2014 Kentucky Revised Statutes CHAPTER 61 - GENERAL PROVISIONS AS TO OFFICES AND OFFICERS -- SOCIAL SECURITY FOR PUBLIC EMPLOYEES -- EMPLOYEES RETIREMENT SYSTEM 61.542 Designation of principal and contingent beneficiaries -- Rights -- Effects of change in certain conditions.
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61.542 Designation of principal and contingent beneficiaries -- Rights -Effects of change in certain conditions.
(1)
Prior to the first day of the month in which the member receives his or her first
retirement allowance and prior to the member filing a notification of retirement
or a request for refund:
(a) Each member may designate on the form prescribed by the board a
principal beneficiary and contingent beneficiary for his or her account. The
principal beneficiary or contingent beneficiary designated by the member
shall be:
1.
One (1) or more persons; or
2.
The member's estate; or
3.
A trust;
(b) If multiple persons are designated as provided by paragraph (a)1. of this
subsection, the member shall indicate the percentage of total benefits
each person is to receive.
1.
If percentages are not indicated, payments will be disbursed equally
to the named beneficiaries.
2.
If the percentages indicated do not total one hundred percent
(100%), each beneficiary shall receive an increased or decreased
percentage which is proportional to the percentage allotted him or
her by the member.
3.
If any of the multiple beneficiaries die prior to the member's death,
the remaining beneficiaries shall be entitled to the deceased
beneficiary's percentage of the total benefits, and each shall receive
a percentage of the deceased's share which is equal to the
percentage allotted them by the member; and
(c) The principal and contingent beneficiary designation established by the
member pursuant to paragraph (a) of this subsection shall remain in full
force and effect until changed by the member, except:
1.
A final divorce decree terminates an ex-spouse's status as
beneficiary, unless the member has on file in the retirement office a
beneficiary designation that redesignates the ex-spouse as
beneficiary subsequent to the issuance of the divorce decree;
2.
If a beneficiary or beneficiaries are convicted of any crime which
prohibits that person or persons from receiving the benefits under
KRS 381.280, the beneficiary or beneficiaries shall not be eligible for
any of the benefits and the remaining beneficiary or beneficiaries or,
if none, the member's estate, shall become the beneficiary;
3.
When a notification of retirement has been filed at the retirement
office, the designation of beneficiary on the notification of retirement,
which shall be one (1) person, his estate, or a trust, shall supersede
the designation of all previous beneficiaries, unless the notification
of retirement is withdrawn, invalid, or voided. If the notification of
retirement is withdrawn, invalid, or voided, the prior beneficiary
designation on file with the system shall remain in full force and
(2)
(3)
(4)
(5)
effect until changed by the member; and
4.
When a request for refund has been filed at the retirement office,
the member's estate shall become the member's beneficiary if the
member dies.
If the member dies prior to the first day of the month in which the member
would have received his or her first retirement allowance and prior to filing a
notification of retirement or a request for refund, any retirement benefits shall
be payable to the principal beneficiary, except that:
(a) If the death of the principal beneficiary or beneficiaries precedes the
death of the member, or if the principal beneficiary is terminated by a
divorce decree, the contingent beneficiary or beneficiaries become the
principal beneficiary or beneficiaries;
(b) If the principal beneficiary is one (1) person and is the member's spouse
and they are divorced on the date of the member's death, the contingent
beneficiary or beneficiaries become the principal beneficiary or
beneficiaries;
(c) If the member is survived by his principal beneficiary or beneficiaries who
subsequently die prior to having on file at the retirement office the
necessary forms prescribed under authority of KRS 61.590, the
contingent beneficiary shall become the principal beneficiary or
beneficiaries; and
(d) If the deaths of all the principal beneficiaries and all of the contingent
beneficiaries precede the death of the member, the estate of the member
becomes the beneficiary.
Prior to the first day of the month in which the member would have received his
or her first retirement allowance, a monthly benefit payable for life shall not be
offered if the beneficiary designated under subsection (1) of this section is
more than one (1) person, the member's estate, or a trust.
When a notification of retirement has been filed at the retirement office:
(a) The designation of beneficiary on the notification of retirement shall
supersede the designation of all previous beneficiaries;
(b) The beneficiary designated by the member on the member's notification
of retirement shall be one (1) person, the member's estate, or a trust; and
(c) If the death of the beneficiary named on the notification of retirement
precedes the first day of the month in which the member receives his or
her first retirement allowance, the member may designate another
beneficiary on the member's notification of retirement.
After the first day of the month in which the member receives his or her first
retirement allowance and subsequent thereto, a member shall not have the
right to change his beneficiary, except that:
(a) The estate of the retired member becomes the beneficiary if the date of
death of the beneficiary precedes or coincides with the date of death of
the retired member;
(b) The estate of the retired member becomes the beneficiary if the retired
member had designated a person as beneficiary who was the spouse or
(c)
who later married the member and they were divorced on the date of the
retired member's death. An ex-spouse who was the named beneficiary on
the member's notification of retirement shall be reinstated as the
member's beneficiary for the payment options provided by KRS
61.635(2), (3), (4), and (8)(b) if they are remarried to each other as of the
date of the retired member's death; and
The estate of the member shall not receive monthly payments if the
member selected one (1) of the payment options provided by KRS
61.635(2), (3), (4), and (8)(b).
Effective:July 15, 2010
History: Amended 2010 Ky. Acts ch. 173, sec. 3, effective July 15, 2010. -Amended 2004 Ky. Acts ch. 36, sec. 9, effective July 13, 2004. -- Amended
2000 Ky. Acts ch. 385, sec. 12, effective July 14, 2000. -- Amended 1996 Ky.
Acts ch. 167, sec. 8, effective July 15, 1996. -- Amended 1994 Ky. Acts ch. 485,
sec. 9, effective July 15, 1994.
Amended 1992 Ky. Acts ch. 240, sec. 17,
effective July 14, 1992. -- Amended 1986 Ky. Acts ch. 90, sec. 9, effective July
15, 1986. -- Amended 1978 Ky. Acts ch. 311, sec. 11, effective June 17, 1978. -Amended 1976 Ky. Acts ch. 321, sec. 14. -- Amended 1972 Ky. Acts ch. 116,
sec. 28. -- Created 1966 Ky. Acts ch. 35, sec. 16.
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