Mo. Code Regs. tit. 16 § 50-2.120

Current through Register Vol. 49, No.12, June 17, 2024

Section 16 CSR 50-2.120 - Benefits Upon Participantst's Death

PURPOSE: This rule describes the benefits available to the beneficiaries of Participantsts who die before receiving a retirement benefit.

(1) Lump Sum Death Benefit. A death benefit of ten thousand dollars ($10,000) and, in the case of an active Participantst who dies after December 31, 2002, and before becoming vested, an amount equal to the amount of the Participantst's accumulated contributions standing to his or her credit in the fund shall be paid to the beneficiary of every active Participantst upon his or her death or, if the Participantst fails to designate a beneficiary, then to the Participantst's surviving spouse or, if there is no spouse, then in equal shares to the Participantst's surviving children. If there is neither a surviving spouse nor surviving children, then the benefit shall be paid to the active Participantst's estate. Payment of any such amounts shall be subject to the terms and conditions herein.

(A) Designation of Beneficiary. Each Participantst may name a beneficiary on a form provided by the board and delivered to the board. Such designation may include more than one (1) person with one (1) or more secondary or contingent beneficiaries and shall be subject to change upon written request of such Participantst in the same manner as the original designation. A dissolution or annulment of a Participantst's marriage subsequent to the date of designation of a beneficiary shall not revoke or otherwise affect such designation.

(B) If the Participantst executes a beneficiary designation form and lists more than one (1) beneficiary but fails to list the percentage of benefit that each beneficiary should receive, then the benefit shall be divided equally among the named beneficiaries.

(C) Any death benefit that may become payable in accordance with section (1), and any refund of a Participantst's accumulated contributions in the case of an active Participantst who dies after December 31, 2002, and before becoming vested in accordance with section (1), shall be made after the receipt by the board or its designee of a notice of death from such Participantst's employer or such other form of proof acceptable to the board. Such death benefit and any refund, as applicable, shall be made in a single sum as soon as administratively feasible following receipt of the notice of death by the board or its designee. For purposes of this section, it shall not be administratively feasible for the board or its designee to disburse a death benefit or refund until the board or its designee also receives proper verification and reconciled contribution information from the employer.

(2) Spousal Death Benefit. If a Participantst dies before his or her annuity starting date but after completing eight (8) or more years of creditable service, the surviving spouse shall be entitled to survivorship benefits under the fifty percent (50%) annuity option as set forth in subsection 16 CSR 50-2.035(1)(C). If the Participantst was age sixty-two (62) or older at death, the surviving spouse's benefit shall begin to accrue on the first day of the month following the Participantst's death. If the Participantst was under age sixty-two (62) at death, the surviving spouse's benefits shall begin to accrue on the first day of the month following the date the Participantst would have attained age sixty-two (62) had the Participantst lived. In the event that a delay in the submission or processing of paperwork or some other delay results in the first payment of survivorship benefits commencing after the month in which the survivorship benefits began to accrue, such survivorship benefits shall be retroactive to the date on which the survivorship benefits began to accrue. Alternatively, the surviving spouse may elect to receive the reduced actu-arially equivalent benefit payable on the first day of any month following the date of the Participantst's death and prior to the date the Participantst would have attained age sixty-two (62). Notwithstanding anything herein to the contrary, in the event that a Participantst dies after completing an application for benefits in accordance with 16 CSR 50-2.035 but before his or her annuity starting date, and the surviving spouse is the survivor annuitant under the form of benefit elected by the Participantst immediately before his or her death, the surviving spouse shall be entitled to the greater, but not both, of:

(A) The survivorship benefits under the fifty percent (50%) annuity option as set forth in subsection 16 CSR 50-2.035(1)(C); or

(B) Such benefit as would have been payable to the surviving spouse under the form of payment elected by the Participantst immediately before his or her death in accordance with 16 CSR 50-2.035. In no event shall an individual other than the surviving spouse be entitled to survivorship benefits under the form of benefit that may have been elected by the Participantst before his or her death in the event that the Participantst dies before his or her annuity starting date.

(3) No Benefits Payable to Beneficiary Who Intentionally Kills Participantst. The board shall cease paying benefits to any survivor annuitant or beneficiary who is charged with the intentional killing of a Participantst without legal excuse or justification. A survivor annuitant or beneficiary who is convicted of such charge shall no longer be entitled to receive benefits. If the survivor annuitant or beneficiary is not convicted of such charge, the board shall resume payment of benefits and shall pay the survivor annuitant or beneficiary any benefits that were suspended pending resolution of such charge.

(4) The death benefit will only be extended to part-time and seasonal employees in months for which they receive pay.

(5) The designated beneficiary of a Participantst described in section (6) below who dies without a surviving spouse after having earned at least eight (8) vested years of service, or, if the Participantst fails to designate a beneficiary, then such Participantst's estate, shall be entitled to a refund of such Participantst's contributions (in the case of a Participantst described in subsection (6)(A)) or only the Participantst's contributions, if any, made during the Participantst's subsequent employment (in the case of a Participantst described in subsection (6)(B)) after the receipt by the board or its designee of a notice of death from such Participantst's employer, or such other form of proof acceptable to the board. Such refund shall be made to the beneficiary in a single sum as soon as administratively feasible following receipt of the notice of death by the board or its designee. For purposes of this section, it shall not be administratively feasible for the board or its designee to disburse a refund until the board or its designee also receives proper verification and reconciled contribution information from the employer.

(6) A Participantst will be entitled to a refund under section (5) above only if the Participantst meets the criteria set forth in section (5) and meets either of the following criteria:

(A) He or she dies before his or her annuity starting date; or

(B) He or she returns to service after a prior separation from service and after benefit payments under the plan had commenced relating to a prior period of service, provided that such Participantst described in this subsection dies before his or her annuity starting date relating to such subsequent period of service.

(7) In the case of a Participantst who dies while performing qualified military service (as defined in section 414(u) of the Code), the survivors of the Participantst are entitled to any additional benefits (other than benefit accruals relating to the period of qualified military service) provided under the plan had the Participantst resumed and then terminated employment on account of death. The foregoing shall be effective with respect to deaths occurring on or after January 1, 2007. Notwithstanding anything herein to the contrary, the plan shall be administered to comply with the Heroes Earnings Assistance and Tax Relief Act of 2008, to the extent required therein.

16 CSR 50-2.120

AUTHORITY: section 50.1032, RSMo 2000.* Original rule filed Sept. 29, 2000, effective March 30, 2001. Amended: Filed Nov. 10, 2005, effective May 30, 2006. Amended: Filed Sept. 5, 2007, effective March 30, 2008. Amended: Filed Sept. 8, 2008, effective March 30, 2009. Amended: Filed Jan. 25, 2010, effective July 30, 2010. Amended: Filed Sept. 5, 2012, effective March 30, 2013.

*Original authority: 50.1032, RSMo 1995.