Kentucky Retirement Benefits Plan

• Category: Corporations - Public - Retirement
• State: Multi-State
• Control #: US-CC-21-166
• Format: Word; Rich Text

Description

21-166 21-166 . . . Retirement Benefits Plan under which trustees and officers with 15 or more years of service receive annual retirement benefit based on percentage of average annual compensation for 36 months of service immediately preceding retirement. The amount of annual benefit ranges from 25% of such average annual compensation for 15 years of service to 75% for 25 or more years of service The Kentucky Retirement Benefits Plan is a comprehensive pension program provided to eligible public employees in the state of Kentucky. This retirement plan aims to provide financial security and stability to these individuals during their retirement years. Here, we will delve into the details of the Kentucky Retirement Benefits Plan, highlighting its features, benefits, eligibility criteria, and discuss the two main types of retirement plans available. The Kentucky Retirement Benefits Plan offers retirement benefits to various public employees, including state government employees, teachers, judges, and other local government employees. It is important to note that there are two main types of retirement plans within the Kentucky Retirement System (MRS) — the Kentucky Employees Retirement System (KEYS) and the County Employees Retirement System (CARS). 1. Kentucky Employees Retirement System (KEYS): The Kentucky Employees Retirement System serves state government employees and provides numerous retirement options. Some key features of KEYS are as follows: a) Benefit Structure: KEYS offers a defined benefit plan wherein participants receive retirement income based on a formula combining factors such as years of service, average final compensation, and an accrual rate. b) Service Credit: Employees earn service credit for each year of public employment, increasing the potential retirement benefits available to them. c) Vesting: After completing five years of service, participants become vested, meaning they are entitled to receive retirement benefits upon meeting the plan's eligibility requirements. d) Retirement Options: KEYS provides various retirement options, including early retirement, normal retirement, and disability retirement, each with specific eligibility criteria and pension calculation methods. 2. County Employees Retirement System (CARS): The County Employees Retirement System caters to local government employees, excluding teachers. The plan offers retirement benefits to individuals working for county governments, cities, school boards, and other participating agencies. Key aspects of CARS are as follows: a) Tier Structure: CARS has multiple tiers based on employment date, with each tier having different retirement eligibility requirements and benefit calculations. b) Benefit Formula: Similar to KEYS, CARS offers a defined benefit plan that combines factors like years of service, average final compensation, and an accrual rate to calculate the retirement income. c) Early Retirement: CARS also provides early retirement options with specific criteria allowing eligible participants to retire before reaching normal retirement age. d) Health Insurance: CARS offers health insurance coverage for eligible retirees. However, the availability and extent of health insurance benefits may vary based on factors such as years of service and the tier under which the participant falls. In summary, the Kentucky Retirement Benefits Plan is a comprehensive pension program catering to public employees in Kentucky. The plan comprises two primary retirement systems: the Kentucky Employees Retirement System (KEYS) for state government employees and the County Employees Retirement System (CARS) for local government employees. The retirement benefits provided by these systems are structured as defined benefit plans, where eligibility, service credit, and retirement options differ. This retirement program aims to ensure financial security for public employees as they transition into their retirement years.

The Kentucky Retirement Benefits Plan is a comprehensive pension program provided to eligible public employees in the state of Kentucky. This retirement plan aims to provide financial security and stability to these individuals during their retirement years. Here, we will delve into the details of the Kentucky Retirement Benefits Plan, highlighting its features, benefits, eligibility criteria, and discuss the two main types of retirement plans available. The Kentucky Retirement Benefits Plan offers retirement benefits to various public employees, including state government employees, teachers, judges, and other local government employees. It is important to note that there are two main types of retirement plans within the Kentucky Retirement System (MRS) — the Kentucky Employees Retirement System (KEYS) and the County Employees Retirement System (CARS). 1. Kentucky Employees Retirement System (KEYS): The Kentucky Employees Retirement System serves state government employees and provides numerous retirement options. Some key features of KEYS are as follows: a) Benefit Structure: KEYS offers a defined benefit plan wherein participants receive retirement income based on a formula combining factors such as years of service, average final compensation, and an accrual rate. b) Service Credit: Employees earn service credit for each year of public employment, increasing the potential retirement benefits available to them. c) Vesting: After completing five years of service, participants become vested, meaning they are entitled to receive retirement benefits upon meeting the plan's eligibility requirements. d) Retirement Options: KEYS provides various retirement options, including early retirement, normal retirement, and disability retirement, each with specific eligibility criteria and pension calculation methods. 2. County Employees Retirement System (CARS): The County Employees Retirement System caters to local government employees, excluding teachers. The plan offers retirement benefits to individuals working for county governments, cities, school boards, and other participating agencies. Key aspects of CARS are as follows: a) Tier Structure: CARS has multiple tiers based on employment date, with each tier having different retirement eligibility requirements and benefit calculations. b) Benefit Formula: Similar to KEYS, CARS offers a defined benefit plan that combines factors like years of service, average final compensation, and an accrual rate to calculate the retirement income. c) Early Retirement: CARS also provides early retirement options with specific criteria allowing eligible participants to retire before reaching normal retirement age. d) Health Insurance: CARS offers health insurance coverage for eligible retirees. However, the availability and extent of health insurance benefits may vary based on factors such as years of service and the tier under which the participant falls. In summary, the Kentucky Retirement Benefits Plan is a comprehensive pension program catering to public employees in Kentucky. The plan comprises two primary retirement systems: the Kentucky Employees Retirement System (KEYS) for state government employees and the County Employees Retirement System (CARS) for local government employees. The retirement benefits provided by these systems are structured as defined benefit plans, where eligibility, service credit, and retirement options differ. This retirement program aims to ensure financial security for public employees as they transition into their retirement years.