Current through Reg. 49, No. 38; September 20, 2024
(a) The
standard annuity benefit is payable throughout life for service retirees or for
the duration of the disability for disability retirees with at least 10 years
of service, with payments ceasing the month following the death of the retired
member. If the retired member did not receive annuity payments equal to his
accumulated contributions, there shall be paid to his beneficiary an amount
equal to the retired member's accumulated contributions less the total amount
of retirement benefits paid to the retired member.
(b) An option which permits the retiree to
reduce his own annuity with monthly benefits continuing to a beneficiary after
his death may be selected in lieu of the standard annuity. The options are:
(1) a reduced allowance payable throughout
life with the provision that upon the death of the retired member, the reduced
allowance shall be continued throughout the life of, and paid to, the person
designated as beneficiary of the optional annuity. Upon the death of a retired
member's beneficiary who was receiving an Option 1 annuity, if the total
payment of benefits to the retired member and his beneficiary under this option
was less than the accumulated contributions of the retired member, then the
estate or heirs of the beneficiary shall be refunded an amount equal to the
retired member's accumulated contributions less the total amount of Option 1
benefits which has been paid to both annuitants;
(2) a reduced allowance payment throughout
life with the provision that, upon the death of the retired member, one-half of
the reduced allowance shall be continued throughout the life of, and paid to,
the person designated as beneficiary of the optional annuity. Upon the death of
a retired member's beneficiary who was receiving an Option 2 annuity, if the
total payment of benefits to the retired member and his beneficiary under this
option was less than the accumulated contributions of the retired member, then
the estate or heirs of the beneficiary shall be refunded an amount equal to the
retired member's accumulated contributions less the total amount of Option 2
benefits that had been paid to both annuitants;
(3) a reduced allowance payable for
guaranteed period of five years and as long thereafter as the retired member
shall live;
(4) a reduced allowance
payable for guaranteed period of 10 years and as long thereafter as the retired
member shall live;
(5) a reduced
allowance payable throughout life with the provision that upon the death of the
retired member, three-fourths of the reduced allowance shall be continued
throughout the life of, and paid to, the person designated as beneficiary of
the optional annuity. Upon the death of the retired member's beneficiary who
was receiving an Option 5 annuity, if the total payment of benefits to the
retired member and his beneficiary under this option was less than the
accumulated contributions of the retired member, then the estate or heirs of
the beneficiary shall be refunded an amount equal to the retired member's
accumulated contributions less the total amount of Option 5 benefits that had
been paid to both annuitants.
(c) For Option 1, Option 2, and Option 5, if
the beneficiary predeceases the retiree, the retiree's annuity will be
increased (pop-up) to the standard service annuity that the retiree would
otherwise be entitled to receive if the retiree had not selected Option 1 or 2
or 5 but had selected the standard annuity. The standard annuity shall be
adjusted by the early age reduction factor in effect at the time of retirement
if the member retired under the early age service retirement provisions. The
standard annuity shall also be adjusted for any post-retirement increases in
retirement benefits authorized by law for the standard annuity after the date
of retirement.
(1) The increased annuity will
begin with the first monthly payment that should have been made to the retiree
following the month in which the beneficiary's death occurs.
(2) The retiree shall promptly notify the TRS
of the death of the beneficiary and submit a certified copy of the
beneficiary's death certificate or other adequate proof of death to TRS. In the
event that the retiree fails to notify TRS promptly of the death of the
beneficiary, TRS shall continue to pay the reduced annuity to the retiree until
properly notified of the beneficiary's death. Any payment for past months in
which the retiree could have been receiving the standard annuity shall be made
in a lump sum with the first monthly payment after the month in which notice is
received. No interest shall be paid with any lump sum payment.
