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 your beneficiary(ies) should you die before retiring with the death benefits described below.
After your death, your beneficiary will receive a return of your contributions plus interest at four percent compounded annually on your prior year ending balance, through your date of death. This is a lump-sum payment. If you meet certain eligibility requirements, a monthly Survivor’s Alternate Benefit may be paid to your beneficiary instead of a return of contributions if you have only one eligible beneficiary living at the time of your death.
Provided you have not retired, the monthly Survivor’s Alternate Benefit may be payable if you have only one eligible beneficiary for the return of your contributions living at the time of your death and you die while in active service or within 180 days of your 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 60 with five years of creditable service.
- You complete 15 years of creditable service as a firefighter or rescue squad worker 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.
The Survivor’s Alternate Benefit does not apply if you have two or more eligible principal beneficiaries for the return of contributions living at the time of your death, if your estate or living trust is your eligible beneficiary at the time of your death, or if you 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but no more than $50,000 and is also paid if you die within 180 days of your last day of service, provided you have not withdrawn your contributions.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.
Reporting a Member Death
During a time of loss and grieving, there are steps that beneficiaries and family members must take to ensure that the law is followed as it relates to member retirement benefits. The first step is to notify our office as soon as possible.
We offer an easy online form to report a death to the Retirement Systems Division.
This page was last modified on 09/10/2024