For IPERS Beneficiaries
Important Information About
IPERS Death Benefits |
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If an IPERS Member Dies Before Retirement – Preretirement Death Benefits
IPERS provides death benefits if a member dies before beginning to receive IPERS retirement benefits. How IPERS pays out the benefits depends on the beneficiary(ies) and the member’s vested status.
- If the member was not vested: Regardless of the number or type of beneficiary(ies) designated, death benefits will be paid as a lump-sum payment.
- If the member was vested: If there is only one individual designated as the beneficiary, the beneficiary may choose between a lump-sum payment or a lifetime monthly benefit (provided the monthly benefit is $50 or more). Otherwise, benefits will be paid as a lump-sum payment.
An IPERS member is vested when the member has completed 4 years of service or the member is working and making contributions to IPERS at age 55, whichever occurs sooner.
| Example 1 |
Preretirement Death Benefit
(Member With 15.25 Years of Service)
After working for an IPERS-covered employer for 15.25 years, Bill dies at age 42. At the time of his death, his highest 3-year average salary is $45,635. Bill’s lump-sum preretirement death benefit would be $46,744. |
| Example 2 |
Preretirement Death Benefit
(Member With 21 Years of Service)
After working for an IPERS-covered employer for 21 years, Jane dies at age 59. At the time of her death, her highest 3-year average salary is $42,000. Jane’s lump-sum preretirement death benefit would be $147,000. |
For more information about how death benefits are calculated, contact IPERS.
Line-of-Duty Death Benefit
 Some IPERS members are considered “Special Service.” Special Service members include sheriffs, deputy sheriffs, and many other protection occupations. If a Special Service member's death is the direct result of a personal injury incurred in the line of duty, a line-of-duty death benefit of up to $100,000 may be payable. The line-of-duty benefit will be paid as a lump sum and is in addition to any other death benefits that are payable (not to exceed the Internal Revenue Code maximum). If you are a beneficiary of a Special Service member, please contact IPERS to see if you are eligible.
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