State Public Pensions in Arizona

Death before retirement

When an ASRS member dies before retirement, A.R.S. § 38-762 gives the designated beneficiary a survivor benefit equal to the member's and the employer's contributions plus interest, which ASRS describes as double the member's contributions, along with any service-purchase payments.^{1, 2}

Section 38-762 lets the beneficiary take the ASRS survivor benefit as a lump sum or elect the actuarial equivalent as monthly income for life.¹

Death after retirement

When an ASRS retiree dies, the continuing benefit depends on the annuity option the retiree elected.³

Whatever the option, A.R.S. § 38-763(B) entitles the estate or beneficiary to at least the member's contributions plus interest, less the benefits ASRS already distributed.³

Payments after the date of death

ASRS does not require the return of the pension payment for the month in which the retiree died, but any later payments made into the member's account must be returned.²

Who receives the benefit

For a PSPRS defined-benefit member, PSPRS pays a survivor benefit to an eligible spouse and eligible children: a Spouse's Pension for life plus a Child's Pension of up to 20% in equal shares.⁴

With no eligible spouse or child, PSPRS pays the balance of the member's accumulated contributions to the named beneficiary; if that beneficiary does not apply within twelve months of the death, the Local Board may pay the member's nearest of kin or the estate.⁴

Governing law: A.R.S. §§ 38-762, 38-763

Named beneficiary's application for a PSPRS member's accumulated contributions

twelve months after the death; the Local Board may pay the member's nearest of kin or the estate⁴

Arizona State Retirement System (ASRS)

Most state, school, and local government workers²

Phone: 1-602-240-2000

Toll-free: 1-800-621-3778

Public Safety Personnel Retirement System (PSPRS)

Police officers, firefighters, and other public-safety personnel⁴

Phone: 1-602-255-5575

Toll-free: 1-877-925-5575

The employer's Local Board

Provides documentation to PSPRS beneficiaries and meets to approve the benefits⁴

1. 1.A.R.S. § 38-762
2. 2.Survivor Benefits (Arizona State Retirement System)
3. 3.A.R.S. § 38-763
4. 4.Survivor Benefits (Public Safety Personnel Retirement System)