The CalSTRS Defined Benefit Program provides benefits to survivors. The benefits payable to survivors depend on whether the member’s death occurred prior to or after retirement. These benefits provide a basic level of security for survivors depending on whether the member was covered under Coverage A, Family Allowance or Coverage B, Survivor Benefit.

Coverage A or Coverage B

If you became a CalSTRS member after October 15, 1992, your survivors are protected under Coverage B. If you became a CalSTRS member before that date, you were offered the choice of either Coverage A or Coverage B.

Your Retirement Progress Report (formerly Annual Statement of Account) will show which survivor coverage you have. If you are not certain of your coverage, you can call CalSTRS at (800) 228-5453.

One-Time Death Benefit

A one-time death benefit is payable to the one-time death benefit recipient or recipients under both Coverage A and B if eligibility requirements are met. The amount depends on the member's coverage and whether the death occurred before or after his or her retirement. If the member has not named a recipient, the member's estate receives the one-time death benefit.

Monthly Benefits

Monthly benefits may be paid to eligible survivors of members who die before retirement or who are receiving a disability benefit at the time of death. These monthly benefits are not the same as payments made to option beneficiaries of deceased CalSTRS members who elected a pre-retirement option or elected an option at the time of retirement.

Less Than One Year of Service Credit

If a member has less than one year of service credit, the benefit payable to the surviving beneficiary is a refund of accumulated Defined Benefit and Defined Benefit Supplement contributions and interest.

Coverage A - Member Dies Before Retirement

Under Coverage A, benefits are payable to survivors of a person who became a member of CalSTRS before October 16, 1992, and did not elect Coverage B in the election held from October 1992 through 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 (This amount is adjusted periodically by the Teachers' Retirement Board.) 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 four months after termination of service or termination of employement, whichever occurs first
• Within four 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.

Note: Coverage A includes a provision that provides death benefits if the disability had been continuous from the last day for which compensation had been paid.

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:

1) The surviving spouse or registered domestic partner with eligible children

A dependent child is eligible if he or she is:

• The biological, adopted or stepchild of the member and not adopted by a person other than the member's spouse or partner
• Born within the 10-month period commencing on the date the member died
• Under 22 years of age
• Unmarried or unregistered as a domestic partner at the time of the member’s death and
• Financially dependent upon the member on the date the member died, or on the effective date of disability if the member died while receiving a disability benefit.

The surviving spouse or partner will receive 40 percent of the member's final compensation and 10 percent of the member's final compensation will go to each child up to a maximum of 50 percent for five or more children. The maximum family allowance is 90 percent of a member's final compensation. The family allowance is payable as long as there is a dependent child under 22 years of age who is not married or registered as a domestic partner.

2) The surviving spouse or partner with no eligible children

If there are no eligible children (or when the last child is no longer eligible), the surviving spouse or partner may elect to receive:

• A return of the accumulated Defined Benefit contributions and interest in the member's account at the time of death, less all monthly allowances paid; OR
• A monthly benefit, payable for life. The calculation* is based on the projected service and final compensation the member would have accrued as if he or she retired at age 60. If the monthly allowance is paid before age 60, the amount is actuarily reduced.

3) Dependent children, but no surviving spouse or partner

If there are dependent children, but no surviving spouse or partner, the dependent children are eligible for 10 percent of the member's final compensation for each child up to a maximum benefit of 50 percent. More than five eligible dependent children will share equally in the total 50 percent of final compensation. Benefits are payable to each child until the day prior to the dependent child reaching age 22, the day prior to the dependent child's date of marriage (or registration as a domestic partner), or on the day of death of the dependent child, whichever occurs first.

When all children are no longer eligible for a benefit, any remaining contributions and interest in the member’s account, less all monthly benefits paid, will be paid to the recipient or recipents named to receive the one-time death benefit. If a recipient was not named, CalSTRS must make the payment to the member’s estate.

4) Dependent parents

A family allowance can be paid to dependent parents if there is no surviving spouse or partner and no dependent children. A parent will be paid a monthly payment for life beginning at age 60 or, if the dependent parent is under age 60, he or she may elect to receive an actuarially reduced allowance for life. For more information about eligibility requirements for this allowance, contact CalSTRS at 800-228-5453.

5) Named recipient

If there is not a surviving spouse or partner, eligible children or dependent parents, the remaining Defined Benefit contributions and interest in the member's account, if any, will be paid to the named recipient or recipients named to receive the one-time death benefit.

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; and 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 make a choice:

• She can take the remaining contributions and interest in Rob's account, less all previously paid benefits; OR
• 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. This equals one-half of what Rob would have received if he had worked to age 60 and elected; OR
• 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.

Coverage B – Member Dies Before Retirement

Under Coverage B, benefits are payable to survivors of a member who became a member of CalSTRS on or after October 16, 1992, or elected Coverage B during the election period commencing on October 16, 1992 and ending on April 13, 1993.

One-Time Death Benefit

Under Coverage B, if a CalSTRS member dies before he or she retires, CalSTRS pays a $24,652 one-time death benefit to recipient or recipients named by the member (This amount is adjusted periodically by the Teachers' Retirement Board.) If more than one recipient is named, the payment is divided equally, unless the member specified other percentages of distribution. If there is no recipient named, CalSTRS must make the payment to the estate of the deceased member.

For CalSTRS to pay this benefit, the member must have earned one year or more of credited service prior to the date of death, at least one of which had been performed subsequent to the most recent refund of accumulated retirement contributions, if the member died during any one of the following periods:

1. While in employment for which creditable compensation is paid
2. Within four months after termination of creditable service or termination of employment, whichever occurs first
3. Within 12 months of the last day for which creditable compensation was paid, if the member was on an approved leave of absence without creditable compensation for reasons other than disability or military service

If the member worked part time, death must have occurred within four months after ending employment or earning service credit. In addition to these qualifications, if the member had taken a refund of contributions or had reinstated after retirement, he or she must also have:

• Earned one year of service credit.
• Six months must have elapsed since reinstatement from disability retirement.

Qualifying for Monthly Survivor Survivor Benefits

The member must meet the same eligibility requirements as required for the one-time death benefit and:

• 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 or service credit after a break in service of more than one year, if applicable.
• Must have died within four months after reinstatement from disability retirement, if the member had reinstated to active membership from disability retirement.

Under Coverage B, a monthly survivor benefit is payable to:

1) The surviving spouse or registered domestic partner

Under Coverage B, the monthly survivor benefit payment is made to a surviving spouse or registered domestic partner.

The spouse or partner is eligible for a monthly benefit whether or not there are eligible children.

The benefit is calculated as if the member had retired under the former Option 3 beneficiary allowance.

Under Coverage B, a surviving spouse or registered domestic partner has the choice of receiving either a monthly benefit or a refund of the member's contributions and interest.

The surviving spouse or registered domestic partner can begin receiving the survivor benefit either:

• Immediately as of the member's date of death (The benefit is reduced if the member was under age 60 at the time of death.); OR
• When the deceased member would have reached age 60.

The monthly benefit is calculated on the member's actual service credit and final compensation at the time of the member's death.

If the member dies on or before age 60, the age of the member, the age of the member's spouse or registered domestic partner as of the date the member would have attained age 60 will be used in the calculation.

If the member dies after age 60, the member's age and the age of member's spouse or registered domestic partner as of the date of death of the member will be used in the calculation.

The survivor benefit calculation will also include service credit for the member's unused sick leave.

2) Eligible dependent children

If there are eligible dependent children and the spouse or registered domestic partner decides to take a survivor benefit, each child will also be eligible to receive a monthly benefit.

If there is no surviving spouse or partner, but there are elgible dependent children, each child will be eligible to receive a monthly benefit.

A child is eligible if he or she is:

• The member’s natural or adopted child or step-child and not adopted by a person other than your spouse or partner,
• Under age 21, and
• Financially dependent upon the member at the time of death

The child's monthly benefit begins on the day following the date of the member’s death and is payable until the day prior to the dependent child reaching age 21, even if the member's spouse elects to wait to receive a monthly survivor benefit until the member’s 60th birthday.

If the member’s surviving spouse or partner dies before the dependent child or children become ineligible, the benefits payable to the dependent child or children will be paid until the day prior to each dependent child reaching age 21 or until the date of death of the dependent child or children.

Once all children are no longer eligible for a benefit, any remaining Defined Benefit contributions and in interest in the member’s account, less all monthly benefits paid, will be paid to the member's named death benefit recipient or recipients.

Each child’s benefit is 10 percent of the member’s final compensation, up to a maximum of 50 percent for five or more children.

A child’s benefit is not payable if the surviving spouse or registered domestic partner decides to receive a return of the member’s Defined Benefit contributions and interest.

3) Dependent children, but no surviving spouse or registered domestic partner

If there are dependent children, but no surviving spouse or registered domestic partner, the dependent children are eligible for a 'child alone' allowance of 10 percent of the member's final compensation for each child, up to a maximum allowance of 50 percent.

If there are more than five eligible dependent children, they will share equally in the total 50 percent of final compensation.

Benefits will cease on the day prior to the dependent child reaching age 21 or the date of death of the dependent child, which ever occurs first.

When all children are no longer eligible for a benefit, any remaining contributions and interest in the member’s account, less all monthly benefits paid, will be paid to the recipient or recipients named to receive the one-time death benefit. If a recipient was not named, CalSTRS must make the payment to the member’s estate.

Offsets

The monthly survivor benefit under Coverage B is not reduced by benefits payable from other public systems, such as Social Security.

Linda can choose the surviving spouse benefit or she can choose to take a refund of the contributions and interest in Rob's Defined Benefit account. However, if she does not elect a monthly benefit, the children are not entitled to monthly benefits.

If Linda elects the survivor benefit, she will immediately receive 10 percent of final compensation for each child ($322 each) as of the date of Rob's death, until each dependent child reaches age 21.

Linda's Choices

Linda can choose to receive her surviving spouse benefit when Rob would have reached his 60th birthday (normal retirement age) and receive the full amount or she can choose to receive a reduced benefit immediately.

(NOTE: the surviving spouse benefit is calculated based on the amount of service credit at death, as if the member lived to age 60 and had retired naming her as a 50% Beneficiary Option beneficiary, which is 50 percent of the reduced benefit.)

If Linda's choice is to defer receipt of her surviving spouse benefit, the child or children will receive the following benefit immediately as of the date of Rob's death:

10% of final compensation for each child
($322 x 3 children) = $966

Linda would not receive a spouse benefit until Rob reached age 60, which would be 20 years from this time. She would then receive a spouse benefit of $305.15 for the rest of her life. See below for calculation of the beneficiary allowance.

Each child's separate monthly benefit will stop when that child reaches age 21. After the youngest dependent child's benefit terminates, Linda will continue to receive her spouse benefit, $53.25 per month in this case, for her lifetime. In addition, an annual benefit improvement increase of 2 percent of the basic benefit will be added to the benefit each September, beginning a year after Rob's death.

Choices Linda must make for the spouse's monthly benefit:

• defer benefit until Rob’s 60th birthday
  $605.88 / 2 =$302.94; OR
  
• Start benefit as of the date of Rob’s death
  $305.13 x .1745 (age 40 - 50% Beneficiary Option age factor) =$53.25

What if there is no surviving spouse, surviving registered domestic partner or eligible dependent child?

No monthly benefits are payable to survivors if there is no surviving spouse, registered domestic partner, or eligible dependent children. The member's Defined Benefit accumulated retirement contributions and interest will be paid to the recipient or recipients the member named to receive the one-time death benefit. If a recipient was not named, CalSTRS must make the payment to the member’s estate. -

Coverage A or B – Member Dies After Retirement

One-Time Death Benefit

If a member dies after he or she is retired, the one-time death benefit is the same under both Coverage A and Coverage B.

CalSTRS pays a $6,163 lump-sum death payment to the named recipient or recipients of a retired member. (The amount of the payment may be adjusted periodically by the Teachers’ Retirement Board.) If more than one recipient is named, the payment is divided equally, unless the member specified other percentages of distribution. If there is no one-time death benefit recipient named, CalSTRS must pay the one-time death benefit to the estate of the deceased member.

Defined Benefit Supplement Distribution

If a member dies after retirement, depending on the annuity option for the member’s DBS account, its balance may be distributed to the recipient or recipients named on the member’s One-Time Death Benefit Designation form.

Monthly Benefit With an Option

Once a member has retired, no monthly benefit is payable to survivors unless the member has elected an option and named an option beneficiary from the options described in the Service Retirement Page.

If the member has chosen an option, the option beneficiary will receive the monthly benefit payable under the particular option elected by the member.that particular option. If the member is retired and has not chosen an option, he or she has been receiving a Member-Only monthly benefit.

Member-Only Benefit

For the retired member Member-Only Benefit and receives it for his or her lifetime, no continuing monthly benefit will be payable to another person or beneficiary. However, a one-time death benefit recipient will receive the monthly retirement benefit that accrued and was not paid and any residual contributions and interest that may be in the retired member's Defined Benefit account, after all benefit payments made to the retired member have been deducted.

Reporting the Death of a Member or Benefit Recipient

CalSTRS should be notified as soon as possible of the death of a member, option beneficiary or any other payee receiving CalSTRS benefits. This can be done by writing to:

CalSTRS
P. O. Box 15275
Sacramento CA 95851-0275

Or by calling CalSTRS at: (800) 228-5453

CalSTRS will need the following information:

• Deceased person’s name and Social Security number or CalSTRS Client Identification Number
• Date of death
• Individual's status immediately preceding death: retired, disabled, a member in active teaching status, option beneficiary or other payee
• Name, address and telephone number of contact person

Applications

Applications for survivor benefits can be taken over the telephone in most cases. A caseworker will contact the recipients to complete the application over the telephone or by written correspondence. The name and telephone number of the caseworker will be provided to the recipient or recipients by written notification.

A copy of the death certificate must be sent to CalSTRS. Additional information or documentation may be requested.

CalSTRS payments issued to the deceased after the date of death must be returned to CalSTRS or may be deducted from subsequent benefits paid.

Payment of Benefits

CalSTRS generally pays survivor benefits to recipients within 45 days of the receipt of the last required document.

Payment may be delayed if documentation, such as marriage or death certificates or declaration of domestic partnership, is not received in a timely manner or because of the absence of a valid One-Time Death Benefit Designation form on file with addresses of the recipient or recipients.