This document was prepared by the ISU Annuitants Association (ISUAA) to provide information for members of the State Universities Retirement System (SURS) and their survivors.   It does not constitute legal, tax or professional advice.

Definitions:

• Annuitant – any person receiving a SURS annuity (pension)
• Survivor – spouse or dependent
  
• Dependent – a spouse or minor child, college student under age 22, disabled child or parent
• Beneficiary – anyone named by the annuitant to receive death benefits

SURS – www.surs.org or call 1-800-275-7877

Documents that should be on file with SURS for all annuitants today:

• Updated beneficiary form, along with current address of all beneficiaries
• Annuitants birth certificate
• Survivors birth certificate
• Marriage certificate or divorce papers

Upon the death of a spouse the annuitant should contact SURS immediately to report the death.

Upon the death of the annuitant the survivor should immediately notify SURS of survivors’ and/or beneficiaries names, addresses, phone numbers, birth dates and social security numbers.

Within 7 – 10 days after SURS is notified of the death of an annuitant, SURS will send the survivor or beneficiaries a quote letter and forms. To expedite processing of a claim the following forms mailed by SURS should be returned immediately:

• Application for Widow’s or Widower’s Survivor Benefit
• Certified copy of the death certificate (obtain ample copies from the funeral director)
• Certified copy of the death certificate for any primary beneficiaries
• Certified copy of the Letters of Office or Letters of Administration (if payable to estate)
• Copy of trust agreement (if payable to a trust)
• Agreement to Hold or Use Payments for the Benefit of a Minor (if payable to a minor child)

The survivor will continue to receive health care insurance after the death of the annuitant assuming that person is the eligible survivor and receiving the survivor benefit. It is very important that there is no delay in notifying SURS when death occurs. Pharmacies will not change the name on the account until SURS officially notifies the pharmacy. Should there be a delay and medication is needed, the survivor must pay the full retail price for the prescription, but will be reimbursed by the insurance carrier later upon filing of appropriate forms.

Upon the death of an annuitant the survivor “inherits” the subsidized health care premium of the annuitant.

Upon the death of an annuitant and depending on the plan and time period contracted at the time of retirement, the survivor will be given a monthly annuity that amounts to approximately 50% of what was paid to the annuitant at the time of his/her death. If there are contributions and interest remaining in the account SURS will give the survivor the option to take either the monthly survivor benefit or a lump sum benefit.  Experience indicates that those taking the lump sum will exhaust their contributions and interest within three or four years.  If the survivor decides to take the lump sum payment the following documents will be needed: Waiver of Survivors Insurance Benefit, Application for Death Benefit and Certified Copy of Death Certificate.

If there is an eligible survivor (spouse or dependent), SURS will pay a $1,000 lump sum payment ($500 if reciprocal with TRS or SERS).  If there is no spouse or dependent, the death benefit will be paid to the beneficiaries.

Survivors sometimes experience delays in finalizing claims because of delays in notifying SURS of an annuitants death and/or delays in promptly returning to SURS the necessary forms and documentation.  SURS will pay a full months annuity if death occurs in the middle of a month and will continue to pay until notified of an annuitant’s death.  If SURS overpays it will delay processing the death claim until the overpayment is returned to SURS. Delays may also be caused by marriage and/or birth certificates not being on file, and/or because of certifying reciprocal data when another system such as TRS or SERS, is involved.

Members of ISUAA, or their survivors, may seek the assistance of the ISUAA Survivor Advocacy Team, a group of volunteers trained by SURS, by contacting Mary Liverman at mcliverman@verizon.net or call (309) 452-4181. Survivors who are not members of ISUAA may become members by sending in the membership application form found elsewhere on this website.

In addition to using the above information relative to SURS, it is important to have all other necessary legal papers readily available, including wills and powers of attorney.

8/2007