{"data":{"id":"us-ky/krs-78.5518","jurisdiction":"us-ky","citation":"KRS 78.5518","heading":"Increase of benefits.","body":"(1) Effective August 1, 1996, to July 1, 2008, a recipient of a retirement allowance\nunder  KRS  78.510 to 78.852 shall have his or her retirement allowance\nincreased on July 1 of each year by the percentage increase in the annual\naverage of the consumer price index for all urban consumers for the most\nrecent calendar year as published by the federal Bureau of Labor Statistics, not\nto exceed five percent (5%). In determining the annual employer contribution\nrate, only the cost of increases granted as of the most recent valuation date\nshall be recognized. The benefits of this subsection as provided on August 1,\n1996, to July 1, 2008, shall not be considered as benefits protected by the\ninviolable contract provisions of KRS  78.852. The General Assembly reserves\nthe right to suspend or reduce the benefits conferred in this subsection if in\ntheir judgment the welfare of the Commonwealth  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  78.510 to 78.852 shall have his or her\nretirement allowance increased by one and one-half percent (1.5%), if:\n1. The  funding level of the pension fund is greater than one hundred\npercent (100%) and subsequent legislation authorizes the use of\nany  surplus actuarial assets to provide an increase in retirement\nallowances described by this subsection for the pension fund which\nhas the surplus actuarial assets; or\n2. The General Assembly directs payment of employer contributions to\nfully prefund the increase described by this subsection in the year\nthe increase is provided.\n(b) The board of trustees of the system shall, at least thirty (30) days prior to\nthe beginning of regular sessions of the General Assembly  held in\neven-numbered years, advise the General Assembly of the following:\n1. Which pension funds 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\npension fund below one hundred percent (100%); and\n2. If no surplus actuarial assets are available, the level of employer\ncontribution funds needed to fully prefund an increase for pension\nfund recipients over the next budget biennium if a one and one-half\npercent (1.5%) increase is 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 for each pension fund.\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) 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  78.852. The General Assembly reserves the\nright to suspend or reduce the benefits conferred in this subsection if, in\nits judgment, the welfare of the Commonwealth  so demands.","path":["KRS Chapter 78"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=50777","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:38Z","sha256":"d4e9f74003ff4794235a05b16656bfb8d7386af3e680bf817c2f418e79562bc9","source_id":"us-ky","stale":false,"prev":"us-ky/krs-78.5516","next":"us-ky/krs-78.5520"},"notice":"GroundRules: Original legal text. Not legal advice."}