161.655 Life insurance benefit -- Assignment of benefit.
696 words·~3 min read·
/ky/chapter-161/161-655A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(1)Effective July 1, 2000, the Teachers' Retirement System shall:
(a)Provide a life insurance benefit in a minimum amount of five thousand dollars
($5,000) for its members who are retired for service or disability, except that
the minimum amount for an individual who becomes a member on or after
January 1, 2022, and retires for service or disability shall be ten thousand
dollars ($10,000). This life insurance benefit shall be payable upon the death
of a member retired for service or disability to the member's estate or to a
party designated by the member on a form prescribed by the retirement
system; and
(b)Provide a life insurance benefit in a minimum amount of two thousand dollars
($2,000) for its active contributing members, except that the minimum amount
for an individual who becomes a member on or after January 1, 2022, and is
an active contributing member shall be five thousand dollars ($5,000). This
life insurance benefit shall be payable upon the death of an active contributing
member to the member's estate or to a party designated by the member on a
form prescribed by the retirement system.
(a)The member may name one
(1)primary and one
(1)contingent beneficiary for
receipt of the life insurance benefit. To the extent permitted by the Internal
Revenue Code, a trust may be designated as beneficiary for receipt of the life
insurance benefit.
(b)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.
(c)In the event that a member fails to designate a beneficiary, or all designated
beneficiaries predecease the member, the member's estate shall be deemed to
be the beneficiary, unless the member is married at the time of his or her
death, in which case the spouse shall be deemed the beneficiary.
(d)1. Any beneficiary designation made by the member, including the estate
should the estate become the beneficiary by default, 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. A valid marriage license shall terminate any previously designated
beneficiary, even that of a trust, and establish the spouse as beneficiary
unless, subsequent proof of the marriage, the member or retired member
redesignates someone other than the new spouse as the beneficiary.
3. An individual who is married prior to becoming an active member or a
retired member of the retirement system and remains married at the time
of becoming an active or retired member of the retirement system shall
have his or her spouse considered the primary beneficiary, unless the
member designates another beneficiary.
4. A final divorce decree shall terminate the beneficiary status of an ex-
spouse unless, subsequent 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.
(e)The Teachers' Retirement System shall not acknowledge a beneficiary
designation unless the life insurance beneficiary form is received by the
Teachers' Retirement System prior to the member's death, or the life insurance
beneficiary form has been deposited in the mail with a postmark date no later
than the date of the member's death.
(3)Application for payment of life insurance proceeds shall be made to the Teachers'
Retirement System together with acceptable evidence of death and eligibility. The
reciprocal provisions of KRS 61.680(2)(a) shall not apply to the coverage and
payment of proceeds by the life insurance benefit under this section.
(4)Suit or civil action shall not be required for the collection of the proceeds of the life
insurance benefit provided for by this section, but nothing in this section shall
prevent the maintenance of suit or civil action against the beneficiary or legal
representative receiving the proceeds of the life insurance benefit.
(5)Upon the death of a member of the Teachers' Retirement System, the life insurance
provided pursuant to subsection
(1)of this section may be assigned by the
designated beneficiary to a bank or licensed funeral home.