§ 24-4-608. Payment of benefits upon death of member before retirement — Exception

(a) Effective July 1, 2001, if an active 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 paid upon written application to the Board of Trustees of the Arkansas Public Employees’ Retirement System.

(b) For purposes of computing benefits provided by this section, the deceased member’s or 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. (1) A member’s or former member’s surviving spouse who was married to the member at least six (6) months immediately preceding his or her death shall receive an annuity computed in the same manner in all respects as if the member or former member had:

   1. (A) Retired the date of his or her death with entitlement to an annuity provided for in § 24-4-601;

   2. (B) Elected the Option B75 survivor annuity provided for in § 24-4-606(a)(4); and

   3. (C) Nominated his or her spouse as joint beneficiary.

2. (2)

   1. (A) If the member or former member had satisfied the age and service requirements provided for in § 24-4-101 or had acquired twenty (20) years of actual service, the spouse annuity shall commence immediately and be payable for life. If the member or former member had not satisfied the age and service requirement provided for in § 24-4-101 or had not acquired twenty (20) years of actual service, then the spouse annuity shall commence immediately and be payable until the earlier of his or her remarriage or death.

   2. (B) 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 spouse annuity effective July 1, 1999. The spouse annuity shall not be retroactive.

3. (3) The spouse annuity shall not be less than ten percent (10%) of the deceased member’s or former member’s covered compensation at the time of death.

4. (4) In any event, as long as the surviving spouse has in his or her care any of the deceased member’s or former member’s dependent children receiving a benefit provided for in this section, there shall be payable to him or her a spouse annuity as indicated in this section which shall not be less than ten percent (10%) of the deceased member’s or former member’s compensation at the time of death.

(d)

1. (1)

   1. (A) A member’s or former member’s dependent child or dependent children shall each receive an annuity of the greater of either ten percent (10%) of the member’s or former member’s covered compensation at the time of death or an equal share of one hundred fifty dollars ($150) monthly.

   2. (B) Where there are 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. (2)

   1. (A) A child shall be a dependent child until the child’s death, marriage, or attainment of age eighteen (18), whichever occurs first.

   2. (B)

      1. (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 age twenty-three (23).

      2. (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, for as long as the incompetency exists.

3. (3) Upon a child’s ceasing 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) If at the time of the member’s or 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, but only if the board finds that the parent was dependent for at least fifty percent (50%) of his or her financial support upon the member or former member.

(f)

1. (1) If no annuity can become payable to a dependent child due to the death of the member or former member and a surviving spouse or dependent parents are the only persons who will be eligible for monthly benefits and the spouse or dependent parents are also the designated beneficiaries of the member or former member, then, in that event, 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 act.

2. (2) The option to choose a refund of the member’s or 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. (3) Once the refund of the deceased member’s or former member’s accumulated contributions has been made to the surviving spouse or dependent parents under this section, the person shall have no future claim to monthly retirement benefits due to the death of the member or former member.

(g)

1. (1) In the event that all the annuities provided for in this section payable on account of the death of a member or former member terminate before there has been paid an aggregate amount equal to his or her accumulated contributions standing to his or her credit in the members’ 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 board.

2. (2) If there is no designated person surviving at termination, the difference shall be paid to the member’s or former member’s estate.

(h) Annuities payable under the provisions of this section shall be effective the first day of the calendar month next following the date of the member’s or former member’s death or the first day of the month following the month in which the survivor becomes eligible for benefits as provided by law.

(i) 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.

(j) 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.