Monthly Retirement Allowance FAQ's

What payment options are available for my monthly retirement allowance?
The retirement systems provide various payment options for you to choose from at retirement. This allows you to select a payment option for your monthly retirement allowance that best suits your particular needs or situation. Almost all the payment options provide you with a lifetime monthly benefit. Many of the options provide some level of benefit to your beneficiary upon your death. Still other options will allow you to receive an advance on your retirement benefits by either taking a lump-sum payment at retirement (Partial Lump-Sum Options) or an increased monthly benefit prior to age 62 (Social Security Adjustment Options).

See also: Summary Plan Description: Retirement Options

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Can I change the payment option for my monthly retirement allowance after I retire?
You cannot change the payment option once the first retirement allowance has been issued from the State Treasurer.
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Who can I name as beneficiary of my monthly retirement allowance?
At the time of retirement, you may name ONLY ONE PERSON, your estate, or a trust as beneficiary of your monthly retirement allowance.
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Can I change the beneficiary of my monthly retirement allowance after I retire?
You cannot change the beneficiary designated for this benefit once the first retirement allowance has been issued from the State Treasurer. If the beneficiary dies or divorces the member, state law provides that the member's estate becomes the beneficiary. An estate or trust cannot be eligible for a lifetime payment upon the death of a retired member.
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When will I receive my first retirement allowance check?
Initial retirement allowance checks are mailed no later than the 27th day of the month in which you begin receiving payments.
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I know that my first retirement allowance check will be mailed to my home, but when will I receive my first payment by direct deposit?
Direct deposit begins with your second retirement allowance payment. KRS transmits direct deposits so that the money is available on the 14th day of the month. Actual posting times will vary from bank to bank.
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Can I have my retirement allowance check mailed to me?
Members or beneficiaries who began receiving a monthly retirement allowance prior to August 1, 2000, are eligible to receive payment by mail or through direct deposit. If you meet this requirement and are currently receiving payment through direct deposit, you can stop payment by direct deposit and begin receiving a retirement allowance by mail at any time by sending a written request to the retirement office. Please remember that all written requests should contain the member's Social Security number, recipient's signature, and the address where the benefit should be mailed. The written request must be submitted to our office no later than the 20th of the month for the following month's benefit to be mailed instead of directly deposited.

Members or beneficiaries who began receiving a retirement allowance payment August 1, 2000 or after, are required to have the monthly benefit directly deposited. Exceptions are typically made if the member or beneficiary does not have a bank account or their bank does not participate in the Automated Clearing House (ACH) program. If you believe you qualify for an exception, you must complete a Form 6135, Request for Payment by Check, in order to receive payment by mail. Copies of the form are available by contacting the retirement office.
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I receive my retirement allowance check by mail. What should I do if the check is late in arriving at my address?
Checks are mailed on the 14th of the month and will usually take several days to reach your home address. If you haven't received your check within 7 working days after the 14th of the month, you can contact the retirement office and request a Stop Payment. If you request a Stop Payment, and your check arrives on the next day or thereafter, you MUST call the retirement office before cashing this check. The retirement office will notify you when it is safe to cash the check, since the Stop Payment will have to be released before the check can be cashed.
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I receive my monthly retirement allowance through direct deposit. How do I make changes to my direct deposit information?
In order to make any changes to your direct deposit information, you must complete a new Form 6130, Authorization for Deposit of Retirement Payment and file it with the retirement office. If your Form 6130 is received by the 20th of a month, the change will be effective with your next month's direct deposit. If you fail to complete and file a Form 6130 when your direct deposit information changes, your retirement allowance payment may be returned to the retirement office. All payments that are returned to the retirement office will not be reissued until the following month when your next retirement allowance payment is processed.
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Will my retirement allowance payment increase after I retire?
Retired members and beneficiaries who are drawing a monthly retirement allowance automatically receive a Cost of Living Adjustment (COLA) on their July payment. The amount of the COLA is based upon the percentage increase in the annual average of the Consumer Price Index (CPI) and is subject to a maximum increase of 5%. Annual COLA's are not guaranteed by law and may be suspended or reduced at the discretion of the General Assembly.
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Will my account be audited after my retirement date?
An audit of your account will typically be performed within 4 months of your retirement date. During the audit, your benefit may be recalculated if additional information is reported by your former employer (i.e. wages, sick leave balances, payment for compensatory time, etc). You will be notified by mail regarding any change in benefits once the audit has been completed.
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I received a letter telling me that my final audit has been completed. I disagree with the findings of the final audit, what should I do?
If you do not agree with the findings of the final audit, you should first contact the retirement office to discuss any discrepancies with a retirement counselor. Keep in mind that the retirement office relies on your former employer to correctly report your information including but not limited to wages, accumulated sick leave balances, and payment for compensatory time. If you believe that your information has been reported in error, you will be required to contact your former employer. Your former employer must then submit corrected information in writing before the retirement office can make any changes to your account. Your account will then be re-audited as soon as possible and the results will be retroactive to your date of retirement. If corrected information is being submitted by your former employer, be sure to notify the retirement office.
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Once I retire and begin receiving a monthly retirement allowance, can I change my monthly federal income tax withholding amount?
You may change your federal income tax withholding at any time by completing a new Form 6017, Federal Income Tax Withholding Preference For Periodic Payments. If the form is received in the office by the 20th of the month, your withholding will be changed the following month.
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I received a letter from KRS informing me that because I selected the Social Security Adjustment Option when I retired, my monthly benefit will be substantially reduced the month after I turn 62. I have elected to draw my Social Security monthly benefit at age 65. Will my KRS benefit still be reduced at age 62?
Yes. The Social Security Adjustment Options are designed to provide an increased monthly retirement allowance prior to age 62 and a reduced benefit thereafter. Regardless of whether or not you choose to draw Social Security at age 62, your benefit from KRS will be reduced at age 62 under this payment option.
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My retirement benefit has been reduced by more than the amount of my Social Security payment, therefore lowering my income. Do I need to give you the new Social Security amount?
No. Your "after age 62 payment amount" was calculated at the time of your retirement, based on Social Security information you provided to us at that time and cannot be changed.
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