Death Benefits - KP&F
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Active Tier I or Tier II Death Benefits
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FORMS
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Active Tier I or Tier II Member Death Benefits
Service-Connected Death Benefits
- Spouse will receive an annual benefit of 50 percent of member’s final average salary in on-going monthly payments for the rest of his or her life.
- Eligible children (age 18 or 23 if a full-time student) will receive annual benefit of 10 percent of member’s final average salary. All benefits payable on behalf of minor children must be paid to a legally-appointed conservator.
- There is a family maximum annual benefit of 75 percent of member’s final average salary.
- Benefits are paid in monthly payments.
- Benefits are not taxable by federal income tax.
- If there are no surviving spouse or eligible children, the member’s beneficiary(ies) will receive a lump-sum payment of the member’s accumulated contributions plus the difference between the member’s current annual rate of pay and the member’s accumulated contributions.
Non Service-Connected Death Benefits
- Spouse will receive a lump-sum benefit of 100 percent of the member’s final average salary.
- Spouse will receive an annual benefit of 2.5 percent x years of service credit x final average salary in on-going monthly payments for the rest of his or her life. The maximum annual benefit is 50 percent of member’s final average salary.
- If there is no surviving spouse, the benefits will be paid to eligible children (age 18 or 23 if a full-time student). All benefits payable on behalf of minor children must be paid to a legally-appointed conservator.
- Benefits are taxable by federal income tax.
- If there are no surviving spouse or eligible children, the member’s beneficiary(ies) will receive a lump-sum payment of the member’s accumulated contributions plus the difference between the member’s current annual rate of pay and the member’s accumulated contributions.
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Optional Group Life Insurance
Optional Group Life insurance is coverage beyond employees' regular death benefit. Employees decide how much coverage they need and pay the cost of this additional coverage through payroll deduction. Each employer must have affiliated for Optional Group Life Insurance to provide this additional coverage.
Coverage amounts range from $5,000 to $250,000 in $5,000 increments. Employees are eligible for an initial $50,000 of guaranteed coverage without proof of good health within 30 days after their hire date, membership date or their employer's entry date. Coverage amounts over $50,000 require proof of good health.
Starting or Increasing Coverage: Employees can start or increase coverage at any time with proof of good health.
Family Status Change: Employees can enroll for or increase their coverage by up to $25,000 (subject to plan maximum of $250,000) without proof of good health within 30 days of a family status change like marriage, divorce, birth or adoption.
Accelerated Death Benefit: If employees are diagnosed as terminally ill with 12 months or fewer to live,
they may be eligible to receive up to 100 percent of their life insurance instead of their beneficiary receiving
a death benefit.
Minnesota Life Insurance Accelerated Death Benefit Claim Form, (PDF, 33KB)
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Optional Group Life Insurance Premium Rates (Excel file or PDF, 52KB), effective January 1, 2007
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Basic and Optional Group Life Insurance brochure: (PDF, 348KB): Information for employees about insurance coverage, insurance needs and premium costs.
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Optional Group Life Insurance How-to Guide for Designated Agents (PDF, 1.26 MB): Information for employers about administering the OGLI program.
KPERS Optional Life Insurance Benefits are underwritten by Minnesota Life Insurance Company.
Visit Minnesota Life's web site
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"Transfer Member" Death Benefits
A “Transfer” member is a former member of a local plan who elected to participate in KP&F when his or her employer affiliated.
The following is payable to an eligible spouse who has been the member’s spouse for at least one year at the time of the member’s retirement, or who was the member’s spouse for three years at the time of the member’s death.
- The eligible spouse will receive a lump-sum payment equal to 50 percent of the member’s final average salary.
- The eligible spouse will receive a lifetime monthly benefit equal to 75 percent of the member’s monthly benefit.
- No eligible surviving spouse, the monthly benefit (75 percent of the member’s monthly benefit) is payable in equal shares to any eligible children (age 18 or 23 if a full-time student).
- These benefits are payable regardless of the cause of death.
- If the “Transfer” member selects a retirement option, these benefits are not payable.
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"Special Member” Death Benefits
These members chose to stay under provisions of their local plans when their employers affiliated with KP&F. A Special member keeps all rights and privileges of his or her local plans as it existed on the day before affiliation. One exception is that benefits will be payable to a surviving spouse if the member and spouse had been married at least three years at time of death. Please check employer’s local plan for additional information.