102 KAR 1:165reg. Surviving children's benefits

      Section 1. Definitions. (1) "Full-time student" means a student who is in full-time attendance in a recognized educational program and is carrying a subject load that[which] is considered full time for day students under the standards and practices of the educational institution.

      (2) "Recognized educational program" means an educational program beyond the high school level that has been approved by a state, or accredited by a state or nationally-recognized accrediting agency.

 

      Section 2. (1) An application for survivor’s benefits for a minor child shall be filed on the Application for Survivor Benefits form and shall include a photocopy of:

      (a) The child’s Social Security card; and

      (b) The child’s certified birth certificate.

      (2) If the application is approved, the minor child’s monthly payment shall continue until one (1) of the conditions for termination of benefits in KRS 161.520(6) is met.

 

      Section 3. (1) If a child meets the requirements set forth in KRS 161.520(3)(a), an Application for Adult Disabled Child Benefit form may be filed and shall include:

      (a) A photocopy of the child’s Social Security card;

      (b) A photocopy of the child’s certified birth certificate;

      (c) A copy of the most recent Federal Income Tax Return listing the child as a dependent;

      (d) Report of Physician for Applicant/Disabled Child Benefit form; and

      (e) Authorization for Direct Deposit of $200 Adult Disabled Child Benefit form.

      (2) If the application is approved, the adult child’s monthly payment shall continue until one (1) of the conditions for termination of benefits in KRS 161.520(3)(a) is met.

 

      Section 4. A minor child receiving payment of survivor’s[survivors] benefits shall be paid in full for any month in which some payment is due. If the child is, or plans to be, a full-time student in a recognized educational program[beyond the high school level], he may apply for continuation or restoration of his monthly benefit. If the child’s application is approved, his monthly payment shall continue until one (1) of the conditions for termination of benefits in KRS 161.520(6) is met[he attains age twenty-three (23) unless he marries or stops attending school on a full-time basis].

 

      Section 5.[3.] If the child is a full-time student in a recognized educational program when[beyond the high school level at the time] he reaches age eighteen (18), he shall make application for continuation of his benefit at least thirty (30) days prior to his 18th birthday. A child who is accepted as a full-time student in a recognized educational program after he attains age eighteen (18) shall make application for restoration of his monthly benefit at least thirty (30) days prior to his registration as a student.

 

      Section 6.[4.] Benefit payments for a properly qualified student shall begin with the first month in which he is in full-time attendance at a recognized educational program[institution]. The student shall be eligible for a full monthly benefit for his first month of attendance.

 

      Section 7.[5.] Proof of full-time school attendance shall be required if a child has reached age eighteen (18) but not age twenty-three (23). If the child is eighteen (18) and in high school, within ten (10) days of receipt, the child shall complete and file the Student’s Statement Regarding School Attendance form[supply the necessary information on form SUR-1 (Student’s Statement Regarding School Attendance, Revised 12/2000)]. If the child is a student in a recognized educational program, the child shall provide proof of continuing full-time school attendance by completing and filing the Student’s Information Update Form after he has attended his first day of class[on form SUR-2 (Student Information Update Form)]. The information supplied by the child[student] shall be corroborated by either a Verification of Full-Time High School Attendance form or a Verification of Full-Time College Attendance form completed and filed by the appropriate high school or recognized educational program[a written statement from the school involved].

 

      Section 8.[6.] Benefit payments may continue through the normal school vacation periods if the child was a full-time student immediately prior to the vacation period and he intends to continue full-time or actually does attend full-time after the end of the vacation period. Benefit payments shall not be made for more than four (4) months of vacation time during a school year. Benefit payments shall not be made during the summer vacation periods or the following school semesters until the Student’s Statement Regarding School Attendance form[application for benefits on a form prescribed by the Board of Trustees of the Teachers’ Retirement System] is received by the retirement system.

 

      Section 9. If TRS verifies that a child has received survivor’s benefits for a period in which the child was either no longer dependent or not enrolled as a full-time student in a recognized educational program, TRS shall seek reimbursement of the benefits paid for that period.

 

      Section 10.[7.] A child eighteen (18) and younger may be entitled to benefits retroactively to the date of the member’s death. A full-time student in a recognized educational program[child] may be entitled to benefits retroactively for as many as six (6) months,[before the month in which he files the application for benefits. A child shall be entitled to benefits] beginning with the first month in the six (6) month retroactive period in which he met all the requirements to be entitled to benefits except for the filing of an application.

 

      Section 11.[8.] When a child attains age eighteen (18) and continues to be entitled to benefits as a full-time student, the person who has been receiving the benefit payments shall continue to receive the payments unless it is deemed advisable to make payment directly to the child or in some other manner.

 

      Section 12.[9.] Incorporation by Reference. (1) The following material is incorporated by reference:

      (a) "Application for Survivor Benefits" form (Form 15), 2016;

      (b) "Student’s Statement Regarding School Attendance" form (SUR-1), 2016;

      (c) "Student Information Update Form" (SUR-2), 2016;

      (d) "Verification of Full-Time College Attendance" form (SUR-3), 2016;

      (e) "Verification of Full-Time High School Attendance" form (SUR-4), 2016;

      (f) "Application for Adult Disabled Child Benefit" form (Form 19), 2016;

      (g) "Report of Physician for Applicant/Disabled Child Benefit" form (Form 20), 2016; and

      (h) "Authorization for Direct Deposit of $200 Adult Disabled Child Benefit" form, 2016["SUR-1 (Student’s Statement Regarding School Attendance, Revised 12/2000)"; and

      (b)" SUR-2 (Student Information Update Form, 3/2003)"].

      (2) This material may be inspected, copied, or obtained, subject to applicable copyright law, at the Teachers’ Retirement System, 479 Versailles Road, Frankfort, Kentucky 40601-3800, Monday through Friday, 8 a.m. to 5[4:30] p.m.

 

ARTHUR GREEN, Chairperson

      APPROVED BY AGENCY: June 20, 2016

      FILED WITH LRC: July 15, 2016 at 8 a.m.

      PUBLIC HEARING AND PUBLIC COMMENT PERIOD: A public hearing on this administrative regulation shall be held on Wednesday, 24 August 2016, at 9:00 a.m. at the Teachers' Retirement System, 479 Versailles Road, Frankfort, Kentucky. Individuals interested in being heard at this hearing shall notify this agency in writing by Wednesday, 17 August 2016, five (5) working days prior to the hearing of their intent to attend. If no notification of intent to attend the hearing is received by this date, the heating may be cancelled. This hearing is open to the public. Any person who wishes to be heard will be given the opportunity to comment on the proposed administrative regulation. A transcript of the public hearing will not be made unless a written request for a transcript is made. If you do not wish to be heard at the public hearing, you may submit written comments on the proposed administrative regulation through Wednesday, 31 August 2016. Send written notification of intent to be heard at the public hearing or written comments on the proposed administrative regulation to the contact person.

      CONTACT PERSON: Robert B. Barnes, Deputy Executive Secretary of Operations and General Counsel, Teachers' Retirement System, 479 Versailles Road, Frankfort, Kentucky 40601, phone [phone], fax [phone], or email at [e-mail].

 

REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT

 

Contact Person: Robert B. Barnes

      (1) Provide a brief summary of:

      (a) What this administrative regulation does: This administrative regulation establishes requirements, procedures and forms for the approval and processing of surviving children’s benefits.

      (b) The necessity of this administrative regulation: This administrative regulation is necessary to establish and ensure compliance with KRS 161.520.

      (c) How this administrative regulation conforms to the content of the authorizing statutes: This administrative regulation conforms to the content of the authorizing statutes by setting forth the procedures for: (1) filing an application for survivor’s benefits for a deceased member’s minor child; and, (2) continuation of such benefits for a child between 18 and 23 who is a full-time student in a recognized educational program.

      (d) How this administrative regulation currently assists or will assist in the effective administration of the statutes: This administrative regulation will assist in the effective administration of the statutes by informing those individuals seeking survivor’s benefits what is required to obtain approval, or continuation, of such benefits.

      (2) If this is an amendment to an existing administrative regulation, provide a brief summary of:

      (a) How the amendment will change this existing administrative regulation: The amendments clarify the process for filing the forms and supporting documentation required to apply for survivor’s benefits and for continuation of such benefits between the ages of 18 and 23. The amendments add regulatory guidelines for survivor’s benefits for disabled adult children provided for under KRS 161.520(3)(a).

      (b) The necessity of the amendment to this administrative regulation: To put those individuals seeking survivor’s benefits on notice as to the process for applying for such benefits and the forms and supporting documentation required for processing the application.

      (c) How the amendment conforms to the content of the authorizing statutes: The amendments ensure that those individuals seeking survivor’s benefits are on notice as to the process for applying for such benefits and the forms and supporting documentation required for processing the application.

      (d) How the amendment will assist in the effective administration of the statues: The amendments to the administrative regulation will ensure necessary forms and information are provided to facilitate the processing of survivor’s benefits.

      (3) List the type and number of individuals, businesses, organizations, or state and local governments affected by this administrative regulation: This administrative regulation applies to the surviving children of a member who died (1) while in active, contributing status, or (2) following retirement for a disability during the five (5) year entitlement period.

      (4) Provide an analysis of how the entities identified in question (3) will be impacted by either the implementation of this administrative regulation, if new, or by the change, if it is an amendment, including:

      (a) List the actions that each of the regulated entities identified in question (3) will have to comply with this administrative regulation or amendment: The surviving children or their representative will have to provide the appropriate forms and supporting documentation to obtain, or continue, survivor’s benefits.

      (b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (3): The children of the deceased member may incur some cost in obtaining supporting documentation regarding the mental or physical condition which rendered them dependent upon the deceased member.

      (c) As a result of compliance, what benefits will accrue to the entities identified in question (3): Surviving children may be able to obtain survivor’s benefits.

      (5) Provide an estimate of how much it will cost to implement this administrative regulation:

      (a) Initially: There is no cost to implement this regulation.

      (b) On a continuing basis: There is no continuing cost.

      (6) What is the source of funding to be used for the implementation and enforcement of this administrative regulation: Administrative expenses of the retirement system are paid by trust and agency funds.

      (7) Provide an assessment of whether an increase in fees or funding will be necessary to implement this administrative regulation, if new, or by the change if it is an amendment: There is no increase in fees or funding required.

      (8) State whether or not this administrative regulation establishes any fees or directly or indirectly increases any fees: This regulation does not establish any fees or directly or indirectly increase any fees.

      (9) TIERING: Is tiering applied? Tiering is not applied, as all survivors are treated the same.

 

FISCAL NOTE ON STATE OR LOCAL GOVERNMENT

 

      1. What units, parts or divisions of state or local government (including cities, counties, fire departments, or school districts) will be impacted by this administrative regulation? Teachers' Retirement System.

      2. Identify each state or federal statute or federal regulation that requires or authorizes the action taken by the administrative regulation. KRS 161.310 and 161.520.

      3. Estimate the effect of this administrative regulation on the expenditures and revenues of a state or local government agency (including cities, counties, fire departments, or school districts) for the first full year the administrative regulation is to be in effect.

      (a) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for the first year? None.

      (b) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for subsequent years? None.

      (c) How much will it cost to administer this program for the first year? No costs will be incurred.

      (d) How much will it cost to administer this program for subsequent years? No costs will be incurred.

      Note: If specific dollar estimates cannot be determined, provide a brief narrative to explain the fiscal impact of the administrative regulation.

      Revenues (+/-): N/A

      Expenditures (+/-): N/A

      Other Explanation:

Notation

      RELATES TO: KRS 161.520

      STATUTORY AUTHORITY: KRS 161.310

      NECESSITY, FUNCTION, AND CONFORMITY: KRS 161.520(8) requires the Board of Trustees of Teachers’ Retirement System of the State of Kentucky (TRS) to promulgate administrative regulations for the administration of survivor’s benefits for a deceased member’s child. KRS 161.520(7) provides that the Board of Trustees of TRS may require application for survivor’s benefits. KRS 161.520(3)(a) provides that survivor’s benefits may be provided to a disabled, adult child. KRS 161.520(6) provides that survivor’s[survivors] benefits for a dependent child may be extended to age twenty-three (23) if the child is a full-time student in a recognized educational program beyond the high school level. This administrative regulation defines[serves to define] "recognized educational program," and establishes[to set up] specific guidelines for administering survivor’s benefits and this authorized extension of the benefit period.