What are the rules for annuitizing a death benefit?
QPP beneficiaries may annuitize a QPP benefit only if the deceased was a Tier I or Tier II member and the QPP benefit is at least $10,000. If the deceased was a Tier II member, the member must have died while still in service. Eligible beneficiaries of Tier I members must file to annuitize their death benefit by October 31 of the year following the year of the member's death; beneficiaries of Tier II members must file to annuitize their death benefit within 90 days of the date of the member's death.
TDA beneficiaries of members of any tier may annuitize a TDA benefit of $10,000 or more. Eligible beneficiaries must file to annuitize their TDA death benefit by October 31 of the year following the year of the member’s death.
For TDA beneficiaries of TRS members who died on or after January 1, 2022, there are additional eligibility requirements under the SECURE Act. At least one of the following must apply to beneficiaries who want to annuitize their TDA benefit: 1) They are the surviving spouse of the deceased member; 2) they are not more than 10 years younger than the deceased member; 3) they are chronically ill; or 4) they are disabled.