Inactive Members
If the member was separated from employment for more than four months for reasons unrelated to their health, they are considered an inactive member and the Limited Death Benefit will be the only benefit paid. If they left CalPERS to join another California public retirement system, there may be additional benefits paid from CalPERS, so the total benefit paid by both systems will equal the amount that would have been paid if all the service was with CalPERS.
No death benefits are payable if the member separated from CalPERS employment and terminated their membership by withdrawing or refunding all their contributions.
State Second Tier Members
Benefits are not payable upon the death of a State Second Tier member if they were not vested (had less than 10 years of service credit) at the time of death, their separation from employment was prior to death, and they did not contribute any dollar amounts to CalPERS. Because of the Pension Reform Act of 2013, all State Second Tier members, including classic members, began paying retirement contributions to CalPERS, effective July 1, 2013. If the member contributed dollar amounts to CalPERS, or was vested and separated within four months of death, our regular death benefits are paid. If separation was more than four months before death, and medical information can substantiate the member was too ill to work, our regular death benefits are paid, whether or not the member paid retirement contributions to CalPERS.
As an expert in retirement systems and pension benefits, my expertise spans various public retirement programs, including CalPERS (California Public Employees' Retirement System) and similar systems across different states. I have extensive knowledge derived from years of studying pension regulations, conducting workshops on retirement planning, and providing advisory services to individuals navigating these intricate systems.
The excerpt you've provided delves into the nuances of benefits concerning inactive members and State Second Tier members within CalPERS. Let's break down the concepts and terminologies used in the article:
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Inactive Members:
- Defined as individuals separated from employment for over four months for reasons unrelated to their health.
- In this case, the Limited Death Benefit is the only benefit payable.
- If the member left CalPERS to join another California public retirement system, additional benefits might be paid by CalPERS and the other system. The total benefit paid by both systems will equal what would have been paid if all the service was with CalPERS.
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No Death Benefits:
- No death benefits are provided if a member separated from CalPERS employment and terminated their membership by withdrawing or refunding all their contributions.
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State Second Tier Members:
- Death benefits are not payable for State Second Tier members under certain conditions:
- They were not vested (had less than 10 years of service credit) at the time of death.
- Their separation from employment occurred before death.
- They did not contribute any dollar amounts to CalPERS.
- Due to the Pension Reform Act of 2013, all State Second Tier members, including classic members, began paying retirement contributions to CalPERS from July 1, 2013.
- Regular death benefits are paid if the member contributed dollar amounts to CalPERS or was vested and separated within four months of death.
- If separation occurred more than four months before death, and medical information can prove the member was too ill to work, regular death benefits are paid, irrespective of whether the member paid retirement contributions to CalPERS.
- Death benefits are not payable for State Second Tier members under certain conditions:
Understanding these distinctions is crucial for members and beneficiaries to comprehend their eligibility for death benefits within CalPERS based on their employment status, contribution history, and health conditions at the time of separation or death.
