24-7-710. Survivor annuity benefits.

24-7-710. Survivor annuity benefits. (a)(1) If an active member with five (5) or more years of actual and reciprocal service, including credited service for the year immediately preceding his or her death, dies before the receipt of retirement benefits from the Arkansas Teacher Retirement System, then the benefits provided in this section shall be paid to eligible survivors. (2)(A) An immediately eligible survivor is entitled to receive monthly benefits beginning the month after the death of the member if the survivor application is filed with the system within three (3) months of the death of the member, otherwise the monthly benefits shall begin the month that the survivor application is filed with the system. (B) If an immediately eligible survivor or the minor survivor's guardian or legal representative fails to complete the application process within six (6) calendar months after the application required under subdivision (a)(2)(A) of this section is filed, including the submission of any additional documentation required by the system, the application shall be void unless an extension is granted by the system. (b)(1)(A)(i) Unless the member otherwise directs an alternative beneficiary by using a beneficiary form approved by the system, a member's surviving spouse, who was married to the member for at least the two (2) years immediately preceding the member's death, shall receive an annuity computed in the same manner in all respects as if the member had retired on the date of the member's death and elected Option A under § 24-7-706 to provide one hundred percent (100%) survivor annuity benefits, including benefits applicable under § 24-7-713, for his or her spouse. (ii) The system shall continue to pay any benefits applicable under § 24-7-713 for an eligible surviving spouse, including a spouse who began receiving benefits on or after July 1, 2009. (B)(i) If a surviving spouse is immediately eligible to receive a monthly benefit immediately after the death of a member, the immediately eligible surviving spouse is entitled to receive monthly benefits beginning the month after the death of the member if the survivor application is filed with the system within three (3) months of the death of the member, otherwise the monthly benefits shall begin the month that the survivor application is filed with the system if at the time of the member's death the member had: (a) Accumulated twenty-five (25) years or more of credited service and qualified as eligible to receive a retirement annuity under §§ 24-7-701 and 24-7-702; or (b) Reached sixty (60) years of age and qualified as eligible to receive a retirement annuity under § 24-7-707. (ii) If an immediately eligible spouse fails to complete the application process within six (6) calendar months after the application required under subdivision (b)(1)(B)(i) of this section is filed, including the submission of all additional documentation required by the system, the application shall be void unless an extension is granted by the system. (C)(i) If the surviving spouse is not immediately eligible to receive monthly benefits under subdivision (b)(1)(B) of this section, the surviving spouse's benefits shall begin the later of either the month following the date the member would have been eligible to receive benefits had the member survived or the date that an application for a surviving spouse's benefits is filed with the system. (ii) If a surviving spouse becomes eligible for surviving spouse benefits and fails to complete the application process within six (6) calendar months after the application required under subdivision (b)(1)(B)(i) of this section is filed, including the submission of any additional documentation required by the system, the application shall be void unless an extension is granted by the system. (D) If the surviving spouse is eligible to receive the survivor annuity and the member had not reached sixty (60) years of age at the time of the member's death, the surviving spouse may elect to defer receipt of the annuity until the member would have reached sixty (60) years of age, and the surviving spouse's benefits shall not be reduced under the early retirement provisions of § 24-7-702. (E) The surviving spouse's benefits under this section are payable for the surviving spouse's lifetime. (F) If the member directs an alternative beneficiary by using a beneficiary form approved by the system, the member may designate one or more residual beneficiaries to receive a lump-sum payment of the member's residue amount under § 24-7-709 in lieu of the member's surviving spouse. (2) If at the time of the member's death there are no dependent children and the surviving spouse who is eligible to receive the annuity under this subsection files with the system a written waiver of his or her right to the spousal annuity, a lump-sum distribution of the deceased member's accumulated contributions plus regular interest may be made to the surviving spouse. (3) The Board of Trustees of the Arkansas Teacher Retirement System may adopt rules to carry out the provisions of this section. (c)(1)(A)(i) A surviving dependent child of the member shall receive an annuity in an amount equal to one percent (1%) of the member's highest salary year for each quarter of a year credited as actual service in the system but not to exceed twenty (20) quarters of a year that are credited as actual service in the system for up to a maximum of twenty thousand dollars ($20,000). (ii) If the member's highest salary year occurs in the year that the member died, the system shall calculate the surviving dependent child's annuity on the basis of a full year of salary by the member. (B) If a member has more than three (3) surviving dependent children, the aggregate amount of the surviving dependent children's annuity shall not exceed the lesser of sixty percent (60%) of the member's highest salary year or sixty thousand dollars ($60,000) per year and shall be divided equally among the surviving dependent children. (2)(A) A child shall be considered a dependent child and eligible for the dependent child annuity until he or she reaches eighteen (18) years of age. (B)(i) The child of a deceased member is considered a dependent child and is eligible for the dependent child annuity at eighteen (18) years of age or older, but not older than twenty-three (23) years of age, if the dependent child stays continuously enrolled as a full-time student at an accredited secondary school, college, or university. (ii) Regardless of age, a deceased member's child who has been deemed physically or mentally incapacitated by a court of competent jurisdiction is eligible to receive a dependent child annuity for as long as the incapacity exists. (3) When a dependent child ceases to be a dependent or dies, his or her share of the annuity shall terminate. (d) For the purposes of § 24-7-709 related to the disposition of a member's residue amount, a survivor annuity received from the member's deposit account under this section shall be considered annuity payments received by the member or his or her designated beneficiary and shall offset any disposition of residue payable under § 24-7-709 to the estate of the member or to an alternate payee. (e) If the member had previously received benefits from the system and has not repaid in full all amounts payable by him or her to the system, the annuity amounts otherwise provided by this section shall be withheld until the total amount owed to the system is repaid. (f)(1) For eligibility under this section, a member is considered active for an additional fiscal year following the last fiscal year that the member renders actual service to a covered employer and obtains at least one-fourth (¼) of a year of service credit. (2) In addition, a member is considered active for eligibility under this section if in the fiscal year of a member's death, the member earned at least ten (10) days of service credit in each quarter before and including the quarter of the member's death. (3) Service credit used in calculating any benefits paid under this section means days of service, including paid sick leave covered by the employer.