Kentucky Administrative Regulations › Title 102 - TEACHERS' RETIREMENT SYSTEM › Chapter 1 - General Rules › Section 102 KAR 1:150 - Optional benefits

Current through Register Vol. 51, No. 1, July 1, 2024
RELATES TO:
				KRS
				161.620,
				161.630,
				161.650
NECESSITY, FUNCTION, AND CONFORMITY:
				KRS
				161.310 requires the Board of Trustees of the
				Teachers' Retirement System of the State of Kentucky to promulgate
				administrative regulations for the administration of retirement system funds
				and for the transaction of business.
				KRS
				161.630 provides that a member of the
				Teachers' Retirement System retiring for service, may elect an optional benefit
				in lieu of the life annuity provided by
				KRS
				161.620. This administrative regulation
				establishes the various options which may be elected by the retiring member at
				the time of retirement.
Section 1.
			 Option I - Straight Life Annuity with Refundable Balance. If no option is
			 chosen by the retiring member, or if member is retiring for disability, Option
			 I shall prevail, and shall consist of a life annuity (a retirement allowance
			 payable throughout life). Upon death of a retired member, unless Options II,
			 III, III(a), IV, IV(a), or V are selected, an amount consisting of the excess,
			 if any, of his accumulated account at time of retirement over the amount of all
			 annuity payments received by the member prior to his death shall be refundable
			 to his named beneficiary or to his estate, pursuant to
			 KRS
			 161.650.
Section 2. Option II - Annuity for Ten (10)
			 Years Certain and for Life Thereafter.
(1) At
			 time of retirement the retiring member may file with application for retirement
			 a sworn statement choosing Option II, and this option shall be a lesser annuity
			 actuarially equivalent to the annuity provided under Option I above with
			 payments guaranteed for ten (10) years in any event and for life thereafter if
			 the member survives the ten (10) year period from date of retirement. If the
			 member's death occurs within the ten (10) year guarantee period, annuity
			 payments shall continue for the remainder of the ten (10) year guarantee period
			 to the named beneficiary, if any, or estate.
(2) Death during the first thirty (30) days
			 immediately after retirement shall not affect the payment of this annuity for
			 ten (10) years certain.
(3) Under
			 Option II, a member may also select an annuity for five (5), fifteen (15), or
			 twenty (20) years certain and for life thereafter under the conditions provided
			 for the ten (10) years certain annuity, except that the length of time that the
			 survivor would receive an annuity if the member dies would vary according to
			 the years certain option selected. To select a years certain period other than
			 ten (10) years certain, the member shall specifically designate the number of
			 years to be included in the years certain period. Selection of Option II
			 without designation of a period of years certain shall be deemed to be the
			 selection of Option II as an annuity for ten (10) years certain and life
			 thereafter.
(4) Under Option II, in
			 the event of the death of both the member and the primary beneficiary before
			 the expiration of the years certain period selected by the member, the
			 surviving contingent beneficiary, if any, shall be entitled to receive annuity
			 payments for the remainder of the term certain. In the event of the death of
			 the surviving contingent beneficiary who has been predeceased by the member and
			 the primary beneficiary prior to the expiration of the years certain period, a
			 lump sum payment of the present value of all remaining annuity payments shall
			 be paid to the contingent beneficiary's estate. In the event that the primary
			 beneficiary dies before the expiration of the years certain period, but the
			 member did not designate a contingent beneficiary, or the contingent
			 beneficiary predeceases the primary beneficiary, a lump sum payment of the
			 present value of all remaining annuity payments shall be paid to the primary
			 beneficiary's estate, unless the primary beneficiary predeceases the member in
			 which case a lump sum payment of the present value of all remaining annuity
			 payments shall be paid to the member's estate.