61.542 Designation of principal and contingent beneficiaries -- Rights -- Effects of change in certain conditions. - Kentucky Statutes

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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 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. (2) 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. (3) 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. (4) 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. (5) 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 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 (c) 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.