49-23-501 - Death benefit by means of group insurance policy -- Eligibility for death benefit -- Benefit calculation -- Payment of claim.
49-23-501. Death benefit by means of group insurance policy -- Eligibility for deathbenefit -- Benefit calculation -- Payment of claim.
(1) The office shall provide a death benefit through the purchase of a group insurancepolicy for members of this system.
(2) The board shall make rules to administer the death benefit provided by this sectionand may, in accordance with federal law, establish:
(a) benefit levels;
(b) classes of members; and
(c) a living benefit option.
(3) This death benefit is payable when:
(a) the member dies prior to the member's retirement date or dies under circumstanceswhich Subsection 49-23-304(5) requires to be treated as the death of a member before retirement;
(b) the office receives acceptable proof of death; and
(c) benefits are not payable under Section 49-23-306.
(4) The death benefit payable to the beneficiary under this section is a lump-sumpayment consisting of:
(a) the return of any member contributions under this chapter; plus
(b) a percentage of the final average salary of the member to be determined by the board.
(5) Any amount of a living benefit option paid to the member prior to death shall bededucted from the benefit payable to the beneficiary.
(6) The cost of the death benefit shall be paid by the participating employer in addition tothe contribution rate established under Section 49-23-301 or 49-23-401.
(7) The portion of the death benefit provided under Subsection (4)(b) may not be paid tothe beneficiary of an inactive member unless the death of the member occurs either:
(a) within a period of 120 days after the last day of work for which the person receivedcompensation; or
(b) while the member is still physically or mentally incapacitated from performance ofduties, if the incapacity has been continuous since the last day of work for which compensationwas received.
(8) The death benefit provided under Subsection (4)(b) shall be paid in accordance withSections 49-11-609 and 49-11-610.
(9) The death benefit paid to the beneficiary of an inactive member, except as otherwiseprovided under Subsection (7), is a lump-sum return of the member's member contributions.
(10) Payment of the death benefit by the office constitutes a full settlement of anybeneficiary's claim against the office and the office is not liable for any further or additionalclaims or assessments on behalf of the member.
(11) Unless otherwise specified in a written document filed with the office, deathbenefits payable to beneficiaries shall be in accordance with the order of precedence establishedunder Title 75, Chapter 2, Intestate Succession and Wills.
(12) A death benefit under this section may not be paid on behalf of a retiree under thissystem.
Enacted by Chapter 266, 2010 General Session