Death Benefits for State Employees
A Guide for Surviving Family Members,
Estate Executors and Others

Foreword

The death of a State of Michigan employee is a most terrible loss, and can be overwhelming for surviving family members, co-workers and friends. Eligibility for any survivors benefits will depend upon individual circumstances, such as whether or not the deceased employee was "vested" or actually enrolled in a particular plan; and whether or not the deceased designated any specific beneficiary(ies).

This booklet summarizes the variety of benefits that may be available upon the death of an employee, and provides a listing of the State offices or outside agencies that should be contacted.

Please note that while claims for most death benefits are initiated automatically by the State of Michigan (as the Employer), some benefits must be applied for, and are not provided automatically. Therefore, as soon as possible after death occurs, survivors should take steps to verify the availability of any payable death benefits.

If you should require any additional information about the benefits described in this booklet, you are encouraged to contact the deceased employee's Human Resources (Personnel) Office at any time. (Addresses and phone numbers are listed later in this booklet).

• Death Certificate (certified copy) - at least 5 copies are recommended
• Marriage Certificate (certified copy)
• Birth Certificate (certified copy) for each surviving child
• Adoption Certificate (certified copy), if applicable, for each surviving child
• Letter(s) of Guardianship and/or Conservatorship (certified copies), if applicable, for each minor child or for an incapacitated surviving adult
• Social Security card for surviving spouse and/or each child
• Obituary notice and/or newspaper clipping of employee's death

• Final Compensation
  • Last paycheck
  • Payoff of any accumulated vacation or sick leave time
  • Payoff of any accumulated "comp" time
  • Payoff of any accumulated longevity pay or other bonus(es)
  • Refund of unused contributions toward purchase of Savings Bond(s)
  • Payoff of any outstanding expense reimbursement(s)
  • Prepay of group insurance premiums (optional)
    
• To return State-owned property (if applicable)
  • ID Card(s) and badges
  • Keys or building access card(s)
  • Vehicles
  • Parking lot access card
  • Credit and telephone calling cards
  • Computer, printer, fax machine, etc.
  • Telephone, pager, 2-way radio, etc.
  • State-issued firearms
  • Other supplies/equipment
    
• Group Life Insurance Benefits

• Group Life Insurance Plans
• COBRA (continuation of Health, Dental and Vision Plan enrollments)
• Final claims processing under Flexible Spending Account(s)
• Other Group Insurance Benefits (Health, Dental and Vision Plans)

• State Employees Retirement System

• State Police Retirement System

• Defined Contribution Retirement Plan
  (Pension benefits for State employees hired or re-hired on or after March 31, 1997, excluding enlisted State Police employees)
• Deferred Compensation Plan benefits (savings plans for all enrolled employees)
  • Plan I - 457 Plan
  • Plan II - 401(k) Plan

• Workers Compensation Weekly Death Benefit
• Workers Compensation Funeral and Burial Benefit

A number of benefits are available to designated "beneficiaries." However, there may be different beneficiaries designated for each different benefit. For example, some benefits can be paid to a current legal spouse and immediate family only, while some benefits can also be paid to an ex-spouse and/or friends. Some benefits can even be paid to non-human "entities" such as a school, a charity or trust funds.

Every employee is responsible for completing and updating separate beneficiary designation forms for each type of available benefit. Employees are then encouraged to retain copies of these documents in a safe place. But, even if these copies are lost, the originals (bearing the employee's dated signature) are always retained by the employee's Human Resources Office, or by the State's designated benefit plan administrator(s).

Whether or not you have actually been designated as a beneficiary can be verified by first contacting the deceased employee's Human Resources Office. (See the list later in this document.)

The Beneficiary Designation

There are no restrictions on who an employee could designate as the beneficiary to receive their final paycheck. However, the employee was limited to naming only one primary and one secondary beneficiary on their beneficiary designation form, unless they named their "children." If "children" was designated, only those children listed will share equally.

If the employee wanted to select more than one person (aside from their "children") as a primary or secondary beneficiary, or if the employee wanted their final compensation to be divided in varying percentages to more than one person, they were instructed to designate their "Estate" as the beneficiary.

Divorce from a person designated as the "spouse" beneficiary -- or the death of any individual named as a beneficiary -- voids the designation of that person as a beneficiary, but it does not void other designated beneficiaries on the same beneficiary designation form. In the event an employee chose to continue designating a former spouse as their beneficiary, a new designation form was required indicating the revised status of that person's relationship to the employee (for example, "ex-spouse").

If the employee transferred from one principal employing department to another, the beneficiary designation form on file with the previous department was voided and a new form was required by the new department.

If the employee failed to designate any beneficiary(ies), or failed to replace a voided beneficiary designation, any final pay warrant due at the time of death will be held by the employing department until the administrator or executor of the estate files with that department a certified copy of the Probate Court order of appointment. Payment will be made only in accordance with the instructions of the Probate Court.

The Payable Benefit

The designated beneficiary will receive all wages due the deceased employee, including earned salary; the value of unused annual, sick and personal leave credits; longevity pay and any other bonus pay; the refund of payroll deductions not yet used for the purchase of a Savings Bond(s); and any outstanding expense reimbursement(s). The employee's Human Resources Office can also deduct additional group insurance premiums from the final pay to extend the surviving family members' health, dental and vision plan enrollments for up to two pay periods (approximately a month) after the employee's date of death.

Before any final pay warrant is made to a designated beneficiary, the Human Resources Office must receive identification showing that the claimant is actually the person named, and actually bears the "relationship" to the deceased employee indicated on the latest beneficiary designation form on file. To verify this, the Human Resources Office will deliver a beneficiary affidavit form to the named beneficiary. Before any final pay warrant can be disbursed, this form must be completed and returned to the Human Resources Office along with a copy of the beneficiary's Social Security card. (If a Social Security card is not available, copies of other identification, such as a driver's license and/or birth certificate should be submitted.)

In the event the final compensation is being divided equally among the employee's surviving children, each must complete a separate beneficiary affidavit form and submit it along with a copy of their Social Security card or other appropriate identification, such as drivers license and/or birth certificate.

If the beneficiary is either a minor, or a person with a legally appointed guardian, the final pay warrant will be delivered to the guardian upon the guardian's presentation of a certified copy of the Probate Court order of appointment.

If there is any question as to the identity or relationship of the person claiming to be the beneficiary, the employing department (or designated representative) can, and will, conduct whatever investigation is necessary to insure that payment will be made to the proper person.

Often at the worksite are personal items that belonged to the deceased employee. These may include such things as family photos, a favorite pen or pencil set, an extra pair of shoes, and any number of other small items that made the office "a home away from home."

Generally, the employee's immediate supervisor or co-workers stand ready to assist surviving family members in retrieving these items from the worksite. Where access to the worksite presents security or safety issues (such as at a correctional facility), the employee's Human Resources Office may also provide necessary assistance.

Surviving family members should feel free to contact the Human Resources Office to pre-arrange for a convenient time to retrieve any of the deceased employee's personal effects.

• ID Card(s) and badges
• Keys or building access card(s)
• Vehicle(s)
• Parking lot access card(s)
• Credit card(s)
• Telephone calling card(s)
• Computer, printer, fax machine, etc.
• Telephone, pager, 2-way radio, etc.
• Camera, audio-visual equipment, survey instruments
• Reference manuals, library books, textbooks, etc.
• All working files, papers, data disks/tapes, templates, and related materials
• State-issued firearms
• Uniforms, aprons, goggles, etc.
• Other tools, supplies and equipment

The space below can be used as a "checklist" for any property that must be returned to the State of Michigan:

_________________________________________________

_________________________________________________

_________________________________________________

_________________________________________________

_________________________________________________

_________________________________________________

_________________________________________________

The Beneficiary Designation

The employee could name any person, persons or entity (for example, a charity or trust) to receive the death benefit. There are no restrictions. In addition to one or more primary beneficiaries, the employee could also name a contingent beneficiary who should receive the death benefit in the event the primary beneficiary(ies) died before the employee. When two or more primary beneficiaries were named, the employee could designate a percentage of the total benefit that should be payable to each. If no percentage designation was made, the primary beneficiaries will share the benefit equally.

If at the time of the employee's death none of the named beneficiaries (primary or contingent) have survived the employee, the benefit will be paid as follows:

While working, the employee had the option of enrolling their legal spouse and children for dependents' life insurance coverage, with the employee automatically designated as the beneficiary. If one of these enrolled dependents predeceases the employee, but the employee is not living when the death benefit is payable for that dependent, the proceeds will go instead to the employee's legal spouse, if living; otherwise to the employee's surviving children, if living; otherwise to the estate of the last survivor.

The Human Resources Office will deliver to each designated beneficiary(ies) a proof of death claim form. The completed form must be returned to the Human Resources Office as soon as possible, but no later than one year after death. Where not prohibited by law, Minnesota Life may request, and pay for, an autopsy.

If the employee enrolled for the Reduced Benefit Plan, the total payable benefit will equal the employee's basic annual salary, up to a maximum of $50,000. If enrolled for the Standard Benefit, the total payable benefit will equal two times the employee's basic annual salary, up to a maximum of $200,000. For both of these plan options, the "basic annual salary" will be based on the employee's fiscal year salary (October - September), rounded up to the next higher multiple of $1,000. The "basic annual salary" does not include any overtime, bonuses, allowances or additional compensation. If the employee worked part-time, the payable benefit will be determined by projecting the salary to an annual basis as though he or she were a full-time employee.

Minnesota Life will generate a death benefit payment directly to the Human Resources Office for personal delivery to the beneficiary(ies). If the beneficiary is a minor child, payment will only be paid to the child's legal guardian as appointed by the Probate Court.

Accidental Duty Death Benefit (Minnesota Life)

This is a "rider" benefit under the State Employees Life Insurance Plan (described above) that pays an additional $100,000 death benefit if the employee's death resulted from injuries received while performing the duties of the employer, and the death occurs within 180 days from the date of the covered injury. ("Injuries" means accidental bodily injuries which result independently of sickness and all other causes.)

The employee could name a different primary beneficiary(ies) for this "rider" benefit, if desired. Otherwise, the distribution of this benefit will be the same as the basic group life insurance.

The Human Resources Office will automatically contact Minnesota Life on behalf of the designated beneficiary(ies) and supply information necessary for the processing of this "rider" benefit.

A Department of State Police employee could name any person, persons or entity (for example, a charity or trust fund) to receive the death benefit. There are no restrictions, except that a designation using the words "Per Stirpes" (indicating payment through the employee's line of surviving descendants) is not allowed. (Instead, the beneficiary designation form recommended appropriate language to specify such a distribution, if it was desired.)

If two or more beneficiaries were named, the employee could specify a percentage of the death benefit payable to each. If no percentage designation was made, the proceeds will be paid in equal shares to the surviving named beneficiaries. If no designated beneficiary survives the deceased employee, payment will be made as follows:

While working, the employee had the option of enrolling their legal spouse and children for dependents' life insurance coverage, with the employee automatically designated as the beneficiary. If one of these enrolled dependents predeceases the employee, but the employee is not living when a death benefit is payable for that dependent, payment will be made as follows (in the following order):

In the case of the spouse's death, to the deceased spouse's estate; In the case of a child's death, to survivors in the following order: First, to the deceased child's parent; Otherwise, equally to the child's brother(s) and sister(s); Otherwise, to the deceased child's estate.

The employee had the option of purchasing a $70,000 or $100,000 life insurance death benefit. The Michigan State Police Human Resources Division can verify the actual amount of insurance purchased by the deceased employee.

Upon receiving notification of the death, the MSP Human Resources Division will deliver to each designated beneficiary(ies) a proof of death claim form, along with a request for other information necessary for claims processing (for example, a certified copy of the Death Certificate). The completed claim form and any other requested documentation must be returned directly to the MSP Human Resources Division as soon as possible.

Reliastar will generate a death benefit payment directly to the MSP Human Resources Division for personal delivery to the beneficiary(s). If the beneficiary(ies) is a minor child, payment will only be paid to the legal guardian appointed by the Probate Court.

Although this is not a "State-sponsored" group insurance plan, the employee may have purchased insurance coverages from this independent insurance agency. If so, premiums were deducted from the employee's biweekly paycheck.

The Human Resources Office can verify whether or not premium payments were actually processed for the deceased employee. However, Mutual of Omaha should be contacted directly to verify the amount of any benefit that may be payable, to verify to whom benefits will be paid, and to file a claim for benefits.

Contact CitiStreet or the employee's Human Resources Office to determine if the employee participated in either of the following State-sponsored savings plans.

There are no limitations or restrictions on who the employee could designate as a primary or contingent beneficiary. If more than one primary beneficiary is designated, the employee could specify the percentage payable to each. If not specified, payment will be made in equal shares to each surviving primary beneficiary, or all to the last surviving primary beneficiary.

If, at the time of the employee's death there is no living primary beneficiary, benefits will be payable to the designated contingent beneficiary(ies). Also, if the primary beneficiary dies before all of the payable benefits are exhausted, the contingent beneficiary(ies) will receive the balance of any available benefits. If no beneficiary survives the employee, the benefit will be payable to the employee's estate.

Once the Human Resources Office has been notified of the employee's death, they will automatically notify CitiStreet (the Plan Administrator). CitiStreet will then send any necessary documentation and instructions directly to the designated beneficiary(ies). Beneficiaries should contact CitiStreet directly to determine the amount of any proceeds available for distribution, as well as available distribution options.

If married, the legal spouse is automatically the designated beneficiary. However, the employee could elect another beneficiary if the spouse consented to such by signing the "consent of spouse" section on the beneficiary designation form. Aside from this, there are no other limitations or restrictions on who the employee could designate as a beneficiary.

If more than one primary beneficiary is designated, the employee could specify the percentage payable to each. If not specified, payment will be made in equal shares to each surviving primary beneficiary, or all to the last surviving primary beneficiary.

If, at the time of the employee's death there is no living primary beneficiary, benefits will be payable to the designated contingent beneficiary(ies). If the primary beneficiary dies before benefits are exhausted, the contingent beneficiary(ies) will receive the balance of any available benefits. If no primary or contingent beneficiary survives the employee's, the benefit will be payable to the employee's estate.

Once the Human Resources Office has been notified of the employee's death, they will automatically notify CitiStreet (the Plan Administrator). CitiStreet will then send any necessary documentation and instructions directly to the designated beneficiary(ies). Beneficiaries should contact CitiStreet directly to determine the amount of any proceeds available for distribution, as well as available distribution options.

All employees of the State of Michigan* hired on or after March 31, 1997, are automatically enrolled in the Defined Contribution Retirement Plan, administered by CitiStreet (formerly StateStreet Global Advisors). Employees hired prior to that time (except for those who transferred into the new plan during a special 1998 enrollment period) continue as members in the State Employees ("Defined Benefit Plan") Retirement Systems, administered by the Office of Retirement Services (ORS).

Also since April 1, 1997, former employees who are re-hired have the option of enrolling in the new Defined Contribution Retirement Plan or re-enrolling in the older retirement plan.

To determine whether or not pension benefits are available for a surviving beneficiary(ies)  --  either under the State Employees (or State Police) Retirement System or the newer Defined Contribution Retirement Plan  --   the first call should be made to the deceased employee's Human Resources Office. In fact, most claims for retirement-related benefits must be initiated by that office.

Once notified of the employee's death, the Human Resources Office will make a preliminary determination as to whether or not a pension benefit is available to any survivors. If so, the Human Resources Office will automatically notify the Office of Retirement Services (ORS) to initiate pension processing for either a non-duty or duty-related death benefit (as explained below).

ORS staff will review the employee's file to determine what benefits, if any, are payable, and to whom. If benefits are payable, the beneficiary will be sent a copy of the determination, along with appropriate forms that must be completed and returned directly to ORS. ORS will also request one or more of the following documents:

• Death Certificate (certified copy)
• Birth Certificate for the deceased employee
• Birth Certificate(s) for the beneficiary(ies)

The survivor's pension benefit effective date will be the first day of the month following the employee's death.

If the designated beneficiary(ies) is not entitled to a monthly survivor pension, ORS will confirm this in writing and refund to the beneficiary(ies) any personal contributions which may have been paid by the employee (including any additional service credit purchased by the employee, as well as any accrued interest) in a lump sum. If the employee did not name a beneficiary, these contributions may be distributed by order of the Probate Court.

From the employee's first day of employment, the designated beneficiary is protected in case the employee dies from a work-related illness or injury. If the employee died from an injury or illness resulting from or in the course of State employment, the beneficiary is entitled to a survivor pension, regardless of the employee's age or the amount of time he or she was employed by the State (service credit).

The duty death pension is calculated as if the employee had chosen the 100% Survivor Pension option, using a minimum of 10 years of service credit, even though the employee may not have accrued that much credit. If the employee had more than 10 years of service credit, the benefit calculation uses the employee's actual service credit.* Retiree group health, dental, vision and life insurance coverages may be available to the beneficiary receiving a survivor pension.

If a married employee died with no beneficiary designation on file with the Retirement System, the spouse will automatically receive a monthly duty death pension based on one-third of the employee's final average compensation. In addition, any minor children will each receive a monthly pension benefit based on one-quarter of the employee's final average compensation until they marry, die, or turn 18. The total maximum benefit payable is $2,400.00 per year in total.

If the employee was not married at the time of death, a monthly benefit based on a maximum of one-half of the employee's final average compensation will be payable in equal shares to each of the employee's surviving children under age 18. No child's benefit can exceed one-quarter of the employee's final average compensation. This benefit will continue until the child turns 18, marries or dies, whichever comes first. The total maximum benefit payable to any/all beneficiary(ies) is $2,400.00 per year.

If there is no surviving spouse or minor child(ren), then any parents who were dependent on the employee may be eligible for the duty death pension benefit.

Non-Duty Related Death Benefit

If the employee was "vested" in State service (that is, if he or she had 10 years of State classified service, regardless of age), their designated beneficiary will be eligible for a survivor's pension benefit. If the employee was not "vested" at the time of death, the designated beneficiary will be entitled to a refund of any contributions paid by the employee into the State Employees Retirement System.

The employee was allowed to designate only one person as their primary pension beneficiary, and one person as a contingent beneficiary in the event the primary beneficiary is also deceased.

If married, the employee's legal spouse is automatically the primary beneficiary, unless (prior to the employee's death) the spouse declined the automatic benefit by signing the beneficiary designation form. If so, the employee could then designate either his or her child (including an adopted child), grandchild, parent, sister or brother to receive a survivor pension benefit.

If the employee was not married, he or she was required to use the beneficiary designation form to designate either his or her child, grandchild, parent, sister or brother as a beneficiary to receive a survivor pension benefit. If a beneficiary designation form was not submitted, no survivor pension benefit will be paid. (The "automatic" beneficiary designation applies only to the employee's surviving legal spouse.)

Although the employee is not allowed to name a trust, living will, estate, company or organization as a beneficiary for the survivor's pension benefit, he or she could nominate an eligible beneficiary by name "in care of" a trust to which pension proceeds should be sent or deposited. For example, the employee could designate his or her minor child as either "Susie Doe" or "Susie Doe c/o the Susie Doe Trust."

The monthly survivor pension will be effective the first day of the month following the employee's death. The amount is calculated as if the employee had retired the day before death and selected the 100% Survivor Pension option. Retiree group health, dental, vision and life insurances may be available to the beneficiary receiving a survivor pension.

If the employee died while in a "deferred retirement" status (that is, the employee left State employment before meeting the age requirement for a pension), the beneficiary may receive a monthly survivor pension, along with eligibility for enrollment in "retiree group" insurance benefits, if the employee:

• had 10 or more years of service credit, and
• had filed an application for deferred retirement or a beneficiary designation form with the Office of Retirement Services (ORS) before he or she left employment.

This deferred monthly survivor pension becomes payable beginning the first day of the month the employee would have otherwise become eligible to receive a pension. It is paid as if the employee had chosen the 100% Survivor Pension option. The beneficiary should apply for benefits 30 to 90 days before the deceased employee would have turned age 60.

All enlisted State Police employees become members of the State Police Retirement System as soon as they start their enrollment in the Recruit School. In the event of an enlisted employee's death before retirement, a pension benefit is available for eligible surviving beneficiary(ies).

Once notified of the employee's death, the Michigan State Police Human Resources Division will make a preliminary determination as to whether or not a pension benefit is available to the designated beneficiaries. If so, the MSP Human Resources Division will automatically notify the Office of Retirement Services (ORS) to initiate pension processing for either a non-duty or duty-related death benefit (as explained below).

The Office of Retirement Services (ORS) will make a final determination as to what benefits are payable, and to whom. If payable, ORS will send a written benefits determination to the beneficiary, along with appropriate forms for him or her to complete and return. ORS will also request one or both of the following documents:

• Death Certificate (certified copy)
• Marriage License (if the spouse is the beneficiary)

The survivor's pension benefit effective date will be the first day of the month following the employee's death.

If the beneficiary is not entitled to a monthly survivor pension, ORS will confirm this in writing and refund to the beneficiary(ies) any personal contributions which may have been paid by the enlisted employee (including any additional service credit purchased by the employee, as well as accrued interest) in a lump sum. If the employee did not name a beneficiary, these contributions will be paid to the employee's estate.

If the enlisted employee was "vested" in State service (that is, if he or she had 10 years of service credit under the State Police Retirement System, regardless of age), the surviving spouse or children under age 18 will be eligible for a survivor's pension benefit, equaling the employee's final average compensation, multiplied by 2.4%, multiplied by the years and months of service credit.

If the employee was not "vested" at the time of death, the beneficiary will be entitled to a refund of any contributions paid by the employee into the State Police Retirement System.

The surviving spouse is automatically the beneficiary for a lifetime monthly pension benefit. Along with the monthly pension, the beneficiary will have an opportunity to enroll in the "retiree group" health, dental and vision insurance plans, with premium contributions, if any, deducted from the monthly pension benefit. If the deceased employee was unmarried, or if the surviving spouse dies, the employee's children under age 18 will share in a monthly pension benefit until they reach age 18.

If the enlisted employee was not married, and there are no surviving children, no survivor pension benefit will be paid.

If the enlisted employee took a "deferred retirement" (that is, left State service after accruing 10 years of service, but prior to reaching age 50), the surviving spouse is eligible for the lifetime survivor's benefits, including enrollment in "retiree group" insurance benefits, starting when the deceased employee would have reached age 50. (The beneficiary should apply for benefits 30 to 90 days prior to that time.) No additional pension benefits are payable to minor children or other dependents of a deferred member.

If the enlisted employee was killed while discharging his or her duty, or died from injuries or an illness resulting from their occupation, the State Police Retirement System will provide a lifetime pension benefit to the surviving spouse, as well as an opportunity to enroll in the "retiree group" health, dental and vision insurance plans. (Insurance premium, if any, will be deducted from the monthly pension benefit.) In addition, a sum, not to exceed $1,500, will be paid to defray the cost of any funeral expenses.

The pension benefit will be equal to 60% of the deceased employee's final average compensation. If payable to a surviving spouse, each of the employee's surviving children will receive a benefit of $100 per month until age 18. However, if there is no surviving spouse (or if the spouse dies), the surviving children under age 18 will instead each receive an equal share of the full monthly pension benefit, until they reach age 18.

If the enlisted employee died without a surviving spouse or dependent children but had a mother or father who was dependent upon the employee for support, the monthly pension will be paid to them until the dependency ceases. If there is no surviving spouse, no dependent children or no dependent parent(s), a $100 monthly benefit will be payable to any sisters or brothers under age 18 who were dependent upon the employee for support.

If there are no eligible dependents, any undistributed personal contributions (plus interest) paid by the employee into the State Police Retirement System or $1,500, whichever is greater, will be paid to the deceased employee's estate.

If the employee was "vested" in State service (that is, if he or she had 4 years of State classified service under the Defined Contribution Retirement Plan at the time of death, regardless of age), their designated beneficiary(ies) will be eligible to receive distributions of the employee's total account balance in the plan (including the contributions made by the State of Michigan as the employer). Group health, dental and vision insurance benefits will also be available to the deceased employee's spouse and children, with premium contributions (if any) payable on a monthly basis directly to the Civil Service Commission, Employee Benefits Division.

If the employee was not "vested" at the time of death, the designated beneficiary(ies) will be able to receive distributions of the total balance in the employee's pension plan, less any of the plan contributions made by the State. The spouse or children may also be eligible to continue any group insurance plan enrollments terminated because of the employee's death pursuant to federal COBRA law. 

Whether the deceased employee was vested or not, the designated beneficiary will have an opportunity to choose from among the same payout options that were available to the deceased employee. These include a lump-sum payout, monthly payouts for a specific period of time, monthly payouts until the account is exhausted, or a roll-over to an Individual Retirement Account (IRA).

Once notified of the employee's death, the Human Resources Office will automatically notify the Employee Benefits Division regarding the continuation of any group insurance benefits. The Human Resources Office will also notify CitiStreet to initiate pension plan processing for any surviving beneficiary(ies). CitiStreet will review the employee's file to determine what benefits, if any, are payable, and to whom.

If benefits are payable, CitiStreet will send appropriate claim forms directly to the beneficiary(ies), along with a request for one or more of the following documents:

• Death Certificate (certified copy)
• Marriage Certificate for the surviving spouse
• Birth Certificate(s) for the surviving beneficiary(ies)

If married, the legal spouse is automatically the designated beneficiary. However, the employee could elect another beneficiary if the spouse consented to such by signing the "consent of spouse" section on the beneficiary designation form. Aside from this, there are no other limitations or restrictions on who the employee could designate as a beneficiary.

If more than one primary beneficiary is designated, the employee could specify the percentage payable to each. If not specified, payment will be made in equal shares to each surviving primary beneficiary, or all to the last surviving primary beneficiary.

If, at the time of the employee's death there is no living primary beneficiary, benefits will be payable to the designated contingent beneficiary(ies). If the primary beneficiary dies before benefits are exhausted, the contingent beneficiary(ies) will receive the balance of any available benefits. If no primary or contingent beneficiary survives the employee, the pension benefit will be paid in a lump sum to the employee's estate.

If the deceased employee was receiving Workers Compensation benefits at the time of death, and the death was the result of the compensable personal injury, his or her dependents may be entitled to continuing compensation for up to 500 weeks under the Worker's Disability Compensation Act of 1969. A separate benefit under this Act may also be available to cover the reasonable cost of the employee's funeral and burial, up to a maximum of $6,000.

The payment of any continuing weekly compensation (generally equal to 80% of the deceased employee's after-tax average weekly wage) will depend on whether or not the surviving spouse and/or children meet the criteria of being "wholly dependent for support" upon the deceased. This determination will be made by Citizens Management, Inc. which currently administers Workers' Compensation benefits on behalf of the State of Michigan as the employer.

Citizens Management, Inc. is also responsible for determining whether or not a funeral and burial expense claim will be payable. A claim for this benefit can be made by any person who performed such service or incurred such expense(s).

Although the employee's Human Resources Office will generally notify Citizens Management, Inc. that the employee's death has occurred, surviving dependents or other claimants should contact Citizens Management, Inc. directly to file a claim as soon as possible, but no later than two years from the date of death.

Surviving family members who were enrolled in a State-sponsored group health, dental and/or vision insurance plan at the time of the employee's death will be eligible to maintain an enrollment for these benefits. However, the nature and duration of this enrollment will depend on whether or not they are eligible for a survivor's pension benefit.

If a surviving family member is eligible for a survivor's pension benefit (or will be eligible for enrollment as a survivor's "dependent"), the Office of Retirement Services (ORS) will automatically initiate the transition to "retiree group" insurance benefits at the same time the survivor's pension benefit is processed. Premium contributions, if any, will be deducted from the survivor's monthly pension check.

However, if a surviving family member is not eligible for a survivor's pension benefit (or will not be eligible for enrollment as a survivor's "dependent"), the group insurance enrollments in place just prior to the employee's death can be continued for up to 36 months by paying the full monthly premium cost (plus a 2% administrative fee) pursuant to federal COBRA continuation rights. In this event, the Human Resources Office will immediately provide a COBRA application form to every eligible person upon notification that a "qualifying event" (being the employee's death) has occurred. This continuation form must be completed and returned as soon as possible, but no later than the due date on the form. The completed form should be mailed directly to the Civil Service Commission, Employee Benefits Division, P. O. Box 30002, Lansing, MI 48909.

Please note, if a COBRA enrollment form is not submitted by the due date, all rights to continue enrollments in the State-sponsored group insurance plans will end and all rights to the continuation of coverages under COBRA will have been forfeited.

The premiums for COBRA-continued coverages will be billed on a monthly basis, and must be paid-in-full in advance. For those with premium payments in good standing, there is an opportunity each year, during a special COBRA open enrollment period, to make any changes in the mix of coverages desired for the next benefit year.

Once enrolled, eligibility for COBRA continuation will end when/if:

If, at the time of the "qualifying event" (the employee's death), a surviving enrolled family member was entitled to Medicare, Medicare will be the primary coverage over the COBRA-continuation coverage. This will be true even if the COBRA enrollee is only enrolled in Medicare Part A.

Along with the COBRA-continuation option explained above, a surviving family member has the option of instead purchasing an individual (non-group) "conversion policy" for health/HMO coverages underwritten directly by their current carrier or plan administrator. Although the benefits will differ from the State-sponsored plans, conversion assures against a lapse in coverage, and removes any pre-existing condition restrictions, and the need to prove insurability. All premium payments are payable directly to the carrier.

An application for this "conversion policy" can be obtained from the deceased employee's Human Resources Office. This application must be submitted directly to the carrier or plan administrator within 31 days of the termination date of the active group enrollment following the employee's death.

This conversion option will also be available once again to those who continue COBRA coverages but reach the end of their 36-month eligibility period. A reminder about this COBRA conversion option will be sent automatically.

Dept. of Civil Rights
Human Resources Division
Cadillac Place, Suite 3-600.
3054 West Grand Blvd.
Detroit, MI 48202
(313) 456-3788

Civil Service Commission
Human Resources Division
400 South Pine Street
P.O. Box 30002
Lansing, MI 48909
(517) 335-0309

Dept. of Community Health
Human Resources Division
Central Office - 320 S. Walnut
Lewis Cass Building
Lansing, MI 48913
(517) 241-2109

Unemployment Agency
Human Resources Division
Cadillac Place - Ste. 12-300
3024 West Grand Blvd.
Detroit, MI 48202
(313) 456-2465
 

Dept. of History/Arts/Libraries
Human Resources Division
702 W. Kalamazoo Street
P.O. Box 30738
Lansing, MI 48909
(517) 373-1596

Dept. of Human Services
Human Resources Division
Grand Tower, Suite 710
235 South Grand Avenue
Lansing, MI 48909
(517) 373-8873

Dept. of Military and Veterans Affairs
Reserve Forces Support Center
3423 N. Martin Luther King Blvd., Room 331 Lansing, MI 48906                                          (517) 481-7880

Dept. of State
Human Resources Division
430 W. Allegan Street
P.O. Box 40765
Lansing, MI 48901-7965
(517) 335-1300
 

Dept. of State Police
Human Resources Division
714 South Harrison
East Lansing, MI 48823
(517) 336-6527

Dept. of Transportation
Human Resources Division
425 West Ottawa Street
P.O. Box 30050
Lansing, MI 48909
(517) 241-2861

Dept. of Treasury
Human Resources Division
430 West Allegan Street
P.O. Box 30274
Lansing, MI 48922-7774
(517) 241-4971

Michigan Strategic Fund/Michigan Economic
Development Corp.
Human Resources Division
300 N. Washington Square
Lansing, MI 48913
(517) 241-0351

Office of the Auditor General
Human Resources Division
Victor Office Center, Suite 600
201 North Washington Square
Lansing, MI 48913
(517) 334-8050

Legislative Service Bureau
Human Resources Division
Mich. National Tower, 4^th Floor
P.O. Box 30036
Lansing, MI 48909-7536
(517) 373-0170

Other Benefits-Related Services

Civil Service Commission, Employee Benefits Division
400 S. Pine
P.O. Box 30002
Lansing, MI 48909
(517) 373-7977
(800) 505-5011