SECTION 9 Pre-Retirement Benefits
Death and Survivor Benefits Depend on Several Factors
If a Plan A or B member dies prior to retirement, death benefits are determined based on:
- Member’s status: active or deferred
- Category of death (service-connected or nonservice-connected)
- Vesting status
- Relationship of recipient to member (eligible survivor or named beneficiary)
Note: To qualify as an eligible survivor in cases involving the death of an active member, a spouse or domestic partner must have been married to or in a duly registered domestic partnership with the member prior to the member’s death. No minimum length of marriage or domestic partnership requirement applies.
Explanation of Benefits
The following explains the benefits (listed in the Pre-Retirement Death Benefit chart) associated with the death of an active Plan A or B member. Depending on the circumstances of the case, the benefit(s) may be payable as a lump-sum cash payment or an ongoing monthly allowance or a combination of the two.
A Basic Death Benefit is a lump-sum payment consisting of the deceased member’s accumulated contributions and the Salary Death Benefit. The Salary Death Benefit is an amount equal to one month of the member’s pensionable earnings (averaged over the past 12 months) for each full year of Plan A or B service credit, not to exceed six months. For example, if the member had three years of service credit, the Salary Death Benefit would equal three months of pensionable earnings. If the member had nine years of service credit, the Salary Death Benefit would equal six months of pensionable earnings.
An individual may elect to receive the Basic Death Benefit in monthly installments, rather than one lump-sum payment. The maximum installment period is 120 months (ten years). A trust or estate may only receive a single lump-sum amount.
An Optional Death Allowance pays an amount equal to a specified percentage (based on whether the death is service-connected or nonservice-connected) of the retirement allowance the deceased member would have received had he or she been retired at the time of death. It is a monthly allowance payable only to eligible survivors; it is a lifetime allowance when paid to a surviving spouse or domestic partner. If the eligible survivor is a minor child, the allowance continues until the child is no longer eligible.
The Combined Benefit includes a lump-sum Salary Death Benefit along with a monthly allowance. The monthly allowance is calculated as an Optional Death Allowance, reduced by the actuarial equivalent of the Salary Death Benefit. The reduction is based on the age and life expectancy of the eligible survivor.
Pre-Retirement survivor benefits terminate upon the death of the eligible surviving spouse or domestic partner. In the case of an eligible surviving child(ren), the benefit continues until the child is no longer eligible.
Rights of Eligible Survivors May Supersede Other Beneficiaries
The rights and claims of a surviving spouse, domestic partner, or eligible surviving child(ren) to receive a monthly allowance may supersede the rights and claims of any other named beneficiary. A monthly allowance can only be paid to a surviving spouse or domestic partner or minor children; a named beneficiary is someone other than an eligible survivor who qualifies for the Basic Death Benefit only.
Service-Connected Death
- Basic Death Benefit
- Payable to a named beneficiary or member’s estate
- Optional Death Allowance
- Full amount (100%) of the disability retirement allowance the deceased member would have received had he or she been retired on an SCD at the time of death
- Payable to eligible survivor
- Combined Death Benefit
- Payable to eligible survivor
If a safety member dies in the performance of duty as the result of external violence or physical force, his or her survivors may be eligible for special death benefits:*
Special Death Benefit: Surviving spouse or domestic partner
A one-time, lump-sum payment equal to twelve months of the decedent’s average monthly compensation.
Minor Child Special Death Benefit
A monthly benefit calculated as a fixed percentage of the Optional Death Allowance paid to the surviving spouse or domestic partner. This benefit is payable, on behalf of the minor child(ren), to the surviving spouse or domestic partner (or person having legal custody) of the minor child(ren). The benefit is paid until the child(ren) marries or reaches age 18.**
- One child: 25 percent
- Two children: 40 percent
- Three or more children: 50 percent
*Certain restrictions apply.
**The benefit may be extended through age 21 if the minor child remains unmarried and a full-time student in an accredited educational institution.
Nonservice-Connected Death
Vested
If the member had accrued a minimum of five years of service credit (vested), the surviving spouse or domestic partner, if named as beneficiary, may opt to receive one of the following three benefits. If a surviving spouse or domestic partner is not a named beneficiary, he or she may elect either the Optional Death Allowance or the Combined Benefit.
- Basic Death Benefit
- Optional Death Allowance
- 65% of the monthly disability retirement allowance the deceased member would have received had he or she been retired on an NSCD at the time of death
- Combined Benefit
If the named beneficiary opts to receive the Basic Death Benefit and the death is later determined by the BOR to be service-connected, the beneficiary is not eligible for any additional benefits.
Non-Vested
Upon the nonservice-connected death of an active Plan A or B member with less than five years of service credit (non-vested), a Basic Death Benefit is payable to a named beneficiary. No other benefits apply under these circumstances.
Deferred Member
Upon the pre-retirement death of deferred member, the member’s accumulated contributions are payable in a lump sum to the named beneficiary or claimant.
County-Sponsored Life Insurance for Active Members*
Plan A or B participants in Options, Choices, and Flex are covered by a $2,000 basic term life insurance plan paid by the County. Options and Choices participants may elect to purchase additional term life insurance. Flex and MegaFlex participants may elect to purchase Group Variable Universal Life (GVUL) insurance.
Contact your Department for details on County-sponsored insurance plans. LACERA does not sponsor or administer these plans.
*Certain conditions and restrictions apply. County-sponsored benefits vary according to the benefits plan.
6/16/09