PENSION BENEFITS REPORT
Active and retired PFRS death benefits
PETER ANDREYEV
In the last few weeks , I have received numerous calls regarding the death benefits for active and retired members . First , I want to remind everyone to update your beneficiaries so that your loved ones will receive the benefits to which they are entitled through our pension system . The Division of Pensions has provided the following information to make it easier for our members to understand what their survivors will receive once the member passes away .
When a retired member of the Police and Firemen ’ s Retirement System dies , the family or survivors should notify the Division of Pensions and Benefits at 609- 292-7524 and provide the following information :
• the full name of the deceased ;
• the deceased ’ s Social Security , pension membership or retirement number ;
• the date of death ;
• the name , mailing address and telephone number of the person handling the deceased ’ s affairs .
Once a member ’ s death is reported , the Division reviews the member ’ s account to determine what benefits , if any , are due . The Division informs the named beneficiary or beneficiaries by letter of the benefits payable and sends the necessary claim forms .
The processing time for paying a claim depends entirely upon when the Division receives the following items from the beneficiary :
• a certified death certificate ( a photocopy is not acceptable );
• a copy of your marriage certificate ;
• all claim forms , properly completed ; and
• any uncashed pension checks sent to a deceased retiree ( any monies due will be reissued to the beneficiaries or the estate ).
Pension benefits
Upon the death of a retired member , a surviving spouse is eligible to receive a pension benefit equal to 50 percent of the member ’ s final compensation ( the last 12 months of salary paid to the member while in active service ), plus 15 percent of your final compensation for one child or 25 percent of your final compensation for two or more children .
“ Spouse ” means a person to whom you are legally married . ( There is no length of marriage requirement .)
“ Child ” means your unmarried child :
• under the age of 18 ;
• 18 years of age or older and enrolled in high school ;
• of any age who , at the time of your death , is disabled because of mental or physical incapacity and incapable of substantial gainful employment because of the impairment . This incapacity must last or be expected to last for a continuous period of not less than 12 months as determined by the PFRS Medical Review Board .
The Pension Adjustment Program provides a cost-of-living adjustment ( or COLA ) to the surviving spouse . The spouse will receive the pension benefit , as outlined above , plus COLA based upon the member ’ s year of retirement . Life insurance
In addition to a monthly pension benefit , the surviving spouse
may be entitled to a life insurance benefit if he or she is the named beneficiary . The beneficiary will receive group life insurance equal to half of the member ’ s final compensation .
If the member retired on a disability retirement , the amount will be equal to 3.5 times the final compensation until age 55 , when it will be reduced to half of the final compensation .
Group life insurance is in effect only if the member had group life insurance coverage while in active membership and retired with at least 10 years of pension membership credit or on a disability retirement . For more information on survivor benefits , each retirement system has a member handbook that explains the benefits in detail . Health benefits
If the member was retired at the time of death and covering eligible dependents under the State Health Benefits Program ( SHBP ), the eligible dependents receive an information packet with instructions on continuing coverage under the SHBP . The premium , if any , will be deducted from the pension check . If the member had health insurance paid through an employer , the spouse must contact the former employer about continuing coverage .
Members who pass away while actively working and contributing to the PFRS will also have death benefits for their survivors . Upon your death as an active member , your surviving spouse or partner is eligible to receive a pension benefit equal to 50 percent of your final compensation .
If there is no surviving spouse / partner , the following benefit is payable to eligible children :
• 50 percent of final compensation to three or more eligible children ;
• 35 percent of final compensation to two eligible children ; or
• 20 percent of final compensation to one eligible child . If there is no surviving spouse / partner or children , a pension is paid to your eligible parents as follows :
• 40 percent of final compensation to two parents ;
• 25 percent of final compensation to one parent .
If there is no surviving spouse / partner , children or parents , the employee ’ s contributions to the retirement system are paid to the named beneficiary . In the event that a specific beneficiary is not named , the funds will be paid to the member ’ s estate .
In addition to the above benefits , your beneficiaries are also entitled to life insurance through our pension system . If your death occurs in active service before retirement , your named beneficiary ( or estate where there is no named beneficiary ) receives a group life insurance benefit equal to 3.5 times your compensation . If you die during the first year of creditable service , the benefit is 3.5 times your creditable base salary upon which pension contributions were paid .
Hopefully this clears some things up for everyone . It is obviously very important to have your beneficiaries updated so there is no confusion . The process is fairly easy — just log into MBOS and edit or update your beneficiaries through the website . Before you log onto the website , make sure you have your beneficiary ’ s legal name , date of birth , Social Security number and most recent and correct address .
As always , please contact me at the State PBA office should you have any questions . d
16 NEW JERSEY COPS ■ SEPTEMBER 2018