Death Benefit

The Death Benefit is the balance in a participant’s individual account on the date of their death. It is important that NEAP receive a copy of your death certificate as soon as possible.

Married and You Die Before Receiving a Benefit

If you die before receiving a benefit and you are married at the time of your death, the balance of your individual account will be paid as a Death Benefit to either A, B or C below:

A To your spouse as a pre-retirement spouse benefit through the purchase of a single-life annuity payable each month to your spouse for your spouse's lifetime, if your spouse chooses.
  OR
B To your spouse as a lump-sum distribution, if your spouse chooses.
  OR
C To your designated beneficiary as a lump-sum distribution, if your spouse has consented to the designation.

 

Not Married and You Die Before Receiving a Benefit

If you are a participant and die before receiving a benefit and you are not married at the time of your death, the balance of your individual account will be paid as a Death Benefit to either A or B below:

A To your designated beneficiary as a lump-sum distribution.
  OR
B

To the following individuals in the indicated order, if there is no beneficiary:

  • Your children (shared equally), or
  • Your parents, or
  • Your estate.