Teachers Retirement System outlines death benefits for Illinois members

In a recent meeting, the Teachers Retirement System (TRS) of the State of Illinois discussed important details regarding death benefits for its members, a topic that directly impacts many families across the state. Understanding these benefits is crucial for members and their beneficiaries, as they provide financial support during difficult times.

Members of TRS contribute 9% of their earnings, with 1% allocated for survivor benefits and the remaining 8% for retirement benefits. When a member passes away, two types of benefits may be available: survivor benefits and beneficiary refunds. Survivor benefits can be received as a lump sum or as ongoing monthly payments. For those in Tier 1, the monthly survivor benefit is set at 50% of the member's pension amount, while Tier 2 offers 66.7% for spouses and 50% for other dependent beneficiaries.

Beneficiaries can be categorized as dependent or non-dependent. Dependent beneficiaries include spouses or civil union partners of over a year, children under 18 or under 22 if they are unmarried full-time students, adult disabled children, and financially dependent parents. Non-dependent beneficiaries can be anyone else, such as adult children, friends, or even charities.

Monthly benefits are designed to support surviving spouses for their lifetime, while minor children can receive benefits until they turn 18 or 22 if they remain unmarried and enrolled in school. Adult disabled children may also qualify for benefits if they are unable to work and remain unmarried, although periodic verification of their disability may be necessary.

Additionally, a beneficiary refund provides a one-time lump sum payment of the remaining account balance at the time of the member's death. However, this amount decreases over time as pension benefits are paid out, and it may not be available if the member has already recovered their contributions before passing.

This discussion highlights the importance of understanding death benefits within the TRS, ensuring that members and their families are prepared for the future. As the board continues to address these critical issues, the community can feel more secure knowing that support systems are in place for those who have dedicated their careers to education in Illinois.