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16.578 Death before retirement -- Beneficiary's options.
(1)
(2)
(3)
If a member dies prior to the first day of the month in which the member would
have received his or her first retirement allowance, the member's beneficiary
shall be eligible for the benefits provided by this section if the member had on
file a written designation of a beneficiary with the retirement office as provided
by KRS 61.542 and the member met the following conditions at the date of his
or her death:
(a) The member was eligible to retire under KRS 16.576, 16.577, or
16.583(6);
(b) The member was in active employment or on authorized leave of
absence with five (5) or more years of service credit and died prior to his
or her normal retirement date; or
(c) The member was not in active employment or on authorized leave of
absence with twelve (12) or more years of service credit and died prior to
his or her normal retirement date.
If the beneficiary eligible for benefits as provided in subsection (1) of this
section is a single person, then the beneficiary may elect to receive:
(a) A monthly benefit payable for the life of the beneficiary that is equal to the
benefit that would have been paid had the member retired immediately
prior to his or her date of death and elected to receive benefits payable
under the survivorship one hundred percent (100%) option as provided in
KRS 61.635(2);
(b) A monthly benefit payable for the life of the beneficiary under the
beneficiary Social Security adjustment option as provided in KRS
61.635(9) that is the actuarial equivalent to the amount computed under
paragraph (a) of this subsection;
(c) A monthly benefit payable for a period of sixty (60) months that is the
actuarial equivalent to the amount computed under paragraph (a) of this
subsection;
(d) A monthly benefit payable for a period of one hundred twenty (120)
months that is the actuarial equivalent to the amount computed under
paragraph (a) of this subsection;
(e) If the member began participating in the system prior to January 1, 2014,
a monthly benefit payable for a period of one hundred twenty (120)
months that is equivalent to the benefit the member would have been
entitled to receive based on his or her years of service and final
compensation at the date of his or her death reduced by the survivorship
fifty percent (50%) factor as provided for in KRS 61.635(4), then reduced
by fifty percent (50%), and that is the actuarial equivalent to the amount
computed under paragraph (a) of this subsection; or
(f) The higher of a refund of the member's accumulated account balance
and interest as described in KRS 61.625(1) or a one (1) time lump-sum
payment which shall be the actuarial equivalent of the amount payable
under paragraph (a) of this subsection for a period of sixty (60) months.
If the beneficiary eligible for benefits as provided in subsection (1) of this
section are multiple beneficiaries or a trust, then the multiple beneficiaries by
(4)
(5)
consensus or the trustee may elect to receive the actuarial equivalent amounts
payable under subsection (2)(c), (d), (e), or (f) of this section using the
assumption that the beneficiary's age is the same as the member's age.
If the beneficiary eligible for benefits as provided in subsection (1) of this
section is the member's estate, then the beneficiary shall receive the higher of
a refund of the member's accumulated account balance and interest as
described in KRS 61.625(1) or the one (1) time lump-sum payment payable
under subsection (2)(f) of this section, using the assumption that the
beneficiary's age is the same as the member's age.
Payments of taxable distributions made pursuant to this section shall be
subject to state and federal tax as appropriate.
Effective:July 1, 2013
History: Amended 2013 Ky. Acts ch. 120, sec. 40, effective July 1, 2013. -Amended 2010 Ky. Acts ch. 173, sec. 1, effective July 15, 2010. -- Amended
2009 Ky. Acts ch. 77, sec. 6, effective June 25, 2009. -- Amended 2004 Ky. Acts
ch. 36, sec. 3, effective July 13, 2004. -- Amended 1996 Ky. Acts ch. 167,
sec. 3, effective July 15, 1996. -- Amended 1992 Ky. Acts ch. 240, sec. 5,
effective July 14, 1992. -- Amended 1986 Ky. Acts ch. 90, sec. 4, effective July
15, 1986. -- Amended 1980 Ky. Acts ch. 186, sec. 5, effective July 15, 1980. -Amended 1976 Ky. Acts ch. 321, sec. 6. -- Amended 1974 Ky. Acts ch. 128,
sec. 5. -- Amended 1970 Ky. Acts ch. 76, sec. 5. -- Amended 1968 Ky. Acts
ch. 25, sec. 4. -- Amended 1966 Ky. Acts ch. 33, sec. 3. -- Created 1964 Ky.
Acts ch. 91, sec. 8.
Legislative Research Commission Note (7/13/2004). Although KRS 16.578 was
included in 2004 Ky. Acts ch. 36, sec. 3, as having been amended, the change
in wording was deleted by House Floor Amendment No. 2 to the House
Committee Substitute.
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