Kentucky Bank Account Monthly Withdrawal Authorization
Description
How to fill out Bank Account Monthly Withdrawal Authorization?
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FAQ
$5,000 Death Benefit A retiree may name one person, his or her estate, a trust, or a funeral home as beneficiary for this benefit.
Kentucky allows all pension and retirement income to be excluded up to $31,110.
The Special Death Benefit is a monthly allowance to an eligible surviving spouse, eligible registered domestic partner, or unmarried child under age 22 equal to half of the member's average monthly salary for the last 12 or 36 months, regardless of the member's age or years of service credit.
Nonhazardous retirement benefits are based on the last (not highest) five full fiscal years of salary. If the member does not have five full fiscal years, partial years will be added to reach the 60-month minimum. Hazardous retirement benefits are based on a member's highest three full fiscal years of salary (3-High).
Pension protection lump sum This lump sum is usually the value of the pension payments which are due to be paid between your death and the end of the guarantee period. This is paid tax-free if you die before the age of 75. Otherwise, it's taxed as earnings on the person(s) receiving it.
In order to process a refund of their accumulated account balance, members must complete a Form 4525, Application for Refund of Member Contributions and Direct Rollover/Direct Payment Selection?. The member's employer is also required to report the termination date on the monthly report to KPPA.
If a retiree dies, a lump-sum benefit equal to the annuity due the deceased but not paid before death may be payable. If no survivor annuity is payable based on the retiree's death, the balance of any retirement deductions remaining to the deceased retiree's credit in the Fund, plus any applicable interest, is payable.
When a participant in a retirement plan dies, benefits the participant would have been entitled to are usually paid to the participant's designated beneficiary in a form provided by the terms of the plan (lump-sum distribution or an annuity).
