Current through Register Vol. 24-18, September 15, 2024
(1)
What is the $150,000 death
benefit? This is a benefit consistent with workers' compensation law,
Title
51 RCW. The benefit may be
nontaxable under applicable federal law. It is payable to LEOFF, PERS, PSERS,
SERS, TRS, and WSPRS beneficiaries if the member died as a result of:
(a) An injury sustained in the course of
employment; or
(b) An occupational
disease or infection that arose naturally and proximately out of
employment.
(2)
Who is covered? Deceased members of LEOFF, PERS, PSERS, SERS, TRS,
and WSPRS. If the deceased was a member of another plan, please contact the
department.
(3)
Who will
determine eligibility for the benefit? The Washington state department
of labor and industries (L&I) will determine eligibility consistent with
Title
51 RCW and applicable
retirement statutes in
chapter
41.26 RCW (LEOFF),
chapter
41.40 RCW (PERS), chapter
41.37 RCW (PSERS),
chapter
41.35 RCW (SERS),
chapter
41.32 RCW (TRS), or
chapter
43.43 RCW
(WSPRS).
(4)
Who will receive
the $150,000 death benefit?
(a)
LEOFF Plan 2, PERS, PSERS, SERS, TRS, and WSPRS Plan
2: The person(s) the member designated as his or her
beneficiary(ies) for his or her retirement plan will receive the benefit
unless the member designated a
different beneficiary(ies) for the $150,000 death
benefit. If the member did not designate a beneficiary for either the plan or
death benefit, then the member's death benefit shall be paid to the member's
surviving spouse as if in fact the spouse had been nominated by written
designation, or if there is no surviving spouse, then to the member's
estate.
(b)
LEOFF
Plan 1 and WSPRS Plan 1: In these plans, the member's surviving
spouse is automatically the beneficiary for the member's retirement plan. The
member may designate a different person(s) for the $150,000 death benefit. If
the member did not designate a beneficiary for either the plan or death
benefit, then the member's death benefit shall be paid to the member's
surviving spouse as if in fact the spouse had been nominated by written
designation, or if there is no surviving spouse, then to the member's
estate.
(5)
How do
I apply for the benefit? To apply:
(a)
Obtain an application from the department.
(b) Submit a correctly completed application
to the department. The department will submit the application to
L&I.
(6)
How
will I receive the benefit? L&I will notify you and the department
of approval or disapproval of eligibility. If you are approved, you may choose
to have the department send the lump sum payment directly to you or to your
bank.
(7)
How will DRS treat
the $150,000 payment for tax purposes?
(a) The department will treat the payment as
nontaxable.
(b) The department does
not guarantee that payments should or should not be designated as exempt from
federal income tax.
(c) The
department does not guarantee that it was correct in withholding or not
withholding taxes from the death benefit payment.
(d) The department does not:
(i) Represent or guarantee that any
particular federal or state income, payroll, personal property or other tax
consequence will occur because of its nontaxable determination; or
(ii) Assume any liability for your compliance
with the Internal Revenue Code.
(e) You should consult with your own tax
advisor regarding all questions of federal or state income, payroll, personal
property or other tax consequences regarding any payments you receive from the
department.
Statutory Authority:
RCW
41.50.050(5),
41.04.017,
41.26.048, 41.32.053,
41.35.115,
41.40.0931,
41.40.0932,
43.43.285. 08-11-102, §415-02-710, filed 5/20/08,
effective 6/20/08; 06-18-009, §415-02-710, filed 8/24/06,
effective 9/24/06. Statutory Authority:
RCW
41.50.050(5),
41.04.017,
41.26.048, 41.32.053,
41.35.115,
41.40.0932,
43.43.285. 03-24-050, §415-02-710, filed 11/26/03,
effective 1/1/04.
