of this section, the General Assembly may, by subsequent legislation,\nprovide supplemental increases  to a recipient's retirement allowance to help adjust\nfor actual changes in the recipient's cost of living if the General Assembly\nappropriates sufficient funds to fully prefund the benefit in the year the increase is\nprovided.","path":["KRS Chapter 21"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=44942","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:48:41Z","sha256":"39e2459f71256fec2437e9af8cab5b9d2a50dd28096de0425ff3e8790f5c0d46","source_id":"us-ky","stale":false,"prev":"us-ky/krs-21.402","next":"us-ky/krs-21.410"},"notice":"GroundRules: Original legal text. Not legal advice."}