Coverage A – Family Allowance If Member Dies Before Retirement

Under Coverage A, benefits are payable to your survivors if you became a member of CalSTRS before October 16, 1992, and did not elect Coverage B in the election held between October 1992 and April 1993.

One-Time Death Benefit

Under Coverage A, if a CalSTRS member dies before he or she retires, CalSTRS pays a $6,163 one-time death benefit to the named recipient or recipients

• If more than one recipient is named, the payment is divided equally, unless the member specifies other percentages of distribution.
• If a recipient is not named, CalSTRS must pay the one-time death benefit to the estate of the deceased member.

For CalSTRS to pay this benefit, the member must have had one year or more of credited service and death must have occurred during one of the following periods:

• While in employment for which compensation is paid or while receiving a disability benefit
• Within 4 months after termination of service or termination of employment, whichever occurs first
• Within 4 months after the member terminated a disability benefit if no service was performed after the termination
• Within 12 months of the last day for which compensation was paid, if the member was on an approved leave of absence without compensation for reasons other than disability or military service

If the member worked part time, their death must have occurred within 4 months after ending employment or earning service credit.

In addition to these qualifications, if the member took a refund of accumulated retirement contributions, the benefit can be paid only if one year of credited service has been subsequently performed.

Eligibility for Family Allowance

For survivors to be eligible for the monthly family allowance, the member must have met the same eligibility requirements as for the one-time death benefit described above, and the member:

• Cannot have a pre-retirement election of an option in effect
• Must have earned one year of credited CalSTRS service since reinstatement from service retirement (if applicable)
• Must have earned at least one-half year of service credit after a break in service of more than one year (if applicable)

Under Coverage A, a monthly family allowance is payable to:

• The surviving spouse or registered domestic partner with eligible children
• The surviving spouse or partner with no eligible children
• Dependent children, but no surviving spouse or partner
• Dependent parents

If there is no surviving spouse, partner, dependent children or dependent parents, any remaining Defined Benefit contributions and interest in your account will be paid to your one-time death benefit recipients. If no recipient was named, CalSTRS must make the payment to your estate.

For more information on how the family allowance is payable under Coverage A, refer to Section 9 of the Member Handbook.

Offsets

CalSTRS must reduce any family allowance under Coverage A by the amount of benefits payable by other public systems because of a member's death.

Other public systems include:

• Social Security
• Federal civil service retirement
• Federal military disability
• Railroad retirement
• Any other public retirement system, including disability programs financed from public funds.

A copy of any award letters from other public systems must be sent to CalSTRS so that payments can be adjusted.

Coverage A - Family Allowance Example

Linda will receive a monthly family allowance of $1,754 as long as she has three eligible children. In addition, an annual benefit improvement increase of 2 percent of the basic benefit will be added to the monthly payment each September, beginning a year after Rob's death.

As each child becomes ineligible, that child's increment will no longer be included in the basic benefit. Effective the day prior to her youngest dependent child's 22nd birth date, or when the dependent child is no longer eligible due to marriage, domestic partner registration, or death, Linda, age 57, will have to choose one of the following:

• She can take the remaining contributions and interest in Rob's account, less all previously paid benefits.
• At age 60, Linda can receive the surviving spouse benefit payable for life. She will receive a monthly payment of $1,353.85, based on Rob's projected service and projected final compensation.
• If Linda elects to receive the surviving spouse benefit before age 60, the benefit will be actuarially reduced.

The calculation will also include service credit for the member's unused sick leave if he or she became CalSTRS member before July 1, 1980 or died on or after January 1, 1999.