Session of 2000
HOUSE BILL No. 3043
By Committee on Appropriations
3-16
10 AN ACT
concerning retirement and pensions; relating to the Kansas
11 public employees
retirement system and systems thereunder; retire-
12 ment options; payment
of lump sum amount; amending K.S.A. 1999
13 Supp. 20-2610a,
74-4918, 74-4964 and 74-4964a and repealing the
14 existing sections.
15
16 Be it enacted by the Legislature of the
State of Kansas:
17 Section
1. K.S.A. 1999 Supp. 20-2610a is hereby amended to read
18 as follows: 20-2610a. (a) A judge may elect
to have such judge's retirement
19 annuity paid under one of the options
provided in this section in lieu of
20 having it paid in the form stated in K.S.A.
20-2610 and amendments
21 thereto. Such election shall be made before
the date of actual retirement.
22 A specific person shall be designated as
joint annuitant at the time of
23 election of the joint and 1/2 to joint
annuitant survivor option, joint and
24 survivor option and the joint and 3/4 to
joint annuitant survivor option.
25 Under no circumstances may an option be
changed or canceled nor the
26 named joint annuitant changed after the
date of actual retirement of the
27 judge.
28 (b) The amount of
retirement annuity payable under an option shall
29 be based on the age of the judge and, if
applicable, the age of the joint
30 annuitant, and shall be such amount as to
be the actuarial equivalent of
31 the retirement annuity otherwise payable
under K.S.A. 20-2610 and
32 amendments thereto as prescribed in
subsection (c). Whenever the
33 amount of any benefit is to be determined
on the basis of actuarial as-
34 sumptions, the assumptions shall be
specified in a way that precludes
35 employer discretion. In no case shall the
total amount of retirement an-
36 nuity payable under any option provided in
this section be more than
37 100% of the retirement annuity which would
have been otherwise payable
38 if no option had been elected under this
section.
39 (c) The following
retirement options, which are subject to the pro-
40 visions of K.S.A. 1999 Supp. 74-49,123 and
amendments thereto, are
41 available:
42 (1) Joint and
1/2 to joint annuitant survivor. A reduced retirement
43 annuity payable to the judge during the
judge's lifetime in a monthly
2
1 amount equal to the product of (A)
the monthly payment of the retire-
2 ment annuity otherwise payable under
K.S.A. 20-2610 and amendments
3 thereto and (B) the percentage equal
to 91% minus .4% for each year by
4 which the age of the judge's joint
annuitant is less than the judge's age,
5 computed to the nearest whole year,
or plus .4% for each year by which
6 the age of the judge's joint
annuitant is more than the judge's age, com-
7 puted to the nearest whole year, with
1/2 of that monthly amount contin-
8 ued to the judge's joint annuitant
during such joint annuitant's remaining
9 lifetime, if any, after the death of
the judge. In the event that the desig-
10 nated joint annuitant under this option
predeceases the retired judge, the
11 amount of the retirement annuity otherwise
payable to the judge under
12 this option shall be adjusted automatically
to the retirement annuity which
13 the judge would have received if no option
had been elected under this
14 section.
15 (2) Joint and
survivor. A reduced retirement annuity payable to the
16 judge during the judge's lifetime in a
monthly amount equal to the prod-
17 uct of (A) the monthly payment of the
retirement annuity otherwise pay-
18 able under K.S.A. 20-2610 and amendments
thereto and (B) the per-
19 centage equal to 83% minus .6% for each
year by which the age of the
20 judge's joint annuitant is less than the
judge's age, computed to the near-
21 est whole year, or plus .6% for each year
by which the age of the judge's
22 joint annuitant is more than the judge's
age, computed to the nearest
23 whole year, with that monthly amount
continued to the joint annuitant
24 during the joint annuitant's remaining
lifetime, if any, after the death of
25 judge. In the event that the designated
joint annuitant under this option
26 predeceases the retired judge, the amount
of the retirement annuity oth-
27 erwise payable to the judge under this
option shall be adjusted automat-
28 ically to the retirement annuity which the
judge would have received if
29 no option had been elected under this
section.
30 (3) Joint and
3/4 to joint annuitant survivor. A reduced retirement
31 annuity payable to the judge during the
judge's lifetime in a monthly
32 amount equal to the product of (A) the
monthly payment of the retire-
33 ment annuity otherwise payable under K.S.A.
20-2610 and amendments
34 thereto and (B) the percentage equal to 87%
minus .5% for each year by
35 which the age of the judge's joint
annuitant is less than the judge's age,
36 computed to the nearest whole year, or plus
.5% for each year by which
37 the age of the judge's joint annuitant is
more than the judge's age, com-
38 puted to the nearest whole year, with 3/4
of that monthly amount contin-
39 ued to the judge's joint annuitant during
such joint annuitant's remaining
40 lifetime, if any, after the death of the
judge. In the event that the desig-
41 nated joint annuitant under this option
predeceases the retired judge, the
42 amount of the retirement annuity otherwise
payable to the judge under
43 this option shall be adjusted automatically
to the retirement annuity which
3
1 the judge would have received if no
option had been elected under this
2 section.
3 (4) Life
with 5 years certain. A reduced retirement annuity payable
4 to the judge during the judge's
lifetime in a monthly amount equal to
5 98% of the monthly payment of the
retirement annuity otherwise payable
6 under K.S.A. 20-2610 and amendments
thereto and if the judge dies
7 within the five-year certain period,
measured from the commencement
8 of retirement annuity payments, such
monthly payments shall be contin-
9 ued to such judge's beneficiary
during the balance of the five-year certain
10 period.
11 (5) Life with
10 years certain. A reduced retirement annuity payable
12 to the judge during the judge's lifetime in
a monthly amount equal to
13 95% of the monthly payment of the
retirement annuity otherwise payable
14 under K.S.A. 20-2610 and amendments thereto
and if the judge dies
15 within the ten-year certain period,
measured from the commencement
16 of retirement annuity payments, such
monthly payments shall be contin-
17 ued to such judge's beneficiary during the
balance of the ten-year certain
18 period.
19 (6) Life with
15 years certain. A reduced retirement annuity payable
20 to the judge during the judge's lifetime in
a monthly amount equal to
21 88% of the monthly payment of the
retirement annuity otherwise payable
22 under K.S.A. 20-2610 and amendments thereto
and if the judge dies
23 within the fifteen-year certain period,
measured from the commence-
24 ment of retirement annuity payments, such
monthly payments shall be
25 continued to such judge's beneficiary
during the balance of the fifteen-
26 year certain period.
27
(7) Lump sum payment at retirement. (A) On and after
July 1, 2001,
28 the judge must specify a lump sum amount
to be paid to the judge upon
29 the judge's retirement. The lump sum
amount will be based on the actu-
30 arial present value of the benefit as
provided in K.S.A. 20-2610, and
31 amendments thereto. The lump sum amount
designated by the judge must
32 be in $1,000 increments and shall not
exceed 1/2 of the actuarial present
33 value of the benefit provided in K.S.A.
20-2610, and amendments thereto.
34 (B) On and
after July 1, 2001, the judge must elect to have the re-
35 maining actuarial present value paid in
a monthly amount under the
36 provisions of K.S.A. 20-2610, and
amendments thereto, or subsections
37 (c)(1) through (c)(6) of this
section.
38
(8) Lump sum payment at death. (A) On and after July 1,
2001, the
39 judge must specify a lump sum amount to
be paid to the judge's benefi-
40 ciary upon the judge's death. The lump
sum amount designated by the
41 judge must be in $1,000 increments and
shall not reduce the benefit pro-
42 vided in K.S.A. 20-2610, and amendments
thereto, by more than 1/2.
43 (B) On and
after July 1, 2001, the judge must elect to have the re-
4
1 maining actuarial present value
paid in a monthly amount under the
2 provisions of K.S.A. 20-2610, and
amendments thereto or subsections
3 (c)(1) through (c)(6) of this
section.
4 (d) If a
judge, who is eligible to retire, dies without having actually
5 retired, the judge's spouse, if the
spouse is the sole beneficiary for the
6 judge's accumulated contributions,
may elect to receive benefits as a joint
7 annuitant under one of the options
provided in this section in lieu of
8 receiving the judge's accumulated
contributions.
9 (e) On and
after July 1, 1993, if a judge with 15 or more years of
10 credited service dies before attaining
retirement age, the judge's spouse,
11 if the spouse is the sole beneficiary for
the judge's accumulated contri-
12 butions, may elect to receive benefits
under one of the options provided
13 in this section in lieu of receiving the
judge's accumulated contributions.
14 Payments under one of the options provided
in this section to the judge's
15 spouse if so elected, shall commence on the
date that the judge would
16 have first attained retirement age.
17 (f) Benefits
payable to a joint annuitant shall accrue from the first
18 day of the month following the death of a
member or retirant and, in the
19 case of the joint and 1/2 to joint
annuitant survivor option, the joint and
20 survivor option and the joint and 3/4 to
joint annuitant survivor option,
21 shall end on the last day of the month in
which the joint annuitant dies.
22 (g) The
provisions of the law in effect on the retirement date of a
23 judge under the retirement system for
judges shall govern the retirement
24 annuity payable to the retired judge and
any joint annuitant, except, for
25 retirement benefits payable after July 1,
1993, for judges who retired prior
26 to July 1, 1982, in the event that the
designated joint annuitant under the
27 option provided in subsection (c)(1), (2)
or (3), as applicable, predeceased
28 the judge, the amount of the retirement
benefit otherwise payable to the
29 judge under the option provided in
subsection (c)(1), (2) or (3), as appli-
30 cable, shall be adjusted automatically to
the retirement benefit which the
31 judge would have received if no option had
been elected under this
32 section.
33 (h) Upon the
death of a joint annuitant who is receiving a retirement
34 benefit under the provisions of this
section, there shall be paid to such
35 joint annuitant's beneficiary an amount
equal to the excess, if any, of the
36 accumulated contributions of the retired
judge over the sum of all retire-
37 ment benefit payments made to such retired
judge and such joint annu-
38 itant. Such joint annuitant shall designate
a beneficiary by filing in the
39 office of the retirement system such
designation at the time of death of
40 the retired judge. If there is no named
beneficiary of such joint annuitant
41 living at the time of death of such joint
annuitant, any amount provided
42 for by this section shall be paid to, in
order of preference as follows:
43 (1) The joint
annuitant's surviving spouse;
5
1 (2) the
joint annuitant's dependent child or children;
2 (3) the
joint annuitant's dependent parent or parents;
3 (4) the
joint annuitant's nondependent child or children;
4 (5) the
joint annuitant's nondependent parent or parents; or
5 (6) the
estate of the deceased joint annuitant.
6 (i) In any
event, benefits shall be adjusted as necessary to satisfy the
7 incidental death benefits regulations
under the federal internal revenue
8 code.
9 Sec.
2. K.S.A. 1999 Supp. 74-4918 is hereby amended to read as
10 follows: 74-4918. (1) A member may elect to
have such member's retire-
11 ment benefit paid under one of the options
provided in this section in
12 lieu of having it paid in the form stated
in K.S.A. 74-4915 and amend-
13 ments thereto. Such election must be made
before the date of actual
14 retirement. A specific person must be
designated as joint annuitant at the
15 time of election of the joint and 1/2 to
joint annuitant survivor option, the
16 joint and survivor option and the joint and
3/4 to joint annuitant survivor
17 option. Under no circumstances may an
option be changed or canceled
18 nor the named joint annuitant changed after
the date of actual retirement
19 of the member.
20 (2) The amount of
retirement benefit payable under an option shall
21 be based on the age of the member and, if
applicable, the age of the joint
22 annuitant, and shall be such amount as to
be the actuarial equivalent of
23 the retirement benefit otherwise payable
under K.S.A. 74-4915 and
24 amendments thereto, as prescribed in
subsection (3). In no case shall the
25 total amount of retirement benefit paid
under any option provided in this
26 section be more than 100% of the retirement
benefit which would have
27 been otherwise payable if no option had
been elected under this section.
28 (3) The following
retirement options, which are subject to the pro-
29 visions of K.S.A. 1999 Supp. 74-49,123 and
amendments thereto, are
30 available:
31 (A) Joint and
1/2 to joint annuitant survivor. A reduced retirement
32 benefit is payable to the retirant during
the retirant's lifetime in a monthly
33 amount equal to the product of
(A) (i) the monthly payment of the re-
34 tirement benefit otherwise payable under
K.S.A. 74-4915 and amend-
35 ments thereto and (B)
(ii) the percentage equal to 91% minus .4% for
36 each year by which the age of the
retirant's joint annuitant is less than
37 the retirant's age, computed to the nearest
whole year, or plus .4% for
38 each year by which the age of the
retirant's joint annuitant is more than
39 the retirant's age, computed to the nearest
whole year, with 1/2 of that
40 monthly amount continued to the retirant's
joint annuitant during such
41 joint annuitant's remaining lifetime, if
any, after the death of the retirant.
42 In the event that the designated joint
annuitant under this option pre-
43 deceases the retirant, the amount of the
retirement benefit otherwise
6
1 payable to the retirant under this
option shall be adjusted automatically
2 to the retirement benefit which the
retirant would have received if no
3 option had been elected under this
section.
4
(B) Joint and survivor. A reduced retirement benefit is
payable to
5 the retirant during the retirant's
lifetime in a monthly amount equal to
6 the product of (A)
(i) the monthly payment of the retirement benefit
7 otherwise payable under K.S.A.
74-4915 and amendments thereto and
8 (B) (ii) the
percentage equal to 83% minus .6% for each year by which
9 the age of the retirant's joint
annuitant is less than the retirant's age,
10 computed to the nearest whole year, or plus
.6% for each year by which
11 the age of the retirant's joint annuitant
is more than the retirant's age,
12 computed to the nearest whole year, with
that amount continued to the
13 joint annuitant during the joint
annuitant's remaining lifetime, if any, after
14 the death of the retirant. In the event
that the designated joint annuitant
15 under this option predeceases the retirant,
the amount of the retirement
16 benefit otherwise payable to the retirant
under this option shall be ad-
17 justed automatically to the retirement
benefit which the retirant would
18 have received if no option had been elected
under this section.
19 (C) Joint and
3/4 to joint annuitant survivor. A reduced retirement
20 benefit is payable to the retirant during
the retirant's lifetime in a monthly
21 amount equal to the product of
(A) (i) the monthly payment of the re-
22 tirement benefit otherwise payable under
K.S.A. 74-4915 and amend-
23 ments thereto and (B)
(ii) the percentage equal to 87% minus .5% for
24 each year by which the age of the
retirant's joint annuitant is less than
25 the retirant's age, computed to the nearest
whole year, or plus .5% for
26 each year by which the age of the
retirant's joint annuitant is more than
27 the retirant's age, computed to the nearest
whole year, with 3/4 of that
28 monthly amount continued to the retirant's
joint annuitant during such
29 joint annuitant's remaining lifetime, if
any, after the death of the retirant.
30 In the event that the designated joint
annuitant under this option pre-
31 deceases the retirant, the amount of the
retirement benefit otherwise
32 payable to the retirant under this option
shall be adjusted automatically
33 to the retirement benefit which the
retirant would have received if no
34 option had been elected under this
section.
35 (D) Life with
5 years certain. A reduced retirement benefit is payable
36 to the retirant during the retirant's
lifetime in a monthly amount equal
37 to 98% of the monthly payment of the
retirement benefit otherwise pay-
38 able under K.S.A. 74-4915 and amendments
thereto and if the retirant
39 dies within the five-year certain period,
measured from the commence-
40 ment of retirement benefit payments, such
payments shall be continued
41 to the retirant's beneficiary during the
balance of the five-year certain
42 period.
43 (E) Life with
10 years certain. A reduced retirement benefit is pay-
7
1 able to the retirant during the
retirant's lifetime in a monthly amount
2 equal to 95% of the monthly payment
of the retirement benefit otherwise
3 payable under K.S.A. 74-4915 and
amendments thereto and if the retirant
4 dies within the ten-year certain
period, measured from the commence-
5 ment of retirement benefit payments,
such payments shall be continued
6 to the retirant's beneficiary during
the balance of the ten-year certain
7 period.
8 (F) Life
with 15 years certain. A reduced retirement benefit is pay-
9 able to the retirant during the
retirant's lifetime in a monthly amount
10 equal to 88% of the monthly payment of the
retirement benefit otherwise
11 payable under K.S.A. 74-4915 and amendments
thereto and if the retirant
12 dies within the fifteen-year certain
period, measured from the com-
13 mencement of retirement benefit payments,
such payments shall be con-
14 tinued to the retirant's beneficiary during
the balance of the fifteen-year
15 certain period.
16
(G) Lump sum payment at retirement. (i) On and after
July 1, 2001,
17 the member must specify a lump sum
amount to be paid to the member
18 upon the member's retirement. The lump
sum amount will be based on
19 the actuarial present value of the
benefit as provided in K.S.A. 74-4915,
20 and amendments thereto. The lump sum
amount designated by the mem-
21 ber must be in $1,000 increments and
shall not exceed 1/2 of the actuarial
22 present value of the benefit provided in
K.S.A. 74-4915, and amendments
23 thereto.
24 (ii) On and
after July 1, 2001, the member must elect to have the
25 remaining actuarial present value paid
in a monthly amount under the
26 provisions of K.S.A. 74-4915, and
amendments thereto, or subsections
27 (3)(A) through (3)(F) of this
section.
28
(H) Lump sum payment at death. (i) On and after July 1,
2001, the
29 member must specify a lump sum amount to
be paid to the member's
30 beneficiary upon the member's death. The
lump sum amount designated
31 by the member must be in $1,000
increments and shall not reduce the
32 benefit provided in K.S.A. 74-4915, and
amendments thereto, by more
33 than 1/2.
34 (ii) On and
after July 1, 2001, the member must elect to have the
35 remaining actuarial present value paid
in a monthly amount under the
36 provisions of K.S.A. 74-4915, and
amendment thereto, or subsections
37 (3)(A) through (3)(F) of this
section.
38 (4) If a member,
who is eligible to retire in accordance with the pro-
39 visions of K.S.A. 74-4914 and amendments
thereto, dies without having
40 actually retired, the member's spouse, if
the spouse is the sole beneficiary
41 for the member's accumulated contributions,
may elect to receive ben-
42 efits under one of the options provided in
this section in lieu of receiving
43 the member's accumulated contributions.
8
1 (5) The
benefits of subsection (4) shall be available in the case of
2 death within the first six months
after the entry date of the member's
3 participating employer.
4 (6) On and
after January 1, 1991, if a member with 15 or more years
5 of credited service dies before
attaining retirement age, the member's
6 spouse, if the spouse is the sole
beneficiary for the member's accumulated
7 contributions, may elect to receive
benefits under one of the options
8 provided in this section in lieu of
receiving the member's accumulated
9 contributions. Payments under one of
the options provided in this section
10 to the member's spouse if so elected, shall
commence on the date that
11 the member would have attained retirement
age.
12 (7) Benefits
payable to a joint annuitant shall accrue from the first
13 day of the month following the death of a
member or retirant and, in the
14 case of the joint and 1/2 to joint
annuitant survivor option, the joint and
15 survivor option and the joint and 3/4 to
joint annuitant survivor option,
16 shall end on the last day of the month in
which the joint annuitant dies.
17 (8) The
provisions of the law in effect on the retirement date of a
18 member under the system shall govern the
retirement benefit payable to
19 the retirant and any joint annuitant,
except, for retirement benefits pay-
20 able after July 1, 1993, for retirants who
retired prior to July 1, 1982, in
21 the event that the designated joint
annuitant under the option provided
22 in subsection (3)(A), (B) or (C), as
applicable, predeceased the retirant,
23 the amount of the retirement benefit
otherwise payable to the retirant
24 under the option provided in subsection
(3)(A), (B) or (C), as applicable,
25 shall be adjusted automatically to the
retirement benefit which the retir-
26 ant would have received if no option had
been elected under this section.
27 (9) Upon the
death of a joint annuitant who is receiving a retirement
28 benefit under the provisions of this
section, there shall be paid to such
29 joint annuitant's beneficiary an amount
equal to the excess, if any, of the
30 accumulated contributions of the retirant
over the sum of all retirement
31 benefit payments made to such retirant and
such joint annuitant. Such
32 joint annuitant shall designate a
beneficiary by filing in the office of the
33 retirement system such designation at the
time of death of the retirant.
34 If there is no named beneficiary of such
joint annuitant living at the time
35 of death of such joint annuitant, any
amount provided for by this section
36 shall be paid to, in order of preference as
follows:
37 (A) The joint
annuitant's surviving spouse;
38 (B) the joint
annuitant's dependent child or children;
39 (C) the joint
annuitant's dependent parent or parents;
40 (D) the joint
annuitant's nondependent child or children;
41 (E) the joint
annuitant's nondependent parent or parents; or
42 (F) the estate of
the deceased joint annuitant.
43 Sec.
3. K.S.A. 1999 Supp. 74-4964 is hereby amended to read as
9
1 follows: 74-4964. (1) A member may
elect to have such member's retire-
2 ment benefit paid under one of the
options provided in this section in
3 lieu of having it paid in the form
stated in subsections (1) and (2) of K.S.A.
4 74-4958 and amendments thereto. Such
election must be made before
5 the date of actual retirement. Only a
specific individual person may be
6 designated as a joint annuitant at
the time of election of the joint and 1/2
7 to joint annuitant survivor option,
the joint and survivor option and the
8 joint and 3/4 to joint annuitant
survivor option. Under no circumstances
9 may an option be changed or canceled
nor the named joint annuitant
10 changed after the date of actual retirement
of the member.
11 (2) The amount of
a retirement benefit payable under an option shall
12 be based on the age of the member and, if
applicable, the age of the joint
13 annuitant, and shall be such amount as to
be the actuarial equivalent of
14 the retirement benefit otherwise payable
under subsections (1) or (2) of
15 K.S.A. 74-4958 and amendments thereto as
prescribed under subsection
16 (5). In no case shall the total amount of
retirement benefit paid under
17 any option provided in this section be more
than 100% of the retirement
18 benefit which would have been otherwise
payable if no option had been
19 elected under this section.
20 (3) If a member
who was, up to the entry date of such member's
21 employer, covered by a pension system under
the provisions of K.S.A.
22 13-14a01 to 13-14a14, inclusive or 14-10a01
through 14-10a15, inclusive,
23 and amendments thereto so elects one of the
options under this section,
24 payment of such option shall be in lieu of
any payments provided in
25 subsection (3) of K.S.A. 74-4958 and
amendments thereto.
26 (4) Such election
of an option shall become null and void upon the
27 death of a member prior to such member's
retirement, except that if a
28 member, who is eligible to retire in
accordance with the provisions of
29 subsections (1) and (2) of K.S.A. 74-4958
and amendments thereto, dies
30 without having actually retired the
member's spouse, if the spouse is
31 beneficiary for the member's accumulated
contributions, and no benefits
32 are payable under subsections (1) and (2)
of K.S.A. 74-4959 and amend-
33 ments thereto, may elect to receive
benefits under one of the options
34 provided in this section, in lieu of
receiving the member's accumulated
35 contributions.
36 (5) The following
retirement options which are subject to the provi-
37 sions of K.S.A. 1999 Supp. 74-49,123 and
amendments thereto, are
38 available:
39 (A) Joint and
1/2 to joint annuitant survivor. A reduced retirement
40 benefit is payable to the retirant during
the retirant's lifetime in a monthly
41 amount equal to the product of (A) the
monthly payment of the retire-
42 ment annuity otherwise payable under K.S.A.
74-4958 and amendments
43 thereto and (B) the percentage equal to
94.5% minus .2% for each year
10
1 by which the age of the retirant's
joint annuitant is less than the retirant's
2 age, computed to the nearest whole
year, or plus .2% for each year by
3 which the age of the retirant's joint
annuitant is more than the retirant's
4 age, computed to the nearest whole
year, with 1/2 of that monthly amount
5 continued to the retirant's joint
annuitant during such joint annuitant's
6 remaining lifetime, if any, after the
death of the retirant. In the event that
7 the designated joint annuitant under
this option predeceases the retirant,
8 the amount of the retirement benefit
otherwise payable to the retirant
9 under this option shall be adjusted
automatically to the retirement benefit
10 which the retirant would have received if
no option had been elected
11 under this section.
12 (B) Joint and
survivor. A reduced retirement benefit is payable to
13 the retirant during the retirant's lifetime
in a monthly amount equal to
14 the product of (A) the monthly payment of
the retirement annuity oth-
15 erwise payable under K.S.A. 74-4958 and
amendments thereto and (B)
16 the percentage equal to 88% minus .4% for
each year by which the age
17 of the retirant's joint annuitant is less
than the retirant's age, computed
18 to the nearest whole year, or plus .4% for
each year by which the age of
19 the retirant's joint annuitant is more than
the retirant's age, computed to
20 the nearest whole year, with that monthly
amount continued to the joint
21 annuitant during the joint annuitant's
remaining lifetime, if any, after the
22 death of retirant. In the event that the
designated joint annuitant under
23 this option predeceases the retirant, the
amount of the retirement benefit
24 otherwise payable to the retirant under
this option shall be adjusted au-
25 tomatically to the retirement benefit which
the retirant would have re-
26 ceived if no option had been elected under
this section.
27 (C) Joint and
3/4 to joint annuitant survivor. A reduced retirement
28 benefit is payable to the retirant during
the retirant's lifetime in a monthly
29 amount equal to the product of (A) the
monthly payment of the retire-
30 ment annuity otherwise payable under K.S.A.
74-4958 and amendments
31 thereto and (B) the percentage equal to 91%
minus .3% for each year by
32 which the age of the retirant's joint
annuitant is less than the retirant's
33 age, computed to the nearest whole year, or
plus .3% for each year by
34 which the age of the retirant's joint
annuitant is more than the retirant's
35 age, computed to the nearest whole year,
with 3/4 of that monthly amount
36 continued to the retirant's joint annuitant
during such joint annuitant's
37 remaining lifetime, if any, after the death
of the retirant. In the event that
38 the designated joint annuitant under this
option predeceases the retirant,
39 the amount of the retirement benefit
otherwise payable to the retirant
40 under this option shall be adjusted
automatically to the retirement benefit
41 which the retirant would have received if
no option had been elected
42 under this section.
43 (D) Life with
5 years certain. A reduced retirement benefit is payable
11
1 to the retirant during the retirant's
lifetime in a monthly amount equal
2 to 99% of the monthly payment of the
retirement benefit otherwise pay-
3 able under K.S.A. 74-4958 and
amendments thereto, and if the retirant
4 dies within the five-year certain
period, measured from the commence-
5 ment of retirement benefit payments,
such payments will be continued
6 to the retirant's beneficiary during
the balance of the five-year certain
7 period.
8 (E) Life
with 10 years certain. A reduced retirement benefit is pay-
9 able to the retirant during the
retirant's lifetime in a monthly amount
10 equal to 98% of the monthly payment of the
retirement benefit otherwise
11 payable under K.S.A. 74-4958 and amendments
thereto, and if the retir-
12 ant dies within the ten-year certain
period, measured from the com-
13 mencement of retirement benefit payments,
such payments will be con-
14 tinued to the retirant's beneficiary during
the balance of the ten-year
15 certain period.
16 (F) Life with
15 years certain. A reduced retirement benefit is pay-
17 able to the retirant during the retirant's
lifetime in a monthly amount
18 equal to 92% of the monthly payment of the
retirement benefit otherwise
19 payable under K.S.A. 74-4958 and amendments
thereto, and if the retir-
20 ant dies within the fifteen-year certain
period, measured from the com-
21 mencement of retirement benefit payments,
such payments will be con-
22 tinued to the retirant's beneficiary during
the balance of the fifteen-year
23 certain period.
24
(G) Lump sum payment at retirement. (i) On and after
July 1, 2001,
25 the member must specify a lump sum
amount to be paid to the member
26 upon the member's retirement. The lump
sum amount will be based on
27 the actuarial present value of the
benefit as provided in K.S.A. 74-4958,
28 and amendments thereto. The lump sum
amount designated by the mem-
29 ber must be in $1,000 increments and
shall not exceed 1/2 of the actuarial
30 present value of the benefit provided in
K.S.A. 74-4958, and amendments
31 thereto.
32 (ii) On and
after July 1, 2001, the member must elect to have the
33 remaining actuarial present value paid
in a monthly amount under the
34 provisions of K.S.A. 74-4958, and
amendments thereto, or subsections
35 (5)(A) through (5)(F) of this
section.
36
(H) Lump sum payment at death. (i) On and after July 1,
2001, the
37 member must specify a lump sum amount to
be paid to the member's
38 beneficiary upon the member's death. The
lump sum amount designated
39 by the member must be in $1,000
increments and shall not reduce the
40 benefit provided in K.S.A. 74-4958, and
amendments thereto, by more
41 than 1/2.
42 (ii) On and
after July 1, 2001, the member must elect to have the
43 remaining actuarial present value paid
in a monthly amount under the
12
1 provisions of K.S.A. 74-4958, and
amendments thereto, or subsections
2 (5)(A) through (5)(F) of this
section.
3 (6) On and
after July 1, 1996, if a member with 20 or more years of
4 credited service dies before
attaining retirement age, the member's
5 spouse, if the spouse is the sole
beneficiary for the member's accumulated
6 contributions, may elect to receive
benefits under one of the options
7 provided in this section in lieu of
receiving the member's accumulated
8 contributions or in lieu of receiving
benefits as provided in K.S.A. 74-
9 4959 and amendments thereto. Payments
under one of the options pro-
10 vided in this section to the member's
spouse if so elected, shall commence
11 on the date that the member would have
attained retirement age.
12 (7) Benefits
payable to a joint annuitant shall accrue from the first
13 day of the month following the death of a
member or retirant and, in the
14 case of the joint and 1/2 to joint
annuitant survivor option, the joint and
15 survivor option and the joint and 3/4 to
joint annuitant survivor option,
16 shall end on the last day of the month in
which the joint annuitant dies.
17 (8) The
provisions of the law in effect on the retirement date of a
18 member under the system shall govern the
retirement benefit payable to
19 the retirant and any joint annuitant,
except, for retirement benefits pay-
20 able after July 1, 1993, for retirants who
retired prior to July 1, 1982, in
21 the event that the designated joint
annuitant under the option provided
22 in subsection (5)(A), (B) or (C), as
applicable, predeceased the retirant,
23 the amount of the retirement benefit
otherwise payable to the retirant
24 under the option provided in subsection
(5)(A), (B) or (C), as applicable,
25 shall be adjusted automatically to the
retirement benefit which the retir-
26 ant would have received if no option had
been elected under this section.
27 (9) Upon the
death of a joint annuitant who is receiving a retirement
28 benefit under the provisions of this
section, there shall be paid to such
29 joint annuitant's beneficiary an amount
equal to the excess, if any, of the
30 accumulated contributions of the retirant
over the sum of all retirement
31 benefit payments made to such retirant and
such joint annuitant. Such
32 joint annuitant shall designate a
beneficiary by filing in the office of the
33 retirement system such designation at the
time of death of the retirant.
34 If there is no named beneficiary of such
joint annuitant living at the time
35 of death of such joint annuitant, any
amount provided for by this section
36 shall be paid to, in order of preference as
follows:
37 (A) The joint
annuitant's surviving spouse;
38 (B) the joint
annuitant's dependent child or children;
39 (C) the joint
annuitant's dependent parent or parents;
40 (D) the joint
annuitant's nondependent child or children;
41 (E) the joint
annuitant's nondependent parent or parents; or
42 (F) the estate of
the deceased joint annuitant.
43 (10) The
provisions of this section shall apply only to members who
13
1 were appointed or employed prior to
July 1, 1989, and who did not make
2 an election pursuant to K.S.A.
74-4955a and amendments thereto.
3 Sec.
4. K.S.A. 1999 Supp. 74-4964a is hereby amended to read as
4 follows: 74-4964a. (1) A member may
elect to have such member's re-
5 tirement benefit paid under one of
the options provided in this section
6 in lieu of having it paid in the form
stated in subsections (1) and (2) of
7 K.S.A. 74-4958 and amendments
thereto. Such election must be made
8 before the date of actual retirement.
Only a specific individual person
9 may be designated as a joint
annuitant at the time of election of the joint
10 and 1/2 to joint annuitant survivor option,
the joint and survivor option
11 and the joint and 3/4 to joint annuitant
survivor option. Under no circum-
12 stances may an option be changed or
canceled nor the named joint an-
13 nuitant changed after the date of actual
retirement of the member.
14 (2) The amount of
a retirement benefit payable under an option shall
15 be based on the age of the member and, if
applicable, the age of the joint
16 annuitant, and shall be such amount as to
be the actuarial equivalent of
17 the retirement benefit otherwise payable
under subsections (1) or (2) of
18 K.S.A. 74-4958 and amendments thereto as
prescribed under subsection
19 (5). In no case shall the total amount of
retirement benefit paid under
20 any option provided in this section be more
than 100% of the retirement
21 benefit which would have been otherwise
payable if no option had been
22 elected under this section.
23 (3) If a member
who was, up to the entry date of such member's
24 employer, covered by a pension system under
the provisions of K.S.A.
25 13-14a01 through 13-14a14, inclusive or
14-10a01 through 14-10a15, in-
26 clusive, and amendments thereto so elects
one of the options under this
27 section, payment of such option shall be in
lieu of any payments provided
28 in subsection (3) of K.S.A. 74-4958 and
amendments thereto.
29 (4) Such election
of an option shall become null and void upon the
30 death of a member prior to such member's
retirement, except that if a
31 member, who is eligible to retire in
accordance with the provisions of
32 subsections (1) and (2) of K.S.A. 74-4958
and amendments thereto, dies
33 without having actually retired the
member's spouse, if the spouse is
34 beneficiary for the member's accumulated
contributions, and no benefits
35 are payable under subsections (1) and (2)
of K.S.A. 74-4959 and amend-
36 ments thereto, may elect to receive
benefits under one of the options
37 provided in this section, in lieu of
receiving the member's accumulated
38 contributions.
39 (5) The following
retirement options which are subject to the provi-
40 sions of K.S.A. 1999 Supp. 74-49,123 and
amendments thereto, are
41 available:
42 (A) Joint and
1/2 to joint annuitant survivor. A reduced retirement
43 benefit is payable to the retirant during
the retirant's lifetime in a monthly
14
1 amount equal to the product of (A)
the monthly payment of the retire-
2 ment annuity otherwise payable under
K.S.A. 74-4958 and amendments
3 thereto and (B) the percentage equal
to 94.5% minus .2% for each year
4 by which the age of the retirant's
joint annuitant is less than the retirant's
5 age, computed to the nearest whole
year, or plus .2% for each year by
6 which the age of the retirant's joint
annuitant is more than the retirant's
7 age, computed to the nearest whole
year, with 1/2 of that monthly amount
8 continued to the retirant's joint
annuitant during such joint annuitant's
9 remaining lifetime, if any, after the
death of the retirant. In the event that
10 the designated joint annuitant under this
option predeceases the retirant,
11 the amount of the retirement benefit
otherwise payable to the retirant
12 under this option shall be adjusted
automatically to the retirement benefit
13 which the retirant would have received if
no option had been elected
14 under this section.
15 (B) Joint and
survivor. A reduced retirement benefit is payable to
16 the retirant during the retirant's lifetime
in a monthly amount equal to
17 the product of (A) the monthly payment of
the retirement annuity oth-
18 erwise payable under K.S.A. 74-4958 and
amendments thereto and (B)
19 the percentage equal to 88% minus .4% for
each year by which the age
20 of the retirant's joint annuitant is less
than the retirant's age, computed
21 to the nearest whole year, or plus .4% for
each year by which the age of
22 the retirant's joint annuitant is more than
the retirant's age, computed to
23 the nearest whole year, with that monthly
amount continued to the joint
24 annuitant during the joint annuitant's
remaining lifetime, if any, after the
25 death of retirant. In the event that the
designated joint annuitant under
26 this option predeceases the retirant, the
amount of the retirement benefit
27 otherwise payable to the retirant under
this option shall be adjusted au-
28 tomatically to the retirement benefit which
the retirant would have re-
29 ceived if no option had been elected under
this section.
30 (C) Joint and
3/4 to joint annuitant survivor. A reduced retirement
31 benefit is payable to the retirant during
the retirant's lifetime in a monthly
32 amount equal to the product of (A) the
monthly payment of the retire-
33 ment annuity otherwise payable under K.S.A.
74-4958 and amendments
34 thereto and (B) the percentage equal to 91%
minus .3% for each year by
35 which the age of the retirant's joint
annuitant is less than the retirant's
36 age, computed to the nearest whole year, or
plus .3% for each year by
37 which the age of the retirant's joint
annuitant is more than the retirant's
38 age, computed to the nearest whole year,
with 3/4 of that monthly amount
39 continued to the retirant's joint annuitant
during such joint annuitant's
40 remaining lifetime, if any, after the death
of the retirant. In the event that
41 the designated joint annuitant under this
option predeceases the retirant,
42 the amount of the retirement benefit
otherwise payable to the retirant
43 under this option shall be adjusted
automatically to the retirement benefit
15
1 which the retirant would have
received if no option had been elected
2 under this section.
3 (D) Life
with 5 years certain. A reduced retirement benefit is
payable
4 to the retirant during the retirant's
lifetime in a monthly amount equal
5 to 99% of the monthly payment of the
retirement benefit otherwise pay-
6 able under K.S.A. 74-4958 and
amendments thereto, and if the retirant
7 dies within the five-year certain
period, measured from the commence-
8 ment of retirement benefit payments,
such payments will be continued
9 to the retirant's beneficiary during
the balance of the five-year certain
10 period.
11 (E) Life with
10 years certain. A reduced retirement benefit is pay-
12 able to the retirant during the retirant's
lifetime in a monthly amount
13 equal to 98% of the monthly payment of the
retirement benefit otherwise
14 payable under K.S.A. 74-4958 and amendments
thereto, and if the retir-
15 ant dies within the ten-year certain
period, measured from the com-
16 mencement of retirement benefit payments,
such payments will be con-
17 tinued to the retirant's beneficiary during
the balance of the ten-year
18 certain period.
19 (F) Life with
15 years certain. A reduced retirement benefit is pay-
20 able to the retirant during the retirant's
lifetime in a monthly amount
21 equal to 92% of the monthly payment of the
retirement benefit otherwise
22 payable under K.S.A. 74-4958 and amendments
thereto, and if the retir-
23 ant dies within the fifteen-year certain
period, measured from the com-
24 mencement of retirement benefit payments,
such payments will be con-
25 tinued to the retirant's beneficiary during
the balance of the fifteen-year
26 certain period.
27
(G) Lump sum payment at retirement. (i) On and after
July 1, 2001,
28 the member must specify a lump sum
amount to be paid to the member
29 upon the member's retirement. The lump
sum amount will be based on
30 the actuarial present value of the
benefit as provided in K.S.A. 74-4958a,
31 and amendments thereto. The lump sum
amount designated by the mem-
32 ber must be in $1,000 increments and
shall not exceed 1/2 of the actuarial
33 present value of the benefit provided in
K.S.A. 74-4958a, and amendments
34 thereto.
35 (ii) On and
after July 1, 2001, the member must elect to have the
36 remaining actuarial present value paid
in a monthly amount under the
37 provisions of K.S.A. 74-4958a, and
amendments thereto, or subsections
38 (5)(A) through (5)(F) of this
section.
39
(H) Lump sum payment at death. (i) On and after July 1,
2001, the
40 member must specify a lump sum amount to
be paid to the member's
41 beneficiary upon the member's death. The
lump sum amount designated
42 by the member must be in $1,000
increments and shall not reduce the
43 benefit provided in K.S.A. 74-4958a, and
amendments thereto, by more
16
1 than 1/2.
2 (ii) On
and after July 1, 2001, the member must elect to have the
3 remaining actuarial present value
paid in a monthly amount under the
4 provisions of K.S.A. 74-4958a, and
amendment thereto, or subsections
5 (5)(A) through (5)(F) of this
section.
6 (6) On and
after July 1, 1996, if a member with 20 or more years of
7 credited service dies before
attaining retirement age, the member's
8 spouse, if the spouse is the sole
beneficiary for the member's accumulated
9 contributions, may elect to receive
benefits under one of the options
10 provided in this section in lieu of
receiving the member's accumulated
11 contributions or in lieu of receiving
benefits as provided in K.S.A. 74-
12 4959 and amendments thereto. Payments under
one of the options pro-
13 vided in this section to the member's
spouse if so elected, shall commence
14 on the date that the member would have
attained retirement age.
15 (7) Benefits
payable to a joint annuitant shall accrue from the first
16 day of the month following the death of a
member or retirant and, in the
17 case of the joint and 1/2 to joint
annuitant survivor option, the joint and
18 survivor option and the joint and 3/4 to
joint annuitant survivor option,
19 shall end on the last day of the month in
which the joint annuitant dies.
20 (8) The
provisions of the law in effect on the retirement date of a
21 member under the system shall govern the
retirement benefit payable to
22 the retirant and any joint annuitant,
except, for retirement benefits pay-
23 able after July 1, 1993, for retirants who
retired prior to July 1, 1982, in
24 the event that the designated joint
annuitant under the option provided
25 in subsection (5)(A), (B) or (C), as
applicable, predeceased the retirant,
26 the amount of the retirement benefit
otherwise payable to the retirant
27 under the option provided in subsection
(5)(A), (B) or (C), as applicable,
28 shall be adjusted automatically to the
retirement benefit which the retir-
29 ant would have received if no option had
been elected under this section.
30 (9) Upon the
death of a joint annuitant who is receiving a retirement
31 benefit under the provisions of this
section, there shall be paid to such
32 joint annuitant's beneficiary an amount
equal to the excess, if any, of the
33 accumulated contributions of the retirant
over the sum of all retirement
34 benefit payments made to such retirant and
such joint annuitant. Such
35 joint annuitant shall designate a
beneficiary by filing in the office of the
36 retirement system such designation at the
time of death of the retirant.
37 If there is no named beneficiary of such
joint annuitant living at the time
38 of death of such joint annuitant, any
amount provided for by this section
39 shall be paid to, in order of preference as
follows:
40 (A) The joint
annuitant's surviving spouse;
41 (B) the joint
annuitant's dependent child or children;
42 (C) the joint
annuitant's dependent parent or parents;
43 (D) the joint
annuitant's nondependent child or children;
17
1 (E) the
joint annuitant's nondependent parent or parents; or
2 (F) the
estate of the deceased joint annuitant.
3 (10) The
provisions of this section shall be effective on and after July
4 1, 1989, and shall apply only to
members who were appointed or em-
5 ployed prior to July 1, 1989, and who
made an election pursuant to K.S.A.
6 74-4955a and amendments thereto; and
persons appointed or employed
7 on or after July 1, 1989.
8 Sec. 5. K.S.A. 1999 Supp.
20-2610a, 74-4918, 74-4964 and 74-4964a
9 are hereby repealed.
10 Sec. 6. This act shall
take effect and be in force from and after its
11 publication in the statute book.