The beneficiary is advised of the benefit options three to four weeks after IMRF receives the monthly participating payroll report which lists the last earnings and contributions of the deceased.
The letter the beneficiary receives explains the tax treatment for each of the options. Payment is made by IMRF a few days after the benefit choice is received by IMRF.
The beneficiary is advised of any available benefit options and tax treatment within three to four weeks after the claim is received by IMRF; payment is made by IMRF a few days after the benefit choice is received by IMRF.
If any pension payments were issued after the date of death, those payments will be deducted from the death benefit unless the payments are returned.
Note: If the benefit to be paid is a surviving spouse’s pension, the effective date is the first day of the month following the date of death. Monthly payments are made at the start of each month, same as retirement pensions.
For example, if the member dies on January 15, the surviving spouse pension is effective February 1.
Spouses who choose a surviving spouse pension, beneficiaries who choose a beneficiary annuity, and individuals receiving a Special Needs (reversionary) (see 5.20 B. 15. b Special Needs (Reversionary) Annuity) receive a Certificate of Benefits (Exhibit 5M-b) explaining the IMRF benefit payments. The Certificate also provides information about income taxes and any death benefits which may be payable.