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(continuation in Benefits Guide)
STATE
EMPLOYEE DEATH BENEFITS
I. Health
Benefits for Survivors
Surviving
spouses of deceased retired employees and surviving spouses of deceased
teachers, State employees and members of the General Assembly are eligible
for benefits under the State's
Comprehensive Major Medical Plan provided that the spouse was covered
as a dependent at the time of the death. If the surviving spouse
elects the continued coverage, it will be on a fully contributory basis
that is; the spouse pays the total cost of the coverage.
Any eligible
dependent child of the deceased is eligible for continued coverage provided
that the child was covered as a dependent at the time of the death.
The coverage will be on a fully contributory basis and can continue until
age 19, or age 26 if a full-time student, or indefinitely if certified
as incapacitated under current rules of the State Health Plan. At
the termination of coverage due to age, the dependent will be offered COBRA
continuation coverage in accordance with federal law. This coverage may
remain in effect for up to thirty-six months.
An eligible
survivor (spouse or child) shall be eligible for group benefits without
waiting periods for preexisting conditions provided coverage is elected
within 90 days after the death of the former plan member. Coverage
may be elected at a later time, but it may be subject to the 12-month waiting
period for preexisting conditions and will be effective the first day of
the month following receipt of the application.
Reference:
NC
Teachers' and State Employees' Comprehensive Major Medical Plan General
Statutes 135-40.2.
Additional
benefits available below
II. Retirement
Plan(s)
Teachers'
and State Employees' Retirement System (TSERS)
Death Benefit Plan G.S.
135-5 (1)
Eligibility
(1)
employee must have one year of service as a contributing member to the
Retirement System
(2) employee
dies in active service (while being paid salary) or within 180 days of
the last day salary was paid.
(3) employee
in receipt of a disability benefit from the disability income plan of North
Carolina
Lump Sum Payment
Equal to the
highest consecutive 12 months salary in the 24 months preceding death.
Subject to a minimum benefit of $25,000 and a maximum benefit of $50,000.
Retirement - Return of
Contributions G.S. 135-5 (f) or Survivor's Alternate Benefit G. S. 135-5
(m)
Return of
Contributions
(1)
If the employee has less than 5 years service as a contributing member
to the Retirement System, the refund is equal to employee's contribution
only.
(2) If the
employee has 5 or more years service as a contributing member to the Retirement
System, the refund is equal to the employee's contribution plus 4% interest.
Note: If employee
was a participant in the Optional Retirement Program the appropriate carrier(s)
should be contacted.
Survivor's
Alternate Benefit
(1) Eligibility:
(a)
employee has only one primary beneficiary on file with the
Retirement System at the time of death.
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(b) employee
dies in active service (while being paid salary) or
within 180 days of the last day salary was paid
(c) employee
has 20 years of creditable service regardless of age or age 60 with 5 years
of creditable service
Law enforcement
officers-employee has 20 years of creditable service regardless of age
or age 50 with 15 years of creditable service
(2) Options:
Beneficiary
may choose - return of contributions or a monthly lifetime benefit.
Filing Claim Teachers' and
State Employees' Retirement Plan
Contact:
Benefits Counselor in the Member Services Department (919) 733-4191
Documents
Needed: Certified Copy of death certificate to process the Death Benefit,
Return of Contributions or Survivors Alternate Benefit.
Time Frame:
The average time to process death claim is 45 to 60 days provided that
there are no complications.
Employee
dies after retirement - depending on the option chosen, the Beneficiary
may receive additional income. (Return of Contributions, Survivors
Benefit, Contributory Death Benefit).
Click
for Work-Related Fatality Information
III. Optional
Retirement Plans
401(k) Plan
The administrator
of this plan is Branch Bank and Trust
(BB&T)
To Report
A Death: A call to report the death and for specific instructions should
be made to the toll free member services line (1-800-722-4015).
To File
for Withdrawal or Payout Options: Mail a certified copy of the death
certificate to BB&T. BB&T will then notify the beneficiary
by mail.
If
the beneficiary is a spouse, there are three options:
(1)
withdraw 100% of the account
(2) leave
the money in the account until the deceased spouse would have been age
70 1/2
(3) roll
over the money in the account into an Individual Retirement Account
(IRA)
If the beneficiary
is not a spouse, there is no option but to withdraw the funds. Distribution
of funds is no sooner than 60 days from the date of death.
If there is
no beneficiary, the funds are distributed to the estate of the deceased.
Deferred
Compensation: 457 Plan
The administrator
of this plan is:
Great
West/BenefitsCorp, Inc.
Two Hannover
Square
Suite 1640
Raleigh, North
Carolina 27601
To Report A
Death: A call to report a death and for specific instructions should
be made to the toll-free number (1-888-600-2763).
To File
For Withdrawal or Payout Options: Payout options for beneficiaries
depend upon individual circumstances. Please contact your Great-West
representative at (919) 888-600-2763.
Documents
Needed: A certified copy of the death certificate is required.
IV. Other Optional
Employee Benefits
NCFLEX
PROGRAM
The agency
Benefit Representative will be the primary contact to determine what steps
must be taken with regard to NCFlex. The following guidelines are
offered to expedite the process:
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The Benefit Representative
should identify components of the NCFlex Program in which the employee
was enrolled. The Benefit Representative must obtain copies of the employee's
enrollment forms to determine what options may be available to the family.
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A certified copy
of the death certificate may be needed for each NCFlex plan in which the
employee was enrolled (a copy will definitely be needed for Accidental
Death & Dismemberment policy benefits). The Benefit Representative
will notify the family of the number needed for NCFLex plans.
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The Benefit Representative
should advise the family of NCFlex plan components which may contain an
option for future benefits (e.g., family coverage under dental plan may
allow future coverage under COBRA; or the Health Care Flexible Spending
Account may continue to be utilized for health care expenditures accumulated
prior to the death of the employee.)
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Note: If
the deceased was a certified law enforcement officer, you may be entitled
to additional benefits. Contact the benefits representative in the
agency benefits office.
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