Beneficiaries
How should the death of a member be reported to TRS?
Any individual can report the death of a member by calling TRS at 1 (888) 8-NYC-TRS (869-2877) or writing to TRS at 55 Water Street, New York, NY 10041. The following information about the member must also be provided: the member’s name, TRS membership or retirement number, the last 4 digits of the member’s Social Security number, and the date of death. Persons reporting the death must also provide their name, address, and phone number. In all cases, an original death certificate or certified copy must be provided.
For a summary of the steps involved in the death benefit process, see the Guide to Death Benefits for Beneficiaries of Retired Members or the Guide to Death Benefits for Beneficiaries of Non-Retired Members.
If I am a beneficiary of a deceased TRS member, how can I find out what my death benefit will be?
In most cases, TRS sends each beneficiary (or legal representative) a death benefit notification letter approximately four weeks after we are notified of a member’s death AND we obtain all required information.
The notification letter indicates the benefits due and any payments that are owed to TRS. Also included is a unique claim code that you can use to initiate an online death benefit claim on TRS’ secure website; once logged in, you will see additional details about benefits due. See How do I file an online death benefit claim? for more information.
Keep in mind that your notification letter may be delayed if TRS has difficulty obtaining information or documentation required to calculate benefits.
How do I file an online death benefit claim?
Once you register for access to the secure TRS website using the claim code provided in your notification letter, you will create a username and password and log in to the death benefit claim feature. The feature guides you through all required steps and includes an upload feature to submit required documentation and forms. After all the required online steps are completed, you will print a summary receipt for your records; you must also print the “Attestation and Notarization for Online Death Benefit Claim,” have it notarized, and return it to TRS.
When does my claim code for filing my online death benefit claim expire?
Your claim code will expire 60 days after the date of your notification letter, so you should register for access to the online claim feature as soon as possible after receiving your letter; your letter indicates your code’s expiration date.
What happens if my claim code expires?
You would need to contact TRS at 1 (888) 8-NYC-TRS (869-2877) to request a new claim code.
What documentation must be submitted in order to claim a death benefit?
A member's beneficiary (or representative) must first submit a certified or original death certificate for the member; (s)he must also submit a Claimant's Statement (code DB17) . We will inform them of additional documentation and forms they may have to file.
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 .
If I am a designated beneficiary but do not have a Social Security number, what should I do?
You can obtain an Individual Taxpayer Identification Number (ITIN) from the Internal Revenue Service (IRS). Visit www.irs.gov for more information.
Must any payments be returned to TRS after a member dies?
TRS must receive the following payments before any death benefits can be processed:
- All Qualified Pension Plan (QPP) retirement allowance payments and/or Tax-Deferred Annuity (TDA) Program annuity payments that were cashed or directly deposited after the member’s date of death; uncashed checks must also be returned to TRS.
- An amount representing an overpayment of the member’s QPP retirement allowance; in these cases, the member was in the process of reimbursing TRS for the overpayment.
When you log in to the TRS website to file your benefit claim, the dollar amount owed to TRS and instructions for repayment will be indicated. Your notification letter also provides this information.
How long does it take to process a death benefit payment?
In most cases, TRS issues payments two months after the online claim is filed AND the following are received: all required documentation and/or forms; the “Attestation and Notarization for Online Death Benefit Claim”; and any payment due.
Why does it take so long to process a death benefit payment?
TRS must take several administrative steps before calculating and disbursing benefits. For example, we must stop the member’s monthly retirement benefits and may need to recover any payments due. When a non-retired member is deceased, TRS must first obtain the member’s complete service and salary history from all previous employers in order to calculate the benefit; unfortunately, this step can take several weeks. We must also adjust TRS account balances to reflect any loans and excess distributions taken. In addition, disbursement of benefits is delayed if we do not receive all required documentation and forms, as well as notarized proof of the online claim submission.
What is a spousal right of election, and how could it affect the distribution of benefits after the
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.
How can a child claim a death benefit from TRS?
If a minor (generally, a child under 18 years of age) is eligible for a TRS death benefit, TRS requires that a court-appointed guardian of the child’s property file on behalf of the minor and take custody of any benefits paid in the manner directed by the court.
If the child is legally emancipated, TRS requires a certified copy of the emancipation order.
What kind of guardianship does TRS require?
The guardian must be granted specific authority over the child's property. This is often called a "guardian of the property" and is different from a "guardian of the person."
If I am a guardian of a child's property, how do I inform TRS of my status?
Please submit to TRS a certified copy of the court order establishing the guardianship. This document, often called a "letter of guardianship," must specify that you are the guardian of the child's property. After TRS has reviewed and approved the order, TRS will permit you to take actions permitted by the order on behalf of the child.
Isn't a parent automatically the guardian of his/her child?
No. Parents are not automatically guardians of their children's property.
If a court awarded me custody of the child, is that sufficient proof of guardianship?
Not necessarily. A custody order entered in connection with a divorce often only creates a guardianship over the child's person, not the child's property. For the purpose of a TRS benefit application, the custody order must explicitly create a guardianship over the child's property. If this is not explicitly stated in the custody order, TRS requires separate documentation.
How do I become a guardian of a child's property?
The process is generally governed by the law of the state where the child resides. TRS is unable to provide legal advice about specific situations.
At what age is a guardian no longer necessary?
In general, a guardian is no longer necessary once a child turns 18. However, events such as a court-ordered emancipation could lower this age in specific cases.
When a retiree dies, what QPP benefits may be payable?
Three types of Qualified Pension Plan (QPP) benefits may be payable after the death of a TRS retiree: A one-time lump-sum amount (Death Benefit #2) if the member was in Tier II, III, IV, or VI; a continuing monthly benefit based on the retirement payment option chosen by the member; and a fractional payment representing a portion of the retirement allowance payment for the month in which the member died (as long as the death did not occur 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 performed. 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 f
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 performed. 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 (While in Active Service) |
Percentage of Benefit Payable After Reduction |
|---|---|
| 60 or under | 100% |
| 61 | 97% |
| 62 | 94% |
| 63 | 91% |
| 64 | 88% |
| 65 | 85% |
| 66 | 82% |
| 67 | 79% |
| 68 | 76% |
| 69 | 73% |
| 70 | 70% |
Note: Different reduction factors applied for members who died before July 1, 2021.
If the member participated in TRS' TDA Program, what TDA benefits may be payable?
If the member was retired, three types of TDA benefits may be payable: A one-time lump-sum payment of the TDA balance (if the member had maintained a TDA account through TDA Deferral status); a continuing monthly benefit based on the retirement payment option chosen by the member (if the member had annuitized the TDA account); and a fractional payment representing a portion of the TDA annuity payment for the month in which the member died (as long as the death did not occur on the last day of the month).
If the member was not retired, the one-time lump-sum benefit payable would equal the member’s TDA balance as of one day prior to the date of death. 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.
As a beneficiary, can I invest the death benefit I receive in TRS’ investment programs?
Beneficiaries are not permitted to reinvest death benefit funds with TRS. (Before 2021, certain TDA beneficiaries could choose to maintain funds invested in TRS’ Passport Funds by establishing a “TDAB” account—a beneficiary account in TRS’ Tax-Deferred Annuity Program. However, a New York State law passed in 2021 closed our TDAB accounts to new participants; the law does not affect existing TDAB accounts in any way.)
What distribution options are available for my Qualified Pension Plan (QPP) and/or Tax-Deferred Annu
When you are logged in to your online claim, you will see what options are available to you. Types of distribution options are described below.
- Direct Payment: Some lump-sum payments must be received in a direct payment (e.g., a “fractional” payment, a Required Minimum Distribution, funds from the member’s Group Term Life Insurance). Other payments have distribution options noted below.
- Direct Rollover: Some lump-sum payments can be rolled over (e.g., QPP Death Benefit #2). Spouse beneficiaries can roll over all or part of their benefit to an eligible Individual Retirement Arrangement (IRA) or other eligible successor program; eligible successor programs are indicated in the online death benefit claim feature. Non-spouse beneficiaries may roll over all or part of their benefit only to an Inherited IRA or an Inherited Roth IRA.
- Annuitization: In certain circumstances, a beneficiary may annuitize their lump-sum benefit, as explained in the below FAQs.
What are the rules for annuitizing a death benefit?
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. If the deceased was a Tier II member, the member must have died while still in service. 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 of the date of the member’s death.
TDA beneficiaries of members of any tier may annuitize a TDA benefit of $10,000 or more. Eligible beneficiaries must file to annuitize their TDA death benefit by October 31 of the year following the year of the member’s death.
For TDA beneficiaries of TRS members who died on or after January 1, 2022, there are additional eligibility requirements under the SECURE Act. At least one of the following must apply to beneficiaries who want to annuitize their TDA benefit:
- They are the surviving spouse of the deceased member;
- They are not more than 10 years younger than the deceased member;
- They are chronically ill; or
- They are disabled.
Are there different ways to annuitize a death benefit?
There are two ways of annuitizing a death benefit:
- Annuity Payment “A”: The actuarial value of the death benefit would be paid as a lifetime annuity in monthly installments, with all payments ceasing upon the annuitant’s death. The only payment due after the annuitant’s death would be a fractional payment representing a portion of the monthly annuity for the month in which the annuitant died.
- Annuity Payment “B”: The actuarial value of the death benefit would be paid as a lifetime annuity in monthly installments. The amount of the annuity is slightly reduced, so that any remaining reserves after the annuitant’s death would be payable to a designated beneficiary or estate.
How long can a death benefit remain with TRS unpaid?
The IRS sets limits on the disbursement of accounts after a participant’s death. Generally, TDA accounts must be entirely disbursed by the end of the calendar year that includes the 10th anniversary of the member’s death. Any portion of the TDA account that is payable to a non-individual (i.e., trust, estate, or organization) must be entirely disbursed by the end of the calendar year that includes the 5th anniversary of the member’s death.
Similar timeframes may be applied for QPP death benefits. In all cases, TRS works to distribute death benefits as quickly as possible upon receiving completed claims and supporting information from claimants.
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.
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
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.
What is a Power of Attorney (PoA)?
A Power of Attorney (PoA) is a legal instrument that allows one or more individuals (referred to as agents or attorneys-in-fact) to act on behalf of another person (referred to as the principal).
By using a PoA, you can decide in advance who you want to act for you in situations in which you are unable to make decisions for yourself. Agents can be granted the right to handle a broad range of personal, financial, legal, and other business affairs—including retirement benefits.
When choosing an agent, you should select someone you trust who will act in your best interest. Agents may take actions on behalf of a principal with or without their consent.
We strongly urge consultation with an attorney before executing a Power of Attorney.
Can I still handle my own TRS retirement transactions with a PoA on file?
Yes. You may still handle your own retirement affairs; you do not lose your authority to act even though you have given your agent a similar authority.
Does TRS provide a PoA for retirement benefit transactions?
Yes. A TRS Special Durable Power of Attorney (code BK75) is available on our website and it can be used by members, retirees, and beneficiaries. The TRS PoA will also be honored by the other New York State and New York City retirement systems listed on the form.
What types of PoAs does TRS honor?
- TRS will honor PoAs that authorize retirement benefit transactions and meet the standards of governing law at the time they were executed. (The law governing the requirements for a New York PoA changed effective June 13, 2021. Any PoA executed on or after June 13, 2021, must comply with the new requirements under New York’s General Obligations Law, Article 5, Title 15).
- TRS accepts Public Retirement System Special Durable Power of Attorney forms from:
- The New York City Employees' Retirement System
- The New York City Board of Education Retirement System
- The New York City Police Pension Fund
- The New York City Fire Pension Fund
- The New York State and Local Employees' Retirement System
- The New York State Teachers' Retirement System
- The New York State and Local Police and Fire Retirement System
What can I authorize my agent to do on my behalf with a PoA?
You may grant your agent Standard Authority and/or Gifting Authority. Depending on the level of authority granted, your agent will be able to conduct the following transactions:
- Standard Authority—allows your agent to access account-specific benefit information and conduct other transactions on your behalf such as: withdrawing funds, changing direct deposit accounts, taking loans and updating address/phone numbers.
- Gifting Authority—allows your agent to elect a pension payment option that provides for a beneficiary, designate or change death benefit beneficiaries, and name himself or herself as your beneficiary if “self-gifting” is granted.
How do I allow for gifting on a PoA using the TRS Special Durable Power of Attorney form?
If you use the TRS form, and your agent is your spouse, domestic partner, parent or child, then your agent will automatically have “gifting authority,” including the authority to designate himself/herself as your beneficiary.
If your agent is not your spouse, domestic partner, parent or child, they will only have limited “gifting authority.” For this agent to have the authority to designate himself/herself as your beneficiary, you must grant such authority by initialing one of the statements in the “Modifications” section of the TRS form (page 4, section g).
How do I allow for gifting on a PoA without using the TRS form?
- All PoAs executed on or after June 13, 2021, must be signed by 2 disinterested witnesses (witnesses who are not listed as agents, successor agents or named in the PoA as persons who can receive gifts).
- If you use a NYS Statutory PoA form, gifting authority for all agents including your close family members must be granted in the Modifications Section of the PoA. To do this, you must initial Section (g) “Certain Gift Transactions” and provide the specific gifting authority granted to your agent(s) in Section (h) “Modifications.”
Should I send a copy of my PoA to TRS?
Although you are not required to, we urge you to submit your PoA to TRS so it can be reviewed and noted in your record. Having your PoA on file at TRS will prevent any delay should your agent need to access your account information or conduct transactions in an emergency. Additionally, once the PoA has been reviewed, we will advise you (and your agent, when appropriate) what level of authority your agent has regarding your TRS account.(In order for your agent to receive information regarding their level of authority, you must provide TRS with their address).
How can I execute a Power of Attorney (PoA) granting an agent the authority to make decisions on my
If you are a TRS member wishing to execute a PoA granting another person(s) the authority to make decisions regarding your current and future TRS retirement benefits, you may either:
Complete and submit a TRS Special Durable Power of Attorney (code BK75), which is available on our website or from our Member Services Center at 1 (888) 8-NYC-TRS. This non-statutory form is for use by TRS members and is specifically limited to TRS retirement benefit transactions and does not authorize an agent to act in a transaction that is not related to TRS. Please note that TRS makes this form available merely as a convenience and assumes no responsibility with regard to your use of it.
OR
Complete and submit a statutory short form PoA executed in accordance with the New York General Obligations Law or other state’s applicable law.
How can I revoke my Power of Attorney (PoA)?
You may revoke your PoA at any time, as long as you are of sound mind, by sending TRS a signed revocation statement.
If TRS is not notified when a PoA is revoked, TRS will assume that the PoA on file is still valid and continue to honor it. Therefore, please submit any revocation notices as soon as possible to TRS!
If I have Power of Attorney (PoA) for a retiree, how may I obtain a copy of the retiree's 1099 form?
If TRS has a copy of your PoA on file, you may submit a written request to TRS for a copy of the retiree's 1099 form. You may also submit a written, notarized authorization from the retiree if you wish to have this information released to you.
What is a spousal right of election, and how could it affect the distribution of benefits after the
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.
What may cause my Electronic Fund Transfer (EFT) to stop?
If your account is closed, or your financial institution closes, TRS will be unable to complete the processing of your EFT. TRS would notify you by letter if this occurs.
If you are due a lump-sum payment, TRS will reissue your payment(s) to another EFT account we have on file for you.
If you do not have an active EFT account, TRS will attempt to contact you. If TRS contacts you within 10 business days of the EFT return, we will then reissue your payment(s) via paper check to the address we have on file for you. If TRS is unable to contact you within 10 business days, TRS will communicate by mail and await your reply. Once TRS receives your reply TRS will replace your missing payments.
If you are receiving continuing payments, TRS will reissue your payment(s) via paper check to the address we have on file for you. You can establish a new EFT account by filing an “EFT Authorization Form” (code BK58) as soon as possible. It generally takes 15 to 45 days from the date that TRS receives your form and documentation for your EFT account to be established. You can also request to have any of your missing payments reissued by EFT by completing a check reissue form.
How can beneficiaries initiate Electronic Fund Transfer (EFT)?
Beneficiaries receiving a one-time lump-sum payment and/or continuing monthly benefits can initiate EFT in the online Death Benefit Claim feature
For more information, please see the Electronic Fund Transfer brochure.
What are the tax consequences of receiving death benefits?
Direct Payments: Death benefits received as a direct payment are generally federally taxable and may be subject to state and local taxes for the year in which the benefit is distributed. The IRS requires that TRS withhold tax from death benefits as indicated below:
- 20% of the taxable portion of all rollover-eligible payments that are paid directly to the claimant. (However, the claimant may elect a higher percentage be withheld.)
- 10% of all payments not eligible for rollover that are paid directly to the claimant. (However, the claimant may elect a different percentage, including zero, be withheld.)
- 30% of a payment made to a claimant who is not required to file U.S. income taxes due to foreign citizenship (unless the claimant’s country has a different tax withholding arrangement with TRS).
Continuing Monthly Payments: You can elect a W-4P federal tax withholding rate while you are filing your online death benefit claim. If you do not make an online election, taxes will be withheld at the rate for a single person with no adjustments, as required by the IRS.
Is interest included in death benefit payments?
Death benefit payments may include interest, when applicable, for a limited period of time after TRS is notified of the member's death. Claimants/beneficiaries are encouraged to promptly submit documentation of the member's death (and return payments issued by TRS after the member's death). This will enable TRS to begin determining benefit amounts and any interest payable.
What should I do if my death benefit payment is late, lost, or stolen?
If you are requesting a reissue of a check representing a lump-sum death benefit from TRS, you can your last name and password to log in to the Claimant Portal on TRS’ website and request a reissued check. You can make this online request no later than April of the calendar year following the disbursement of your benefit payment. (If you never logged on and your claim code has expired, you may be able to request a new claim code by calling TRS.)
If you do not have access to the secure section of our website, you will need to file an Affidavit for Check Reissue Request (code BK2).
If you are unsure if you have outstanding funds due you, you may access the Unclaimed Funds feature in the Resources section. This lists checks issued by TRS that have not yet been cashed after at least 90 days.
If your missing check was cashed, TRS will mail a copy of the cancelled check to you. If you still suspect that a check was stolen, you can file an Affidavit for Forged Check (code BK1).
How long will it take for my death benefit payment to be reissued?
In general, TRS will issue a duplicate lump-sum death benefit check within 15 business days after receiving the completed form.