Beneficiary/Death Benefits

When you first become a member of the retirement system, your employer gives you a Beneficiary Nomination form. Send this form to ORS (not your payroll office) whenever you want to name a survivor pension beneficiary, a refund beneficiary, change your beneficiary, or request that the default provisions of the law apply. 

The default provision of the law says this: While you are actively employed, if a survivor pension benefit is payable upon your death, the retirement act automatically provides a lifetime monthly survivor benefit to your spouse, or if not married, in equal payments to your unmarried children until they reach age 18.

Note that the default provision only applies if you die while an active member. Be sure that ORS has a signed, valid beneficiary form naming one eligible survivor pension beneficiary before you terminate employment-see "If you die as a deferred member" below.

Before you send ORS the Beneficiary Nomination form, be sure you have a good understanding of if, when, and to whom a benefit may be payable upon your death. Read the following sections, as well as the beneficiary form, carefully.

Some of the factors that should influence your decision about whether to name a beneficiary, change a beneficiary, or use the default provisions of the law are: 

• What is your marital status? 
• What is your family composition? 
• What is your vesting status?
• Are you designating a survivor pension beneficiary or a refund beneficiary? 
• Are you active, deferred, or retired? 

If you die while an active member.

Nonduty death. If your death is not a result of an injury or illness incurred at work, it is called a nonduty death. A monthly pension may be payable to your survivor pension beneficiary if you were vested with at least 10 years service (5 years if you were at least age 60). Basic Plan members must have at least 15 years of credited service if they are under age 60, or 10 years if they are at least age 60, for their survivors to be eligible for a survivor pension.

The nonduty death survivor benefit is payable beginning the month following your death. It is calculated as if you retired the day before you died and elected the 100 percent survivor option. Health, dental, and vision insurance coverage is also available to beneficiaries receiving a survivor pension.

If you do not have a valid Beneficiary Nomination form on file with ORS (see Naming a Beneficiary, above) your spouse is automatically your survivor pension beneficiary. If you are not married, your unmarried minor children are automatically your beneficiaries until they reach age 18, marry, or are adopted.

If your spouse waives the pension benefit by signing the Beneficiary Nomination form, you may designate any of the following eligible beneficiaries if they depend on you for at least 50 percent of their personal support: your child, your brother or sister, or your parent. You must have designated this person on the Beneficiary Nomination form, and the form must be on file with ORS at the time of your death.

If you have no surviving spouse or unmarried children under 18, no continuing monthly benefit will be payable unless ORS has your valid beneficiary designation on file and the survivor pension beneficiary you named remains dependent on you/the income provided by the pension.

If you die before retirement and no monthly survivor pension is payable, any personal contributions and interest in your account will be paid to your refund beneficiary in a lump sum. If you haven't named a beneficiary, your contributions may be distributed by probate court order.

Duty death. If you die from a work-related injury or illness incurred during your public school employment, it is considered a duty death. A monthly survivor pension may be payable, regardless of your age or years of service, if a workers' compensation benefit is awarded based on your work-related injury or illness.

The duty death survivor benefit is payable beginning the month following your death, and is calculated as if you retired the day before you died and elected the 100 percent survivor option. We will use no less than 10 years of service in the pension calculation, even if you have less service credit at the time of death. Health, dental, and vision insurance coverage is also available to beneficiaries receiving a survivor pension.

The duty death survivor pension may be payable to your named beneficiary, as long as he or she meets eligibility requirements. If a valid Beneficiary Nomination is not on file, the default provision allows duty-related survivor benefits to your spouse, or if not married, to your children until they reach age 18, are adopted, or marry. If you are not survived by a spouse or eligible children, your totally and permanently disabled parent who depends on your for more than 50 percent of his or her support may be eligible for the duty-related survivor pension.

If you die before retirement and no monthly survivor pension is payable, any personal contributions and interest in your account will be paid to your refund beneficiary in a lump sum. If you haven't named a beneficiary, your contributions may be distributed by probate court order.

If you die as a deferred member.

If you die while your retirement is in deferred status (that is, you left public school employment after vesting but before you're old enough to draw your pension), a monthly survivor pension will be payable to your eligible beneficiary provided (1) you have at least 10 years of service credit as a MIP member, 15 years if you're a Basic Plan member; and (2) you filed a Beneficiary Nomination  form with ORS before you terminated employment.

As a deferred member you must have a beneficiary form on file before you terminate employment. The form must name an eligible survivor pension beneficiary because the default provision does not apply if you die as a deferred member. You can change your beneficiary while in deferred status, but only if a valid form was on file with ORS before you terminated.

The deferred monthly survivor pension becomes payable beginning the month you would have otherwise become eligible to receive your pension; it is paid as if you had chosen the 100 percent survivor option.

If you die before retirement and no monthly survivor pension is payable, any personal contributions and interest in your account will be paid to your refund beneficiary in a lump sum. If you haven't named a beneficiary, your contributions may be distributed by probate court order.

If you die after leaving employment and before being vested.

If you die after leaving public school employment and before you have sufficient service to be vested in the plan, no survivor pension is payable. Upon notification by your survivor, we will return any personal contributions and accumulated interest to your refund beneficiary or your estate.

Before you leave your job, complete a Beneficiary Nomination form to designate who will receive your contributions. If no form is on file, your contributions and accumulated interest may be distributed by probate court order.

If you die after you retire. 

A monthly pension, as well as continued insurance benefits, is payable only if you elected one of the survivor options when you applied for your pension. The pension can only be made to the survivor pension beneficiary you named when you filed your retirement application. You cannot change your option or beneficiary choice after your pension begins.