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: 

• You complete 20 years of creditable service (not including credit for unused sick leave) regardless of age.
   
• You reach age 50 with 15 years of creditable service as a law enforcement officer.
   
• You reach age 55 with five years of creditable service as an officer.
   
• You complete 15 years of creditable service as an officer if killed in the line of duty.

If you do not meet one of these conditions, your beneficiary(ies) will be able to receive only a return of your contributions.

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.

This lifetime monthly benefit payable to your beneficiary equals the amount you would have been entitled to receive under Option 2 had you survived and retired on the first of the month following your death.

If your employer elected this coverage, and you die while still in active service after one year as a contributing member, your beneficiary will receive a lump-sum payment equal to your highest salary for 12 consecutive months during the 24 months before you die.

The lump-sum payment will be at least $25,000 but no more than $50,000 and is also paid if you die within 180 days of your last day of service, provided you have not withdrawn your contributions. The death benefit is in addition to any other benefits to which your beneficiary(ies) may be entitled. For this death benefit, you may name the same or a different beneficiary(ies) than the one(s) you named to receive the return of contributions.

If you are a public safety worker and die while in the line of duty, your beneficiary may also be entitled to a $200,000 line-of-duty death benefit. This lump sum benefit is administered jointly by the North Carolina Industrial Commission and the Department of State Treasurer.