KRS § 161.650 — KY Code / Title XIII / Chapter 161 / Section 161.650
161.650 Death of retired member -- Payment to beneficiaries -- Effect of divorce decree -- Failure to designate beneficiary
Status: in_force

161.650 Death of retired member -- Payment to beneficiaries -- Effect of divorce

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.

(2) (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.