{"data":{"id":"us-ky/krs-61.691","jurisdiction":"us-ky","citation":"KRS 61.691","heading":"Increase of benefits.","body":"(1) Effective August 1, 1996, to July 1, 2008, a recipient of a retirement allowance\nunder KRS  16.505 to 16.652 and 61.510 to 61.705 shall have his or her\nretirement allowance increased on July 1 of each year by the percentage\nincrease in the annual average of the consumer price index for all urban\nconsumers  for the most recent calendar year as published by the federal\nBureau of Labor Statistics, not to exceed five percent (5%). In determining the\nannual employer contribution rate, only the cost of increases granted as of the\nmost recent valuation date shall be recognized. The benefits of this subsection\nas provided on August 1, 1996, to July 1, 2008, shall not be considered as\nbenefits protected by the inviolable contract provisions of KRS  16.652 and\n61.692. The General Assembly reserves the right to suspend or reduce the\nbenefits conferred in this subsection if in their judgment the welfare of the\nCommonwealth  so demands.\n(2) (a) Effective July 1, 2009, and on July 1 of each year thereafter, a recipient of\na retirement allowance under KRS 16.505 to 16.652 and 61.510 to 61.705\nshall have his or her retirement allowance increased by one and one-half\npercent (1.5%), if:\n1. The funding level of the system 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 for the system which has the surplus\nactuarial assets; or\n2. The  General Assembly  appropriates sufficient funds or directs\npayment  of funds to fully prefund the increase described by this\nsubsection in the year the increase is provided.\n(b) The board of trustees of the Kentucky Retirement Systems shall, at least\nthirty (30) days prior to the beginning of regular sessions of the General\nAssembly held in even-numbered years, advise the General Assembly of\nthe following:\n1. Which  systems have a funding level greater than one hundred\npercent (100%) and can support an increase in recipients' retirement\nallowances as provided by paragraph (a) of this subsection over the\nnext budget biennium without reducing the funding level of the\nsystem below one hundred percent (100%); and\n2. If no surplus actuarial assets are available, the level of funds\nneeded  to fully prefund an increase for system recipients over the\nnext budget biennium if a one and one-half percent (1.5%) increase\nis provided annually over the biennium.\n(c) For purposes of this subsection, \"funding level\" means the actuarial value\nof assets divided by the actuarially accrued liability expressed as a\npercentage that is determined and reported by the system's actuary in the\nsystem's actuarial valuation.\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\nto the effective date of the increase. If the recipient has been receiving a\nbenefit for less than twelve (12) months prior to the effective date of the\nincrease provided by this subsection, the increase shall be reduced on a\npro rata basis for each month  the recipient has not been receiving\nbenefits in the twelve (12) months preceding the effective date of the\nincrease.\n(e) In determining the annual employer contribution rate, only the cost of\nincreases granted as  of the most  recent valuation date shall be\nrecognized.\n(f) The  benefits of this subsection as provided on July 1, 2009, and\nthereafter shall not be considered as benefits protected by the inviolable\ncontract provisions of KRS  16.652 and 61.692. The General Assembly\nreserves the right to suspend or reduce the benefits conferred in this\nsubsection if, in its judgment, the welfare of the Commonwealth  so\ndemands.\n(3) A  reemployed retired member  whose payments are suspended as provided\nunder KRS  61.637 shall be eligible for an increase in his or her suspended\nretirement allowance as provided under this section, computed as if he or she\nwere  receiving the retirement allowance at the time the increase under this\nsection is effective.\n(4) In addition to the increase to a recipient's retirement allowance as provided by\nsubsection (2) of this section, the General Assembly may, by subsequent\nlegislation, provide supplemental increases to a  recipient's retirement\nallowance to help adjust for actual changes in the recipient's cost of living if the\nGeneral Assembly appropriates sufficient funds to fully prefund the benefit in\nthe year the increase is provided.","path":["KRS Chapter 61"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=50844","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:16Z","sha256":"2570f20aee4829980dcde18a1fe1777c5b597e3cf96876fc7f868c9df1d5a26c","source_id":"us-ky","stale":false,"prev":"us-ky/krs-61.690","next":"us-ky/krs-61.692"},"notice":"GroundRules: Original legal text. Not legal advice."}