Frequently Asked Questions
Information for Survivors and Beneficiaries of
Deceased WRS Participants
For family members dealing with the loss of a loved
one, the days and weeks following the death can be an overwhelmingly
busy and stress-filled time. Therefore, it’s understandable
that people often forget to follow through with one of the most
important tasks following the death of a WRS participant: Notify
the Department of Employee Trust Funds (ETF). It is extremely
important to notify ETF as soon as possible in order to process
payment of any death benefits payable. Call us toll free at 1-877-533-5020
or (608) 266-3285. We will want to know the following about the
deceased:
What happens after ETF is notified of
the death?
ETF determines whether any death benefits are payable and who is
entitled to receive the death benefits. This process includes several
steps:
Death of a WRS Annuitant (an individual who receives
monthly annuity payments):
- Stop the monthly payments, and recover any payments issued
after the date of death. If an annuity payment was deposited electronically
after the date of death, it wil be recovered electronically from
the deceased annuitant's account. By law, any payments issued
to the decedent after the date of death must be recovered; they
are not the property of the named survivor or beneficiary(ies).
Payments due to the beneficiary(ies) as a death benefit will be
reissued in the beneficiaries’ names.
- Determine whether there are death benefits payable from the
annuity. This will depend on the annuity option selected by the
decedent, and if applicable, whether the named survivor is still
living and/or how long the annuity has been in force.
- Determine who is entitled to receive any WRS death benefits
payable and locate the beneficiary(ies).
- Send the death benefit estimates and application to the eligible
beneficiary(ies).
Death of a WRS Account Holder (an individual who has
a WRS account, but is not currently receiving monthly annuity payments)
- Determine who is entitled to receive the WRS death benefits
payable and locate the beneficiary(ies).
- Send the death benefit estimates and application to the eligible
beneficiaries beneficiary(ies).
Life insurance:
- Review the decedent’s records to determine whether he/she
had group life insurance coverage that is administered through
ETF.
- If there is coverage in force, determine who are the beneficiaries.
- Notify Minnesota Life Insurance Company (MLIC), the company
that administers our group life insurance plan, of the amount
of coverage and who are the beneficiaries. MLIC will contact the
beneficiaries directly and issue payment to the beneficiary(ies).
Health insurance:
- Determine if health insurance was in force and/or whether there
are any dependents who are entitled to continue coverage.
- If the decedent had coverage in force, determine whether the
decedent’s estate is due any refund of premiums.
- If the decedent was a state employee, determine whether there
are any remaining sick leave credits available to pay health insurance
premiums.
What is the last payment due to a deceased
annuitant?
The last payment due to a deceased annuitant is the payment issued
on the first day of the month in which the annuitant's death occurs.
No payment is due to the annuitant for the month in which his/her
death occurs. if there is a death benefit payable from the annuity
(which will depend ont he annuity option selected at retirement),
the payment due for the month in which the annuitant dies will be
issued to the named survivor or beneficiary(ies).
Example: An annuitant dies in June (any date). The last payment
due to the deceased annuitant is the payment for May, issued on
June 1.
Can I receive my death benefits in a
lump sum?
If the decedent was an annuitant, it depends on whether you are
a beneficiary or the named survivor of a joint and survivor annuity.
Beneficiaries are normally eligible for a lump sum payment. However,
named survivors of a joint and survivor annuity are only eligible
for monthly payments that continue for their lifetime.
How long does it take before the beneficiary(ies)
receive the death benefit payment(s)?
It depends on the complexity of the account, and in some cases
how quickly ETF can locate the beneficiaries and how long it takes
them to apply. Generally, the entire process can take several weeks.
A named survivor of a joint and survivor annuity can sometimes receive
payments more quickly.
If there are multiple beneficiaries, we generally wait until all
the beneficiaries have applied for the death benefit before payment
is issued. However, if one or more beneficiaries delay application
(or cannot be located), we will issue payment to the beneficiaries
who have already applied.
Can I find out who are the decedent’s
beneficiaries and/or what annuity option a deceased annuitant chose
at retirement?
Due to confidentiality laws, we can only provide that information
to the beneficiaries and to the personal representative of the decedent’s
estate, if applicable.
Why is the amount of my beneficiary
annuity different from the monthly amount that the decedent was
receiving?
It depends on the annuity option that the decedent selected at
retirement. Certain joint and survivor annuities pay only 75% of
the decedent’s annuity to the named survivor. Also, if the
decedent selected an accelerated payment option, the accelerated
portion of the annuity is only payable until the annuitant reaches
age 62 or dies, whichever occurs first. This means that the accelerated
portion of the annuity ends upon the annuitant’s death; it
is not payable until the annuitant would have reached age 62. However,
a recent law change removes the requirement that the temporary annuity
payment stop if the death occurs before the retiree turns 62. The
law change is effective July 1, 2008, and is not retroactive.
It does not apply to accelerated payment annuities that become effective
before July 1, 2008. For more information, see Accelerated
Payment Options Will Be Changing Soon.
Do I need to send ETF a death certificate?
If a death certificate is necessary, ETF will request a certified
copy of the death certificate. By law we can not accept a photocopy
or a faxed copy of a death certificate. Note: If you are now responsible
for handling the decedent’s financial affairs, you may need
approximately 7-10 certified copies of the death certificate. The
funeral home can assist you in obtaining the death certificates.
Will taxes be withheld from the death
benefits I receive?
- You can specify what taxes you want withheld from your WRS beneficiary
annuity and change your withholding election as often as you wish.
If you do not specify any federal withholding or elect no withholding
then your withholding will default to “married with 3 exemptions.”
- If you are receiving a lump sum payment, the answer will depend
on your relationship to the decedent. You may also be eligible
to roll over your lump sum payment to avoid an immediate tax liability,
depending on your status as a beneficiary. More detailed information
on your options will be included with the death benefit application
provided by ETF.
I was a dependent covered under the
decedent’s group health insurance. What do I need to do to
continue coverage?
Currently, your health insurance coverage is not continued automatically.
ETF will send you the application to continue your coverage, which
you should complete and return as soon as possible to avoid any
lapse in coverage. Once your application is processed you will receive
new health insurance and pharmacy benefit cards, usually within
about three weeks after ETF receives your completed application.
If you subsequently wish to cancel your group health insurance
coverage, you must send a written request to ETF. Cancellation will
become effective the first of the month after ETF receives your
written cancellation request.
Did the decedent have group life insurance
coverage?
We will review the decedent’s records to determine whether
he/she had group life insurance coverage that is administered through
ETF, and if coverage is in force, determine who are the beneficiaries.
We will then notify Minnesota Life Insurance Company (MLIC), the
company that administers our group life insurance plan, of the amount
of coverage and who are the beneficiaries. MLIC will contact the
beneficiaries directly and issue payment.
It is possible that the decedent was covered under employer-sponsored
life insurance other than the plan administered through ETF. This
Department will not have any information about such coverage, so
you may wish to contact the decedent’s former employer for
information about any other life insurance coverage.
Are there other parties that I need to
notify of the decedent’s death?
Depending on the decedent’s situation, below are some of
the entities that you may need to contact:
- The decedent’s employer if he or she was still working.
- The Social Security Administration, if the funeral home has
not already done so.
- If you are the personal representative or executor of the
estate, the probate court in the county in which the person
died.
- The carrier(s) for any other health and/or life insurance
coverage the decedent may have had.
- If the decedent had a deferred compensation account, the Wisconsin
Deferred Compensation (WDC) program. Call the WDC toll-free
at 1-877-457-9327.
- Any investment plans, financial institutions, etc., in which
the decedent had assets.
- If the decedent was a member of a labor organization (WEAC,
WREA, WSEU, etc.), you may wish to notify the union.
For additional information, watch the Department's online recording,
Planning for the Inevitable (Information
About Survivor Benefits and Beneficiary Designations).
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