Designating Disability Retirement System Beneficiaries

Whether you are a member of CalPERS, OCERS LACERA, CalSTRS, SDCers, VCERA, SBCera it is important that you understand and complete the necessary forms to designate your beneficiary. It is also extremely important to keep your beneficiary information updated as things change in your life.

In this article the experienced disability retirement lawyers at Cantrell Green explain the ins and outs of choosing a Public Employee Retirement System beneficiary.

Death Benefits Under California Public Employee Retirement Systems

If you should pass away while collecting disability retirement benefits from your public employee retirement system, your designated beneficiary may be entitled to collect certain death benefits. However, the rules about death benefits for survivors of disability retirees under California public employee retirement systems like CalPERS and LACERA can be complex.

For CalPERS disability retirees, designated survivors (typically spouses and dependent children) are generally entitled to receive a monthly death benefit after the retiree’s death. This is often a percentage of the retiree’s allowance, typically 50% for qualifying survivors.

For LACERA (Los Angeles County Employees Retirement Association) members on disability retirement, survivor benefits are also typically available to qualified beneficiaries, with similar provisions to CalPERS.

However, there are specific eligibility requirements, and the exact benefits depend on:

The retirement plan option chosen
• Length of service
• Whether death was service-connected
• The survivor’s relationship to the deceased member
• When the disability retirement began

For specific and definitive information about your current survivor death benefits, contacting your specific retirement system directly. And if you are in the process of applying for disability retirement, make sure to consult with  an experienced disability retirement lawyers specializing in public employee benefits to ensure you understand and receive the maximum benefits for which you qualify.

Choosing a Public Employee Retirement System Beneficiary

If you are a teacher, police officer, firefighter, corrections officer, administrator or other public employee, your Retirement Association will required you to fill out a form called a “Choice of Beneficiary” or “Beneficiary Designation” (or something very similar). That form – and that form alone – determines who will receive your “survivor” benefits should the unthinkable happen and you pass away.

When a new public employee is hired, they will be asked to complete a Sworn Choice of Beneficiary Statement form as part of their initial paperwork. The form asks the CalPERS, OCERS LACERA, CalSTRS, SDCers, VCERA, SBCera member to specify who they want to receive any benefits that may be payable upon their death while in public service and/or after retirement.

Young, unmarried employees often choose their parents or sibling(s) to be their beneficiary. Married individuals usually choose their spouse and children as beneficiaries. However, the member is entirely free to choose whomever they desire. A long-term partner or significant other of the same or opposite sex can also be designated as your retirement system beneficiary.

Changing Public Employee Retirement System Choice of Beneficiary

Understandably, humans don’t like to think about their eventual death – and so the issue of one’s beneficiaries or “survivors” often goes out of mind after the initial paperwork is signed. But as the years progress, everyone’s situation changes to some degree – so it is important to keep your Public Employee Retirement Association’s “Choice of Beneficiary” form updated as things change.

The birth of children, a divorce, or even the death of a spouse can change who you want to be the eventual beneficiary of any death benefits to which your survivors may be entitled.

Unfortunately, many people forget about the paperwork they completed at time of hire and wrongly assume that their current spouse “automatically” becomes their beneficiary of Retirement System benefits. But this is NOT the case.

Some of this confusion may come from the fact that Social Security DOES “automatically” determine who your “survivor” is according to who you are married to (and for how long). But, retirement system death benefits are more like life insurance, in that they go to whomever is listed on the form – and do not automatically go to whomever is your current spouse.

Sadly, in more than one situation, our disability retirement lawyers have seen cases where a CalPERS, OCERS LACERA, CalSTRS, SDCers, VCERA, SBCera member did NOT update their Choice of Beneficiary after a divorce and remarriage. This resulted in their ex-spouse – and not their current spouse – receiving the applicable benefits. Obviously, this is not at all what they intended!

If you are a CalPERS, OCERS LACERA, CalSTRS, SDCers, VCERA, SBCera or other Public Employee Retirement Association member, always remember to keep your sworn Choice of Beneficiary current after any major life changes. This will ensure that the correct loved one will receive any of your hard earned benefits to which they are entitled after you are gone.

Public Employee Disability Retirement Lawyers

We are one of very few Los Angeles area law firms that are highly specialized in Public Employees Disability Retirement. Our lawyers have filed hundreds of successful disability retirement applications and appeals and have obtained millions of dollars in disability retirement benefits for our clients.

Our lawyers can help disabled public employees obtain their disability retirement benefits from any public employee retirement system in California. If you are an injured police officer, firefighter, teacher, administrator or other public employee, who is applying for or appealing disability retirement benefits, call us today.

Free Consultation with a Disability Retirement Lawyer: 800-964-8047