Naming Your Beneficiary

You can decide who receives your death benefits by naming a beneficiary. You can add or change a beneficiary any time by completing a Designation of Beneficiary form.

Who Can You Name as Beneficiary?
Naming a Trust or Estate
Naming a Minor as Beneficiary
Reviewing Your Beneficiary Designation
If You Don't Name a Beneficiary

Active Member Beneficiary
Surviving Spouse Benefit Option
Retired Member Beneficiary
Naming a Funeral Establishment as Beneficiary

FORMS

Designation of Beneficiary (K-7/99)

Designation of Beneficiary - Retired
(K-7/99R)

Additional Retirement Beneficiaries
(all members) - additional page for retirement beneficiaries

Additional Life Insurance Beneficiaries (active members) - additional page for life insurance beneficiaries

Who Can You Name as Beneficiary?

You can choose:

• A living person.
• A trust.
• Your estate.
• Any combination of these options.

If you choose more than one beneficiary, each will share your benefits equally. You can also name a contingent beneficiary to receive your benefits if your primary beneficiary is not living.

Only members can complete the designation form. Conservators, guardians and those with power of attorney cannot select or change a KPERS beneficiary.

Each time you complete a beneficiary form, it cancels all those you have previously completed. The beneficiary designations on that form replace all previous designations. Every time you complete a new form, be sure to fill in both the primary and contingent beneficiary sections if you intend to have a contingent beneficiary. If you only complete the contingent section and leave the primary blank, you will have no primary beneficiary, even if a past form names one. The Board of Trustees recognizes only those designations received in the Retirement System office before your death.

If you need to name more beneficiaries than space allows, please use an additional page. This page must be with your completed Designation of Beneficiary form to be valid, including date and signature page.

Naming a Trust or Estate

If you name a trust, provide the name of the trust (e.g., John Doe, Trust #1). If you designate your estate, simply write "My Estate" or "Estate of John Doe."

You can name another primary or contingent beneficiary in addition to your estate or a trust, and each will share your benefit equally.

Naming a Minor as Beneficiary

When you name a minor as primary beneficiary and the amount of the benefit is less than $10,000, the money is paid out under the Kansas Uniform Transfers to Minors Act. KPERS sends the guardian or custodian a form to complete and the benefit is then paid to that individual on behalf of the minor. If the benefit is $10,000 or over, Kansas law requires a conservatorship be established to receive the benefit on the child's behalf.

Reviewing Your Beneficiary Designation

It is important to keep your beneficiary designation up-to-date. Review your designation periodically
or whenever you have a significant life event.

• Marriage
• Divorce
• A birth or adoption in your family
• A death in your family

If You Don't Name a Beneficiary

If you do not have a living beneficiary when you die, the Retirement System must follow a line of descendants
by Kansas law.

1. Spouse
2. Dependent children
3. Dependent parents
4. Non-dependent children
5. Non-dependent parents
6. Estate of the deceased member

A dependent is a parent or child who relies upon the member for at least half of his or her support.

Active Member Beneficiary

Active members can name separate beneficiaries for:
1. KPERS retirement benefits (return of contributions and interest, or surviving spouse benefit).
2. Group life insurance benefits (basic and optional life insurance).

If you choose to name a separate beneficiary for your group life insurance, the beneficiary will receive the benefit from your basic group life insurance and any optional group life insurance.

If you choose not to name a separate beneficiary, the beneficiary for your retirement benefits will receive all benefits payable, including group life insurance.

You can add or change beneficiaries at any time by completing a Designation of Beneficiary form (K-7/99).

Surviving Spouse Benefit Option

If you die before retirement, your spouse may be able to choose a monthly benefit for the rest of his or her life, instead of receiving your returned contributions and interest. You must have designated your spouse as your sole primary beneficiary for retirement benefits.

Retired Member Beneficiary

Your beneficiary will receive:

• $4,000 lump-sum death benefit
• Any remaining contributions and interest

This benefit is taxable for federal income tax purposes and exempt from Kansas income tax.

If you chose a five, ten or 15-year Life Certain payment option when you retired, your beneficiary receives a monthly benefit for the rest of the guaranteed period after your death instead of returned contributions and interest.

You can add or change beneficiaries at any time by completing a Designation of Beneficiary - Retired form (K-7/99R).

Naming a Funeral Establishment

In addition to a living person, their estate or a trust, retirees can name a funeral establishment to receive their $4,000 death benefit for funeral expenses.

If you directly name a funeral establishment, the establishment will pay the tax on the benefit as regular income.
If your beneficiary assigns the death benefit to a funeral establishment, your beneficiary is responsible for paying
the taxes.

If you name a funeral establishment, you also need to designate another primary beneficiary to receive any other retirement benefits. Only the $4,000 death benefit is paid to the funeral establishment.

Death Benefit Info for Funeral Establishments (Word): Provides background info and procedures for the funeral industry.