(A) Upon death of a member due to occupational causes, regardless of length of service, his surviving widow shall be entitled immediately upon cessation of salary to an annuity equal to 50% of the members last rate of salary. This annuity shall be payable until she dies or remarries. No surviving widow shall receive an annuity of less than $150 per month. When social security benefits are increased the minimum shall be increased by a like percentage, provided the increase shall not exceed 5%. In addition, if minor children, under age of 18, survive the member, the widow shall receive on account of each child 10% of the members last salary until each child attains age 18. The combined payments to a widow and minor children shall not exceed 75% of his final rate of salary.
(B) If a widow does not survive the member, or if she remarries, and minor children under age 18 exist, each child shall be entitled to an annuity equal to 15% of the member's last rate of salary until each child attains age 18, provided that the combined payments to such children shall not exceed 50% of the member's last rate of salary.
(C) If neither a widow nor minor children, eligible for benefits survive the member, each dependent parent shall be entitled to an annuity equal to 25% of the members last rate of salary, or 50% to both parents.
(D) If a widow would receive from a combination of:
(1) Survivor benefits pursuant to this section, excluding benefits for minor children; and
(2) Worker's Compensation benefits, excluding dependent children's allowance or payment for medical expense or legal fees related to the Worker's Compensation claim, an amount greater than 100% of the deceased member's last rate of salary, then the pension system survivor benefits shall be reduced to the point that the combined payment equal 100% of the last rate of salary. The survivor benefit shall not be reduced, however, below an amount equal to 2½% of average salary for each year of the deceased member's service. Any reduction in the survivor payment shall be based upon Worker's Compensation benefits applicable at the time the survivor payment is granted, and not upon subsequent increases in either benefit. If Worker's Compensation benefits are reduced at a subsequent time, the surviving spouse shall inform the Board and the Board shall increase the survivor's benefit by the amount of the reductions, not by more than an amount which would increase the survivor's benefit to 50% of last rate of salary. The Board of Trustees may pay estimated benefits until such amounts are actually determined at which time a final calculation of the spouse's actual benefits shall be determined and the account corrected retroactive to the effective date of the survivor benefit. If Worker's Compensation benefits are paid in lump sums, the Board shall reduce the survivor benefit on the monthly rather than a lump sum basis. The amount of the monthly reduction shall be based upon the life expectancy of the survivor. The Board may request the assistance of the general manager of the Kentucky Retirement Systems to calculate the reduction in survivor benefits when lump sum payments are involved, and the general manager shall provide such assistance upon request.
(Ord. 87-26, passed 7-28-87)