2012 Annuity Payment Dates
1. Annuity Payment Dates
Retirement annuities are payable monthly. Your first payment will be paid on or before the last day of the month in which your retirement is effective. You may expect to receive future payments around the end of each month. Electronic Funds Transfer (EFTs)
You are required to have your annuity check directly deposited to your savings or checking account by electronic funds transfer (EFT). Direct deposit prevents late delivery, loss, or theft of your annuity check. In addition, if you are away from home, your money is deposited to your account.
To have your check deposited by EFT, you should complete Section IV of the retirement application and attach a personalized voided check or request an Authorization for Direct Deposit of KTRS Annuities form from KTRS. When you use EFT, your check will be available in your bank account on the day KTRS mails the retirement checks.
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2. Cost of Living Adjustments (COLAs)
A standard, statutory cost of living adjustment ("COLA") in the full amount of one and one-half percent (1.5%) is provided annually to retirees who have been retired for at least one year prior to July 1, the annual effective date of the COLA. For members who were retired for less than a full year immediately preceding the date that a COLA becomes effective, the COLA is awarded on a pro rata basis depending on how long the member was retired during the prior fiscal year. For example, a member who retires on January 1 of any given year would receive only one-half of the COLA that would become effective on the following July 1. In addition to the standard one and one-half percent (1.5%) COLA, KTRS asks the Governor and General Assembly each biennial budget period for an additional “ad hoc” COLA to help retirement allowances keep pace with inflation. During the 2006 Regular Session, the General Assembly passed, and the Governor signed, House Bill 380 which approved an eight-tenths of one percent (0.8%) COLA effective July 1, 2006, and a six-tenths of one percent (0.6%) COLA effective July 1, 2007.
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3. Beneficiary Designation
The retirement option chosen by a retiree at the time of retirement
shall remain in force unless the retiree elects to make a change under
the following conditions:
1. You marry or remarry after the effective date of retirement;
2. Your beneficiary dies; -- or --
3. Your marriage ends by divorce, annulment, -- or --dissolution.
If you have experienced a qualifying event and you are determined eligible to change your retirement option, you have sixty (60) days from the date of the qualifying event to make the change with KTRS. In the event of divorce, the sixty (60) day period begins running from the date the divorce is effective by order of the court, not from the date of subsequent orders assigning and dividing marital property.
If you have experienced a qualifying event, you have thirty (30) days from the date of the qualifying event to add/drop a dependent from your health insurance coverage. In the event of marriage, if you miss the thirty (30) day deadline, you will have to wait until the next open enrollment period to add your spouse for health insurance coverage. Divorce automatically terminates the coverage for an ex-spouse, however
KTRS needs to be informed within thirty (30) days to make the change effective as soon as possible.
Except for the conditions listed above, a beneficiary designation shall not be changed after the date of retirement except for retirees who elect the life annuity with refundable balance option or the predetermined years certain and life thereafter option.
Also, retired members are covered by a $5,000 life insurance benefit that is payable to the estate unless a beneficiary is designated. You are allowed to name one primary beneficiary and one contingent beneficiary to receive this benefit. Divorce voids any previous designation of your spouse as a beneficiary and, unless there is another appropriately designated beneficiary remaining, your estate becomes your primary beneficiary by operation of law.
Email request the beneficiary form for Your Life Insurance (FORM DB-1)
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4. Reporting Deaths
Either your funeral home
relative should notify KTRS by telephone or letter soon after your death in order to facilitate the processing of the necessary papers. The executor of the estate or your beneficiary will be sent information concerning the benefits available and forms for requesting the life insurance benefit.
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