KRS 21.420: Death benefits for members -- Designation of beneficiary to receive

accumulated contributions or accumulated account balance.

(1) After the death of a member who began participating in the Judicial Retirement

Plan prior to January 1, 2014, w ho at the time of his or her death was receiving a

service retirement allowance (other than an actuarially reduced allowance under

subsection (3) of KRS 21.400), or was receiving a disability retirement allowance,

his or her surviving spouse is entitled to receive during his or her lifetime a monthly

allowance equal to one-half (1/2) of that he or she was receiving.

(2) (a) If a member who began participating in the Judicial Retirement Plan prior to

January 1, 2014, dies before retirement and before reachin g normal retirement

age, without regard to length of service, his or her surviving spouse is entitled

to receive during his or her lifetime a monthly allowance equal to one -half

(1/2) of the monthly allowance the member would have received commencing

at his or her normal retirement date if he or she had continued in service until

that date and had then retired, computed however on the basis of his or her

final compensation at time of death.

(b) If a member who began participating in the Judicial Retirement Plan prior to

January 1, 2014, dies before retirement and after reaching normal retirement

age, his or her surviving spouse is entitled to receive during his or her lifetime

a monthly allowance equal to one -half (1/2) of the monthly allowance the

member wo uld have been entitled to, on the basis of his or her years of

service, had he or she retired on the date of his death.

(3) If a member who began participating in the Judicial Retirement Plan prior to

January 1, 2014, dies after retirement and was at the t ime of his or her death

receiving an actuarially reduced allowance under subsection (3) of KRS 21.400, or

was not at the time of his or her death receiving a retirement allowance but had

acquired the vested right under subsection (2) of KRS 21.400 to have received an

allowance upon reaching normal retirement age, his or her surviving spouse is

entitled to receive during his or her lifetime a monthly allowance equal to one -half

(1/2) of the monthly allowance the member would have received when he or she

reached normal retirement age.

(4) A member, or a retiree who began participating in the plan prior to January 1, 2014,

who has not commenced drawing retirement benefits pursuant to KRS 21.400, and

who dies without a spouse or eligible children entitled to sur vivor's benefits, may

designate a beneficiary who shall receive the accumulated contributions of the

member. A member, or a retiree who began participating in the plan on or after

January 1, 2014, who has not commenced drawing retirement benefits pursuant to

KRS 21.402, who dies without a spouse or eligible children entitled to survivor's

benefits, may designate a beneficiary who shall receive the accumulated account

balance of the member. A trust, including a special needs trust, may be designated

as a ben eficiary. Absent a designation by the member or retiree, the accumulated

contributions or accumulated account balance, as applicable based upon the

member's participation date, shall be paid to the member's estate.

(5) A member who began participating in t he plan prior to January 1, 2014, who

commences drawing retirement benefits pursuant to KRS 21.400 or 21.410, and

who dies without a spouse or eligible children entitled to survivor's benefits and

before the benefits received by the member equal the accumu lated contributions of

the member, may designate a beneficiary who shall receive the balance of the

accumulated contributions of the member. A member who began participating in

the plan on or after January 1, 2014, who commences drawing retirement benefits

pursuant to KRS 21.402 or 21.410, and who dies without a spouse or eligible

children entitled to survivor's benefits and before the benefits received by the

member equal the accumulated account balance of the member, may designate a

beneficiary who shall receive the balance of the accumulated account balance of the

member. A trust, including a special needs trust, may be designated as a

beneficiary. Any benefits received shall be deducted from the accumulated

contributions or accumulated account balance. Absent a designation by the member,

the balance of the accumulated contributions or accumulated account balance, as

applicable based upon the member's participation date, shall be paid to the

member's estate.

(6) A member who begins participating in the Judicial Retirement Plan prior to January

1, 2014, may designate a beneficiary who shall receive the balance of the

accumulated contributions of the member, in the event survivor's benefits are being

paid pursuant to subsection (1), (2), or (3) of this section, and the survivor dies prior

to receiving benefits equal to the member's contributions. In this event, the

provisions of subsection (5) of this section shall apply as to offset and payment.

(7) A member who begins participating in the Judicial Retirement Plan prior to January

1, 2014, may, prior to the drawing of benefits, elect in writing to the executive

secretary of the Judicial Form Retirement System, to take an optional retirement

allowance which shall be actuarially equivalent to the amount of retir ement

allowance otherwise payable to the member and the member's spouse. If the

member dies after retirement, the option chosen shall prevail over the provisions of

subsections (1) and (3) of this section. If the member dies prior to retirement, the

option chosen shall prevail over the provisions of subsection (2) of this section. The

options shall include:

(a) Survivorship one hundred percent (100%). The member may elect to receive a

decreased retirement allowance during the member's lifetime and have the

retirement allowance continued after death to the spouse during the lifetime of

the spouse.

(b) Survivorship sixty-six and two -thirds percent (66 2/3%). The member may

elect to receive a decreased retirement allowance during the member's lifetime

and have two -thirds (2/3) of the retirement allowance continue after death to

the spouse during the lifetime of the spouse.

If a retiree, living or deceased, chose either of the optional retirement benefit

allowances specified in paragraphs (a) or (b) of this subsection from July 15, 1994,

to July 15, 1998, the optional allowance shall be adjusted accordingly, and the n ew

benefit shall commence August 1, 1998. Each recipient of benefits from the plan,

who retired from July 15, 1994, to July 15, 1998, shall have a one -time opportunity

to select an optional retirement allowance. The election by the recipient shall be

prior to August 1, 1998, at which time the new benefit shall commence. The option

chosen shall prevail, subsections (1), (2), and (3) of this section notwithstanding.

(8) For a member who begins participating in the Judicial Retirement Plan on or after

January 1, 2014:

(a) If the member dies prior to drawing a retirement allowance, then the surviving

spouse may elect to:

1. Take a refund of the member's accumulated account balance or

accumulated contributions as provided by KRS 21.402; or

2. If the member had at least five (5) years of service in the plan at the time

of his or her death, have the member's accumulated account balance

annuitized into a monthly benefit payable for life that is equal to the

benefit that would have been paid had the member retired imm ediately

prior to his or her date of death and elected to receive benefits payable

under the survivorship one hundred percent (100%) option as provided

by paragraph (b)1. of this subsection.

In lieu of the benefits provided by this paragraph to the surviv ing spouse, the

member may elect to have the benefits payable under this paragraph paid to

an individual dependent child by completing the forms provided prescribed by

the Judicial Form Retirement System. If no surviving spouse or dependent

children are el igible to receive benefits, then the provisions of subsection (4)

of this section shall apply to the member.

(b) If a member dies on or after the date the member begins drawing a retirement

allowance, the benefits payable to the surviving spouse shall be b ased upon

whether or not the member elects prior to retirement to receive an optional

retirement allowance. The election shall be in writing on the forms prescribed

by the Judicial Form Retirement System and shall be actuarially equivalent to

the amount of retirement allowance otherwise payable to the member. The

optional retirement allowances shall include:

1. Survivorship one hundred percent (100%). The member may elect to

receive a decreased retirement allowance during the member's lifetime

and have the retirement allowance continued after death to the spouse

during the lifetime of the spouse;

2. Survivorship sixty -six and two -thirds percent (66 -2/3%). The member

may elect to receive a decreased retirement allowance during the

member's lifetime and have t wo-thirds (2/3) of the retirement allowance

continue after death to the spouse during the lifetime of the spouse; or

3. Survivorship fifty percent (50%). The member may elect to receive a

decreased retirement allowance during the member's lifetime and have

one-half (1/2) of the retirement allowance continue after death to the

spouse during the lifetime of the spouse.

In lieu of the benefits provided by this paragraph to the surviving spouse, the

member may elect prior to retirement to have the benefits pay able under this

paragraph paid to an individual dependent child or to a special needs trust by

completing the forms provided by the Judicial Form Retirement System. If no

surviving spouse or dependent children are eligible to receive benefits, then

the provisions of subsection (5) of this section shall apply to the member.

(c) For purposes of this section a "dependent child" shall mean a child who is less

than twenty-one (21) years of age or a disabled child who is eligible for Social

Security disability benefits.

(9) (a) As used in this section, "special needs trust" means a trust described in 42

U.S.C. sec. 1396p(d)(4)(A) or (C).

(b) In any circumstances in which a surviving spouse would be entitled to any

allowance under this section, the monthly allowanc e that the surviving spouse

was receiving or is entitled to receive may be paid to a special needs trust for

the benefit of the surviving spouse.