KRS § 78.5532 — KY Code / Title IX / Chapter 78 / Section 78.5532
78.5532 Death before retirement -- Beneficiary's options -- Taxable distributions -- Injuries connected with performance of duty
Status: in_force

78.5532 Death before retirement -- Beneficiary's options -- Taxable

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 (120)

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.

(6) (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.