KRS § 161.655 — KY Code / Title XIII / Chapter 161 / Section 161.655
161.655 Life insurance benefit -- Assignment of benefit
Status: in_force

161.655 Life insurance benefit -- Assignment of benefit.

(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.

(2) (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.