(A) In the event a total and permanent occupational disability occurs, the member shall receive an annuity equal to 70% of his last rate of salary. This benefit shall begin at such time as his salary may cease, and shall be paid during his entire lifetime. Any member who retired prior to June 21, 1974 shall receive an increase of $10 per month for each year or part thereof of retirement prior to June 21, 1974, with a maximum increase of $170 per month. Upon his death, his eligible widow and minor children, if any, shall receive the benefits as provided in § 36.094.
(B) If the member retired for total and permanent occupational disability would receive from a combination of pension disability payments pursuant to division (A) of this section, and Workers' Compensation payment excluding spouse or dependent children's allowances or payment for medical expense or legal fees related to the Workers' Compensation claim, an amount greater than 100% of his last rate of salary, then the pension system benefits shall be reduced to the point that the combined payments equal 100% of the last rate of salary. The benefit shall not be reduced, however, below an amount equal to 2½% of average salary for each year of the member's service. Any reduction in the payment shall be based upon Workers' Compensation benefits applicable at the time the payment is granted, and not upon subsequent increases in either benefit. If Worker's Compensation benefits are reduced at a subsequent time, the retiree shall inform the Board, and the Board shall increase the benefit by the amount of the reductions, but not by more than the amount which would increase the benefit 70% of the last rate of salary. The Board of Trustees may pay estimated benefits to a retiree, upon qualification for the benefits, based upon an estimate of Workers' Compensation benefits until such amounts are actually determined, at which time a final calculation of the actual benefits shall be determined and the account corrected retroactive to the effective date of the benefit. If Workers' Compensation benefits are paid in lump sums, the Board shall reduce the disability retirement annuity on a monthly rather than a lump sum basis. The amount of the monthly reduction shall be based upon the life expectancy of the retired member. The Board may request the assistance of the general manager of Kentucky Retirement Systems to calculate the reduction in the retirement benefit when lump sum payments are involved, and the general manager shall provide such assistance upon request.
(Ord. 87-26, passed 7-28-87)