PSERS Death - Pennsylvania

Public School Employees' Retirement System

Let's Talk About

PSERS Death

Benefits

Publication # 9520

2/2016

The information contained in this publication is subject to change based on the actions of the Pennsylvania State Legislature.

This pamphlet is designed solely to provide an overview of benefits available to members of the Public School Employees' Retirement System (PSERS) and is not intended to be a substitute for retirement counseling.

Table of Contents

Death Benefits During Employment......................................1-8

Value of Death Benefit........................... 1-2 What is the value of my death benefit......... 1 Interest after death ..................................... 2

Naming Beneficiary(ies)........................ 2-3 .How/when do I name beneficiary(ies)......... 2 .Naming a minor as beneficiary(ies)............. 3 .Changing beneficiary(ies)............................ 3

After Member Dies..................................... 4 What beneficiary needs to do...................... 4

Payment of Death Benefit...................... 5-8 Payment options available....................... 5-7 How long will it take..................................... 8

Health Insurance....................................... 8 Health insurance for beneficiaries............... 8 Premium assistance for beneficiaries.......... 8

Death Benefits After Retirement.......................................9-15

Value of Death Benefit......................... 9-10 What is the value of my death benefit.... 9-10 COLA's for beneficiaries............................ 10

Beneficiary Information..................... 11-13 Naming/changing beneficiary/survivor annuitant............................................... 11-12 Naming a minor as beneficiary/survivor annuitant.................................................... 13

Continued on next page...

i

After Member Dies.............................. 13-14 .What beneficiary needs to do............... 13-14 .Payment of Death Benefit....................... 14 How long will it take................................... 14 Health Insurance..................................... 15 Health insurance for beneficiaries............. 15 Premium assistance for beneficiaries........ 15

Disability Benefits ........................... 16 Taxes ................................................... 17

Beneficiaries and taxes............................. 17 Reporting taxes to IRS.............................. 17

Divorce ............................................... 18 Terminated Vested Members ........ 18 Contacting PSERS ............................ 19 Glossary ........................................20-21

ii

Death Benefits During Employment

Value of Death Benefit

What is the value of my death benefit?

The estimated value of your death benefit is noted on your Statement of Account. If your account is not vested, your death benefit equals your total contributions and interest. If you are vested, the death benefit value, also known as the present value, is determined by your years of credited service, final average salary, and age at death. Before a death benefit is issued, PSERS deducts any debts remaining from your account. Your death benefit is calculated as follows:

Class T-D & Class T-F Members 2.5% for school service*

X Final Average Salary X Credited Service X Early Retirement Factor

(if applicable) X Dollar Annuity Value

Death Benefit Value

Class T-C & Class T-E Members 2.0% for all service

X Final Average Salary X Credited Service X Early Retirement Factor

(if applicable) X Dollar Annuity Value

Death Benefit Value

* Class T-D multiplier is 2.5% for school service and 2.0% for any non-school service. Non-school service consists of non-intervening military, government, out-of-state, county commissioner, county nurse, maternity, and cadet nurse corps.

1

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download