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21.420 Death benefits -- Designation of beneficiary.

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Page 1 of 2 21.420 Death benefits -- Designation of beneficiary. (1) After the death of a member who at the time of his death was receiving a service retirement allowance (other than an actuarially reduced allowance under subsection <br>(3) of KRS 21.400), or was receiving a disability retirement allowance, his <br>surviving spouse is entitled to receive during his lifetime a monthly allowance equal <br>to one-half (1/2) of that he was receiving. (2) (a) If a member dies before retirement and before reaching normal retirement age, without regard to length of service, his surviving spouse is entitled to receive <br>during his lifetime a monthly allowance equal to one-half (1/2) of the monthly <br>allowance the member would have received commencing at his normal <br>retirement date if he had continued in service until that date and had then <br>retired, computed however on the basis of his final compensation at time of <br>death. (b) If a member dies before retirement and after reaching normal retirement age, his surviving spouse is entitled to receive during his lifetime a monthly <br>allowance equal to one-half (1/2) of the monthly allowance the member would <br>have been entitled to, on the basis of his years of service, had he retired on the <br>date of his death. (3) If a member dies after retirement and was at the time of his death receiving an actuarially reduced allowance under subsection (3) of KRS 21.400, or was not at the <br>time of his death receiving a retirement allowance but had acquired the vested right <br>under subsection (2) of KRS 21.400 to have received an allowance upon reaching <br>normal retirement age, his surviving spouse is entitled to receive during his lifetime <br>a monthly allowance equal to one-half (1/2) of the monthly allowance the member <br>would have received when he reached normal retirement age. (4) A member, or a retiree who has not commenced drawing retirement benefits pursuant to KRS 21.400, who dies without a spouse or eligible children entitled to <br>survivor's benefits, may designate a beneficiary who shall receive the accumulated <br>contributions of the member. Absent a designation by the member or retiree, the <br>accumulated contributions shall be paid to the member's estate. (5) A member who commences drawing retirement benefits pursuant to KRS 21.400 or 21.410, who dies without a spouse or eligible children entitled to survivor's benefits <br>and before the benefits received by the member equal the personal contributions of <br>the member, may designate a beneficiary who shall receive the balance of the <br>accumulated contributions of the member. Any offset of contributions by reason of <br>benefits received shall be deducted from the contributions first made to the system. <br>Absent a designation by the member, the accumulated contributions shall be paid to <br>the member's estate. (6) A member may designate a beneficiary who shall receive the balance of the accumulated contributions of the member, in the event survivor's benefits are being <br>paid pursuant to subsection (1), (2), or (3) of this section, and the survivor dies prior <br>to receiving benefits equal to the member's contributions. In this event, the <br>provisions of subsection (5) of this section shall apply as to offset and payment. Page 2 of 2 (7) A member may, prior to the drawing of benefits, elect in writing to the executive secretary of the Judicial Form Retirement System, to take an optional retirement <br>allowance which shall be actuarially equivalent to the amount of retirement <br>allowance otherwise payable to the member and the member's spouse. If the <br>member dies after retirement, the option chosen shall prevail over the provisions of <br>subsections (1) and (3) of this section. If the member dies prior to retirement, the <br>option chosen shall prevail over the provisions of subsection (2) of this section. The <br>options shall include: <br>(a) Survivorship one hundred percent (100%). The member may elect to receive a decreased retirement allowance during the member's lifetime and have the <br>retirement allowance continued after death to the spouse during the lifetime of <br>the spouse. (b) Survivorship sixty-six and two-thirds percent (66 2/3%). The member may elect to receive a decreased retirement allowance during the member's lifetime <br>and have two-thirds (2/3) of the retirement allowance continue after death to <br>the spouse during the lifetime of the spouse. If a retiree, living or deceased, chose either of the optional retirement benefit <br>allowances specified in paragraphs (a) or (b) of this subsection from July 15, 1994, <br>to July 15, 1998, the optional allowance shall be adjusted accordingly, and the new <br>benefit shall commence August 1, 1998. Each recipient of benefits from the plan, <br>who retired from July 15, 1994, to July 15, 1998, shall have a one-time opportunity <br>to select an optional retirement allowance. The election by the recipient shall be <br>prior to August 1, 1998, at which time the new benefit shall commence. The option <br>chosen shall prevail, subsections (1), (2), and (3) of this section notwithstanding. Effective: July 15, 1998 <br>History: Amended 1998 Ky. Acts ch. 389, sec. 1, effective July 15, 1998. -- Amended 1994 Ky. Acts ch. 266, sec. 4, effective July 15, 1994. -- Amended 1974 Ky. Acts <br>ch. 386, sec. 3. -- Created 1960 Ky. Acts ch. 84, Art. III, sec. 8.