§ 33-39-7-19 — Benefits payable to surviving spouse; eligibility; computation

(a) A participant may designate the
participant's surviving spouse or one (1) or more of the participant's
surviving dependent children to receive the benefit provided by this
section upon the death of the participant. A participant may designate
a trust or a custodian account under IC 30-2-8.5 that is established for
one (1) or more of the participant's surviving dependent children to
receive the benefit provided by this section instead of designating one
(1) or more of the participant's surviving dependent children to receive
the benefit directly.
(b) If a participant:
(1) dies; and
(2) on the date of death:
(A) was receiving benefits under this chapter;
(B) was in service in a position described in section 8 of this
chapter and had completed at least eight (8) years of service in
a position described in section 8 of this chapter;
(C) had a permanent disability as described in section 17 of this
chapter; or
(D) was not in service in a position described in section 8 of
this chapter, had completed at least eight (8) years of service in
a position described in section 8 of this chapter, and was
entitled to a future benefit;
the participant's beneficiary designated under subsection (a) is entitled,
regardless of the participant's age, to the benefit prescribed by
subsection (c), (e), or (f).
(c) The amount of the annual benefit payable to a beneficiary to
whom subsection (b) applies is equal to the greater of:
(1) twelve thousand dollars ($12,000); or
(2) fifty percent (50%) of the amount of retirement benefit:
(A) the participant was drawing at the time of death; or
(B) to which the participant would have been entitled had the
participant retired and begun receiving retirement benefits on
the date of death. However, the reduction described in section
16(d) of this chapter does not apply to the calculation of a
survivor benefit under this clause.
(d) A benefit payable under this section is subject to the following:
(1) A surviving spouse designated as the beneficiary under
subsection (a) is entitled to receive the benefit for life.
(2) The total monthly benefit payable to a surviving child or
children is equal to the same monthly benefit that was to have
been payable to the surviving spouse.
(3) If there is more than one (1) child designated by the
participant, the children are entitled to share the benefit in equal
monthly amounts.
(4) A child entitled to a benefit shall receive that child's share
until the child becomes eighteen (18) years of age or during the
entire period of the child's physical or mental disability,
whichever period is longer.
(5) Upon the cessation of benefits to one (1) designated child, if
there are one (1) or more other children then surviving and still
entitled to benefits, the remaining children shall share the benefit
equally. If the surviving spouse of the participant is surviving
upon the cessation of benefits to all designated children, the
surviving spouse shall then receive the benefit for the remainder
of the spouse's life.
(6) The benefit is payable to the participant's surviving spouse if
any of the following occur:
(A) No child or children named as a beneficiary by the
participant survives or survive the participant.
(B) No child or children designated by the participant is or are
entitled to a benefit due to the age of the child or children at the
time of death of the participant.
(C) A designation is not made.
(e) Except as provided in subsection (f), benefits payable to a
designated beneficiary under this section are reduced by the amount,
if any, that is payable to the surviving spouse or the surviving
dependent children from the public employees' retirement fund as a
result of the participant's death after subtracting the participant's
contributions and earnings attributable to the participant's contributions
in the participant's annuity savings account.
(f) This subsection applies to a surviving spouse of a participant
who is a member of the public employees' defined contribution plan
established by IC 5-10.3-12-18. Benefits payable to a surviving spouse
of a participant under this section are reduced by the pension portion
of the retirement benefit, if any, that would be payable to the spouse
from the public employees' retirement fund under the joint and survivor
option under IC 5-10.2-4-7, computed at fifty percent (50%) of the
participant's decreased retirement benefit, if the participant had not
made an election under IC 5-10.3-12-20 to become a member of the
public employees' defined contribution plan.
[Pre-2004 Recodification Citation: 33-14-9-17.]

Legislative History

As added by P.L.98-2004, SEC.18. Amended by P.L.33-2006, SEC.3; P.L.54-2013, SEC.6; P.L.160-2013, SEC.8; P.L.27-2019, SEC.26.