Survivor Benefits 35 41 41 41 42 42 42 42 42 36 36 36 36 37 37 38 39 39 39 39 40 40 40 40 41 ...... PSRS Member Handbook 2021-2022 Member Handbook PSRS ...... 39 ...... 37 ...... Naming Joint Beneficiaries (More than One Individual to Share Benefits) to Share Individual than One (More Beneficiaries Joint Naming Children Dependent With Members Married Children Dependent With Parents Single Beneficiaries and Legally Disabled Minors Naming a Trust Estate Your Naming The Advantages of Naming One Beneficiary One of Naming The Advantages Beneficiary Qualifications Amount Benefit Payment Qualifications Member and Beneficiary Benefits Qualifications Survivor of Dependent-Based Type Amount Benefit Payment Qualifications Member Beneficiary Qualifications Amount Benefit Payment Beneficiary is Invalid? Designation Your if What Happens PSRS Membership Your for Beneficiaries for Designating Tips Reporting a Death a Death Reporting Monthly Dependent-Based Survivor Benefits Survivor Dependent-Based Monthly Benefits Survivor Retirement-Based Monthly Benefits on Survivor Taxes Income Beneficiary Up-to-Date Designation Your of Keeping The Importance Survivor Benefits Benefits Survivor Benefit Survivor Lump-Sum Survivor Benefits 36 • • • • Eligible beneficiariesinclude: Beneficiary Qualifications benefitispaid. if alump-sumsurvivor benefit is survivor payable No other benefit. survivor is eligibleforaone-time,lump-sum beneficiary If you diebefore retirement, anydesignated Lump-Sum SurvivorBenefit choose whenyou retire (seepages50-55). retirement,service are basedonthebenefitplanyou Benefits payabletobeneficiaries,shouldyou dieafter detailed inthishandbook. receive monthlybenefits. Those qualificationsare Specific qualificationsmustbemetinorder to • • • beneficiaries ofmemberswhodiebefore retirement: benefitsfor PSRS offersthree typesofsurvivor PSRS disabilitybenefits. retirementyou diebefore service orwhilereceiving offers valuable financialprotection foryour familyif the working years. To help easethisburden, PSRS family’s whenitoccursduring finances,particularly of aloved one,itcanalsoputsignificantstress ona In additiontotheemotionalstress causedby theloss

PSRS Member Handbook 2021-2022 Survivor Benefits or organization Any otherlegalentity, suchasachurch, school, Your estate A legallyestablishedtrust you indicateotherwise) An individualorindividuals(splitequallyunless Monthly retirement-based benefits Monthly dependent-basedbenefits consisting ofyour contributionsandinterest benefit A one-time,lump-sumsurvivor the year inwhichtherollover takesplace. into aRoth IRAare considered taxableincomein inherited IRA.Caution: taxablefundsrolled over directly roll thepaymenttoanIRAestablishedas someone otherthanyour spouse,heorshecan an immediatetaxliability. is If your beneficiary to aqualifiedretirement plantoavoid incurring he orshecandirectly roll thelump-sumpayment state incometaxes. isyour If spouse, your beneficiary benefitissubjecttofederaland A lump-sumsurvivor required applicationandotherdocuments. typically madewithin30daysofreceipt ofthe Payment benefitis ofthelump-sumsurvivor Payment and interest orcontactus. www.psrs-peers.org your toview totalcontributions You canloginto Web Member at Services benefit. survivor contributions are notincludedinalump-sum contributions asofthedateyour death.Employer andtheinterest earnedonyouror purchase service, contributions, anypaymentsyou madetoreinstate This benefitincludesyour accumulated Benefit Amount is made. type ofsurvivorbenefitoncethiselection to John.Johncannotreceiveanyother contributions andinterestispaiddirectly survivor benefitandarefundofJosie’s to receivetheone-time,lump-sum pre-retirement beneficiary. Johnelects She designatedherchild,John,as before shereachesretirementeligibility. business teacherwhopassesaway Josie isaPSRS-coveredhighschool Example Survivor Benefits 37 PSRS Member Handbook 2021-2022 Member Handbook PSRS At least one eligible child is designated as least one eligible child is designated At or primary beneficiary, benefits receiving spouse and child were Your and under the spouse and child benefit provision spouse passes away. your

• • A dependent child is defined as being under the age in school full-time and is of 18, or age 24 if enrolled not married. this type of survivorIf benefit is elected, all eligible of a benefit, regardless entitled to receive are children designated as a beneficiary. whether they were a child is mentally or physically disabled prior to If and the age 18, unable to be gainfully employed disability continues after age 18, that child may be eligible for a dependent-based survivor benefit A dependent child is defined as being under the age under the as being defined child is A dependent and is school full-time in 24 if enrolled or age of 18, not married. survivor this type of spouse elects your benefit, a If to your will be paid all eligible children benefit for included not have may though you spouse, even them on the beneficiary designation. or physically disabled prior to a child is mentally If and the be gainfully employed age 18, unable to after age 18, that child may disability continues survivorbe eligible for a dependent-based benefit stops if The benefit of his or her life. for the rest or is marries the disability, from the child recovers adopted. of your the care Any dependent child who is not in surviving to a monthly benefit spouse is entitled primary custodial parent which is paid to the child’s or legal guardian. age 60, is eligible to receive spouse, if under Your is an eligible child in this benefit as long as there no longer are children all Once his or her care. meets the eligibility criteria spouse eligible, if you section, benefits Benefit listed in the Spouse-Only when he or she reaches to that spouse will resume of his or her payable for the rest then age 60, and are lifetime. Child-Only Benefit eligible if: are dependent child(ren) unmarried, Your He or she is designated as your sole beneficiary, sole beneficiary, or she is designated as your He and unmarried, or she is caring for your He dependent children. Is age 60 (or upon reaching age 60), and age age 60 (or upon reaching Is and years, three for at least to you Married death. the time of your at Living with you He or she is designated as your sole beneficiary, sole beneficiary, or she is designated as your He and You die while eligible for PSRS disability die while eligible for PSRS disability You benefits. retirement You must have at least two years of PSRS of least two years at must have You service PSRS-covered and die while in active of the onset one year or within employment, of an injuryPSRS- while in incurred or illness or employment, covered You must be vested (have five or more years years more or five (have be vested must You service)of qualified PSRS at the time of your death, or

• • • Spouse and Child Benefit a benefit for himself spouse is eligible to receive Your or herself and any unmarried, dependent children, if: and adopted children, including stepchildren • • spouse is permanently disabled for your If Note: death, your immediately before years at least five was living and years for at least three married to you death, he or she could at the time of your with you also qualify for monthly dependent-based survivor benefits. • Spouse-Only Benefit if: spouse is eligible Your Monthly dependent-based survivor benefits can be Monthly if your or parent(s) children spouse, paid to your beneficiary designated and certain is properly criteria met. are Dependent-Based Survivor of Dependent-Based Survivor Type Qualifications Benefits and Beneficiary • • • Survivor Benefits Survivor Qualifications Member Monthly Dependent-Based Dependent-Based Monthly Survivor Benefits 38 • • • Your dependentparent(s) iseligibleif: Parent Benefit receiving benefitsforhimself. benefits toallofyour eligiblechildren, inlieuof authorize PSRStopaydependent-basedsurvivor if your fatherisdesignatedasbeneficiary, hecan benefits toyour eligiblechildren. For example, spouse orchild,thatindividualcanchoosetodirect issomeoneotherthanyourIf your beneficiary adopted. the childrecovers from thedisability, marriesoris for therest ofhisorherlife. The benefitstopsif

PSRS Member Handbook 2021-2022 from you atthetimeofyour death. Was receiving atleast50%financialsupport Is age65,oruponreaching age65,and He orsheisdesignatedassolebeneficiary, and Dependent Children Spouse and Dependent Parents Dependent Children Spouse Beneficiary

Monthly Dependent-BasedSurvivorBenefit Percent ofLastFull 16.667% perparent 16.667% perchild 20% • •

Year’s Salary 10% perchild 20% spouse eligible toreceive benefit. adependent-basedsurvivor you atthetimeofyour death,bothparents wouldbe If bothyour parents are financiallydependenton adjustments (COLAs). adjustments (COLAs). These benefitsare noteligibleforcost-of-living one ofyour memberships. can onlyreceive benefitunder thistypeofsurvivor and your spouseare PSRSmembers,your children under onemembership. For example,ifbothyou benefitscanonlybepaid Dependent-based survivor adjustments. benefits are noteligibleforcost-of-living(COLA) set by Missouri law. Dependent-based survivor salary, subjecttominimumandmaximumamounts are calculatedasapercentage ofyour lastfullyear of Monthly benefitamounts dependent-basedsurvivor Benefit Amount $500 perparent $500 perchild $575 • •

Monthly Benefit $300 perchild $575 spouse Minimum Amounts $860 • • • • • • •

Monthly Benefit eligible parents total forboth Up to$1,440 $720 perparent eligible children total forall Up to$2,160 $720 perchild eligible survivors total forall Up to$2,160 $430 perchild $860 spouse Maximum Survivor Benefits 39 PSRS Member Handbook 2021-2022 Member Handbook PSRS Benefit Amount survivor benefit amounts retirement-based Monthly would have you benefit based on the retirement are with no additional service received earned, and you and elected the Joint- eligibility to retirement lived benefit plan (see pages 51-52). 100% and-Survivor This type of survivor benefit is eligible for cost-of- living adjustments (COLAs) beginning the second after benefits begin. January survivor paid are benefits retirement-based Monthly lifetime. for the beneficiary’s can estimate the amount using the Benefit You Services at Member Web Estimator found in PSRS . www.psrs-peers.org Retirement-Based Retirement-Based Monthly Benefits Survivor Qualifications Member of years more or five (have be vested must You eligible service death. at the time of your with PSRS) Qualifications Beneficiary beneficiary must be one individual. Your is automatically eligible. spouse, child or parent Your sole beneficiary named as your Any other individual documentation can provide is eligible if that person was financially dependent on that he or she showing or legal death. Organizations at the time of your you for monthly retirement-based not eligible entities are survivor benefits. beneficiary may be eligible for immediate Your at the for retirement eligible are benefits if you benefits based on or future death, time of your no additional eligibility with retirement your information on retirement more service earned. For see pages 47-49. eligibility requirements,

730 365 365 1,460

$ $ $ $

Example Example

Theresa is a PSRS-covered language Theresa is a PSRS-covered language to arts teacher who passes away prior retirement. She designated her spouse, Richard, as her pre-retirement beneficiary. Theresa have three young Richard and and children. Richard elects the spouse benefit child dependent-based survivor himself, and receives a monthly benefit for will and a benefit for each child. He all continue to receive this benefit until eligibility three children no longer meet the requirements. His spouse portion of the benefit will resume when he reaches age 60, and will then be payable for the rest of his life. Spouse payment Child payment Child payment monthly benefits Total taxes) (gross amount before Payment dependent-based survivor paid benefits are Monthly day of each deposit on the last working direct by deposit dates can be month. A schedule of direct . www.psrs-peers.org found on our website, The following is an example of an average monthly monthly of an average example is an following The survivordependent-based for a payment benefit children: two dependent spouse with Survivor Benefits 40 after theendofeachcalendaryear fortaxpurposes. An IRSForm 1099-Rissenttobenefitrecipients and stateincometaxes. benefit ormonthlybenefits,are subjecttofederal Survivor benefits,whetheralump-sumsurvivor Benefits Income Taxes onSurvivor found onourwebsite, www.psrs-peers.org. month. Ascheduleofdirect depositdatescanbe by direct depositonthelastworking dayofeach Monthly retirement-based benefitsare paid survivor Payment PSRS Member Handbook 2021-2022 individual taxliability. if assistanceisneededindetermining at (573)751-3505 the MissouriDepartmentofRevenue advice fromtheIRSat(800)829-1040 Beneficiaries areurgedtoseektax beneficiary’s lifetime. based survivorbenefitsarepayableforthe have reachedage60.Monthlyretirement- benefits, beginningwhenDarrenwould monthly retirement-basedsurvivor she canchoosetoreceivenon-reduced Darren wouldhavereachedage55;or based survivorbenefits,beginningwhen either age-reducedmonthlyretirement- beneficiary. Susancanchoosetoreceive his wife,Susan,aspre-retirement with 15yearsofservice.Henamed specialist whopassesawayatage50 Darren isaPSRS-coveredtechsupport Example orataxprofessional , You canchangeyour designationanytime. available onourwebsite orfrom ouroffice. Pre-Retirement Designation form Beneficiary You canalsoupdateyour beneficiariesusinga beneficiaries online. to visit Web Member anddesignateyour Services If you are toPSRS,pleasemakeitapriority new your annualMember Statement, issuedeachfall. designation isalsoshowncurrent on beneficiary Member atwww.psrs-peers Services .org Your designation, you itby canview logginginto Web If you are unsure ofyour current PSRSbeneficiary as life-changingevents occur. your beneficiariesproperly andkeepthemupdated todesignate financial protection, itisimportant In order toprovide your family withthebest Up-to-Date Your BeneficiaryDesignation The ImportanceofKeeping • • • time ofyour death: Missouri lawdeterminesyour beneficiaries,if, atthe Designation isInvalid? What HappensifYour Beneficiary

determine your beneficiaries when you die. determine yourbeneficiarieswhenyoudie. beneficiary designation,Missourilawwill designation. Unlessyoufileanew child automaticallyvoidsyourbeneficiary A marriage,divorce,birthoradoptionofa right toreceive benefits. All designatedbeneficiarieshave disclaimedthe on filewithPSRS. You designation donothave avalid beneficiary designationwasmade. your beneficiary oradoptionofachild)hasoccurredbirth since A changeinyour lifestatus(marriage,divorce, Survivor Benefits 41 PSRS Member Handbook 2021-2022 Member Handbook PSRS beneficiary with individual Only a sole, is eligible to receive insurable interest benefits, which can monthly survivor than a lump- be more advantageous contributions and sum refund of your interest. Naming Joint Beneficiaries (More than One (More Naming Joint Beneficiaries Benefits) Individual to Share want joint beneficiaries if you should not name You A beneficiary. monthly benefits to your to provide beneficiary must be the sole beneficiary to order in choose monthly benefits. children, Also, in the case of dependent, unmarried named jointly and one of are if multiple children benefits, all them is ineligible for dependent-based ineligible. are children a lump-sum survivor beneficiaries will share Joint specify otherwise.benefit equally unless you Children Married Members With Dependent designated beneficiaries can that your ensure To should, in most choose monthly benefits, you spouse as primarycases, name your beneficiary, child as first contingent, dependent youngest your dependent child as second next youngest and your contingent beneficiary. spouse and death, your this case, at your In may be eligible for monthly dependent children dependent-based survivor benefits. Should spouse die while one of your and your both you is eligible for monthly dependent-based children survivor dependent children benefits, all of your named have of whether you eligible, regardless are beneficiaries. them as your the provide child first, you naming the youngest By for beneficiary children, greatest for your protection the longest possible period of time. Monthly survivor benefits can provide a larger total total a larger survivor can provide benefits Monthly survivor a lump-sum than benefit financial benefit and contributions consisting of your payment interest.

eligible to receive not eligible to receive not eligible to receive Beneficiaries Order of Precedence Order of Beneficiaries Estate Surviving parents eligibleto receive dependent-based benefits Surviving parents dependent-based benefits Surviving children eligible to receive dependent-based benefits Surviving children dependent-based benefits Surviving spouse

Your estate Your An individual or individuals school or such as a church, A legal entity, organization A legally established trust 6. 4. 5. 2. 3. 1.

The same holds true for any other individual sole beneficiarynamed as your who can provide that he or she was documentation showing the time of your at financially dependent on you death. The Advantages of Naming One Beneficiary death and name at the time of your vested are you If sole beneficiary, as your spouse, child or parent your he or she can choose either a lump-sum survivor benefit or either type of monthly survivor benefits. Following are tips to help you provide the greatest greatest the provide tips to help you are Following surviving for your financial protection family general in nature members. These suggestions are are you and may not fit all family situations. If designation, in doubt as to the most appropriate please contact our office. • • • • You may name as beneficiary: may name as You Tips for Designating Beneficiaries for Tips for Designating Beneficiaries PSRS Membership Your If one of these situations occurs, the following the following occurs, these situations one of If beneficiaries, designated your are individuals to law. according Survivor Benefits 42 complete copy of the trust agreement.complete copyofthetrust your death,your familywillbeaskedtosubmita and includethedateitwasestablished.Upon asbeneficiary, writethenameoftrust your trust, If you wantyour contributions andinterest paidto not beabletochoosemonthlybenefits. asbeneficiary,name your trust will your beneficiary consisting ofyour contributionsandinterest. If you benefit isalump-sumsurvivor payable toyour trust your PSRSbeneficiary. However, theonlybenefit as he orshemaysuggestthatyou nameatrust If you consultanattorneyforyour estateplanning, Naming aTrust Minors Law.” for (nameofchild)undertheMissouri Transfers to as “(nameofindividual)Custodianbeneficiary benefit paymentsonthechild’s behalf, indicateyour specific individualtobeablehandlethesurvivor individual. If your childisaminorandyou wanta to thelegallyauthorized representative ofthe or apersonwhoislegallydisabled,mustbemade Benefits payabletoaminor(achildunderage18), Minors andLegallyDisabledBeneficiaries beneficiaries. information below regarding namingminors as If your children are minors,pleaserefer tothe the longestpossibleperiodoftime. protection foryourgreatest beneficiary children, for By namingtheyoungest childfirst,you provide the as beneficiaries. eligible, regardless ofwhetheryou have namedthem dependent-based benefits,allofyour children are If oneofyour children iseligibleformonthly and soon. beneficiary, your nextyoungest asfirstcontingent, name your youngest dependentchildasprimary to dependentchildren, you should,inmostcases, To ensure eligibilityforimmediatebenefitspayable Single Parents WithDependentChildren PSRS Member Handbook 2021-2022 documents showing anestatehasbeenopened. court your familywillbeaskedtosubmitcertified “my estate” asyour beneficiary. Upon your death, to your estateinalumpsum,you shouldwrite If you wantyour contributionsandinterest paid contributions andinterest. benefitconsistingofyour lump-sum survivor The onlybenefitpayabletoyour estateisa Naming Your Estate • need thefollowing information: on benefitspayabletoyourWe beneficiary(ies). will can updateyour records andprovide information friend shouldnotifyPSRSassoonpossiblesowe In theevent ofyour death,afamilymemberor Reporting aDeath • •

member ID Your name,Social Security number orPSRS contact person Name, address andtelephonenumberofa date ofdeath asproof ofthe A photocopyofadeathcertificate