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.
Cost of Living Adjustments
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 July 1, 2006, and a six-tenths of one percent (0.6%) COLA effective July 1, 2007.
Minimum Value of a Year of Service
The minimum value of each year of service is $440 multiplied by your total years of service. These minimums are based upon the Straight Life Annuity option and will be reduced proportionately for any other option choice or any other discount that was taken at the time of retirement.