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Death
In the event of your death, a member or representative of your family must call PERS Customer Service at 503-598-7377 or toll free at 888-320-7377 and report it as soon as possible. PERS will request a photocopy of the death certificate.
Death Benefits Before Retirement
Death Benefit Payment Options
If you die before retirement, your beneficiary must choose from one of the following payment options:
Total Distribution: Refund of 100 percent of the member account balance and employer matching death benefit, if eligible.
Straight Life Annuity (pension): Lifetime monthly benefit from the member account balance and employer matching death benefit, if eligible. (The monthly benefit must be at least $30 per month).
Partial Distribution Plus Pension: Distribution of 100 percent of the member account balance, in addition to a monthly lifetime pension from the employer matching death benefit, if eligible. (The monthly benefit must be at least $30 per month.)
Employer Matching Death Benefit
The employer matching death benefit is payable if any of the following apply:
- the member was not receiving retirement benefits and the member died while actively employed in a PERS-covered position;
- the member died while on an official leave without pay* from a PERS employer; or
- the member died within 120 days after the last day of paid employment with a PERS employer.
*An official leave of absence without pay must be approved in writing by the employer for a specified time period and submitted to PERS.
Beneficiaries should contact their tax advisor or the Internal Revenue Service regarding the tax implications of death benefits.
Police Officer and Firefighter Unit Benefits
If police officers or firefighters who have purchased unit benefits die before retirement, the amount in their unit account is refunded to their beneficiaries. There is no matching employer amount.
Taxation of Death Benefits
Before choosing a payment option, PERS recommends that you obtain tax information from the Internal Revenue Service and the Oregon Department of Revenue or a qualified tax advisor. Required Minimum Distribution rules and restrictions may apply to death benefits. Also, surviving spouse beneficiaries and non-spouse beneficiaries are subject to different time frames in which they must begin receiving benefits.
Under the Internal Revenue Code, distributions by reason of an employee's death that occurred prior to August 22, 1996, may qualify for a death benefit exclusion of up to $5,000. This exclusion must be applied for when filing tax returns. It is not reported by PERS to the IRS on the final 1099R, per IRS instructions.
Death Benefits After Retirement
If you die after you have retired, the benefits due to any beneficiaries will be determined by the payment option you selected at the time you retired.
When a retired member dies, PERS stops issuing benefit payments. Any payments issued after the member has died must be returned to PERS. After the death of a retired member, PERS will notify any beneficiaries in writing of their eligibility for benefits. If no payments are due, the family will be notified in writing.
Police Officer and Firefighter Unit Death Benefits
The beneficiary of a police officer or firefighter who has retired but dies before receiving all unit benefit payments will receive the actuarial value of the unpaid units. Beneficiaries do not receive continued monthly payments. The surviving spouse or minor children of a police officer or firefighter who dies after retiring and while receiving benefits is entitled to 25 percent of the refund annuity amount on the date of death regardless of the retirement option selected at the retirement. Contact PERS Customer Service at 503-598-7377 or toll free at 888-320-7377 and report a death as soon as possible.
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