If you die after you begin receiving a service or disability retirement, your survivors may be eligible to receive benefits according to the retirement option you chose. (See “What are my benefit options?”)
If you die before retirement, benefits paid to your survivors depend on your age and service credit at the time of death. These benefits also apply to survivors of members who leave PERS-covered employment and do not withdraw their contributions.
If you die before earning 10 years of service credit and before becoming eligible for retirement, your beneficiary receives your contributions and interest earnings.
If you die while on active service or authorized leave of absence (not to exceed 120 days), after earning 10 years of service credit or after becoming eligible to retire, your survivors may choose between:
Note: Changes were made to this provision (HB 1266) during the 2007 legislative session.
If an active member or disability retiree dies as a result of injuries sustained in the course of employment and the Department of Labor and Industries has determined eligibility for the payment, DRS will pay a $150,000 death benefit to the member’s designated beneficiary.
If an active member or disability retiree dies as a result of injuries sustained in the line of duty as a public safety officer, ongoing benefits received by the retiree’s survivors may qualify for non-taxable status under federal and state law. Eligibility to receive benefit tax exemption will be determined by DRS.
You should keep your beneficiary designation record up-to-date with DRS. The Beneficiary Designation Form must be mailed to DRS. If you fail to file a Beneficiary Designation Form, DRS automatically pays your surviving spouse or, if none, your estate.
If you marry or divorce prior to retirement, you should file a new Beneficiary Designation Form, even if your beneficiary remains the same. However, you should be aware that an ex-spouse may have a right to a portion of your benefits under certain circumstances (see “Assignment and legal orders”).
At retirement, if you choose Option 1, you may name a trust, your estate, an organization, or a person as your beneficiary. If you choose a survivor benefit (options 2, 3, or 4) you must select a person as your beneficiary.