{"data":{"id":"us-ky/krs-6.521","jurisdiction":"us-ky","citation":"KRS 6.521","heading":"Increase of retirement benefits.","body":"(1) As of July 1 of each year, the board of trustees of the Kentucky Judicial Form\nRetirement System shall recompute the monthly benefits of persons then receiving\nbenefits under the Legislators' Retirement Plan, provided the person began\nparticipating in the plan prior to January 1, 2014, by using the following formula:\nthree and one -half percent (3.5%) times fifty -five percent (55%) of the final\ncompensation of the office in which the credit was earned for a person retiring as of\nthe recomputation date, times  the number of years of service credit (not to exceed\ntwenty-eight (28) years). In making the recomputation, the same reduction factor, in\ncase of an actuarially reduced benefit or a surviving spouse's benefit, shall be used\nas was used in determining the benefit then being received. If the benefit as\nrecomputed in accordance with this section is higher than the benefit then being\nreceived, the recomputed benefit shall thereafter be paid monthly, commencing as\nof the date specified for the recomputation, su bject to future adjustment at ensuing\nrecomputations in accordance with this section.\n(2) Effective August 1, 1998, to July 1, 2008, a recipient of a monthly pension benefit\nfrom the Legislators' Retirement Plan who began participating in the plan prior to\nJanuary 1, 2014, shall have his or her benefit increased on July 1 of each year by\nthe percentage increase in the annual average of the consumer price index for all\nurban consumers for the most recent calendar year as published by the Federal\nBureau of La bor Statistics, not to exceed five percent (5%). In determining the\nstate's appropriation to the Legislators' 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 benefits protected by the inviolable contract provisions of KRS 6.505. 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(3) (a) Effective July 1, 2009, and on July 1 of each year thereafter, a recipient of a\nmonthly pension benefit from the Legislators' Retirement Plan shall have his\nor 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 prefund 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 (3 0) 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 suppor t an increase in recipients' retirement\nallowances as provided by paragraph (a) of this subsection over the next\nbudget biennium without reducing the funding 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%) increase 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 actuary in the plan's actuarial\nvaluation.\n(d) The full increase desc ribed by this subsection shall only be provided if the\nrecipient has been receiving a retirement benefit for at least twelve (12)\nmonths prior to the effective date of the increase. If the recipient has been\nreceiving a benefit for less than twelve (12) mo nths prior to the effective date\nof the increase provided by this subsection, the increase shall be reduced on a\npro rata basis for each month the recipient has not been receiving a benefit in\nthe twelve (12) months preceding the effective date of the increase.\n(e) In determining the state's appropriation to the Legislators' Retirement Fund,\nonly the costs of increases granted as of the most recent valuation date shall\nbe recognized.\n(f) The benefits of this subsection as provided on July 1, 2009, and there after\nshall not be considered as benefits protected by the inviolable contract\nprovisions of KRS 6.505. The General Assembly reserves the right to suspend\nor reduce the benefits conferred in this subsection if in its judgment the\nwelfare of the Commonwealth so demands.\n(4) In addition to the increase to a recipient's retirement allowance as provided by\nsubsection (3) 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 6"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=44937","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:48:24Z","sha256":"cf0fc4ca75e070f4156a80760aed2e6224caa389a2dcf289ca5503b2610ad4ff","source_id":"us-ky","stale":false,"prev":"us-ky/krs-6.520","next":"us-ky/krs-6.525"},"notice":"GroundRules: Original legal text. Not legal advice."}