161.520 Payment of accumulated contribution on death.
Download pdf
Loading PDF...
<![CDATA[161.520 Payment of accumulated contribution on death. Upon the death of an active contributing member or upon the death of a member retired <br>for disability, except as provided in KRS 161.661(6), the survivors of the deceased <br>member in the following named order, may elect to receive a survivor's benefit payable as <br>follows: <br>(1) Where there is a surviving widow or widower who is named as the primary beneficiary of the member's retirement account, the benefit shall be: <br>(a) One hundred eighty dollars ($180) per month with no restriction on other income; (b) Two hundred forty dollars ($240) per month when the surviving widow or widower's total income from all sources does not exceed six thousand six <br>hundred dollars ($6,600) per year or five hundred fifty dollars ($550) per <br>month; or (c) If the deceased member has a minimum of ten (10) years of service credit with the Teachers' Retirement System, the surviving widow or widower may apply <br>for an annuity actuarially equivalent to the annuity that would have been paid <br>to the deceased member when eligibility conditions were met. Eligibility for <br>payments would begin at the time the age of the deceased member would have <br>met the requirements of KRS 161.600(1). In exercising this right, the <br>surviving widow or widower shall be entitled to receive an annuity for life, <br>except as provided in subsection (6) of this section. This subsection applies to <br>surviving spouses of members who die on or after July 1, 1978. A surviving <br>widow or widower of a member who dies after July 1, 1978, shall be eligible <br>for benefit payments provided under paragraphs (a) and (b) of this subsection <br>until they begin receiving payments under this provision; (2) (a) Where there are surviving unmarried children under age eighteen (18) or under age nineteen (19) if a full-time student in high school, the benefit shall <br>be two hundred dollars ($200) per month in the case of one (1) child, three <br>hundred forty dollars ($340) per month in the case of two (2) children, four <br>hundred dollars ($400) per month in the case of three (3) children, and four <br>hundred forty dollars ($440) per month in the case of four (4) or more <br>children. Benefits under this subsection shall apply in addition to benefits <br>which may be payable under subsections (1) and (3) of this section. (b) Notwithstanding any provision of law to the contrary, the surviving spouse may elect to receive a lump-sum refund of the member's account in lieu of the <br>survivorship benefits payable under this subsection and subsection (1) of this <br>section only if the surviving spouse is designated as the primary beneficiary <br>and: <br>1. Is a biological or adoptive parent of all children eligible for a benefit <br>under this subsection and has not had his or her parental rights <br>terminated; or 2. Has been appointed as legal guardian of all of the children eligible under <br>paragraph (a) of this subsection. (c) To elect a lump-sum refund of the member's account under paragraph (b) of this subsection, the surviving spouse who is designated as the primary <br>beneficiary must sign a waiver on forms prescribed by the retirement system <br>of his or her rights and the member's children's rights to the survivorship <br>benefits payable under this subsection and subsection (1) of this section. The <br>surviving spouse shall not waive the survivorship benefits available under this <br>subsection or subsections (1) and (6) of this section if any of the member's <br>children have attained age eighteen (18) or older unless all of those children <br>consent in writing on forms prescribed by the retirement system to waive their <br>survivorship benefits available under this subsection; (3) (a) Where the survivor is a child age eighteen (18) or older whose mental or physical condition is sufficient to cause his dependency on the deceased <br>member at the time of the member's death, the benefit shall be two hundred <br>dollars ($200) per month, payable for the life of the child or until the time as <br>the mental or physical condition creating the dependency no longer exists or <br>the child marries. The mental or physical condition of the adult child shall be <br>revealed by a competent examination by a licensed physician and shall be <br>approved by a majority of a medical review committee as defined in KRS <br>161.661(14). Benefits under this subsection shall apply in addition to benefits <br>which may be payable under subsections (1) and (2) of this section. (b) Notwithstanding any provision of law to the contrary, the surviving spouse shall not elect to receive a lump-sum refund of the member's account in lieu of <br>the survivorship benefits payable under this subsection and subsection (1) of <br>this section unless: <br>1. The surviving spouse is designated as the primary beneficiary; 2. The surviving spouse has been appointed by the court as guardian, <br>conservator, or other fiduciary with sufficient general or specific <br>authority to waive the survivorship benefits available under this <br>subsection for any child or children age eighteen (18) or older who have <br>been adjudicated incompetent to make decisions on their own behalf by <br>a court of law; and 3. Any child or children age eighteen (18) or older who are mentally <br>competent to make decisions on their own behalf as attested to by two <br>(2) physicians' statements consent in writing on forms prescribed by the <br>retirement system to waive their survivorship benefits available under <br>this subsection. (c) If eligible to elect a lump-sum refund of the member's account, the surviving spouse shall sign a waiver on forms prescribed by the retirement system of his <br>or her rights and the member's children's rights to the survivorship benefits <br>payable under this subsection and subsections (1) and (2) of this section; (4) Where the sole eligible survivors are dependent parents aged sixty-five (65) or over, the benefit shall be two hundred dollars ($200) per month for one (1) parent or two <br>hundred ninety dollars ($290) per month for two (2) parents. Dependency of a <br>parent shall be established as of the date of the death of the member; (5) Where the sole eligible survivor is a dependent brother or sister, the benefit shall be one hundred sixty five dollars ($165) per month. In order to qualify the brother or <br>sister must have been a resident of the deceased member's household for at least one <br>(1) full year prior to the member's death or must have been receiving care in a <br>hospital, nursing home, or other institution at the member's expense for same <br>period; (6) The benefit to a child as defined in subsection (2) of this section shall terminate upon the attainment of age eighteen (18) or upon reaching age nineteen (19), if a <br>full-time student in high school, or upon marriage, except that benefits shall <br>continue until the attainment of age twenty-three (23) for an unmarried child who is <br>a full-time student in a recognized educational program beyond the high school <br>level. The benefit to a widow, widower, dependent parent, or dependent brother or <br>sister or dependent child age eighteen (18) or older shall terminate upon marriage, <br>or upon termination of the condition creating the dependency; (7) The board of trustees shall be the sole judge of eligibility or dependency of any beneficiary, and may require formal application or information relating to eligibility <br>or dependency, including proof of annual income satisfactory to the board. The <br>board of trustees may subpoena records and individuals whenever it deems this <br>action necessary; (8) No payment of benefits shall be made unless the board of trustees authorizes the payment. The board shall promulgate administrative regulations for the <br>administration of the provisions in this section and in every case the decision of the <br>board of trustees shall be final as to eligibility, dependency, or disability, and the <br>amount of benefits payable; (9) In the event that there are no eligible survivors as defined in subsections (1) to (5) of this section, or in the event that the surviving spouse elects not to receive <br>survivorship benefits on his or her own behalf or on behalf of any of the member's <br>children as permitted under subsections (2) and (3) of this section, the board of <br>trustees shall pay to the estate or the designated beneficiaries of the deceased <br>member a refund of his accumulated contributions as provided in KRS 161.470(7). <br>If the benefits paid or payable under subsections (1) to (5) of this section and KRS <br>161.661 shall amount to a sum less than the member's accumulated contributions at <br>the time of death, the board of trustees shall pay to the estate or designated <br>beneficiaries of the deceased member the balance of the accumulated contributions; (10) Any person who is receiving benefits and becomes disqualified from receiving those benefits under this section shall immediately notify the Teachers' Retirement <br>System of this disqualification in writing and shall return all benefits paid after the <br>date of disqualification. Failure to comply with these provisions shall create an <br>indebtedness of that person to the Teachers' Retirement System. Interest at the rate <br>of eight percent (8%) per annum shall be charged if the debt is not repaid within <br>sixty (60) days after the date of disqualification. Failure to repay this debt creates a <br>lien in favor of the Teachers' Retirement System upon all property of the person <br>who improperly receives benefits and does not repay those benefits; and (11) Benefits under subsections (2) and (3) of this section shall apply to a child who is a legally adopted survivor at the time of the death of the member. This provision shall <br>be retroactive to include a child who was born after January 1, 1990, and is a legally <br>adopted survivor of a member whose death occurred prior to July 15, 2008. Effective: July 1, 2008 <br>History: Amended 2008 Ky. Acts ch. 67, sec. 1, effective July 15, 2008; and ch. 78, sec. 7, effective July 1, 2008. -- Amended 2006 Ky. Acts ch. 189, sec. 4, effective <br>July 1, 2006. -- Amended 2004 Ky. Acts ch. 121, sec. 9, effective July 1, 2004. -- <br>Amended 1994 Ky. Acts ch. 369, sec. 8, effective July 1, 1994. </p>
<BR></DIV><!-- /.col.one --><!-- /.col.two --></DIV><!-- /.col.main --></DIV><!-- /div id = content -->
<BR class=clear></DIV>
<!-- /div id = livearea -->
<DIV></DIV><!-- /.col.one -->
<DIV></DIV><!-- /.col.main -->
<DIV></DIV><!-- /#content --><BR class=clear>
<DIV></DIV><!-- /#livearea -->
<!-- Footer-->
<DIV id=footer>
<DIV class=container>
<P class=copyright>Copyright © 2012-2022 Laws9.Com All rights reserved. </P><!-- /.copyright -->
<P class=footerlinks><A
href="/contactus.html">Contact Us</A> | <A href="/aboutus.html">About Us</A> | <A
href="/terms.html">Terms</A> | <A
href="/privacy.html">Privacy</A></P><!-- /.footerlinks -->
</DIV><!-- /.container -->
</DIV><!-- /footer -->
</BODY></HTML>
]]>