{"data":{"id":"us-ky/krs-61.635","jurisdiction":"us-ky","citation":"KRS 61.635","heading":"Optional retirement plans.","body":"(1) Each member shall have the right to elect to have his or her retirement allowance\npayable under any one (1) of the options set forth in this section in lieu of the\nretirement allowance otherwise payable to the member upon retirement under any\nof the provisions of KRS 16.505 to 16.652, 61.510 to 61.705, and 78.510 to 78.852.\nThe amount of any optional retirement allowance shall be actuarially equivalent to\nthe amount of retirement allowance otherwise payable to the member.\n(2) Survivorship one hundred percen t (100%). The member may elect to receive a\ndecreased retirement allowance during his or her lifetime and have the retirement\nallowance continued after the member's death to his or her beneficiary during the\nlifetime of the person.\n(3) Survivorship sixty-six and two-thirds percent (66-2/3%). The member may elect to\nreceive a decreased retirement allowance during his or her lifetime and have two -\nthirds (2/3) of the retirement allowance continue after the member's death to his or\nher beneficiary during the lifetime of the person.\n(4) Survivorship fifty percent (50%). The member may elect to receive a decreased\nretirement allowance during his or her lifetime and have one -half (1/2) of the\nretirement allowance continued after the member's death to his or her ben eficiary\nduring the lifetime of the person.\n(5) Life with ten (10) years certain. The member less than age seventy -six (76) may\nelect to receive a monthly retirement allowance during his or her lifetime which\nshall guarantee payments for one hundred twenty  (120) months. If the member dies\nbefore receiving payments for one hundred twenty (120) months, the member's\nbeneficiary shall receive the remaining payments monthly, for the duration of the\none hundred twenty (120) months' period. However, if the trust i s designated as\nbeneficiary, the trustee of the trust may elect to receive a lump -sum payment which\nshall be the actuarial equivalent to the remaining payments, or the trustee may elect\nto continue the remaining monthly payments to the trust of the member. If the estate\nis designated as beneficiary, the estate shall receive a lump -sum payment which\nshall be the actuarial equivalent to the remaining payments.\n(6) Life with fifteen (15) years certain. The member less than age sixty -eight (68) may\nelect to rec eive a monthly retirement allowance during his or her lifetime which\nshall guarantee payments for one hundred eighty (180) months. If the member dies\nbefore receiving payments for one hundred eighty (180) months, the member's\nbeneficiary shall receive the remaining payments monthly for the duration of the\none hundred eighty (180) months' period. However, if the trust is designated as\nbeneficiary, the trustee of the trust may elect to receive a lump -sum payment which\nshall be the actuarial equivalent to the remaining payments, or the trustee may elect\nto continue the remaining payments to the trust of the member. If the estate is\ndesignated as beneficiary, the estate shall receive a lump -sum payment which shall\nbe the actuarial equivalent to the remaining payments.\n(7) Life with twenty (20) years certain. The member less than age sixty -two (62) may\nelect to receive a monthly retirement allowance during his or her lifetime which\nshall guarantee payments for two hundred forty (240) months. If the member dies\nbefore receiving payments for two hundred forty (240) months, the member's\nbeneficiary shall receive the remaining payments for the duration of the two\nhundred forty (240) months period. However, if the trust is beneficiary, the trustee\nof the trust may elect  to receive a lump -sum payment which shall be the actuarial\nequivalent to the remaining payments, or the trustee may elect to continue the\nremaining payments to the trust of the member. If the estate is designated as\nbeneficiary, the estate shall receive a  lump-sum payment which shall be the\nactuarial equivalent to the remaining payments.\n(8) Social Security adjustment options. These options shall be available to any member\nwho has not attained age sixty-two (62) as follows:\n(a) No survivor rights. The memb er may elect to receive an increased retirement\nallowance from his or her effective retirement date through the month he or\nshe attains age sixty -two (62) at which time his or her retirement allowance\nshall be decreased for the remainder of his or her lifetime;\n(b) Survivor rights. The member may elect to receive an increased retirement\nallowance from his or her effective retirement date through the month he or\nshe attains age sixty -two (62) based on the option payable under subsection\n(2) of this section, if the retirement allowance shall be decreased in the month\nfollowing the month he or she attains age sixty -two (62), or the month\nfollowing the month he or she would have attained age sixty -two (62), in\nevent of the member's death, and have the retirement  allowance continue after\nthe member's death to his or her beneficiary during the lifetime of the person.\n(9) Beneficiary Social Security adjustment option. This option is available to the\nbeneficiary of a deceased member if the beneficiary, who is a person, has not\nattained age sixty (60), and is eligible to receive Social Security payments at age\nsixty (60). The  beneficiary may elect to receive during his or her lifetime an\nincreased retirement allowance based on his or her annual benefit payable for life.\nThe payment shall begin on his or her effective retirement date and continue\nthrough the month he or she att ains age sixty (60) at which time his or her\nretirement allowance shall be decreased for the remainder of his or her lifetime.\n(10) Pop-up option. The member may elect to receive a decreased retirement allowance\nduring his or her lifetime and have the reti rement allowance continued after the\nmember's death to his or her beneficiary during the lifetime of the person. If the\nbeneficiary dies prior to the member, or if the beneficiary is the member's spouse\nand they divorce, the member's retirement allowance s hall increase to the amount\nthat would have been payable as a single life annuity.\n(11) Actuarial equivalent refund. A member who began participating in the system prior\nto January 1, 2014, may elect to receive a one (1) time lump -sum payment which\nshall b e the actuarial equivalent of the amount payable for a period of sixty (60)\nmonths under KRS 61.595(1).\n(12) Partial lump-sum option.\n(a) No survivor rights. A member may elect to receive a one -time lump -sum\npayment equal to twelve (12), twenty -four (24), thirty-six (36), forty -eight\n(48), or sixty (60) monthly retirement allowances payable under the\napplicable retirement formula for the system and receive a reduced monthly\nretirement allowance payable for his or her lifetime. The lump -sum payment\nshall be paid in the month the first monthly retirement allowance is payable.\n(b) Survivor rights. A member may elect to receive a one -time lump -sum\npayment equal to twelve (12), twenty -four (24), thirty -six (36), forty -eight\n(48), or sixty (60) monthly retirement allowances payable under subsection\n(2) of this section and receive a reduced monthly retirement allowance\npayable for his or her lifetime. The lump -sum payment shall be paid in the\nmonth the first monthly retirement allowance is payable. The reduced\nretirement allowance shall be continued after the member's death to his or her\nbeneficiary during the lifetime of the person.\n(c) In order to explain the partial lump -sum option to members, the Authority\nshall:\n1. Provide, for all retirement estimates that incl ude the partial lump -sum\noption, including estimates calculated by a member using an automatic\nestimator available on the Authority's website, the additional months of\nservice a member would have to be employed in order to recoup the\nactuarial reduction in  his or her monthly retirement allowance from\nselecting a partial lump-sum option at each payment level; and\n2. Prepare and make available to all members and participating employers\nin the form of a paper or electronic pamphlet or booklet a summary of\nthe partial lump-sum option, written in a manner that can be understood\nby the average member and sufficiently accurate and comprehensive to\nreasonably apprise them of the benefits and potential consequences,\nincluding federal tax consequences, of taking a partial lump-sum option.\n(13) The other provisions of this section notwithstanding, the beneficiary of a retired\nmember of the General Assembly shall, after the member's death, receive sixty -six\nand two-thirds percent (66 -2/3%) of the member's retirement allo wance during his\nor her lifetime if the member of the General Assembly began participating in the\nsystem prior to January 1, 2014, and has elected this option and has made\ncontributions in accordance with subsection (14) of this section and of KRS 61.560.\nThe retirement allowance of the retired member of the General Assembly shall not\nbe actuarially reduced to provide for this survivor benefit.\n(14) A member of the General Assembly who began participating in the system prior to\nJanuary 1, 2014, who wishes t o obtain the survivorship option specified in\nsubsection (13) of this section shall so notify the Kentucky Public Pensions\nAuthority:\n(a) Within thirty (30) days after first becoming a member of the General\nAssembly if he or she is not a member of the Gene ral Assembly on July 15,\n1980; or\n(b) Within thirty (30) days after July 15, 1980, if he or she is a member of the\nGeneral Assembly on July 15, 1980.\n(15) The system shall forward to members of the General Assembly a form on which a\nmember who began partic ipating in the system prior to January 1, 2014, may elect\nthe option provided for in subsections (13) and (14) of this section.\n(16) (a) The options described in subsections (2), (3), (4), (8)(b), (10), (12)(b), and\n(13) of this section shall be extended t o the member only if the designated\nbeneficiary is a person or a special needs trust.\n(b) If the beneficiary is a special needs trust, the following shall apply:\n1. The age of the beneficiary of the special needs trust shall be used to\ndetermine the relevant actuarial factors;\n2. Upon the death of the retired member or beneficiary, the trustee of that\ntrust shall notify the Authority of the death of the retired member or\nbeneficiary;\n3. Any retirement allowance payments made to a special needs trust that\nare not properly payable to the special needs trust shall be returned to\nthe Authority and shall not be subject to claims for reimbursement from\nany state for Medicaid benefits paid on behalf of the beneficiary of the\nspecial needs trust under any Medicaid payback provision; and\n4. The Authority may promulgate administrative regulations in accordance\nwith KRS Chapter 13A to administer this subsection.","path":["KRS Chapter 61"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=57210","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:15Z","sha256":"66ee225c6bab40fa5bf8127ea791fc9aba2ccfe99d66e2c6e9752f487272d7dd","source_id":"us-ky","stale":false,"prev":"us-ky/krs-61.630","next":"us-ky/krs-61.637"},"notice":"GroundRules: Original legal text. Not legal advice."}