§ 24-4-608 — Death before retirement - Exception

(a) Effective July 1, 2001, if a member or former member with five (5) or more years of actual service dies before retirement, the applicable benefits provided in this section shall be allowed upon the survivor's written application filed with the Arkansas Public Employees' Retirement System. (b) To compute benefits provided by this section, the deceased member's or deceased former member's compensation at the time of death shall be the member's compensation for the year immediately preceding the cessation of his or her pay. (c) (1) A deceased member's or deceased former member's surviving spouse who was married to the member at least six (6) months immediately preceding the member's death shall receive an annuity computed in the same manner in all respects as if the member or former member had: (A) Retired the date of his or her death with entitlement to an annuity provided for in § 24-4-601 ; (B) Elected the Option B75 survivor annuity provided for in § 24-4-606(a)(4) ; and (C) Nominated his or her spouse as joint beneficiary. (2) (A) (i) If the deceased member or deceased former member had satisfied the age and service requirements provided for in § 24-4-101 or had acquired twenty (20) years of actual service, then the spousal annuity shall be payable for life. (ii) If the deceased member or deceased former member had not satisfied the age and service requirements provided for in § 24-4-101 or had not acquired twenty (20) years of actual service, then the spousal annuity shall be payable until the earlier of his or her remarriage or death. (B) (i) A surviving spouse who is otherwise eligible but whose benefit has been deferred because the spouse did not meet the age requirements in effect before July 1, 1999, shall be eligible to commence a spousal annuity effective July 1, 1999. (ii) However, the spousal annuity in subdivision (c)(2)(B)(i) of this section shall not be retroactive. (3) The spousal annuity shall not be less than ten percent (10%) of the deceased member's or deceased former member's covered compensation at the time of death. (4) For as long as the surviving spouse has in his or her care any of the deceased member's or deceased former member's dependent children who receive a benefit provided for in this section, there shall be payable to him or her a spousal annuity as indicated in this section which shall not be less than ten percent (10%) of the deceased member's or deceased former member's compensation at the time of death. (d) (1) (A) A deceased member's or deceased former member's dependent child or dependent children shall each receive an annuity of the greater of either ten percent (10%) of the deceased member's or deceased former member's covered compensation at the time of death or an equal share of one hundred fifty dollars ($150) monthly. (B) For three (3) or more dependent children, each dependent child shall receive an annuity of an equal share of the greater of either twenty-five percent (25%) of the covered compensation or one hundred fifty dollars ($150) monthly. (2) (A) A child is considered a dependent child as used in subdivision (d)(1) of this section and for purposes of receiving a child survivor's annuity until the child's death, marriage, or attainment of eighteen (18) years of age, whichever occurs first. (B) (i) However, the age-eighteen maximum shall be extended as long as the child continues uninterruptedly being a full-time student at an accredited secondary school, college, or university, but in no event beyond his or her attainment of twenty-three (23) years of age. (ii) In addition, the age-eighteen maximum shall be extended for any child who has been deemed physically or mentally incompetent by an Arkansas court of competent jurisdiction or by the Board of Trustees of the Arkansas Public Employees' Retirement System, for as long as the incompetency exists. (3) Once a child ceases to be a dependent child, his or her annuity shall terminate, and there shall be a redetermination of the amounts payable to any remaining dependent children. (e) (1) If at the time of the deceased member's or deceased former member's death there is neither a spouse nor a dependent child, each dependent parent shall receive an allowance of the greater of ten percent (10%) of the covered compensation or an equal share of one hundred fifty dollars ($150) monthly. (2) A dependent parent eligible for a survivor benefit under this section shall be claimed as a dependent on the deceased member's or deceased former member's federal tax return for not less than one (1) year immediately preceding the member's death. (f) (1) If no annuity can become payable to a dependent child due to the death of the member or former member, the surviving spouse or dependent parents may elect to receive a refund of the member's or former member's accumulated contributions as provided in § 24-4-602(d) in lieu of any benefits which could become payable under this plan if: (A) The surviving spouse or dependent parents are the only persons who will be eligible for monthly benefits; and (B) The spouse or dependent parents are also the designated beneficiaries of the deceased member or deceased former member. (2) The option to choose a refund of the deceased member's or deceased former member's contributions shall also be afforded to any spouse or dependent parent qualified under this section whose eligibility for the benefit occurred before the passage of this act and who could not exercise the option. (3) A refund of the deceased member's or deceased former member's accumulated contributions made to the surviving spouse or dependent parents under this section precludes any right or future claim to monthly retirement benefits due to the death of the member or former member. (g) (1) In the event that all the annuities provided for in this section payable on account of the member's or former member's death terminate before there has been paid an aggregate amount equal to his or her accumulated contributions standing to his or her credit in the member's or former member's deposit account at the time of his or her death, the difference between the accumulated contributions and the aggregate amount of annuity payments shall be paid to such person as he or she shall have nominated by written designation duly executed and filed with the system. (2) If there is no designated person surviving at termination, the difference shall be paid to the deceased member's or deceased former member's estate. (h) The provisions of this section shall not be applicable in determining survivor benefits under the General Assembly Division or the State Constitutional Officers' Division of the Arkansas Public Employees' Retirement System if a benefit is provided to the surviving spouse by other laws applicable to the Arkansas Public Employees' Retirement System. (i) The benefits provided in this section for former members shall not apply to former members who terminated covered employment prior to July 1, 1997, with less than ten (10) years of service or whose death occurred before July 1, 2001.

Legislative History

Amended by Act 2023, No. 247,§ 2, eff. 7/1/2023. Amended by Act 2019, No. 625,§ 3, eff. 7/24/2019, applicable retroactively to 1/1/2017. Acts 1975, No. 907, §§ 15, 18; 1977, No. 663, § 4; 1979, No. 715, § 4; 1981, No. 859, § 10; 1983, No. 637, § 1; 1985, No. 938, § 11; A.S.A. 1947, §§ 12-2511.12, 12-2511.15; Acts 1993, No. 432, §§ 9, 10; 1997, No. 299, § 20; 1999, No. 325, § 9; 1999, No. 1450, § 2; 2001, No. 151, § 33; 2001, No. 356, § 1.