Upon the death of a retiree, IMRF will pay a $3,000 employer death benefit to the beneficiary designated by the deceased retiree.
If a spouse survives and is eligible for a surviving spouse pension, IMRF will pay a monthly benefit. To be eligible, the spouse must have been married or in a civil union with the deceased for at least one year prior to the date the deceased terminated IMRF participation.
If the retired member had an eligible spouse at retirement, but that spouse dies, a future spouse could be eligible for a surviving spouse pension.
If the first spouse predeceases the member, and the surviving spouse was married or in a civil union with the member for at least one year prior to the member’s death, the second spouse will receive the surviving spouse pension.
If the death occurs on or after June 1, 2006, and the member --
Retired
under Tier 1
The amount of the surviving spouse benefit is 50% of the (standard) pension
(see 5.20
B. 3. Pension Payout Plans), including post-retirement increases (see
5.20
B. 12. Pension Increases After Retirement).
If the deceased was receiving retirement benefits under the optional plan (see 5.20 B. 3. Pension Payout Plans, the surviving spouse benefit will be based on the standard plan plus any post-retirement increases that would have been paid had the standard plan been chosen.
If the death occurred before June 1, 2006, and the surviving spouse is more than five years younger than the deceased, the surviving spouse’s pension is less than 50% of the member’s earned pension; the exact amount depends on the difference in ages.
Retired under
Tier 2
The amount of the surviving spouse benefit is 66-2/3% of the pension (no
optional pension for Tier 2), including post-retirement increases (see
5.20 B. 12. Pension Increases After Retirement).
If the deceased chose a Special Needs (reversionary) annuity (see 5.20 B. 13.b Special Needs (Reversionary) Annuity) and named his or her eligible surviving spouse as the Special Needs beneficiary, that spouse will receive another monthly annuity in addition to the surviving spouse pension (will be paid as a single monthly benefit payment). If some other individual was named, that individual will receive the Special Needs annuity.
If a Tier 1 member retired under the IMRF Early Retirement Incentive (ERI), the amount of the surviving spouse benefit is based on 50% (see above regarding date of death) of the ERI enhanced pension the deceased was receiving at date of death, including post-retirement increases.
If a Tier 2 member retired under the IMRF Early Retirement Incentive (ERI), the amount of the surviving spouse benefit is based on 66-2/3% of the ERI enhanced pension the deceased was receiving at date of death, including post-retirement increases.
If a balance of the member’s ERI cost remains, the remainder will be deducted from the IMRF death benefit:
If a surviving spouse pension is payable, the remainder of the 24 equal installments will be deducted from the surviving spouse pension.
If a surviving spouse pension is not payable, the balance will be deducted from the lump sum death benefit payment.
If the member paid more for the ERI than he or she received in an enhanced pension, the amount not paid out as a benefit will be refunded to the member’s beneficiary or estate.
If the deceased chose a reversionary annuity (see Paragraph 5.20 B. 15. b. Reversionary Annuity) and named his or her eligible surviving spouse as the reversionary annuitant, that spouse will receive another monthly annuity in addition to the surviving spouse pension (will be paid as a single monthly benefit payment). If some other individual was named, that individual will receive the reversionary annuity.