Your Beneficiary

Tier 1, 2, 3, Header Photo
While you are actively employed, you may name both principal and contingent beneficiaries for your retirement account by completing and filing a Form 2035,Beneficiary Designation with KRS. The principal beneficiary will receive benefits in the event of your death prior to retirement. The contingent beneficiary will receive benefits in the event of your death only if all of your named principal beneficiaries are also deceased. A beneficiary may be one individual, multiple individuals, your estate, or a trust. You can update or change your beneficiaries at any time prior to your retirement. If there is not a valid Form 2035 in your file, your estate is your default beneficiary. When you file for retirement, you may name only one person, your estate, or a trust as a single beneficiary.
 

What can my Beneficiary Receive?

 

If you pass away prior to retirement, the beneficiary may be eligible for a monthly benefit if you were:

 
  • Eligible for normal or early retirement at the time of death; or
  • Under the age of 55 with at least 60 months of service credit and currently working for a participating agency or on official leave at the time of death; or
  • No longer working for a participating agency but at the time of death had at least 144 months of service credit.
 
If your beneficiary is not eligible for a monthly benefit, a lump sum payment of your contributions and accumulated interest will be paid.  If you are a Tier Three member, the lump sum amount will include the employer pay credit if you have at least 60 months of service at the time of death. 
 
 

What can my beneficiaries collect?

If your beneficiary is eligible for a monthly benefit, the following payment options are provided:
 
  • If your beneficiary is an individual, he or she may choose a lifetime monthly benefit which is equal to the Survivorship 100% Option amount. A single beneficiary may also choose a lump sum actuarial refund, a monthly payment for 5 years, or a monthly payment for 10 years.
  • Multiple beneficiaries may choose a lump sum actuarial refund, a monthly payment for 5 years, or a monthly payment for 10 years. The amount will be divided among the beneficiaries based on the percentages given on Form 2035.
  • An estate or a trust may only take a lump sum actuarial refund.
 
Benefits paid to the beneficiary are based on the amount that would have been payable to you had you filed for retirement at the time of death.
 
 

What does my beneficiary need to do?

 
Your beneficiary is required to submit your death certificate, listing the cause of death. Before any payment can be issued, your beneficiary will also be required to complete the appropriate forms to apply for the benefit and provide a birth certificate for both you and themselves if one is not already on file.