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Non-Work Related Cause of Death
If you are vested and die while you are an active member from a non-work related cause, your named beneficiary will be eligible for a lump-sum payment of any funds remaining in your member contribution account. If your spouse, your natural or legally adopted minor child or your parent is one of your named beneficiaries or is your beneficiary based on order of precedence (see below), he or she will be eligible for a lump-sum payment or a monthly benefit to the exclusion of all other primary beneficiaries. If your beneficiary is your natural or legally adopted minor child, benefits will end when your child reaches age 18.
If you are not vested and die of a non-work related cause, and your spouse, natural or legally adopted minor child or parent is one of your named beneficiaries, he or she is eligible for a refund only. If multiple beneficiaries are named, all are eligible to receive a share of the refund.
Non-Work Related Monthly Benefit Calculation
The non-work related monthly benefit is calculated based on your average final compensation, your total service credit, your age and the age of your eligible named beneficiary at the time of your death. Your age and your beneficiary's age are calculated as follows:
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If you die before age 55, you are presumed to be age 55 for purposes of calculating the benefit. If your beneficiary is younger than you, the age difference is subtracted from age 55 to arrive at his or her adjusted age. If your beneficiary is older than you, the age difference is added to age 55 to arrive at his or her adjusted age.
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If you die at age 55 or older, your age and the actual age of your beneficiary are used to calculate the benefit.
Eligible Hazardous Duty Employees
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If you die before age 50, you are presumed to be age 50 for purposes of calculating the benefit. If your beneficiary is younger than you, the age difference is subtracted from age 50 to arrive at his or her adjusted age. If your beneficiary is older than you, the age difference is added to age 50 to arrive at his or her adjusted age.
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If you die at age 50 or older, your age and the actual age of your beneficiary are used to calculate the benefit.
Note: Some political subdivisions require age 55 for employees eligible for enhanced hazardous duty coverage. Check with your human resource office for more information.
Order of Precedence
If you die while you are an active member from a non-work related cause and there is no valid beneficiary designation on file or your named beneficiary is deceased, VRS will pay a death-in-service benefit according to the following order of precedence, as required by law:
Note: The Designation of Beneficiary (VRS-2) 
51kb allows you to elect the order of precedence instead of designating a beneficiary.
First, to your spouse
If no spouse, to your natural or legally adopted minor child or children
If no spouse or minor child or children, to your parent or parents
If none of the above
Cost of Living Adjustment (COLA)
If you die in service and your survivor or beneficiary is eligible for a monthly death-in-service benefit, he or she will be eligible for a COLA effective July 1 following one full calendar year (January 1 to December 31) from the date the monthly benefit begins. Read more about the COLA.
Deferring Taxes on Member Contribution Account Payments
Lump-sum payments of pre-tax member contributions and interest are subject to income taxes. For more information, see the IRS 402(f) Special Tax Notice 28.5kb.
