Smith v. Teachers' Retirement System

OPINION

VANMETER, JUDGE:

Public school employees are entitled to retirement benefits pursuant to KRS2 Chapter 161. The amount of the benefit is, in part, based on annual compensation, as defined by KRS 161.220(10). Stephen Smith, an employee of the Kentucky Educational Development Corporation (“KEDC”), annually received incentive pay in connection with his employment. The issue we must resolve in this case is whether the Franklin Circuit Court erred in affirming the Kentucky Teachers’ Retirement Systems’ (“KTRS”) determination that Smith’s annual incentive pay was to be excluded from his annual…