Death Prior to Retirement
Death benefits are payable to the designated beneficiaries of an MCERA member who dies before retiring. Several options may be available to your beneficiary, and the benefits paid will depend on the type of beneficiary, whether you were vested or non-vested at the time of death, and whether the death was job-related. Below is a summary of the death benefit options available for your beneficiaries.
Basic Death Benefits
If you die before retirement your beneficiary will be entitled to a death benefit equal to your contributions plus accumulated interest and a lump sum payment equal to one month of your final salary for each year of service you completed to a maximum of six months pay.
Alternate Death Benefits
Under certain specific circumstances, your surviving spouse/state-registered domestic partner or unmarried minor children may choose an alternative form of the death benefit. The available options will depend upon the circumstances of your death.
- Continuance. If you were eligible for service retirement or would have been entitled to non-service connected disability retirement at the time of your death, your eligible surviving spouse/state-registered domestic partner or unmarried minor children may choose to receive, in lieu of the basic death benefit, a monthly benefit equal to 60% of the allowance you would have received if you had retired on the date of your death. The benefit is payable for the lifetime of the spouse/state-registered domestic partner, and for your unmarried child(ren) is payable until the age of 18 or to the age of 22 if he/she remains unmarried and in school full time.
- Lump Sum Plus Continuance. If you were eligible for service retirement or would have been entitled to non-service connected disability retirement at the time of your death, your eligible surviving spouse/state-registered domestic partner or unmarried minor children may choose to receive a combination of the basic lump sum death benefit plus an actuarially reduced monthly continuance based on the value of the death benefit. The benefit is payable for the lifetime of your spouse/state-registered domestic partner, and for your unmarried child(ren) is payable until the age of 18 or to the age of 22 if he/she remains unmarried and in school full time.
- Service Connected Death Benefit. If your death is the result of injury or disease arising out of and in the course of your employment, your eligible surviving spouse/state-registered domestic partner or unmarried minor children may choose to apply for a service connected death benefit in lieu of the basic death benefit. The service connected death benefit is equal to 50% of your highest average compensation or the regular service retirement benefit, whichever is greater. The benefit is payable for the lifetime of your spouse/state-registered domestic partner, and for your unmarried child(ren) is payable until the age of 18 or to the age of 22 if he/she remains unmarried and in school full time.
Death After Retirement
Upon the death of the retiree, payment of any continuance of benefits or a refund of member contributions is determined by the Benefit Payment Option elected by the member at the time of retirement.
In addition, for members who retire from active service, a one-time lump-sum death benefit is payable to the retiree's designated beneficiary. This benefit is currently $5,000.