§ 23881 Retired Member Death Benefits

Key Takeaways

•If a retired worker dies and has leftover money in their retirement account, that money goes to the person they chose to get it.
•If the person getting the retirement money dies, their leftover money goes to whoever they picked to get it next.
•The leftover money is what’s left after adding up all the retirement payments already made.
•The leftover money also earns a little extra (interest) from the last payment until it’s given out.

Example

A retired teacher named Mr. Smith was getting monthly retirement payments. When he passed away, there was still some money left in his retirement account that hadn’t been paid out yet.

The leftover money from Mr. Smith’s retirement account will go to his wife, who he chose as his beneficiary. If his wife had already passed away, the money would go to whoever she picked to receive it next. The amount given will include a little extra money (interest) for the time between the last payment and when the leftover money is handed out.

(a) If upon receipt of proof of death of a retired member who was receiving an unmodified allowance and who retired under this part after June 30, 1972, there is a remaining balance of the member’s accumulated retirement contributions, the balance shall be paid to the member’s beneficiary. (b) Upon receipt of proof of death of a retired member’s option beneficiary after the beneficiary begins to receive an allowance, the remaining balance of a member’s accumulated retirement contributions, if any, shall be paid to the beneficiary designated by the option beneficiary to receive that payment. (c) The remaining balance of a retired member’s accumulated retirement contributions shall be the difference between the balance of the accumulated retirement contributions on the effective date of the member’s retirement and the total retirement allowance paid or payable to the retired member on the date of the member’s death. If the retired member predeceased the option beneficiary, the remaining balance of the retired member’s accumulated retirement contributions shall be the difference between the balance of the accumulated retirement contributions on the effective date of the member’s retirement and the total retirement allowance paid or payable to the retired member and the option beneficiary on the date of the option beneficiary’s death. (d) Payments pursuant to this section shall include interest on the remaining balance of accumulated retirement contributions calculated from the date the last allowance payment was made to the date the remaining balance of accumulated retirement contributions is paid. (e) A designated beneficiary may waive the right to the death payment in accordance with the requirements established by the system. The waiver shall be submitted on a properly executed form prescribed by the system. The filing of a waiver by a beneficiary constitutes a complete and immediate discharge of all obligations of the board, the system, or the plan to or on behalf of the beneficiary. (Amended by Stats. 2017, Ch. 298, Sec. 10. (AB 1325) Effective January 1, 2018.)

Key Takeaways

•If a retired worker dies and has leftover money in their retirement account, that money goes to the person they chose to get it.
•If the person getting the retirement money dies, their leftover money goes to whoever they picked to get it next.
•The leftover money is what’s left after adding up all the retirement payments already made.
•The leftover money also earns a little extra (interest) from the last payment until it’s given out.

Example

A retired teacher named Mr. Smith was getting monthly retirement payments. When he passed away, there was still some money left in his retirement account that hadn’t been paid out yet.

Key Takeaways

Example

Key Terms

References

§ 23881 Retired Member Death Benefits

Key Takeaways

Example

Key Terms

References

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References