Current through Register Vol. 47, No. 6, September 18, 2024
(1)
Death prior to first month of entitlement. Where an active
member, or an inactive member vested by service, dies prior to the first month
of entitlement, the lump sum death benefit shall be the greater of the amount
provided in subrule 14.12(3) or 14.12(4). Sole beneficiaries may elect, in lieu
of the lump sum amount, to receive a single life annuity that is the actuarial
equivalent of such lump sum amount. Where an inactive member, not vested by
service, dies prior to the first month of entitlement, the lump sum death
benefit shall be as provided in subrule 14.12(7).
(2)
Death benefits under Iowa Code
section
97B.52(1).
a.
Definitions.
"Accrued benefit" means the monthly amount
that would have been payable to the deceased member under IPERS Option 2 at the
member's earliest normal retirement age, based on the member's covered wages
and service credits at the date of death. If a deceased member's wage record
consists of a combination of regular and special service credits, the monthly
amount that would have been payable to the deceased member under Option 2 at
the member's earliest normal retirement age shall be determined separately for
regular and special service credits, and then combined.
"Nearest age" means a member's or
beneficiary's age expressed in whole years, after rounding for partial years of
age. Ages shall be rounded down to the nearest whole year if less than six
complete months have passed following the month of the member's or
beneficiary's last birthday, and shall be rounded up if six complete months or
more have passed following the month of the member's or beneficiary's last
birthday.
b.
Process
for applying.
(1) A claim for a
single life annuity under this subrule must be filed as follows:
1. A nonspouse beneficiary must file a claim
for a single life annuity within 12 months of the member's death.
2. A beneficiary who is a surviving spouse
must file a claim for a single life annuity within 12 months of the member's
death, or by the date that the member would have attained the age of 72,
whichever period is later.
(2) Elections to receive the lump sum amount
or single life annuity shall be irrevocable once the first payment is
made.
(3) No further benefits will
be payable following the death of any beneficiary who qualifies and elects to
receive the single life annuity provided under this subrule.
(4) The provisions of this subrule shall not
apply to members who died before January 1, 2001.
(3)
Accumulated
contributions lump sum benefit. An accumulated contribution lump sum
death benefit is equal to the accumulated contributions of the member plus the
product of an amount equal to the highest year of covered wages of the deceased
member and the number of years of membership service divided by the "applicable
denominator," as provided in Iowa Code section
97B.52(1)
"a." The calculation of the highest year of covered wages
shall use the highest calendar year of covered wages reported to
IPERS.
(4)
Present value
lump sum. A lump sum death benefit equal to the present value of the
member's accrued benefit is calculated as follows:
a. IPERS shall calculate a member's
retirement benefit at earliest normal retirement age under IPERS Option 2,
based on the member's covered wages and service credits at the date of death
and the retirement benefit formula in effect in the month following the date of
death.
b. For purposes of
determining the "member date of death annuity factor" under the conversion
tables supplied by IPERS' actuary, IPERS shall assume that "age" means the
member's nearest age at the member's date of death.
c. For purposes of determining the "member
unreduced retirement annuity factor" under the conversion tables supplied by
IPERS' actuary, IPERS shall assume that "age" means the member's nearest age at
the member's earliest normal retirement date. If a member had already attained
the member's earliest normal retirement date, IPERS shall assume that "age"
means the member's nearest age at the date of death.
(5)
Single life annuity
benefit. Procedures and assumptions for converting the actuarial
equivalent of a lump sum death benefit to a single life annuity are as follows:
a. For purposes of determining the "age of
beneficiary annuity factor" under the conversion tables supplied by IPERS'
actuary, IPERS shall assume that "age" means the beneficiary's nearest age as
of the beneficiary's first month of entitlement.
b. A beneficiary's first month of entitlement
is the month after the date of the member's death.
c. Effective for claims filed after June 30,
2004, no retroactive payments of the single life annuity shall be made under
this subrule.
d. Effective for
claims filed after June 30, 2004, the beneficiary whose single life annuity is
less than $600 per year shall be able to receive only the lump sum payment
under this rule.
e. Any sole
beneficiary who is eligible for and elects to receive a single life annuity
under this subrule shall also qualify for the favorable experience dividend
(FED) payments authorized under rule
495-15.2 (97B), subject to the
requirements of that rule.
(6)
Retired reemployed members and
aged 70 members who retire without terminating employment.
Preretirement death benefits for retired reemployed members and aged 70 members
who retire without terminating employment shall be calculated as follows:
a. For beneficiaries of such members who
elect IPERS Option 4 or 6 at retirement, IPERS shall recompute (for retired
reemployed members) or recalculate/recompute (for aged 70 members who retired
without terminating employment) the member's monthly benefits as though the
member had elected to terminate employment as of the date of death, to have the
member's benefits adjusted for postretirement wages, and then lived into the
recomputation or recalculation/recomputation (as applicable) first month of
entitlement.
b. The recomputation
provided under paragraph 14.12(6) "a" shall apply only to beneficiaries of
members who elected IPERS Option 4 or 6, where the member's monthly benefit
would have been increased by the period of reemployment, and is subject to the
limitations of Iowa Code sections
97B.48A,
97B.49A,
97B.49B,
97B.49C,
97B.49D, and
97B.49G.
The recalculation/recomputations provided under paragraph 14.12(6)"a" shall
apply only to beneficiaries of members who elected IPERS Option 4 or 6, where
the member's monthly benefit would have been increased by the period of
employment after the initial retirement, and is subject to the limitations of
Iowa Code sections
97B.49A,
97B.49B,
97B.49C,
97B.49D, and
97B.49G.
In all other cases, including cases where members previously received a lump
sum payment under Iowa Code section
97B.48(1)
in lieu of a monthly retirement allowance,
preretirement death benefits under this paragraph shall be the lump sum amount
equal to the accumulated employee and accumulated employer
contributions.
c. Beneficiaries of
members who had elected IPERS Option 4 or 6 may also elect to receive the
accumulated employer and accumulated employee contributions described in
paragraph 14.12(6)"b" in lieu of the increased monthly annuity
amount. Notwithstanding paragraph 14.12(6)"b" above, if the
member elected IPERS Option 5 at retirement, the lump sum amount payable under
this paragraph shall be the greater of the applicable commuted lump sum or the
accumulated employee and accumulated employer contributions.
(7)
Inactive member, not
vested by service death benefit.
a.
For deaths occurring after June 30, 2004, and before July 1, 2012, for inactive
members who have less than 16 quarters of service credit, preretirement death
benefits shall be provided solely under Iowa Code section
97B.52(1)
"a," and shall only be payable in lump sum amounts. For
purposes of this paragraph, an inactive member is a member as defined under
Iowa Code section
97B.1A(12).
b. For deaths occurring after June 30, 2012,
preretirement death benefits shall be provided solely under Iowa Code section
97B.52(l)
"a" and shall only be payable in lump sum amounts for inactive members who are
not vested by service. For purposes of this paragraph, an inactive member is a
member as defined under Iowa Code section
97B.1A(12).
