{"data":{"id":"us-ky/krs-95.859","jurisdiction":"us-ky","citation":"KRS 95.859","heading":"Retirement annuity -- Rate -- Minimum payment -- Annual cost -of-living","body":"increase.\n(1) The rate of retirement annuity shall be two and one -half percent (2.5%) of average\nsalary, as defined in KRS 95.851(13), for each year of total service up to and\nincluding thirty (30) years, subject to a maximum of seventy -five percent (75%) of\naverage salary. Fractional periods of service shall be considered in the calculation of\nsuch annuities according to the aforesaid rate. If the calculated benefit for a member\nis less than four thousand eight hundred dollars ($4,800) per year, the board may\nincrease the annual benefit to a minimum of four thousand eight hundred dollars\n($4,800) if the increase can be supported on an actuarially sound basis by the fund.\n(2) Any member who retired prior to June 21, 1974, shall receive an increase of ten\ndollars ($10) per month for each year or part thereof of retirement prior to June 21,\n1974, with a maximum increase of one hundred seventy dollars ($170) per month.\nNo surviving wido w of a retiree shall receive a pension of less than one hundred\nand fifty dollars ($150) per month. The board may increase the minimum benefit to\nno more than five hundred dollars ($500) per month if the increase can be supported\non an actuarially sound ba sis by the fund. When Social Security benefits are\nincreased, the surviving widows' minimum shall be increased by a like percentage,\nbut the pension increase shall not exceed five percent (5%).\n(3) (a) Within six (6) months after the performance of the actuarial valuation required\nby KRS 95.872(6), the rate of retirement annuity of each annuitant shall be\nincreased annually by an amount determined by the study to reflect so much of\nthe annual increase in the cost of living of the annuitant as may be support ed\non an actuarially sound basis by the fund. So long as the same is published,\nsuch studies shall rely on the percentage increase in the annual average of the\nconsumer price index for all items for the most recent calendar year as\npublished by the United States Department of Labor's Bureau of Labor\nStatistics, not to exceed five percent (5%). In any year that the percentage\nincrease in the annual average of the consumer price index for all items is less\nthan five percent (5%), the board may set the annual increase at a rate higher\nthan the increase of the consumer price index but not in excess of five percent\n(5%), if the board determines that the increase can be supported on an\nactuarially sound basis by the fund. The increases shall be payable to all\nmembers of the fund on the effective date of the increases, and all increases\ngranted on July 15, 1990, or thereafter shall be compounded.\n(b) If the board determines that no annual cost -of-living adjustment on annuities\ncan be paid in accordance with paragrap h (a) of this subsection, the city may,\nby action of the city's legislative body, require the fund to provide an increase\nin annuities paid to annuitants of the fund subject to the following conditions:\n1. Any cost-of-living adjustment the city directs the  fund to pay shall not\nexceed the percentage increase in the annual average of the consumer\nprice index for all items for the most recent calendar year as published\nby the United States Department of Labor's Bureau of Labor Statistics or\nfive percent (5%), whichever is less;\n2. Each annual cost -of-living adjustment provided under this paragraph\nshall require the action of the city's legislative body before being\nprovided to annuitants of the fund; and\n3. The city's legislative body shall have the authority to suspend, reduce, or\nrepeal any cost-of-living adjustments approved under this paragraph if in\ntheir judgment the welfare of the city so demands.\n(4) A surviving spouse who does not receive a pension increase pursuant to subsection\n(2) of this section or  whose pension increase pursuant to the Social Security\nincrease is less than the cost-of-living increase in subsection (3) of this section shall\nreceive the same increase an annuitant receives pursuant to subsection (3) of this\nsection, not to exceed a total of five percent (5%).","path":["KRS Chapter 95"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=44999","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:56Z","sha256":"03878e2b7e9d0b1148d3e8eb7d6c60211dfd7313b4e1ad2528f1e2fbdcb26213","source_id":"us-ky","stale":false,"prev":"us-ky/krs-95.858","next":"us-ky/krs-95.860"},"notice":"GroundRules: Original legal text. Not legal advice."}