161.650 Death of retired member -- Payment to beneficiaries -- Effect of divorce
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/ky/161-650A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
decree -- Failure to designate beneficiary.
(1)In the case of death of a member who has retired by reason of service or disability,
any portion of the member's accumulated contributions, including member
contributions to the state accumulation fund and regular interest to the date of
retirement, that has not, and will not be paid as an allowance or benefit shall be paid
to the member's beneficiary in such manner as the board of trustees elects.
(a)The member may designate a primary beneficiary or two
(2)or more
cobeneficiaries to receive any remaining accumulated member contributions
payable under this section.
(b)A contingent beneficiary may be designated in addition to the primary
beneficiary or the cobeneficiaries. The member may designate two
(2)or more
contingent beneficiaries.
(c)To the extent permitted by the Internal Revenue Code, a trust may be
designated as beneficiary for receipt of any remaining funds of the member's
accumulated contributions.
(d)Members may designate as beneficiaries only presently identifiable and
existing individuals, or trusts where otherwise permitted, without contingency
instructions, on forms prescribed by the retirement system. Cobeneficiaries
shall be composed of a single class of individuals, or trusts where permitted,
who will share in equal proportions in any payment that may become available
under this section.
(e)1. Any beneficiary designation made by the member shall remain in effect
until changed by the member on forms prescribed by the retirement
system, except in the event of subsequent marriage or divorce.
2. Subsequent marriage by the member shall void the primary beneficiary
and any cobeneficiary designation, even that of a trust, and the spouse of
the member at death shall be considered as the primary beneficiary,
unless the member subsequent to marriage designates another
beneficiary. An individual who is married prior to becoming a retired
member of the retirement system and remains married at the time of
becoming a retired member shall have his or her spouse considered the
primary beneficiary, unless the member designates another beneficiary
for any amounts payable under subsection
(1)of this section.
3. A final divorce decree shall terminate the beneficiary status of an ex-
spouse unless, subsequent marriage or to divorce, the member
redesignates the former spouse as a beneficiary. A final divorce decree
shall not terminate the designation of a trust as beneficiary regardless of
who is designated as beneficiary of the trust.
(f)In the event that the member fails to designate a beneficiary or all designated
beneficiaries predecease the member, any remaining accumulated member
contributions shall be payable to the member's estate, unless the member is
married at the time of his or her death, in which case any remaining contributions shall be payable to his or her spouse.