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Kentucky is one of only five states nationwide where a 65 year old can retire and live comfortably with less than $900,000. The average retirement cost in the state of $883,332 is over a quarter of a million dollars less than the national average.
You can receive a Reduced Benefit at: The amount of reduction will depend upon your age or years of service at retirement. For example, a member has 18 years of service and is age 52. If the member chooses to retire, his/her benefit will be reduced to 87.0% (6.5% for each year away from 20 years of service).
Contact Us. If you are interested in taking a refund you should contact KPPA for more information, or to obtain a Form 4525, Application for Refund of Member Contributions. You may also call us at 502-696-8800 or Toll-Free at 800-928-4646, or complete the request below to obtain a form via mail.
Age 65, with at least 60 months of service credit may retire at any time with no reduction in benefits.
If the company follows a graded schedule, it can require up to seven years of service in order to be 100% vested. But it must provide at least 20% vesting after three years, 40% after four years, 60% after five years and 80% after six years.
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Kentucky is tax-friendly toward retirees. Social Security income is not taxed. Withdrawals from retirement accounts are partially taxed. Wages are taxed at normal rates, and your marginal state tax rate is 5.90%.
Apply for Retirement \u200bLog in to and click Apply for Retirement on the home page. Carefully follow the instructions throughout the retirement module and review your information before submitting your application.
You can apply up to four months before you want your retirement benefits to start. For example, if you turn 62 on December 2, you can start your benefits as early as December. If you want your benefits to start in December, you can apply in August.
As a result of legislation approved in 2022, certain retirees in Plan 1 of the Public Employees' Retirement System and Plan 1 of the Teachers' Retirement System (PERS 1 and TRS 1) will receive a one-time benefit increase in July of this year.
Members can access their retirement accounts online at or call 1-800-928-4646.

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