What Spouses Need to Know When an Active MMBB Member Dies – Part 3 of 3

With this final article we conclude our 3-part series begun last this year to help spouses and members understand the process to follow in the event of the death of their spouse or joint annuitant. In previous issues, we covered, “What Spouses Need to Know When an MMBB Member Dies in Retirement” and “What MMBB Members Need to Know When a Joint Annuitant Dies in Retirement.”

The death of an MMBB member who is active in ministry can be especially difficult for the family. When the cause is a sudden illness or unexpected accident of an otherwise healthy adult, it is often emotionally devastating. The deceased may have left behind a young family and a spouse whose lives have been turned upside down overnight. In the event the person is a pastor, their congregation must also grapple with the abrupt loss of their spiritual leader and the impact on their congregational life.

We understand that the passing of a loved one often brings a groundswell of grief coupled with the pressing need to handle the business affairs of the deceased. Facing those tasks can be daunting and we want you to know that MMBB is prepared to walk with you through every step of the process.

Once we are apprised of the passing of the member, a Senior Benefits Specialist (SBS) will be in touch with the spouse or family to offer our condolences and to review the account with them by phone. They will follow up with a letter explaining all benefit details. MMBB members who die while they are active premium paying participants in the Comprehensive Plan are eligible for the Death Benefit. Once an SBS has been in touch with the spouse or immediate beneficiary, a check for $10,000 (which is a portion of the death benefit) made payable to the spouse or beneficiary is sent via overnight mail to meet immediate financial needs. A death certificate is not required for this initial amount. However, an original copy of the death certificate must be received by MMBB in order to release the remaining balance of the death benefit. Death benefits are paid by check only and cannot be wired to the spouse or beneficiary.

The letter from MMBB will inform the spouse/beneficiary of the following:

• The amount of their death benefit if the active member was enrolled in the Comprehensive Plan
• Any additional beneficiaries who will be contacted
• The type of annuity for which the spouse/beneficiary is eligible
• If there are any additional funds accrued in the Retirement Only Plan or Member Contribution Plan

There are two types of annuities available to surviving spouses. If the deceased member was in the process of accruing their retirement benefits in the Comprehensive Plan and had a small balance, the spouse will be eligible for a Minimum Widow’s annuity which is a Single-Life annuity with 120-month (10 years) guaranteed from the point that all paperwork is received and processed. With a higher balance the spouse is entitled to a Regular Widow’s annuity which is a Single Life annuity with or without 120 months (10 years) guaranteed once the forms are filled out and finalized. Should the spouse decide in favor of the 120-month guarantee, they will be able to name a beneficiary in the event they die before the 10-year period ends. Once all paperwork is processed, the standard window is 90 days to activate an annuity.

If the deceased member had an unannuitized balance in the Retirement Only Plan or the Member Contribution Plan, the spouse can make one of the following choices regarding those funds:

• Leave the account balance as an invested account with MMBB
• Annuitize the entire amount or any portion of the balance
• Withdraw or rollover the entire amount or any portion of the balance

It is important that all beneficiary forms and information are up-to-date. If not, it could mean that MMBB may be delayed in paying out benefits. If the member was unmarried and there are no beneficiaries listed, benefits will go to the estate of the deceased member.

In cases where an active member enrolled in the Comprehensive Plan dies because of an accident that is documented on the death certificate, the spouse or beneficiary is entitled to an additional year’s annual salary. Special provisions are also made if the deceased was a parent. A child allowance will be paid to the surviving parent or guardian for each natural and legally adopted child under the age of 21. Children who are 18 years or older will be paid directly. Surviving children are also eligible to apply for educational grants to assist with their college studies up to age 24.

In the aftermath of a loved one’s death, the grief and mourning can be compounded by numerous details that go beyond planning the funeral or memorial service. It is easy to feel overwhelmed and it can seem as though there are endless details to attend to. You can rest assured that MMBB is here to walk you through the benefit determination process with empathy, patience and understanding.

If you have any questions about the process, please contact the MMBB Service Center at 800.986.6222 or via email at [email protected].