Following is a brief outline of current tax laws as they apply to fund benefits. However, because tax laws often change, you should consult your tax advisor for more details.
Effective July 1, 2018, FRSWPF members will be able to name principal and contingent beneficiaries for their return of undistributed contributions and the Guaranteed Refund (after retirement) due to death, and for the Survivor Benefit if killed in the line of duty.
If you die on or after July 1, 2018, and your death is not in the line of duty, the following beneficiary provisions apply:
- If you have designated a beneficiary(ies), this person(s) will be the beneficiary of your pension fund account.
- If you do not have a designated beneficiary living as of your date of death, your spouse will be the beneficiary.
If there is no living beneficiary or spouse, the proceeds will be paid to your estate.
If you die before beginning to receive your pension, your beneficiary will receive the amount you paid and contributions paid on your behalf into the pension fund. If you have completed and submitted the Form 2FR, your single beneficiary may be eligible for line-of-duty death benefits.
If you die after beginning to receive your benefits, your beneficiary will be paid the amount you contributed to the pension fund, minus the benefits you collected. If you die after collecting more from the fund than you contributed, payments stop. No additional benefits are paid.
If you are an active member of FRSWPF and you die in the line of duty on or after July 1, 2018, and you have one eligible principal beneficiary named to receive the return of undistributed contributions living at the time of your death, that beneficiary must choose to receive a lump-sum return of undistributed contributions or receive a lifetime monthly survivorship benefit (currently $170) beginning the month after the month you would have turned 55. If you were 55 or older at the time of your death, your survivor will be required to make a choice between the return of undistributed contributions or receive this lifetime monthly survivorship benefit beginning the month after your death.
If you are killed in the line of duty and you are already receiving a monthly FRSWPF retirement benefit, your beneficiary will receive the same amount monthly for life, beginning the month after your death.
All monthly survivor benefits end at the death of the monthly survivor beneficiary. No other beneficiaries are eligible for any benefits after the death of the monthly survivor beneficiary.
If there is more than one living principal beneficiary or contingent beneficiary(ies) at the time of your line-of-duty death, a lump-sum payment equal to your remaining undistributed contributions will be paid to the eligible beneficiary(ies), or if there are no eligible beneficiaries, to your estate.
All line-of-duty death benefits are payable contingent on approval from the Industrial Commission as required in Chapter 143, Article 12A of the General Statutes and are paid retroactively to the applicable benefit effective date minus the benefits you collected. If you die after collecting more from the fund than you contributed, payments stop and no additional benefits are paid.
This page was last modified on 09/10/2024