Death Benefits

ACTIVE MEMBERS

Nonservice-Connected Death

When an active member dies for reasons unrelated to employment (i.e., nonservice-connected), the benefits payable to a beneficiary depends on the member’s years of retirement service credit at the time of death. Benefits may include:

  • Lump-sum benefit: The “basic death benefit” consists of a return of the contributions and interest in the member’s retirement account, plus one month of salary for each completed year of retirement service credit, not to exceed six months’ salary. (Salary is based on the average monthly compensation over the last 12 months of employment. Service credit excludes prior public service purchases.)

A surviving spouse or registered domestic partner may be eligible to elect one of the following two options in lieu of the basic death benefit.

  • Monthly retirement benefit: If a member is vested in StanCERA (i.e., having at least five years of retirement service credit, including reciprocal service), a surviving spouse or registered domestic partner may elect a lifetime retirement benefit equal to 60% of the monthly benefit the member would have been entitled to if he or she had retired with a nonservice-connected disability as of the date of death.

If there is no surviving spouse or registered domestic partner, the monthly benefit may be payable to the member’s minor children until age 18 (continuing through age 21 if they remain unmarried and regularly enrolled as full-time students in an accredited school).  

  • Combined benefit: If a surviving spouse is eligible for a monthly retirement benefit, he or she may elect to receive a combined benefit consisting of a one-time payment equal to one month of salary for each completed year of the decedent’s retirement service credit, not to exceed six months’ salary, plus the monthly retirement benefit, reduced by the actuarial equivalent of the lump-sum payment.

Service-Connected Death

When an active member dies for reasons related to employment (i.e., service-connected), the benefits payable to a beneficiary does not depend on the member’s years of retirement service credit or age at the time of death. Benefits may include:

  • A surviving spouse or registered domestic partner may elect a monthly retirement benefit, payable for life, equal to 100% of the benefit that the deceased member would have been entitled to if he or she had retired with a service-connected disability as of the date of death.
  • If a member is killed or dies from an accident or injury caused by external violence or physical force incurred in the performance of duty, a surviving spouse or registered domestic partner may be paid an additional monthly benefit for minor children until the age of 18 (continuing through age 21 if they remain unmarried and regularly enrolled as full-time students in an accredited school).  An additional 25% of the basic retirement benefit is paid for one child, 40% for two children, or 50% for three or more children.  The benefit may also be payable to the legal guardian of a member’s children.
  • If a Safety member is killed in the performance of duty or dies as a result of an accident or injury caused by external violence or physical force incurred in the performance of duty, a surviving spouse or registered domestic partner will receive an additional one-time, lump-sum payment equal to 12 months of salary based on the deceased member’s monthly compensation at the time of death. (Salary is based on the average monthly compensation over the last 12 months of employment.)

DEFERRED MEMBER DEATH

When a deferred member dies, all accumulated StanCERA contributions will be paid to the member’s designated beneficiary or estate.

If the member was reciprocal with another agency and was vested (i.e., having at least five years of retirement service credit), a surviving spouse/registered domestic partner may elect a lifetime retirement benefit equal to 60% of the monthly benefit the member would have been entitled to if he or she had retired with a nonservice-connected disability as of the date of death.

RETIRED MEMBER DEATH SURVIVOR BENEFITS

Death and survivor benefits may be payable to the eligible surviving spouse, registered domestic partners, minor children, beneficiary(ies) or estate of a deceased StanCERA retiree.

$5,000 Death Benefit

Upon the death of a retired member, there may be a lump-sum benefit payment of $5,000 payable to the named beneficiary or estate, if StanCERA is their last public service employer.  This benefit is not a life insurance policy and is not payable upon the death of a non-retiree receiving a monthly benefit or continuance benefit.

Monthly Continuance Benefit

An eligible surviving spouse or registered domestic partner also may be eligible for a monthly benefit, payable for life, depending on the retirement option elected by the member at retirement.

If there is no surviving spouse or registered domestic partner, the monthly benefit may be payable to the member’s minor children until age 18 (continuing through age 21 if they remain unmarried and regularly enrolled as full-time students in an accredited school).  

The following survivor benefits are based on the election and the type of retirement applicable to the deceased member:

UNMODIFIED OPTION

  • Service retirement or nonservice-connected disability retirement: An eligible surviving spouse or registered domestic partner will receive a 60% continuance of a deceased member’s monthly benefit, payable for life. To be eligible, the surviving spouse or registered domestic partner must have been married to the member for one year prior to the retirement date. 
  • Service-connected disability retirement: An eligible surviving spouse or registered domestic partner will receive a 100% continuance of a deceased member’s monthly benefit, payable for life. To be eligible, the surviving spouse or registered domestic partner must have been married to the member prior to the retirement effective date.

If there is no eligible spouse or partner, these continuance benefits may be payable to minor children until age 18 (continuing through age 21 if they remain unmarried and regularly enrolled as full-time students in an accredited school).

OPTION 2

  • Service retirement or nonservice-connected disability retirement: Any (1) one named beneficiary will receive a 100% continuance of a deceased member’s monthly benefit, payable for life.  If the beneficiary is not a surviving spouse and more than 10 years younger than the member, the IRS guidelines require a reduction to the monthly continuance percentage amount.
  • Service-connected disability retirement: Any (1) one named beneficiary will receive a 100% continuance of a deceased member’s monthly benefit, payable for life.

OPTION 3

  • Service retirement or nonservice-connected disability retirement: Any (1) one named beneficiary will receive a 50% continuance of a deceased member’s monthly benefit, payable for life.  
  • Service-connected disability retirement: Any (1) one named beneficiary will receive a 50% continuance of a deceased member’s monthly benefit, payable for life.