Hard as it is to face, no one is exempt from the possibility of a terminal illness, deadly accident or natural disaster that can strike at any time.

To help your loved ones deal with their immediate and ongoing financial needs, the plan provides life insurance and other benefits payable to your eligible survivors upon your death.

Your survivor benefits provide:

  • Your group term life insurance is immediately payable to your spouse or beneficiary, based on your age at the time of your death and your reported compensation.
  • Your group term life insurance benefit will include an additional year’s annual pay if you die from accidental causes.
  • Your Retirement Plan account is payable to your spouse or named beneficiary when you die.
  • Your eligible children will be entitled to a monthly allowance until they reach age 21.
  • Your medical coverage, for your spouse and dependent children, if any, may be continued for two years after your death at no cost to your spouse.
  • You will receive, in retirement, a group term life insurance benefit of $8,000 if you are eligible, based on years of Retirement Plan membership.

Your Group Term Life Insurance Coverage While An Active Member

Your designated beneficiary will receive a lump-sum payment of group term life insurance at the time of your death. The amount payable is based on your annual compensation upon which premiums were last paid as well as your age and length of your plan membership at the time of your death, as presented on the chart below. There is a reduction in benefits, if your death occurs before you have two years of membership. The death benefit is not taxable income to your beneficiaries.

Your Life Insurance Coverage if You Have Two or More Years of Membership
If death occurs when you are: Your life insurance is this % of your annual compensation:
Younger than 41 500%
41 but not yet 51 400%
51 but not yet 61 300%
61 but not yet 66 200%
66 to retirement 150%
Your Group Term Life Insurance Coverage if You Have Less Than Two Years of Membership
If death occurs when you are: Your life insurance is this % of your annual compensation:
  1 Yr or Less 1+ to Less Than 2 Yrs
Younger than 41 166% 333%
41 but not yet 51 133% 266%
51 but not yet 61 100% 200%
61 but not yet 66 66.6% 133%
66 to retirement 50% 100%

If Your Death is Accidental

Regardless of your length of membership, your group term life insurance amount increases by an additional 100% of annual compensation if your death is accidental.

Early Partial Payment of Your Group Term Life Insurance

If you are terminally ill and are expected to die within 24 months, you can request early payment of up to half the value of your group term life insurance benefit. The rest of your benefit is payable after your death.

Death Benefits From Your Retirement Plan Account

If you die before retirement, the full value of your Retirement Plan account becomes payable. How and when it is paid out depends on your marital status at the time of your death.

If Single and a Premium-Paying Member

If you are single, the full value of your account is payable to your designated beneficiary. If your beneficiary does not survive you, your account becomes part of your estate.

If Married and a Premium-Paying Member

Your spouse may be eligible for one or more of the following:

  • Deferral of payment of your Retirement Plan account to a later date.
  • Conversion of the account to a single-life monthly annuity with the guarantee of a minimum of 10 years of payments. If your spouse dies before receiving 120 monthly payments, his or her beneficiaries will receive the balance of the 120 months.
  • Payment of minimum annuities to beneficiaries. Widowed spouses of members with small accounts receive a minimum annuity immediately following your death, payable for life with the guarantee of a minimum of 10 years of payments. If the widowed spouse dies before receiving 120 monthly annuity payments, his or her beneficiaries will receive the balance of the 120 months.
  • Partial distribution of your Retirement Plan account balance prior to retirement. Certain limitations may apply. Withdrawals are eligible for rollovers.
  • A loan on a portion (maximum 50%) of your Retirement Plan account not converted to an annuity. The balance can be deferred for conversion to an annuity and/or distribution at a later date.

Death Benefit in Retirement

The Death Benefit Plan provides a benefit for your survivor or named beneficiary if you die in retirement. The amount is $8,000, payable as a single tax-exempt sum. To qualify, you need at least 15 years of Retirement Plan membership and must retire from premium-paying membership.

Children’s Allowance

If you die while actively participating in the Plans, your surviving spouse will receive an additional monthly benefit for each birth and adopted child under age 21. The amount of the allowance is equal to the value of 100 annuity units.

The children’s allowance will be payable to your spouse monthly until the child(ren) reach age 21. If your spouse dies before the children reach age 21, the children’s guardian will receive payments on behalf of the children.

Medical Plan Coverage

If your spouse and any dependent children were covered by a medical plan paid by your employer, they may be eligible for the plan to pay the premiums for two years.