For IPERS Beneficiaries
Important Information About
IPERS Death Benefits |
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If an IPERS Member Dies After Retirement – Postretirement Death Benefits
Example: Joe retires 2 months before his 59th birthday after working in IPERS-covered employment for 21 years and earning a high 3-year average salary of $42,014.26. His wife is age 60 and 10 months. His IPERS contributions plus interest total $44,563.91. Here’s the amount of his benefit and the death benefit payable to his wife under each option.
If the Member’s
Retirement Benefit Was Paid as an… |
The Beneficiary
Benefits Are… |
Example |
Option 1:
Annuity With Fixed Lump-Sum Survivor Benefit |
A lump-sum payment based on the amount elected by the member. The death benefit cannot exceed the amount of the member's total contributions plus interest. |
Monthly Benefit Payable to Joe: $1,331.76
Minimum Lump-Sum Benefit Payable to Joe's Wife in the Event of His Death: $1,000
Maximum Lump-Sum Benefit Payable to Joe's Wife in the Event of His Death: $44,000 (Joe's monthly benefit would be $1,249.20.) |
Option 2: Annuity With Variable Decreasing Lump Sum |
A lump-sum payment equal to the member's contributions plus interest minus the total retirement benefits the member received before his or her death. |
Monthly Benefit Payable to Joe: $1,330.80
Benefit Payable to Joe’s Wife in the Event of His Death: $12,624.71 after 2 years. After Joe receives 34 monthly payments, there will not be any death benefit payable to his wife. |
Option 3:
Single Life Annuity |
No death benefit is payable. |
Monthly Benefit Payable to Joe: $1,333.68
Benefit Payable to Joe’s Wife in the Event of His Death: None |
Option 4:
100%, 75%, 50%, or 25% Joint and Survivor Annuity |
A monthly benefit for the remainder of the beneficiary's life in the amount of 100%, 75%, 50%, or 25% (based on the member's election) of the monthly benefit the member was receiving before his or her death. |
Monthly Benefit Payable to Joe:
| 100% |
$1,174.50 |
| 75% |
$1,210.62 |
| 50% |
$1,249.04 |
| 25% |
$1,289.97 |
Monthly Benefit Payable to Joe's Wife in the Event of His Death:
| 100% |
$1,174.50 |
| 75% |
$907.96 |
| 50% |
$624.52 |
| 25% |
$322.49 |
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Option 5: 120-Month Term Certain Annuity |
If the member dies before receiving 120 payments, the beneficiary will be eligible for a benefit. If the member already received 120 or more payments at the time of death, no payments will be made to a beneficiary.
If the beneficiary is an individual, the beneficiary will receive a monthly benefit for 120 months minus the number of payments the member received.
If the beneficiary is several individuals, a trust, or an estate, payments will be made as a lump sum. |
Monthly Benefit Payable to Joe: $1,301.79
Monthly Benefit Payable to Joe’s Wife in the Event of His Death After 24 Months: $1,301.79 for 96 months; thereafter, no benefits payable.
OR
Assuming Joe had multiple beneficiaries, the lump sum payable if Joe dies after 24 months of pension payments is $97,600.52. |
Option 6: 100%, 75%, 50%, or 25% Joint and Survivor Annuity With Pop-Up Annuity |
A monthly benefit for the remainder of the beneficiary’s life in the amount of 100%, 75%, 50%, or 25% (based on the member’s election) of the monthly benefit the member was receiving before his or her death. |
Monthly Benefit Payable to Joe:
| 100% |
$1,157.91 |
| 75% |
$1,197.43 |
| 50% |
$1,239.75 |
| 25% |
$1,285.16 |
Monthly Benefit Payable to Joe's Wife in the Event of His Death:
| 100% |
$1,157.91 |
| 75% |
$898.07 |
| 50% |
$619.87 |
| 25% |
$321.29 |
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Please Note: Special Service members (sheriffs, deputy sheriffs, and many other protection occupations) have an additional payment option available that is not described above. Contact IPERS for more information.
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