KRS § 161.520 — KY Code / Title XIII / Chapter 161 / Section 161.520
161.520 Payment of survivor's benefit on death
Status: in_force

161.520 Payment of survivor's benefit on death.

Upon the death of an active contributing member or upon the death of a member retired

for disability, except as provided in KRS 161.661(6), the survivors of the deceased

member in the following named order, may elect to receive a survivor's benefit payable as

follows:

(1) Where there is a surviving widow or widower who is named as the primary

beneficiary of the member's retirement account, the benefit shall be:

(a) One hundred eighty dollars ($180) per month with no restriction on other

income;

(b) Two hundred forty dollars ($240) per month when the surviving widow or

widower's total income from all sources does not exceed six thousand six

hundred dollars ($6,600) per year or five hundred fifty dollars ($550) per

month; or

(c) If the deceased member has a minimum of ten (10) years of service credit with

the Teachers' Retirement System, the surviving widow or widower may apply

for an annuity actuarially equivalent to the annuity that would have been paid

to the deceased member when eligibility conditions were met. Eligibility for

payments would begin at the time the age of the deceased member would have

met the requirements of KRS 161.600(1) or (2), as applicable. In exercising

this right, the surviving widow or widower shall be entitled to receive an

annuity for life. This subsection applies to surviving spouses of members who

die on or after July 1, 1978. A surviving widow or widower of a member who

dies after July 1, 1978, shall be eligible for benefit payments provided under

paragraphs (a) and (b) of this subsection until they begin receiving payments

under this provision;

(2) (a) Where there are surviving unmarried children under age eighteen (18) or

under age nineteen (19) if a full-time student in high school, the benefit shall

be two hundred dollars ($200) per month in the case of one (1) child, three

hundred forty dollars ($340) per month in the case of two (2) children, four

hundred dollars ($400) per month in the case of three (3) children, and four

hundred forty dollars ($440) per month in the case of four (4) or more

children. Benefits under this subsection shall apply in addition to benefits

which may be payable under subsections (1) and (3) of this section.

(b) Notwithstanding any provision of law to the contrary, the surviving spouse

may elect to receive a lump-sum refund of the member's accumulated account

balance in lieu of the survivorship benefits payable under this subsection and

subsection (1) of this section only if the surviving spouse is designated as the

primary beneficiary and:

1. Is a biological or adoptive parent of all children eligible for a benefit

under this subsection and has not had his or her parental rights

terminated; or

2. Has been appointed as legal guardian of all of the children eligible under

paragraph (a) of this subsection.

(c) To elect a lump-sum refund of the member's accumulated account balance

under paragraph (b) of this subsection, the surviving spouse who is designated

as the primary beneficiary must sign a waiver on forms prescribed by the

retirement system of his or her rights and the member's children's rights to the

survivorship benefits payable under this subsection and subsection (1) of this

section. The surviving spouse shall not waive the survivorship benefits

available under this subsection or subsections (1) and (6) of this section if any

of the member's children have attained age eighteen (18) or older unless all of

those children consent in writing on forms prescribed by the retirement system

to waive their survivorship benefits available under this subsection;

(3) (a) Where the survivor is a child age eighteen (18) or older whose mental or

physical condition is sufficient to cause his or her dependency on the deceased

member at the time of the member's death, the benefit shall be two hundred

dollars ($200) per month, payable for the life of the child or until the time as

the mental or physical condition creating the dependency no longer exists or

the child marries. The mental or physical condition of the adult child shall be

revealed by a competent examination by a licensed physician and shall be

approved by a majority of a medical review committee as defined in KRS

161.661(14). Benefits under this subsection shall apply in addition to benefits

which may be payable under subsections (1) and (2) of this section.

(b) Notwithstanding any provision of law to the contrary, the surviving spouse

shall not elect to receive a lump-sum refund of the member's accumulated

account balance in lieu of the survivorship benefits payable under this

subsection and subsection (1) of this section unless:

1. The surviving spouse is designated as the primary beneficiary;

2. The surviving spouse has been appointed by the court as guardian,

conservator, or other fiduciary with sufficient general or specific

authority to waive the survivorship benefits available under this

subsection for any child or children age eighteen (18) or older who have

been adjudicated incompetent to make decisions on their own behalf by

a court of law; and

3. Any child or children age eighteen (18) or older who are mentally

competent to make decisions on their own behalf consent in writing on

forms prescribed by the retirement system to waive their survivorship

benefits available under this subsection.

(c) If eligible to elect a lump-sum refund of the member's accumulated account

balance, the surviving spouse shall sign a waiver on forms prescribed by the

retirement system of his or her rights and the member's children's rights to the

survivorship benefits payable under this subsection and subsections (1) and

(2) of this section;

(4) Where the sole eligible survivors are dependent parents aged sixty-five (65) or over,

the benefit shall be two hundred dollars ($200) per month for one (1) parent or two

hundred ninety dollars ($290) per month for two (2) parents. Dependency of a

parent shall be established as of the date of the death of the member;

(5) Where the sole eligible survivor is a dependent brother or sister, the benefit shall be

one hundred sixty five dollars ($165) per month. In order to qualify, the brother or

sister must have been a resident of the deceased member's household for at least one

(1) full year prior to the member's death or must have been receiving care in a

hospital, nursing home, or other institution at the member's expense for same

period;

(6) The benefit to a child as defined in subsection (2) of this section shall terminate

upon the attainment of age eighteen (18) or upon reaching age nineteen (19), if a

full-time student in high school, or upon marriage, except that benefits shall

continue until the attainment of age twenty-three (23) for an unmarried child who is

a full-time student in a recognized educational program beyond the high school

level. The benefit to a dependent parent or dependent brother or sister or dependent

child age eighteen (18) or older shall terminate upon marriage, or upon termination

of the condition creating the dependency;

(7) The board of trustees shall be the sole judge of eligibility or dependency of any

beneficiary, and may require formal application or information relating to eligibility

or dependency, including proof of annual income satisfactory to the board. The

board of trustees may subpoena records and individuals whenever it deems this

action necessary;

(8) No payment of benefits shall be made unless the board of trustees authorizes the

payment. The board shall promulgate administrative regulations for the

administration of the provisions in this section and in every case the decision of the

board of trustees shall be final as to eligibility, dependency, or disability, and the

amount of benefits payable;

(9) In the event that there are no eligible survivors as defined in subsections (1) to (5)

of this section, or in the event that the surviving spouse elects not to receive

survivorship benefits on his or her own behalf or on behalf of any of the member's

children as permitted under subsections (2) and (3) of this section, the board of

trustees shall pay to the estate or the designated beneficiaries of the deceased

member a refund of his or her accumulated account balance as provided in KRS

161.470(7). If the benefits paid or payable under subsections (1) to (5) of this

section and KRS 161.661 shall amount to a sum less than the member's

accumulated account balance at the time of death, the board of trustees shall pay to

the estate or designated beneficiaries of the deceased member the balance of the

accumulated account balance;

(10) Any person who is receiving benefits and becomes disqualified from receiving

those benefits under this section shall immediately notify the Teachers' Retirement

System of this disqualification in writing and shall return all benefits paid after the

date of disqualification. Failure to comply with these provisions shall create an

indebtedness of that person to the Teachers' Retirement System. Interest at the rate

of eight percent (8%) per annum shall be charged if the debt is not repaid within

sixty (60) days after the date of disqualification. Failure to repay this debt creates a

lien in favor of the Teachers' Retirement System upon all property of the person

who improperly receives benefits and does not repay those benefits; and

(11) Benefits under subsections (2) and (3) of this section shall apply to a child who is a

legally adopted survivor at the time of the death of the member. This provision shall

be retroactive to include a child who was born after January 1, 1990, and is a legally

adopted survivor of a member whose death occurred prior to July 15, 2008.