(1) Upon disability retirement, except as provided by subsection (2) of this section, an employee may receive an annual retirement allowance payable monthly during his or her lifetime which shall be determined in the same manner as for retirement at his or her normal retirement date with years of service and final compensation being determined as of the date of his or her disability except that service credit shall be added to the person's total service beginning with his or her last date of paid employment and continuing to his or her sixty-fifth birthday; however, the maximum service credit added shall not exceed the total service the person had upon his or her last day of paid employment, and the maximum combined service credit for calculating his or her disability retirement allowance, including total service and added service, shall not exceed twenty-five (25) years. If, however, a person has accumulated twenty-five (25) or more years of total service, he or she shall receive added service necessary to bring his or her combined service credit, including total and added service, to twenty-seven (27) years.
(2) (a) For a member whose participation begins on or after August 1, 2004, but prior to January 1, 2014, the disability retirement allowance shall be the higher of twenty percent (20%) of the member's monthly final rate of pay or the retirement allowance determined in the same manner as for retirement at his or her normal retirement date with years of service and final compensation being determined as of the date of his or her disability.
(b) For a member who begins participating on or after January 1, 2014, in the hybrid cash balance plan as provided by KRS 61.597, the disability retirement allowance shall be the higher of twenty percent (20%) of the member's monthly final rate of pay or the retirement allowance determined in the same manner as for retirement at his or her normal retirement date under KRS 61.597. Effective:April 1, 2021