KRS 78.5538: Death benefit -- Designation of beneficiary -- Debt owed at death --

Assignment of benefit.

(1) (a) Upon the death of a retired member of the system, who was receiving a

monthly retirement allowance based on a minimum of forty-eight (48) months

of service, a death benefit for the beneficiary of five thousand dollars ($5,000)

shall be paid.

(b) If the retired member had more than one (1) account in the County Employees

Retirement System or is eligible for a benefit from the Kentucky Retirement

Systems under the provisions of KRS 61.705, the combined payment from the

County Employees Retirement System under this section and the Kentucky

Retirement Systems under KRS 61.705 to the named beneficiary shall not

exceed five thousand dollars ($5,000). Each system's cost shall be prorated

between the systems based upon the level of service credit in each system.

(c) Application for the death benefit made to the system shall include acceptable

evidence of death and of the eligibility of the applicant to receive the death

benefit.

(2) (a) The death benefit shall be paid to a beneficiary named by the retired member.

Upon retirement or any time thereafter, the retired member may designate on

the form prescribed by the board, death benefit designation, a pers on, the

retired member's estate, a trust or trustee, or a licensed funeral home, as the

beneficiary of the death benefit provided by this section or KRS 61.705. The

beneficiary for the death benefit may or may not be the same beneficiary

designated in acco rdance with KRS 61.590(1) but only one (1) designation

shall be available to a retired member who has service in both the County

Employees Retirement System and the Kentucky Retirement Systems.

(b) If the beneficiary designated under this section is a per son and that person

dies prior to the member, or if the beneficiary was the retired member's

spouse and they were divorced on the date of the retired member's death, then

the retired member's estate shall become the beneficiary, unless the retired

member has filed a subsequent death benefit designation.

(c) If a licensed funeral home is designated as beneficiary and the licensed

funeral home cannot be reasonably identified or located by the system at the

time of the retired member's death, then the retired member's estate shall

become the beneficiary of the death benefit.

(3) The five thousand dollar ($5,000) death benefit paid to the designated beneficiary

shall not be subject to garnishment as an asset of the retired member's estate, except

if:

(a) At the time of the retired member's death, a debt to the County Employees

Retirement System remains on his or her account, the balance owed shall be

deducted from the five thousand dollar ($5,000) death benefit;

(b) After the death of the retired member, an overpayment of benefits occurs, the

balance owed for the overpayment shall be deducted from the five thousand

dollar ($5,000) death benefit; or

(c) At the time of the retired member's death, the designated benefici ary is the

retired member's estate.

(4) Upon the death of a retired member, the death benefit provided pursuant to this

section may be assigned by the designated beneficiary to a bank or licensed funeral

home.