78.5532 Death before retirement -- Beneficiary's options -- Taxable
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/ky/78-5532A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
distributions -- Injuries connected with performance of duty.
(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 be eligible for the benefits provided by this section if the member had on
file a written designation of a beneficiary with the retirement office as provided
by KRS 61.542 and the member met the following conditions at the date of his
or her death:
(a)1. The member had service in a nonhazardous position and was
eligible to retire under KRS 78.5510(2) or
(3)or 78.5512(6); or
2. The member had service in a hazardous position and was eligible to
retire under KRS 78.5514(2) or
(3)or 78.5516(6);
(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 retirement date or in the case of a nonhazardous member,
was normal retirement age or older and had at least four
(4)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 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:
(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 to his or her date of death and elected to receive benefits payable
under the survivorship one hundred percent (100%) option as provided in
KRS 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 actuarial equivalent to the amount computed under
paragraph
(a)of this 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
subsection;
(d)A monthly benefit payable for a period of one hundred twenty
months that is the actuarial equivalent to the amount computed under
paragraph
(a)of this subsection;
(e)If the member began participating prior to January 1, 2014, 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 receive
based on his or her years of service and final compensation at the date of
his or her death reduced by the survivorship fifty percent (50%) factor as
provided for in KRS 61.635(4), then reduced by fifty percent (50%), and
that is the actuarial equivalent to the amount computed under paragraph
(a)of this subsection; or
(f)The higher of a refund of the member's accumulated account balance as
described in KRS 61.625(1) or one
(1)time lump-sum payment which
shall be the actuarial equivalent of the amount payable under paragraph
(a)of this subsection for a period of sixty
(60)months.
(3)If the beneficiary eligible for benefits as provided by subsection
(1)of this
section is multiple beneficiaries or a trust, then the multiple beneficiaries by
consensus or the trustee may elect to receive the actuarial equivalent amounts
payable under subsection (2)(c), (d), (e), or
(f)of this section using the
assumption that the 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 the member's accumulated account balance as described in KRS
61.625(1) or the one
(1)time lump-sum payment payable under subsection
(2)(f) of this section, using the 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.
(a)The beneficiary of a member with service in a nonhazardous position who
dies as a result of a duty-related injury may be eligible for benefits based
upon the definitions, criteria, and benefits specified by KRS 61.621.
(b)The beneficiary of a member with service in a hazardous position who
dies as a direct result of an act in line of duty may be eligible for benefits
from the system based upon the definitions, criteria, and benefits
specified by KRS 78.5534.