61.640 Death before retirement -- Beneficiary's options -- Taxable distributions.
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61.640 Death before retirement -- Beneficiary's options -- Taxable distributions.
(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 <br>be eligible for the benefits provided by this section if the member had on file a <br>written designation of a beneficiary with the retirement office as provided by KRS <br>61.542 and the member met the following conditions at the date of his or her death: <br>(a) The member was eligible to retire under KRS 61.559(2) or (3); <br>(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 <br>retirement date or was normal retirement age or older and had at least four (4) <br>years of service credit; 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 <br>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: <br>(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 <br>to his or her date of death and elected to receive benefits payable under the <br>survivorship one hundred percent (100%) option as provided in KRS <br>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 <br>actuarial equivalent to the amount computed under paragraph (a) of this <br>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 <br>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 <br>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 <br>receive based on his or her years of service and final compensation at the date <br>of his or her death reduced by the survivorship fifty percent (50%) factor as <br>provided for in KRS 61.635(4), then reduced by fifty percent (50%), and that <br>is the actuarial equivalent to the amount computed under paragraph (a) of this <br>subsection; or
(f) The higher of a refund of accumulated contributions and interest as described
in KRS 61.625(1) or one (1) time lump-sum payment which shall be the <br>actuarial equivalent of the amount payable under paragraph (a) of this <br>subsection for a period of sixty (60) months.
(3) If the beneficiary eligible for benefits as provided by subsection (1) of this section
are multiple beneficiaries or a trust, then the multiple beneficiaries by consensus or <br>the trustee may elect to receive the actuarial equivalent amounts payable under <br>subsection (2)(c), (d), (e), or (f) of this section using the assumption that the <br>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 <br>accumulated contributions and interest as described in KRS 61.625(1) or the one (1) <br>time lump-sum payment payable under subsection (2)(f) of this section, using the <br>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 income tax as appropriate.
Effective: July 15, 2010 <br>History: Amended 2010 Ky. Acts ch. 173, sec. 6, effective July 15, 2010. -- Amended
2009 Ky. Acts ch. 77, sec. 18, effective June 25, 2009. -- Amended 2004 Ky. Acts <br>ch. 36, sec. 22, effective July 13, 2004. -- Amended 1998 Ky. Acts ch. 154, sec. 68, <br>effective July 15, 1998. -- Amended 1996 Ky. Acts ch. 167, sec. 16, effective July <br>15, 1996. -- Amended 1994 Ky. Acts ch. 485, sec. 20, effective July 15, 1994. </p>
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