Section 45-37-123.103 - Death benefits(a) Preretirement death benefits. A vested member's designated beneficiary is entitled to a preretirement joint survivorship pension, as described below. (1) MARRIED MEMBER. If a married, active member dies, then the designated beneficiary may elect, on a form provided by the pension board, to be paid in one of the following forms: a. One Hundred Percent Preretirement Joint Survivorship Pension. If such member was eligible for a deferred retirement benefit at the time of the member's death, then the designated beneficiary may elect to be paid in the form of a 100 percent preretirement joint survivorship pension, which is a monthly annuity paid during the designated beneficiary's lifetime which is equal to the actuarial equivalent of the benefits that would have been paid to the member if, instead of dying, the member had terminated employment.b. Refund. The designated beneficiary may elect a refund of the member's employee contributions in accordance with Section 45-37-123.104(4) b.(2) UNMARRIED MEMBER. If an unmarried, active member dies, then one of the following shall apply:a. Preretirement Joint Survivorship Pension. If a member becomes eligible for a deferred retirement benefit, then the member may elect, on a form provided by the pension board, a 100 percent preretirement joint survivorship pension, which is a monthly annuity paid during the designated beneficiary's lifetime which is equal to the actuarial equivalent of the benefits that would have been paid to the member if, instead of dying, the member had terminated employment. In the event the designated beneficiary dies before the member or in the event the member marries, any election of a preretirement joint survivorship pension automatically shall be revoked and the cost, as described in subdivision (2) of subsection (c), for the preretirement coverage shall cease to accumulate on the date of death of the designated beneficiary or the member's date of marriage, as applicable.b. Refund. Regardless of whether the member makes an election for the designated beneficiary to be paid in the form of a preretirement joint survivorship pension in accordance with paragraph a., upon the member's death, the designated beneficiary can elect to be paid a refund of the member's employee contributions in accordance with Section 45-37-123.104(4) b. instead of being paid a preretirement joint survivorship pension.(b) Timing of payments. In the event of an election of a preretirement joint survivorship pension, such payment shall begin as soon as administratively feasible after the pension board is notified of the death and the designated beneficiary's completion of all forms required by the pension board. In any event, calculation of the amount of the death benefit shall be made as of the day after the date of death and any payments that do not occur as of the month following the date of death shall be included in future payments. In the event that a refund is to be paid, such payment shall be made as soon as administratively feasible following the member's death.(c) Cost of preretirement joint survivorship pension. (1) MARRIED MEMBERS.a. On and After October 1, 1999. On and after October 1, 1999, the 100 percent preretirement joint survivorship pension shall be provided without additional charge with respect to a member who is married at the time of his or her death, and the cost of such benefit shall be borne by the system; however, in the event that a member designates a non-spousal beneficiary in accordance with subdivision (d)(1), the cost of such benefit shall be borne by the member's designated beneficiary.b. Prior to October 1, 1999. Prior to October 1, 1999, a 50 percent preretirement joint survivorship pension was provided to a member who was married at the time of his or her death, instead of 100 percent, and such members and their designated beneficiaries had an option to elect higher percentages under certain rules. Members and designated beneficiaries who elected a higher than 50 percent preretirement joint survivorship pension prior to October 1, 1999, shall be charged for the increased percentage according to actuarially-calculated costs, beginning with the date of the election through September 30, 1999.(2) UNMARRIED MEMBERS. To the extent that a member who is not married at the time of his or her death previously elected payment of a preretirement joint survivorship pension for his or her designated beneficiary, the benefit otherwise payable to the member shall be actuarially reduced to reflect the election of a preretirement joint survivorship pension.(d) Designated Beneficiaries. (1) PRERETIREMENT JOINT SURVIVORSHIP PENSION FOR A MARRIED MEMBER. Unless otherwise elected in the manner prescribed below, the designated beneficiary of a preretirement joint survivorship pension of a member that is married at the time of his or her death shall be the member's surviving spouse. Except, however, a member may designate a beneficiary other than the spouse if: a. The spouse has waived the right to be the member's designated beneficiary; orb. The member has been abandoned, within the meaning of local law, and the member has a court order to such effect that has been received and approved by the pension board; orc. The member has no spouse.(2) ALL OTHER DEATH BENEFITS. Except as provided in subdivision (1), a member, whether married or not, may designate any beneficiary, and may do so without the need of the consent of a spouse for a nonspousal beneficiary designation.(3) FORMS. Designation of a beneficiary shall be made on a form provided by the pension board. A member may at any time revoke a designation of a beneficiary or change a designated beneficiary by filing written notice of revocation or change with the pension board on a form provided by the pension board. However, in the case of a preretirement joint survivorship pension, the member's spouse shall again consent in writing to any change in designated beneficiary unless the original consent acknowledged that the spouse had the right to limit consent only to a specific designated beneficiary and that the spouse voluntarily elected to relinquish such right. For a spouse's waiver to be valid, the signature of the spouse executing such form shall be notarized. This consent to waiver shall become irrevocable upon the death of the member.(4) FAILURE TO DESIGNATE A BENEFICIARY OR LACK OF DESIGNATED BENEFICIARY. In the event no valid designation of beneficiary exists, or if the designated beneficiary is not alive at the time of the member's death, the death benefit shall be payable to the member's spouse if there is a spouse, and if there is no spouse, to the member's estate. If there is no estate, the death benefit may be interpleaded into a court of competent jurisdiction. Additionally, if the designated beneficiary does not predecease the member, but dies prior to the distribution of the death benefit, the death benefit shall be paid to the designated beneficiary's estate. If there is no estate, the death benefit may be interpleaded into a court of competent jurisdiction.(5) MORE THAN ONE DESIGNATED BENEFICIARY. In the event that more than one primary beneficiary is designated and a designated primary beneficiary dies, absent any direction on the beneficiary designation form to the contrary, the member's benefit shall be divided equally among the remaining primary designated beneficiaries.(6) DESIGNATION OF NONPERSONS AS BENEFICIARIES. A member may designate a nonperson as a beneficiary, for example, a trust or estate. In such event, the pension board may require additional documentation, for example, trust documents.(7) LAPSE OF BENEFICIARY DESIGNATION. Any beneficiary designation made by a member for a preretirement joint survivorship pension or refund shall automatically lapse upon the member's election of a postretirement joint survivorship pension; at that time, the member shall complete new forms, to be provided by the pension board, to designate a beneficiary of any postretirement joint survivorship pension.(8) EFFECT OF MARRIAGE OR DIVORCE UPON A BENEFICIARY DESIGNATION. Except in the case of a preretirement joint survivorship pension, marriage or divorce does not change any previous beneficiary designation. In the case of a preretirement joint survivorship pension, if an unmarried member gets married, such member's spouse shall automatically become the member's designated beneficiary, which can thereafter be waived in accordance with subdivision (1).(9) DISTRIBUTION FOR MINOR OR INCOMPETENT BENEFICIARY. In the event a distribution is to be made to a minor or incompetent designated beneficiary, then the pension board may direct that such distribution be paid to the legal guardian, or if none in the case of a minor designated beneficiary, to a parent of such designated beneficiary or a responsible adult with whom the designated beneficiary maintains residence, or to the custodian for such designated beneficiary under the Uniform Gift to Minors Act or Gift to Minors Act, if permitted by the laws of the state in which the designated beneficiary resides. Such a payment to the legal guardian, custodian, or parent of a minor designated beneficiary shall fully discharge the trustee, the county, the pension board, and the plan from further liability on account thereof. The pension board may require evidence of guardianship, existence of custodial accounts, or any other documentation that is deemed prudent to establish that payment shall be made properly.(e) Other death benefits. Upon a member's retirement or other termination of employment, any preretirement joint survivorship pension benefit coverage ceases. Any other benefits to be paid upon the death of a member or designated beneficiary, such as refunds, are governed by Section 45-37-123.104(4).(f) Proof of death and marriage. The pension board may require proper proof of death and marriage and evidence of the right of any individual to receive the death benefit payable as a result of the death of a member as the pension board may deem desirable. Proof may include a certified marriage certificate, certified death certificate of the member, and affidavits of relatives, members, or other individuals knowledgeable of the fact of marriage. For common law marriages entered into before January 1, 2017, proof shall include evidence of the existence of the marriage as may be required by law and also may require indemnification and hold harmless agreements. The pension board may require that unclear cases be adjudicated in an appropriate court proceeding. An unmarried member may be required by the pension board to sign an affidavit to certify that such member is not married. The pension board's determination of death benefits and the right of any individual to receive payment shall be conclusive.Ala. Code § 45-37-123.103 (1975)
Amended by Act 2024-260,§ 1, eff. 6/1/2024.Amended by Act 2021-456,§ 1, eff. 5/17/2021.Amended by Act 2019-243,§ 1, eff. 8/1/2019. Act 2013-415, p. 1586, § 2 :5.4.