If you die after you begin a service or disability retirement, your survivors may be eligible to receive benefits depending upon the retirement option you chose (see “What are my benefit options?”).
If you die before retirement, your designated beneficiary may be eligible for benefits as explained
below.
If you die before you have 10 service credit years and before retirement eligibility, your beneficiary(ies) receives your contributions, plus interest earnings.
If you die after becoming eligible to retire or after accumulating 10 or more service credit years, your surviving spouse, or if none, the guardian of your minor children, may choose between the following two benefits:
If your spouse dies while receiving a survivor’s retirement benefit and leaves a minor child or children, the children will continue to receive the benefit that was paid to your spouse. The benefit will be shared equally among the children and paid until they reach 18 years of age.
If there is no surviving spouse at the time of your death, and you have minor children, their guardian will choose between the two payment options.
If there are no minor children or surviving spouse, your designated beneficiary will receive your accrued contributions, plus interest.
If an active member or disability retiree dies as a result of injuries sustained in the course of employment or if the death resulted from an occupational disease or infection that arose naturally and proximately out of their covered 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 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 pays your surviving spouse or, if none, your estate.
If you marry or divorce prior to retirement, 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 “Taxation and legal orders”).
At retirement, if you choose an Option 1 benefit payment, you may name a trust, your estate, an organization, or a person as your beneficiary. However, if you choose Option 2, 3, or 4, you must select a person as your beneficiary.