{"data":{"id":"us-ky/krs-78.5532","jurisdiction":"us-ky","citation":"KRS 78.5532","heading":"Death before retirement -- Beneficiary's options -- Taxable distributions --","body":"Injuries connected with performance of duty.\n(1) If a member dies prior to the first day of the month in which the member would\nhave received his or her first retire ment 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) 1. The member had service in a nonhazardous position and was eligible to\nretire under KRS 78.5510(2) or (3) or 78.5512(6); or\n2. The member had service in a hazardous position and was eligible to\nretire under KRS 78.5514(2) or (3) or 78.5516(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 in the case of a nonhazardous member, was norma l\nretirement age or older and had at least four (4) years of service credit; 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 the special needs trust that is equal to the benefit that would\nhave been paid had the member retired immediately prior to his or her date of\ndeath and elected to receive benefits payable under the survivorship one\nhundred percent (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 the special needs trust under the beneficiary Social 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 hundr ed twenty (120) months\nthat is the actuarial equivalent to the amount computed under paragraph (a) of\nthis subsection;\n(e) If the member began participating prior to January 1, 2014, a monthly benefit\npayable for a period of one hundred twenty (120) months  that is equivalent to\nthe benefit the member would have been entitled to receive based on his or\nher years of service and final compensation at the date of his or her death\nreduced by the survivorship fifty percent (50%) factor as provided for in KRS\n61.635(4), then reduced by fifty percent (50%), and that is the actuarial\nequivalent to the amount computed under paragraph (a) of this subsection; or\n(f) The higher of a refund of the member's accumulated account balance as\ndescribed in KRS 61.625(1) or one ( 1) time lump -sum payment which shall\nbe the actuarial equivalent of the amount payable under paragraph (a) of this\nsubsection for a period of sixty (60) months.\n(3) If the beneficiary eligible for benefits as provided by subsection (1) of this section\nis multiple beneficiaries or a trust, other than a special needs trust, then the multiple\nbeneficiaries by consensus or the trustee may elect to receive the actuarial\nequivalent amounts payable under subsection (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 beneficiary shall receive the higher of a refund of the\nmember's accumulated account balance as described in KRS 61.625(1) or the one\n(1) time lump -sum payment payable under subsection (2)(f) of this section, using\nthe assumption that the beneficiary's age is the same as the member's age.\n(5) Payments of taxable d istributions made pursuant to this section shall be subject to\nstate and federal income tax as appropriate.\n(6) (a) The beneficiary of a member with service in a nonhazardous position who\ndies as a result of a duty-related injury may be eligible for benefits based upon\nthe definitions, criteria, and benefits specified by KRS 61.621.\n(b) The beneficiary of a member with service in a hazardous position who dies as\na direct result of an act in line of duty may be eligible for benefits from the\nsystem based upo n the definitions, criteria, and benefits specified by KRS\n78.5534.","path":["KRS Chapter 78"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=57214","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:39Z","sha256":"b22e21b50c11f49f0840382992083549ff289e9bab254d058bcf2ff225672dbe","source_id":"us-ky","stale":false,"prev":"us-ky/krs-78.5530","next":"us-ky/krs-78.5534"},"notice":"GroundRules: Original legal text. Not legal advice."}