When a retiree dies, what benefits may be payable?
A death benefit, representing all or part of the member's retirement allowance under the Qualified Pension Plan (QPP), may be payable to a designated beneficiary or the member's estate; this would be based upon the payment option that the member chose at retirement. In addition, a fractional payment of the retirement allowance payment for the month in which the member died would be payable to a designated beneficiary, as long as the member did not die on the last day of the month.
For more information, please see the Guide to Death Benefits for Beneficiaries of Retired Members and the If the member participated in TRS' Tax-Deferred Annuity (TDA) Program, what TDA benefits may be payable? FAQ below.
What QPP benefits are payable upon the death of an in-service Tier I member?
When an in-service Tier I member dies before becoming eligible for retirement under the Qualified Pension Plan (QPP), the death benefit would equal the member's Annuity Savings Fund (ASF) balance, Increased-Take-Home-Pay (ITHP) balance, and an amount based on his/her salary and years of Total Service Credit.
The following table shows how the member's Total Service Credit affects the death benefit payable.
| Years of Service Credit |
Amount of Death Benefit |
| Less than 10 |
One-half the member's salary in the year immediately before the date of the member's death |
| At least 10 but less than 20 |
The member's salary in the year immediately before the date of the member's death |
| 20 or more |
Two times the member's salary in the year immediately before the date of the member's death |
Note: The member's salary is the average annual salary in the year immediately before the date of death. It is generally not affected by any approved leaves of absence with or without pay.
If the member was eligible for a service retirement at the time of death, or died within the first 30 days after retiring, the death benefit would be the greater of the amount indicated in the first paragraph above or a benefit based on the reserves that would have been payable under Option I Modified had the member retired on the day before he or she died. (Option I Modified is a retirement payment option that provides a lump-sum benefit to the designated beneficiary based on the member's available pension reserves.)
What QPP benefits are payable upon the death of a Tier I member who was separated from service?
If a Tier I member had at least 10 years of Total Service Credit at the time of death, but was no longer in active service and was not yet eligible for a service retirement under the Qualified Pension Plan (QPP), the death benefit payable would equal the following: one half the amount of the ordinary death benefit that would have been payable had the member died on the last day that service was rendered. If the member's TRS membership had ceased during the separation from service, interest on his/her QPP account balances stopped accruing interest as of the date the membership ceased.
What QPP benefits are payable upon the death of an in-service Tier II, III, IV, or VI member?
If a Tier II, III, IV, or VI member dies while in service and is credited with at least one year of service since last joining TRS, the member's designated beneficiary can apply to receive ordinary death benefits under the Qualified Pension Plan (QPP). The death benefit would equal the balance in the member's Annuity Savings Fund (ASF) (for Tier II members) or Member Contributions Accumulations Fund (MCAF) and Annuity Savings Accumulation Fund (ASAF) (for Tier III, IV, and VI members), plus the amount of either Death Benefit #1 or Death Benefit #2.
As of October 1, 2000, beneficiaries of Tier II, III, and IV members receive the greater of either Death Benefit #1 or Death Benefit #2, even if the member had elected Death Benefit #1 coverage. Members who joined TRS after January 1, 2001 (including Tier VI members) are automatically enrolled in Death Benefit #2.
What QPP benefits are payable upon the death of a Tier II, III, IV, or VI member who was separated from service?
If a Tier II, III, IV, or VI member had at least 10 years of Total Service Credit at the time of death, but was no longer in active service and was not yet eligible for a service retirement under the Qualified Pension Plan (QPP), the amount of Death Benefit #1 or #2 would equal one half of the amount that would have been payable had the member died on the last day that service was rendered. If the member's TRS membership had ceased during the separation from service, interest on his/her QPP account balances stopped accruing interest as of that date.
What is Death Benefit #1?
Under Death Benefit #1, the benefit would equal 1/12 of the member's last 12 months' regularly earned salary multiplied by each full year of Total Service Credit—to a maximum of three times the member's annual salary; this maximum would apply to members who have 36 or more years of Total Service Credit. (This description assumes that the member was in active service and died with at least one year of Total Service Credit since last joining TRS.)
As of October 1, 2000, beneficiaries of Tier II, III, and IV members receive the greater of either Death Benefit #1 or Death Benefit #2, even if the member had elected Death Benefit #1 coverage. Members who joined TRS after January 1, 2001 (including Tier VI members) are automatically enrolled in Death Benefit #2.
What is Death Benefit #2?
Under Death Benefit #2, the benefit would equal one year's salary upon the completion of one year of service, two years' salary upon the completion of two years of service, and three years' salary upon the completion of three or more years of service. If the member remained in service to age 61, the in-service death benefit would be reduced by 5% for each succeeding year until age 70, when the benefit would equal 50% of the applicable amount. (This description assumes that the member was in active service and died with at least one year of Total Service Credit since last joining TRS.)
As of October 1, 2000, beneficiaries of Tier II, III, and IV members receive the greater of either Death Benefit #1 or Death Benefit #2, even if the member had elected Death Benefit #1 coverage. Members who joined TRS after January 1, 2001 (including Tier VI members) are automatically enrolled in Death Benefit #2.
The following table shows the age-reduction factors that affect the benefit payable under Death Benefit #2.
| Age at Date of Death |
Percentage of Benefit Payable After Reduction |
| 60 or under |
100% |
| 61 |
95% |
| 62 |
90% |
| 63 |
85% |
| 64 |
80% |
| 65 |
75% |
| 66 |
70% |
| 67 |
65% |
| 68 |
60% |
| 69 |
55% |
| 70 |
50% |
If the member participated in TRS' Tax-Deferred Annuity (TDA) Program, what TDA benefits may be payable?
If the member participated in the TDA Program, the member's designated TDA beneficiaries may be eligible to receive the balance of the member's TDA account or establish a TDA account with TRS.
For more information, please see the Guide to Death Benefits for Beneficiaries of Retired Members or the Guide to Death Benefits for Beneficiaries of Non-Retired Members.
Can a beneficiary roll over a death benefit to another account?
Spouses of deceased members are permitted to roll over the taxable portion of a Qualified Pension Plan (QPP) and/or Tax-Deferred Annuity (TDA) Program death benefit to an eligible Individual Retirement Arrangement (IRA) or other successor program. Non-spouse beneficiaries may roll over the taxable portion of a QPP and/or TDA death benefit to an Inherited IRA or other successor program.
Under Chapter 677 of the Laws of 2003, a beneficiary of a deceased participant in TRS' TDA Program may defer distribution of TDA funds by establishing a TDA account with TRS.
For more information about rolling over a death benefit, please consult the applicable forms, which are available under the Withdrawals/Distributions category in the Forms > Beneficiaries section.
For more information, please see the What beneficiaries are eligible to establish an account in TRS' Tax-Deferred Annuity (TDA) Program? FAQ below.
As a beneficiary, may I invest the death benefit I receive in TRS' investment programs?
Beneficiaries are not permitted to reinvest Qualified Pension Plan (QPP) death benefit funds with TRS. However, under Chapter 677 of the Laws of 2003, a beneficiary of a deceased participant in TRS' Tax-Deferred Annuity (TDA) Program may be eligible to defer distribution of TDA funds by establishing a TDA account with TRS.
For more information, please see the What beneficiaries are eligible to establish an account in TRS' Tax-Deferred Annuity (TDA) Program? FAQ below.
What beneficiaries are eligible to establish an account in TRS' Tax-Deferred Annuity (TDA) Program?
The deceased member must have been a TRS TDA Program participant with active or TDA Deferral status when (s)he died, and must not have elected to annuitize his/her TDA Program funds upon retirement. The value of the funds available to each beneficiary for establishing an account must be $5,000 or greater.
Eligible beneficiaries who elect to keep their funds with TRS must establish an account within six months of the member's date of death by filing a TDA Enrollment Form for Beneficiaries (code TD80). This election would be irrevocable; however, upon establishing a TDA account, beneficiaries may withdraw their TDA funds at any time (provided the withdrawal complies with TRS and Internal Revenue Service (IRS) rules and regulations).
TDA Account Guidelines
- The beneficiary must be an individual (a trustee, estate, or organization named as a beneficiary is not eligible to participate). If the beneficiary is a minor, a legal guardian must be appointed to act on his/her behalf.
- The beneficiary may not make new contributions to the account, or apply for loans from the account;
- Funds in this account may only be invested in the Variable-Return Programs, not in the Fixed Annuity Program; and
- The beneficiary's designated beneficiaries would not be able to establish an account with TRS and would have to make a lump-sum withdrawal of any TDA death benefit upon the original beneficiary's death.
If a member dies in active service, may the beneficiary annuitize the death benefit?
Qualified Pension Plan (QPP) beneficiaries may annuitize a QPP benefit only if the deceased was a Tier I or Tier II member and the QPP benefit is at least $10,000. Eligible beneficiaries of Tier I members must file to annuitize their death benefit by October 31 of the year following the year of the member's death; beneficiaries of Tier II members must file to annuitize their death benefit within 90 days from the date of the member's death.
All Tax-Deferred Annuity (TDA) Program beneficiaries may annuitize a TDA benefit of $10,000 or more. In all cases, before an annuity can be calculated for a beneficiary, (s)he must submit a photocopy of his/her birth certificate to TRS.
There are two ways of annuitizing a death benefit:
Option A, in which the amount would be paid in monthly installments during the beneficiary's lifetime, with all payments ceasing upon his/her death.
Option B, in which the amount of the annuity is slightly reduced, so that any remaining reserves after the beneficiary's death would be payable to a designated beneficiary or estate. Please note that any benefits due the member's estate cannot be annuitized.
Who receives the death benefit if a divorced member of TRS dies?
TRS generally makes death benefit payments in accordance with the member's most recent beneficiary designations. However, if the designated beneficiary is a former spouse through divorce, annulment, or judicial separation, the designation may be considered revoked. In accordance with Chapter 173 of the Laws of 2008, a former spouse is treated as having predeceased the member. Benefits that would have been payable to the former spouse would instead be payable to the member's estate or another beneficiary on file (if applicable).
However, there are some instances where the designation of a former spouse would not be revoked. These include irrevocable designations made by the member (such as those made under a "continuing payment" option for the retirement allowance) and requirements specified in an instrument such as a domestic relations order.
Where can I find information about what benefits are payable under a specific payment option?
Information about the specific payment option is available by accessing the Retirement Payment Options: Tiers I/II and TDA Annuitization Options brochure or the Retirement Payment Options: Tiers III/IV/VI brochure.
What is an accidental death benefit?
An accidental death benefit may be paid to beneficiaries of members of all tiers in lieu of an ordinary death benefit in the following circumstances:
- The in-service member's death was the natural and proximate result of an accident that was sustained during the performance of duty, but was not caused by the member's willful negligence; and
- The beneficiary (or other representative) applies for an accidental death benefit within two years of the member's death (except for beneficiaries of Tier IV and VI members, who must generally apply for an accidental death benefit within 60 days of the member's death).
Please be aware that certain legal restrictions apply to the payment of accidental death benefits and should be considered before applying for this benefit.
What is a spousal right of election, and how could it affect the distribution of benefits after the death of a TRS member?
When a TRS member or TRS beneficiary dies, New York State law provides that his/her spouse may elect a share of the deceased spouse's net estate,^ even if the spouse was not designated as a beneficiary. The elective share is the greater of $50,000, or one-third of the net estate. If the net estate is less than $50,000, the elective share is the net estate. Benefits from TRS' Qualified Pension Plan (QPP) and Tax-Deferred Annuity (TDA) Program accounts are included in calculating the net estate.
Please note that the rules described above do not apply to divorced spouses. They also do not apply if the decedent designated the beneficiary of the TRS benefits on or before September 1, 1992 and did not subsequently change the beneficiary designation.
^The net estate, as defined by New York State statute, consists of the net probate assets, as well as testamentary substitutes.
How do I exercise a spousal right of election for TRS benefits?
If you are the spouse of a TRS member or TRS beneficiary, New York State law provides that you may elect a share of your deceased spouse's estate even if you were not named as a beneficiary. If TRS has not yet distributed the benefits payable upon the death of a member or beneficiary, we will refrain from making a death benefit payment or transfer to the designated beneficiaries upon being served with a certified copy of a court order instructing us to do so.
Generally, you must exercise a right of election within six months from the date of issuance of letters testamentary or of letters of administration, and generally must assert this right no later than two years after the date of the decedent's death. For more information, please see the What is a spousal right of election, and how could it affect the distribution of benefits after the death of a TRS member? FAQ above.
TRS strongly urges you to consult with an attorney if you are contemplating exercising a spousal right of election. TRS will be held harmless and free from any liability for making any payment or transfer to a person who would be otherwise entitled to such funds if not for the surviving spouse's exercise of a right of election. In all cases, the specific provisions of the governing laws, rules, and regulations will prevail.