Although LGERS’ primary purpose is to provide retirement income, we recognize that some employees will not live to enjoy their retirement benefits. For that reason, LGERS protects members’ beneficiary(ies) should the member die before retiring with the death benefits described below.
After a member’s death, their beneficiary will receive a return of their contributions plus interest at four percent compounded annually on the member’s prior year ending balance, through their date of death. This is a lump-sum payment. If the member meets certain eligibility requirements, a monthly Survivor’s Alternate Benefit may be paid to their beneficiary instead of a return of contributions if they have only one eligible beneficiary living at the time of their death.
The Survivor’s Alternate Benefit is a lifetime monthly benefit payable to the member’s survivor beneficiary that equals the amount the member would have been entitled to receive under Option 2 had they survived and retired on the first of the month following their death.
Provided the member has not retired, the monthly Survivor’s Alternate Benefit may be payable if they have only one eligible beneficiary for the return of their contributions living at the time of their death and they die while in active service or within 180 days of their last day of service after meeting one of the following conditions:
- They complete 20 years of creditable service (not including credit for unused sick leave) regardless of age.
- They reach age 60 with five years of creditable service.
If the member does not meet one of these two conditions, their beneficiary(ies) will be able to receive only a return of the member’s contributions.
The Survivor’s Alternate Benefit does not apply if the member has two or more eligible principal beneficiaries for the return of contributions living at the time of their death, if their estate or living trust is their eligible beneficiary at the time of their death, or if they have retired.
If a member dies while still in active service after one year as a contributing member, their beneficiary will receive a lump-sum payment equal to their highest salary for 12 consecutive months during the 24 months before they die. The lump-sum payment will be at least $25,000 but no more than $50,000 and is also paid if the member dies within 180 days of their last day of service, provided they have not withdrawn their contributions.
The death benefit is in addition to any other benefits to which their beneficiary(ies) may be entitled. For this death benefit, a member may name the same or a different beneficiary(ies) than the one(s) they named to receive the return of contributions.
Law Enforcement Officer, Firefighter or Rescue Squad Worker Killed in the Line of Duty
If a law enforcement officer, firefighter, or rescue squad worker is killed in the line of duty, his or her spouse, dependent(s) or estate may be entitled to receive a death benefit in the amount of $100,000.00. This benefit may be increased to $200,000 if a law enforcement officer, firefighter, or rescue squad worker is murdered in the line of duty.
Eligibility for these death benefits is determined by the North Carolina Industrial Commission and payment is processed by the Department of State Treasurer.
This page was last modified on 07/16/2024