16.578 Death before retirement -- Beneficiary's options. - Kentucky Statutes

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16.578 Death before retirement -- Beneficiary's options. (1) 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 or 16.577;
(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. (2) 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) 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 accumulated contributions 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. (3) 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 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. (4) 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
accumulated contributions 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. (5) Payments of taxable distributions made pursuant to this section shall be subject to state and federal tax as appropriate. Effective: July 15, 2010
History: 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.