{"data":{"id":"us-ky/krs-16.578","jurisdiction":"us-ky","citation":"KRS 16.578","heading":"Death before retirement -- Beneficiary's options.","body":"(1) If a member dies prior to the first day of the month in which the member would\nhave received his or her first retirement allowance, the member's beneficiary shall\nbe eligible for the benefits provided by this section if the member had on file a\nwritten designation of a beneficiary with the retirement office as provided by KRS\n61.542 and the member met the following conditions at the date of his or her death:\n(a) The member was eligible to retire under KRS 16.576, 16.577, or 16.583(6);\n(b) The member was in active employment or on authorized leave of absence\nwith five (5) or more years of service credit and died prior to his or her normal\nretirement date; or\n(c) The member was not in active employment or on authorized leave of absence\nwith twelve (12) or more  years of service credit and died prior to his or her\nnormal retirement date.\n(2) If the beneficiary eligible for benefits as provided in subsection (1) of this section is\na single person or a special needs trust, then the beneficiary may elect to receive:\n(a) A monthly benefit payable for the life of the beneficiary or the life of the\nbeneficiary of a special needs trust that is equal to the benefit that would have\nbeen paid had the member retired immediately prior to his or her date of death\nand elected t o receive benefits payable under the survivorship one hundred\npercent (100%) option as provided in KRS 61.635(2);\n(b) A monthly benefit payable for the life of the beneficiary or the life of the\nbeneficiary of a special needs trust under the beneficiary So cial Security\nadjustment option as provided in KRS 61.635(9) that is the actuarial\nequivalent to the amount computed under paragraph (a) of this subsection;\n(c) A monthly benefit payable for a period of sixty (60) months that is the\nactuarial equivalent to  the amount computed under paragraph (a) of this\nsubsection;\n(d) A monthly benefit payable for a period of one hundred twenty (120) months\nthat is the actuarial equivalent to the amount computed under paragraph (a) of\nthis subsection;\n(e) If the member beg an participating in the system prior to January 1, 2014, a\nmonthly benefit payable for:\n1. Sixty (60) months certain;\n2. One hundred twenty (120) months certain;\n3. The actuarial equivalent refund; or\n4. The Social Security adjustment option;\nthat is equivalent to the benefit the member would have been entitled to\nreceive based on his or her years of service and final compensation at the date\nof his or her death reduced by the survivorship fifty percent ( 50%) factor as\nprovided for in KRS 61.635(4), then reduced by fifty percent (50%), and that\nis the actuarial equivalent to the amount computed under paragraph (a) of this\nsubsection; or\n(f) The higher of a refund of the member's accumulated account balance  and\ninterest as described in KRS 61.625(1) or a one (1) time lump -sum payment\nwhich shall be the actuarial equivalent of the amount payable under paragraph\n(a) of this subsection for a period of sixty (60) months.\n(3) If the beneficiary eligible for benef its as provided in subsection (1) of this section\nare multiple beneficiaries or a trust, other than a special needs trust, then the\nmultiple beneficiaries by consensus or the trustee may elect to receive the actuarial\nequivalent amounts payable under subse ction (2)(c), (d), (e), or (f) of this section\nusing the assumption that the beneficiary's age is the same as the member's age.\n(4) If the beneficiary eligible for benefits as provided in subsection (1) of this section is\nthe member's estate, then the bene ficiary shall receive the higher of a refund of the\nmember's accumulated account balance and interest as described in KRS 61.625(1)\nor the one (1) time lump -sum payment payable under subsection (2)(f) of this\nsection, using the assumption that the benefici ary's age is the same as the member's\nage.\n(5) Payments of taxable distributions made pursuant to this section shall be subject to\nstate and federal tax as appropriate.","path":["KRS Chapter 16"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=57208","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:48:37Z","sha256":"4d12482177f515dea0f02358efdbc2711bd2e42391cd224656b21a1fc6aabd7c","source_id":"us-ky","stale":false,"prev":"us-ky/krs-16.577","next":"us-ky/krs-16.579"},"notice":"GroundRules: Original legal text. Not legal advice."}