8-36-109 - Survivor benefits.

8-36-109. Survivor benefits.

(a)  Upon the death of a member in service who has reached the applicable eligibility requirements for an early or service retirement allowance as set forth in part 2 or 3 of this chapter, a retirement allowance shall be paid to the member's surviving designated beneficiary, if any.

     (1)  No benefits shall be payable under this subsection (a) on account of any member on whose account a benefit is payable under any other provision of chapters 34-37 of this title.

     (2)  The retirement allowance payable to the beneficiary shall be equal to the retirement allowance which would have been payable had the member retired under an effective election of Option 1 as provided in part 6 of this chapter with such person nominated as the beneficiary under the option.

     (3)  (A)  Notwithstanding any other provision of the law to the contrary, if the member's spouse is the designated beneficiary on the date of the member's death, and if that spouse should thereafter die leaving a surviving child or children of the member under nineteen (19) years of age, then the annuity the spouse was receiving under this subsection (a) shall be divided equally among the member's surviving children. Each child shall receive the child's share until reaching nineteen (19) years of age or marrying or dying,, whichever occurs first, at which time this annuity shall be redistributed equally among the remaining children; or in the event the child or children is or are full-time students in an educational institution, this annuity shall be paid until the child or children reach twenty-two (22) years of age or marry or die, whichever occurs first, at which time the annuity to which that child was entitled shall terminate.

          (B)  If the member's spouse is designated as the sole beneficiary on the date of the member's death, and if that spouse predeceased the member or died in a common accident or occurrence with the member, then the surviving child or children of the member in the age groups specified in subdivision (a)(3)(A) shall be entitled to the same annuity as set forth in subdivision (a)(3)(A).

          (C)  Any annuity payable to a full-time student under this subdivision (a)(3) shall not cease when the student reaches twenty-two (22) years of age, but shall continue through the end of the quarter or semester in which the student reaches twenty-two (22) years of age, if the student has not completed undergraduate degree requirements. If the student attends an educational institution other than one on a quarter or semester basis, the annuity shall continue until the student completes the course or for two (2) months after the month the student reaches twenty-two (22) years of age, whichever comes first.

          (D)  As used in this subdivision (a)(3), “full-time students” and “educational institution” shall have the same meanings as that given in the federal Social Security Act, and its related laws, regulations, and rulings.

          (E)  For the purpose of accomplishing the intent of this subdivision (a)(3) only, the benefits provided for the child or children shall be paid only to the legal guardian of the children, regardless of the age or majority status of the child or children, and the courts of competent jurisdiction are granted the authority to appoint and continue in effect guardianships until the benefits payable are terminated.

(b)  Upon the death of a member in service who has completed ten (10) years of creditable service, a retirement allowance shall be paid to the member's surviving spouse, if any, if the spouse is designated as beneficiary.

     (1)  No benefits shall be payable under this subsection (b) on account of any member on whose account a benefit is payable under any other provision of chapters 34-37 of this title.

     (2)  The retirement allowance payable to the surviving spouse shall be equal to the retirement allowance which would have been payable had the member retired under an effective election of Option 1 as provided in part 6 of this chapter with the member's spouse nominated as the beneficiary under that option.

     (3)  The retirement allowance payable under this subsection (b) shall be reduced by four tenths of one percent (.4%) for each month by which the member's death precedes the member's service retirement date.

     (4)  The provisions of this subsection (b) do not apply to members in the employ of a political subdivision unless the governing body of the political subdivision authorizes by resolution and accepts the liability therefor.

Should the governing body of a political subdivision elect not to accept the liability for its employees to receive a survivor's benefit in accordance with this subsection (b), a survivor's benefit shall be paid in accordance with subsection (a).

(c)  A member shall be considered to be “in service” under the provisions of this section, even though the member is no longer participating in this system because of advanced age, so long as the member continues to be employed by the same employer.

(d)  Upon the death of a member in service who has completed ten (10) years of creditable service, a retirement allowance shall be paid to the member's nominated beneficiary, if any.

     (1)  No benefits shall be payable under this subsection (d) on account of any member on whose account a benefit is payable under any other provision of chapters 34-37 of this title.

     (2)  The retirement allowance payable to the beneficiary shall be determined by converting the lump sum benefit payable under the provisions of § 8-36-107 into a monthly annuity payable over a period not to exceed one hundred twenty (120) months. The present value of the monthly annuity shall be equal to the lump sum benefit payable in accordance with § 8-36-107. The interest rate used in calculating the present value shall be based on the interest rate payable by annuity companies in the open market on the date the monthly benefit commences. The interest rate shall not be lower than the rate established by the board of trustees under § 8-34-505.

     (3)  In the event the beneficiary dies before receiving all of the benefits payable under subdivision (d)(2), a lump sum payment equal to the actuarial equivalent of the monthly benefit due over the remaining months in the one-hundred-twenty month period shall be paid to the beneficiary's estate in accordance with § 8-36-120.

[Acts 1972, ch. 814, § 5; T.C.A., § 8-3919; Acts 1980, ch. 654, § 7; 1983, ch. 342, § 5; 1985, ch. 86, § 1; 1985, ch. 407, § 1; 1985, ch. 449, § 18; 1986, ch. 553, §§ 14-16; 1986, ch. 554, § 11; 1991, ch. 378, § 15; 2001, ch. 58, §§ 14-16; 2006, ch. 870, § 17.]