Kentucky Statutes 161.630 – Benefit options — Change in benefit option by retiree — Beneficiary redesignation after retirement
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(1) (a) A member, upon retirement, shall receive a retirement allowance in the form of a life annuity, with refundable balance, as provided in KRS § 161.620, unless an election is made before the effective date of retirement to receive actuarially equivalent benefits under options which the board of trustees approves.
(b) An individual who is participating in the supplemental benefit component as provided by KRS § 161.635 or 161.636 may, before the effective date of retirement, elect to receive his or her accumulated account balance accrued in the supplemental benefit component annuitized into a monthly payment under one (1) of the actuarial equivalent payment options approved by the board of trustees.
(c) No option shall provide for a benefit with an actuarial value at the age of retirement greater than that provided in KRS § 161.620, 161.635(5)(a), or
161.636(5)(a), as applicable. This section does not apply to disability allowances as provided in KRS § 161.661(1).
(2) The retirement option chosen by a retiree at the time of service retirement shall remain in force unless the retiree elects to make a change under the following conditions:
(a) A divorce, annulment, or marriage dissolution following retirement shall, at the election of the retiree, cancel any optional plan selected at retirement that provides indefinitely continuing benefits to a spousal beneficiary and return the retiree to a single lifetime benefit equivalent as determined by the board; or
(b) Following marriage or remarriage, or the death of the designated beneficiary, a retiree may elect a new optional plan of payment based on the actuarial equivalent of a single lifetime benefit at the time of the election, as determined by the board. The plan shall become effective the first of the month following receipt of an application on a form approved by the board.
(3) Except as otherwise provided in this section, a beneficiary designation shall not be changed after the effective date of retirement except for retirees who elect the life annuity with refundable balance or the predetermined years certain and life thereafter option. A member may remove a beneficiary at any time, but shall not designate a substitute beneficiary. If a member elects to remove a beneficiary, the member’s retirement allowance shall not change regardless of the retirement option selected by the member, even if the removed beneficiary predeceases the member.
(4) A member who experiences a qualifying event under subsection (2) of this section and who elects a new optional plan of payment shall make that election within sixty (60) days of the qualifying event.
Effective: January 1, 2022
History: Repealed, reenacted, and amended 2021 Ky. Acts ch. 157, sec. 36, effective
January 1, 2022; and amended ch. 192, sec. 20, effective June 29, 2021. — Amended
2018 Ky. Acts ch. 107, sec. 75, effective July 14, 2018. — Amended 2010 Ky. Acts
ch. 164, sec. 11, effective July 1, 2010. — Amended 2008 Ky. Acts ch. 78, sec. 19, effective July 1, 2008. — Amended 2004 Ky. Acts ch. 121, sec. 20, effective July 13,
2004. — Amended 1994 Ky. Acts ch. 369, sec. 20, effective July 1, 1994. — Repealed and reenacted 1990 Ky. Acts ch. 476, Pt. V, sec. 532, effective July 13, 1990. — Amended 1988 Ky. Acts ch. 363, sec. 16, effective July 1, 1988. — Amended 1978
Ky. Acts ch. 152, sec. 15, effective March 28, 1978. — Amended 1976 Ky. Acts ch.
351, sec. 19, effective July 1, 1976. — Amended 1962 Ky. Acts ch. 64, sec. 15. — Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 4506b-48.
Legislative Research Commission Note (1/1/2022). This statute was amended by 2021
Ky. Acts chs. 157 and 192, which do not appear to be in conflict and have been codified together.
Legislative Research Commission Note (12/13/2018). On December 13, 2018, the
Kentucky Supreme Court ruled that the passage of 2018 SB 151 (2018 Ky. Acts ch.
107), did not comply with the three-readings rule of Kentucky Constitution Section
46 and that the legislation is, therefore, constitutionally invalid and declared void. That ruling applies to changes made to this statute in that Act.
(b) An individual who is participating in the supplemental benefit component as provided by KRS § 161.635 or 161.636 may, before the effective date of retirement, elect to receive his or her accumulated account balance accrued in the supplemental benefit component annuitized into a monthly payment under one (1) of the actuarial equivalent payment options approved by the board of trustees.
Terms Used In Kentucky Statutes 161.630
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Month: means calendar month. See Kentucky Statutes 446.010
- Statute: A law passed by a legislature.
(c) No option shall provide for a benefit with an actuarial value at the age of retirement greater than that provided in KRS § 161.620, 161.635(5)(a), or
161.636(5)(a), as applicable. This section does not apply to disability allowances as provided in KRS § 161.661(1).
(2) The retirement option chosen by a retiree at the time of service retirement shall remain in force unless the retiree elects to make a change under the following conditions:
(a) A divorce, annulment, or marriage dissolution following retirement shall, at the election of the retiree, cancel any optional plan selected at retirement that provides indefinitely continuing benefits to a spousal beneficiary and return the retiree to a single lifetime benefit equivalent as determined by the board; or
(b) Following marriage or remarriage, or the death of the designated beneficiary, a retiree may elect a new optional plan of payment based on the actuarial equivalent of a single lifetime benefit at the time of the election, as determined by the board. The plan shall become effective the first of the month following receipt of an application on a form approved by the board.
(3) Except as otherwise provided in this section, a beneficiary designation shall not be changed after the effective date of retirement except for retirees who elect the life annuity with refundable balance or the predetermined years certain and life thereafter option. A member may remove a beneficiary at any time, but shall not designate a substitute beneficiary. If a member elects to remove a beneficiary, the member’s retirement allowance shall not change regardless of the retirement option selected by the member, even if the removed beneficiary predeceases the member.
(4) A member who experiences a qualifying event under subsection (2) of this section and who elects a new optional plan of payment shall make that election within sixty (60) days of the qualifying event.
Effective: January 1, 2022
History: Repealed, reenacted, and amended 2021 Ky. Acts ch. 157, sec. 36, effective
January 1, 2022; and amended ch. 192, sec. 20, effective June 29, 2021. — Amended
2018 Ky. Acts ch. 107, sec. 75, effective July 14, 2018. — Amended 2010 Ky. Acts
ch. 164, sec. 11, effective July 1, 2010. — Amended 2008 Ky. Acts ch. 78, sec. 19, effective July 1, 2008. — Amended 2004 Ky. Acts ch. 121, sec. 20, effective July 13,
2004. — Amended 1994 Ky. Acts ch. 369, sec. 20, effective July 1, 1994. — Repealed and reenacted 1990 Ky. Acts ch. 476, Pt. V, sec. 532, effective July 13, 1990. — Amended 1988 Ky. Acts ch. 363, sec. 16, effective July 1, 1988. — Amended 1978
Ky. Acts ch. 152, sec. 15, effective March 28, 1978. — Amended 1976 Ky. Acts ch.
351, sec. 19, effective July 1, 1976. — Amended 1962 Ky. Acts ch. 64, sec. 15. — Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 4506b-48.
Legislative Research Commission Note (1/1/2022). This statute was amended by 2021
Ky. Acts chs. 157 and 192, which do not appear to be in conflict and have been codified together.
Legislative Research Commission Note (12/13/2018). On December 13, 2018, the
Kentucky Supreme Court ruled that the passage of 2018 SB 151 (2018 Ky. Acts ch.
107), did not comply with the three-readings rule of Kentucky Constitution Section
46 and that the legislation is, therefore, constitutionally invalid and declared void. That ruling applies to changes made to this statute in that Act.