What Happens to Your Pension If You Die Before You Retire?

Based on our recent survey this is a topic that many of you would like to know more about. 

If you are married, vested, and die before beginning to receive retirement benefits, your surviving spouse will receive the surviving spouse portion of the 50% Joint and Survivor Annuity.  If you are vested, age 45 or older, employed with a Participating Employer, and if your surviving spouse is not more than ten years younger than you, the spouse’s annual benefit is 50% of your Accrued Benefit.

If you are an employee of a Participating Employer at the time of death, the annuity can begin the month in which the death occurs.  If you are not an employee of a Participating Employer at the time of death, the annuity can begin the month that you would have reached age 55.  If you had already reached age 55, the annuity can begin the month in which death occurs.

If there are no pension benefits payable to a survivor and you die either before or after you begin receiving your pension benefit, your beneficiary is entitled to a lump sum payment of the balance in your Contribution Account with interest.

Full Issue: No. 177 - August 25, 2006

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