Kentucky Statutes 161.640 – Payment of annuities — Payroll deductions — Electronic fund transfer, exception
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(1) Retirement annuities shall be payable monthly. The first payment to an annuitant shall be made at the payment date at the end of one (1) full payment period after his retirement and shall consist of one (1) regular monthly payment. Retirement for a member receiving one (1) full year of service credit during a fiscal year shall be no earlier than July 1 next following the end of such fiscal year. Notwithstanding any other statutory provisions to the contrary, members filling positions that customarily require twelve (12) months of service during a fiscal year cannot retire prior to July
1 without a corresponding pro rata reduction in salary and service credit. The board of trustees may determine which positions customarily require twelve (12) months of service during a fiscal year.
(2) The board of trustees may enter into agreements with retired members for payroll deductions when it is deemed in the best interest of the retired members and the retirement system.
(3) (a) All new retirees, on or after July 1, 1998, shall receive their monthly annuity checks by electronic fund transfer. All retiree, beneficiary, and survivor monthly allowance payments, except as otherwise provided in paragraph (b) of this subsection, shall be made by electronic fund transfer. Except as provided in paragraph (b) of this subsection, all monthly payments shall be made payable only to an account solely in the name of the retiree, beneficiary, or survivor as an individual and natural person, or to a joint account in the name of the retiree, beneficiary, or survivor as an individual and natural person and another individual and natural person.
(b) If the retiree, beneficiary, or survivor is a resident of a nursing or assisted-care home, monthly payments may be made to the order of the nursing or assisted- care home for the benefit of the retiree, beneficiary, or survivor by including the retiree’s, beneficiary’s, or survivor’s name. Monthly annuity checks so paid to a nursing or assisted-care home may be sent by mail rather than electronic fund transfer.
Effective: July 1, 2008
History: Amended 2008 Ky. Acts ch. 78, sec. 20, effective July 1, 2008. — Amended
2004 Ky. Acts ch. 121, sec. 21, effective July 1, 2004. — Amended 1998 Ky. Acts ch.
515, sec. 13, effective July 1, 1998. — Repealed and reenacted 1990 Ky. Acts ch.
476, Pt. V, sec. 533, effective July 13, 1990. — Amended 1980 Ky. Acts ch. 206, sec.
10, effective July 1, 1980. — Amended 1972 Ky. Acts ch. 82, sec. 21. — Amended
1952 Ky. Acts ch. 144, sec. 1. — Recodified 1942 Ky. Acts ch. 208, sec. 1, effective
October 1, 1942, from Ky. Stat. sec. 4506b-46.
1 without a corresponding pro rata reduction in salary and service credit. The board of trustees may determine which positions customarily require twelve (12) months of service during a fiscal year.
Terms Used In Kentucky Statutes 161.640
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
- Year: means calendar year. See Kentucky Statutes 446.010
(2) The board of trustees may enter into agreements with retired members for payroll deductions when it is deemed in the best interest of the retired members and the retirement system.
(3) (a) All new retirees, on or after July 1, 1998, shall receive their monthly annuity checks by electronic fund transfer. All retiree, beneficiary, and survivor monthly allowance payments, except as otherwise provided in paragraph (b) of this subsection, shall be made by electronic fund transfer. Except as provided in paragraph (b) of this subsection, all monthly payments shall be made payable only to an account solely in the name of the retiree, beneficiary, or survivor as an individual and natural person, or to a joint account in the name of the retiree, beneficiary, or survivor as an individual and natural person and another individual and natural person.
(b) If the retiree, beneficiary, or survivor is a resident of a nursing or assisted-care home, monthly payments may be made to the order of the nursing or assisted- care home for the benefit of the retiree, beneficiary, or survivor by including the retiree’s, beneficiary’s, or survivor’s name. Monthly annuity checks so paid to a nursing or assisted-care home may be sent by mail rather than electronic fund transfer.
Effective: July 1, 2008
History: Amended 2008 Ky. Acts ch. 78, sec. 20, effective July 1, 2008. — Amended
2004 Ky. Acts ch. 121, sec. 21, effective July 1, 2004. — Amended 1998 Ky. Acts ch.
515, sec. 13, effective July 1, 1998. — Repealed and reenacted 1990 Ky. Acts ch.
476, Pt. V, sec. 533, effective July 13, 1990. — Amended 1980 Ky. Acts ch. 206, sec.
10, effective July 1, 1980. — Amended 1972 Ky. Acts ch. 82, sec. 21. — Amended
1952 Ky. Acts ch. 144, sec. 1. — Recodified 1942 Ky. Acts ch. 208, sec. 1, effective
October 1, 1942, from Ky. Stat. sec. 4506b-46.