161.520 Payment of accumulated contribution on death.

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161.520 Payment of accumulated contribution on death. Upon the death of an active contributing member or upon the death of a member retired <br>for disability, except as provided in KRS 161.661(6), the survivors of the deceased <br>member in the following named order, may elect to receive a survivor's benefit payable as <br>follows: <br>(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: <br>(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 <br>hundred dollars ($6,600) per year or five hundred fifty dollars ($550) per <br>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 <br>for an annuity actuarially equivalent to the annuity that would have been paid <br>to the deceased member when eligibility conditions were met. Eligibility for <br>payments would begin at the time the age of the deceased member would have <br>met the requirements of KRS 161.600(1). In exercising this right, the <br>surviving widow or widower shall be entitled to receive an annuity for life, <br>except as provided in subsection (6) of this section. This subsection applies to <br>surviving spouses of members who die on or after July 1, 1978. A surviving <br>widow or widower of a member who dies after July 1, 1978, shall be eligible <br>for benefit payments provided under paragraphs (a) and (b) of this subsection <br>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 <br>be two hundred dollars ($200) per month in the case of one (1) child, three <br>hundred forty dollars ($340) per month in the case of two (2) children, four <br>hundred dollars ($400) per month in the case of three (3) children, and four <br>hundred forty dollars ($440) per month in the case of four (4) or more <br>children. Benefits under this subsection shall apply in addition to benefits <br>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 account in lieu of the <br>survivorship benefits payable under this subsection and subsection (1) of this <br>section only if the surviving spouse is designated as the primary beneficiary <br>and: <br>1. Is a biological or adoptive parent of all children eligible for a benefit <br>under this subsection and has not had his or her parental rights <br>terminated; or 2. Has been appointed as legal guardian of all of the children eligible under <br>paragraph (a) of this subsection. (c) To elect a lump-sum refund of the member's account under paragraph (b) of this subsection, the surviving spouse who is designated as the primary <br>beneficiary must sign a waiver on forms prescribed by the retirement system <br>of his or her rights and the member's children's rights to the survivorship <br>benefits payable under this subsection and subsection (1) of this section. The <br>surviving spouse shall not waive the survivorship benefits available under this <br>subsection or subsections (1) and (6) of this section if any of the member's <br>children have attained age eighteen (18) or older unless all of those children <br>consent in writing on forms prescribed by the retirement system to waive their <br>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 dependency on the deceased <br>member at the time of the member's death, the benefit shall be two hundred <br>dollars ($200) per month, payable for the life of the child or until the time as <br>the mental or physical condition creating the dependency no longer exists or <br>the child marries. The mental or physical condition of the adult child shall be <br>revealed by a competent examination by a licensed physician and shall be <br>approved by a majority of a medical review committee as defined in KRS <br>161.661(14). Benefits under this subsection shall apply in addition to benefits <br>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 account in lieu of <br>the survivorship benefits payable under this subsection and subsection (1) of <br>this section unless: <br>1. The surviving spouse is designated as the primary beneficiary; 2. The surviving spouse has been appointed by the court as guardian, <br>conservator, or other fiduciary with sufficient general or specific <br>authority to waive the survivorship benefits available under this <br>subsection for any child or children age eighteen (18) or older who have <br>been adjudicated incompetent to make decisions on their own behalf by <br>a court of law; and 3. Any child or children age eighteen (18) or older who are mentally <br>competent to make decisions on their own behalf as attested to by two <br>(2) physicians' statements consent in writing on forms prescribed by the <br>retirement system to waive their survivorship benefits available under <br>this subsection. (c) If eligible to elect a lump-sum refund of the member's account, the surviving spouse shall sign a waiver on forms prescribed by the retirement system of his <br>or her rights and the member's children's rights to the survivorship benefits <br>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 <br>hundred ninety dollars ($290) per month for two (2) parents. Dependency of a <br>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 <br>sister must have been a resident of the deceased member's household for at least one <br>(1) full year prior to the member's death or must have been receiving care in a <br>hospital, nursing home, or other institution at the member's expense for same <br>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 <br>full-time student in high school, or upon marriage, except that benefits shall <br>continue until the attainment of age twenty-three (23) for an unmarried child who is <br>a full-time student in a recognized educational program beyond the high school <br>level. The benefit to a widow, widower, dependent parent, or dependent brother or <br>sister or dependent child age eighteen (18) or older shall terminate upon marriage, <br>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 <br>or dependency, including proof of annual income satisfactory to the board. The <br>board of trustees may subpoena records and individuals whenever it deems this <br>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 <br>administration of the provisions in this section and in every case the decision of the <br>board of trustees shall be final as to eligibility, dependency, or disability, and the <br>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 <br>survivorship benefits on his or her own behalf or on behalf of any of the member's <br>children as permitted under subsections (2) and (3) of this section, the board of <br>trustees shall pay to the estate or the designated beneficiaries of the deceased <br>member a refund of his accumulated contributions as provided in KRS 161.470(7). <br>If the benefits paid or payable under subsections (1) to (5) of this section and KRS <br>161.661 shall amount to a sum less than the member's accumulated contributions at <br>the time of death, the board of trustees shall pay to the estate or designated <br>beneficiaries of the deceased member the balance of the accumulated contributions; (10) Any person who is receiving benefits and becomes disqualified from receiving those benefits under this section shall immediately notify the Teachers' Retirement <br>System of this disqualification in writing and shall return all benefits paid after the <br>date of disqualification. Failure to comply with these provisions shall create an <br>indebtedness of that person to the Teachers' Retirement System. Interest at the rate <br>of eight percent (8%) per annum shall be charged if the debt is not repaid within <br>sixty (60) days after the date of disqualification. Failure to repay this debt creates a <br>lien in favor of the Teachers' Retirement System upon all property of the person <br>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 <br>be retroactive to include a child who was born after January 1, 1990, and is a legally <br>adopted survivor of a member whose death occurred prior to July 15, 2008. Effective: July 1, 2008 <br>History: Amended 2008 Ky. Acts ch. 67, sec. 1, effective July 15, 2008; and ch. 78, sec. 7, effective July 1, 2008. -- Amended 2006 Ky. Acts ch. 189, sec. 4, effective <br>July 1, 2006. -- Amended 2004 Ky. Acts ch. 121, sec. 9, effective July 1, 2004. -- <br>Amended 1994 Ky. Acts ch. 369, sec. 8, effective July 1, 1994.</div></article><aside class="right-sidebar"><div class="related-sidebar"><h3><span class="emoji">⚖️</span> State Laws</h3><ul class="state-laws-list"><li><a href="https://state-laws.laws.com/state-of-alabama">The State Laws of Alabama</a></li><li><a href="https://state-laws.laws.com/state-of-alaska">The State Laws of Alaska</a></li><li><a href="https://state-laws.laws.com/state-of-arizona">The State Laws of Arizona</a></li><li><a href="https://state-laws.laws.com/state-of-arkansas">The State Laws of Arkansas</a></li><li><a href="https://state-laws.laws.com/state-of-california">The State Laws of California</a></li><li><a href="https://state-laws.laws.com/state-of-colorado">The State Laws of Colorado</a></li><li><a href="https://state-laws.laws.com/state-of-connecticut">The State Laws of Connecticut</a></li><li><a href="https://state-laws.laws.com/state-of-delaware">The State Laws of Delaware</a></li><li><a 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PDF...\u003c/div\u003e\u003cscript type=\"text/javascript\"\u003e var pdf_url = 'https://law.justia.com/codes/kentucky/2009/161-00/pdf/520.pdf'; $(document).ready(function() { var embedwindow = $(\"#embed_document\"); if ($.browser.msie){ embedwindow.html('\u003cembed src=\"'+pdf_url+'\" width=\"100%\" height=\"100%\"\u003e\u003c/embed\u003e'); } else { embedwindow.html('\u003ciframe style=\"width:100%; height:100%;\" src=\"https://docs.google.com/gview?url='+window.escape(pdf_url)+'\u0026embedded=true\" frameborder=\"0\"\u003e\u003c/iframe\u003e'); } });\u003c/script\u003e\u003cbr\u003e\u003cbr\u003e\u003cnoframes\u003e161.520 Payment of accumulated contribution on death. Upon the death of an active contributing member or upon the death of a member retired \u003cbr\u003efor disability, except as provided in KRS 161.661(6), the survivors of the deceased \u003cbr\u003emember in the following named order, may elect to receive a survivor's benefit payable as \u003cbr\u003efollows: \u003cbr\u003e(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: \u003cbr\u003e(a) One hundred eighty dollars (\u0026#36;180) per month with no restriction on other income; (b) Two hundred forty dollars (\u0026#36;240) per month when the surviving widow or widower's total income from all sources does not exceed six thousand six \u003cbr\u003ehundred dollars (\u0026#36;6,600) per year or five hundred fifty dollars (\u0026#36;550) per \u003cbr\u003emonth; 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 \u003cbr\u003efor an annuity actuarially equivalent to the annuity that would have been paid \u003cbr\u003eto the deceased member when eligibility conditions were met. Eligibility for \u003cbr\u003epayments would begin at the time the age of the deceased member would have \u003cbr\u003emet the requirements of KRS 161.600(1). In exercising this right, the \u003cbr\u003esurviving widow or widower shall be entitled to receive an annuity for life, \u003cbr\u003eexcept as provided in subsection (6) of this section. This subsection applies to \u003cbr\u003esurviving spouses of members who die on or after July 1, 1978. A surviving \u003cbr\u003ewidow or widower of a member who dies after July 1, 1978, shall be eligible \u003cbr\u003efor benefit payments provided under paragraphs (a) and (b) of this subsection \u003cbr\u003euntil 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 \u003cbr\u003ebe two hundred dollars (\u0026#36;200) per month in the case of one (1) child, three \u003cbr\u003ehundred forty dollars (\u0026#36;340) per month in the case of two (2) children, four \u003cbr\u003ehundred dollars (\u0026#36;400) per month in the case of three (3) children, and four \u003cbr\u003ehundred forty dollars (\u0026#36;440) per month in the case of four (4) or more \u003cbr\u003echildren. Benefits under this subsection shall apply in addition to benefits \u003cbr\u003ewhich 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 account in lieu of the \u003cbr\u003esurvivorship benefits payable under this subsection and subsection (1) of this \u003cbr\u003esection only if the surviving spouse is designated as the primary beneficiary \u003cbr\u003eand: \u003cbr\u003e1. Is a biological or adoptive parent of all children eligible for a benefit \u003cbr\u003eunder this subsection and has not had his or her parental rights \u003cbr\u003eterminated; or 2. Has been appointed as legal guardian of all of the children eligible under \u003cbr\u003eparagraph (a) of this subsection. (c) To elect a lump-sum refund of the member's account under paragraph (b) of this subsection, the surviving spouse who is designated as the primary \u003cbr\u003ebeneficiary must sign a waiver on forms prescribed by the retirement system \u003cbr\u003eof his or her rights and the member's children's rights to the survivorship \u003cbr\u003ebenefits payable under this subsection and subsection (1) of this section. The \u003cbr\u003esurviving spouse shall not waive the survivorship benefits available under this \u003cbr\u003esubsection or subsections (1) and (6) of this section if any of the member's \u003cbr\u003echildren have attained age eighteen (18) or older unless all of those children \u003cbr\u003econsent in writing on forms prescribed by the retirement system to waive their \u003cbr\u003esurvivorship 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 dependency on the deceased \u003cbr\u003emember at the time of the member's death, the benefit shall be two hundred \u003cbr\u003edollars (\u0026#36;200) per month, payable for the life of the child or until the time as \u003cbr\u003ethe mental or physical condition creating the dependency no longer exists or \u003cbr\u003ethe child marries. The mental or physical condition of the adult child shall be \u003cbr\u003erevealed by a competent examination by a licensed physician and shall be \u003cbr\u003eapproved by a majority of a medical review committee as defined in KRS \u003cbr\u003e161.661(14). Benefits under this subsection shall apply in addition to benefits \u003cbr\u003ewhich 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 account in lieu of \u003cbr\u003ethe survivorship benefits payable under this subsection and subsection (1) of \u003cbr\u003ethis section unless: \u003cbr\u003e1. The surviving spouse is designated as the primary beneficiary; 2. The surviving spouse has been appointed by the court as guardian, \u003cbr\u003econservator, or other fiduciary with sufficient general or specific \u003cbr\u003eauthority to waive the survivorship benefits available under this \u003cbr\u003esubsection for any child or children age eighteen (18) or older who have \u003cbr\u003ebeen adjudicated incompetent to make decisions on their own behalf by \u003cbr\u003ea court of law; and 3. Any child or children age eighteen (18) or older who are mentally \u003cbr\u003ecompetent to make decisions on their own behalf as attested to by two \u003cbr\u003e(2) physicians' statements consent in writing on forms prescribed by the \u003cbr\u003eretirement system to waive their survivorship benefits available under \u003cbr\u003ethis subsection. (c) If eligible to elect a lump-sum refund of the member's account, the surviving spouse shall sign a waiver on forms prescribed by the retirement system of his \u003cbr\u003eor her rights and the member's children's rights to the survivorship benefits \u003cbr\u003epayable 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 (\u0026#36;200) per month for one (1) parent or two \u003cbr\u003ehundred ninety dollars (\u0026#36;290) per month for two (2) parents. Dependency of a \u003cbr\u003eparent 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 (\u0026#36;165) per month. In order to qualify the brother or \u003cbr\u003esister must have been a resident of the deceased member's household for at least one \u003cbr\u003e(1) full year prior to the member's death or must have been receiving care in a \u003cbr\u003ehospital, nursing home, or other institution at the member's expense for same \u003cbr\u003eperiod; (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 \u003cbr\u003efull-time student in high school, or upon marriage, except that benefits shall \u003cbr\u003econtinue until the attainment of age twenty-three (23) for an unmarried child who is \u003cbr\u003ea full-time student in a recognized educational program beyond the high school \u003cbr\u003elevel. The benefit to a widow, widower, dependent parent, or dependent brother or \u003cbr\u003esister or dependent child age eighteen (18) or older shall terminate upon marriage, \u003cbr\u003eor 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 \u003cbr\u003eor dependency, including proof of annual income satisfactory to the board. The \u003cbr\u003eboard of trustees may subpoena records and individuals whenever it deems this \u003cbr\u003eaction 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 \u003cbr\u003eadministration of the provisions in this section and in every case the decision of the \u003cbr\u003eboard of trustees shall be final as to eligibility, dependency, or disability, and the \u003cbr\u003eamount 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 \u003cbr\u003esurvivorship benefits on his or her own behalf or on behalf of any of the member's \u003cbr\u003echildren as permitted under subsections (2) and (3) of this section, the board of \u003cbr\u003etrustees shall pay to the estate or the designated beneficiaries of the deceased \u003cbr\u003emember a refund of his accumulated contributions as provided in KRS 161.470(7). \u003cbr\u003eIf the benefits paid or payable under subsections (1) to (5) of this section and KRS \u003cbr\u003e161.661 shall amount to a sum less than the member's accumulated contributions at \u003cbr\u003ethe time of death, the board of trustees shall pay to the estate or designated \u003cbr\u003ebeneficiaries of the deceased member the balance of the accumulated contributions; (10) Any person who is receiving benefits and becomes disqualified from receiving those benefits under this section shall immediately notify the Teachers' Retirement \u003cbr\u003eSystem of this disqualification in writing and shall return all benefits paid after the \u003cbr\u003edate of disqualification. Failure to comply with these provisions shall create an \u003cbr\u003eindebtedness of that person to the Teachers' Retirement System. Interest at the rate \u003cbr\u003eof eight percent (8%) per annum shall be charged if the debt is not repaid within \u003cbr\u003esixty (60) days after the date of disqualification. Failure to repay this debt creates a \u003cbr\u003elien in favor of the Teachers' Retirement System upon all property of the person \u003cbr\u003ewho 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 \u003cbr\u003ebe retroactive to include a child who was born after January 1, 1990, and is a legally \u003cbr\u003eadopted survivor of a member whose death occurred prior to July 15, 2008. Effective: July 1, 2008 \u003cbr\u003eHistory: Amended 2008 Ky. Acts ch. 67, sec. 1, effective July 15, 2008; and ch. 78, sec. 7, effective July 1, 2008. -- Amended 2006 Ky. Acts ch. 189, sec. 4, effective \u003cbr\u003eJuly 1, 2006. -- Amended 2004 Ky. Acts ch. 121, sec. 9, effective July 1, 2004. -- \u003cbr\u003eAmended 1994 Ky. 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