{"data":{"id":"us-ky/krs-95.862","jurisdiction":"us-ky","citation":"KRS 95.862","heading":"Permanent occupational disability -- Annuity rate -- Reduction of benefits --","body":"Cost-of-living increases.\n(1) In the event a total and permanent occupational disability occurs, the member shall\nreceive an annuity equal to seventy percent (70%) of his las t rate of salary. If the\ncalculated monthly benefit is less than five hundred dollars ($500) per month, the\nboard may increase the monthly benefit to a minimum of five hundred dollars\n($500) monthly if the increase can be supported on an actuarially sound basis by the\nfund. This benefit shall begin at such time as his salary may cease, and shall be paid\nduring his entire lifetime. Any member who retired prior to June 21, 1974, shall\nreceive an increase of ten dollars ($10) per month for each year or part th ereof of\nretirement prior to June 21, 1974, with a maximum increase of one hundred and\nseventy dollars ($170) per month. Upon his death, his eligible widow and minor\nchildren, if any, shall receive the benefits as provided under KRS 95.860.\n(2) If the member retired for total and permanent occupational disability would receive\nfrom a combination of (a) pension disability payments pursuant to subsection (1) of\nthis section, and (b) workers' compensation payments, excluding spouse or\ndependent children's allo wances or payments for medical expenses or legal fees\nrelated to the workers' compensation claim, an amount greater than one hundred\npercent (100%) of his last rate of salary, then the pension system benefits shall be\nreduced to the point that the combined  payments equal one hundred percent (100%)\nof the last rate of salary. The benefit shall not be reduced, however, below an\namount equal to two and one -half percent (2-1/2%) of average salary for each year\nof the member's service. Any reduction in the payment shall be based upon workers'\ncompensation benefits applicable at the time the payment is granted, and not upon\nsubsequent increases in either benefit. If workers' compensation benefits are\nreduced at a subsequent time, the retiree shall inform the board , and the board shall\nincrease the benefit by the amount of the reductions, but not by more than an\namount which would increase the benefit to seventy percent (70%) of the last rate of\nsalary, excluding cost-of-living increases. The board of trustees may p ay estimated\nbenefits to a retiree, upon qualification for the benefits, based upon an estimate of\nworkers' compensation benefits until such amounts are actually determined, at\nwhich time a final calculation of the actual benefits shall be determined and t he\naccount corrected retroactive to the effective date of the benefit. If workers'\ncompensation benefits are paid in lump sums, the board shall reduce the disability\nretirement annuity on a monthly rather than a lump -sum basis. The amount of the\nmonthly reduction shall be based upon the life expectancy of the retired member.\nThe board may request the assistance of the general manager of Kentucky\nRetirement Systems to calculate the reduction in the retirement benefit when lump\nsum payments are involved, and the general manager shall provide such assistance\nupon request.\n(3) Any member retired pursuant to this section shall receive the same cost -of-living\nincreases granted to other retirees pursuant to the terms of KRS 95.859(3).","path":["KRS Chapter 95"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=26086","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:56Z","sha256":"37f014293f0463c3f91bec04560d4410854d13f25d7100d156e80fb0e5018afe","source_id":"us-ky","stale":false,"prev":"us-ky/krs-95.861","next":"us-ky/krs-95.863"},"notice":"GroundRules: Original legal text. Not legal advice."}