State Public Pensions in Nebraska

Reporting a death

The employer or the beneficiaries should notify NPERS immediately of a death. Proof of death must be provided before any death benefit is distributed.¹

NPERS then sends the necessary forms to the beneficiaries the member listed.²

Death before retirement

A death benefit for a member who dies before retiring is payable to the beneficiary on the member's most recent beneficiary form, which generally takes priority over a beneficiary named in a will or trust.¹

Under Neb. Rev. Stat. 79-956, when a Nebraska School plan member dies before retiring with a spouse designated as the sole primary beneficiary, the spouse may elect a 100% joint and survivor annuity for life or a refund of contributions plus interest plus an additional 101% of that amount.^{3, 2}

Filing window

The Nebraska School plan surviving spouse must apply to NPERS within 12 months of the date of death to make that election. After 12 months the spouse receives only the member's contributions plus interest.^{3, 2}

Death after retirement

When a retiree dies, the beneficiary or estate is eligible for any payments remaining under the payment option elected at retirement.²

A Life Only annuity ends with no refund or death benefit. A Modified Cash Refund annuity pays any purchase-price balance to the beneficiary or estate, and a Period Certain and Continuous annuity (5, 10, or 15 years) pays the remaining guaranteed payments.¹

A 50%, 75%, or 100% Joint and Survivor annuity continues that share to the surviving spouse for life, and a Non-Spousal Joint and Survivor annuity continues 50%. A Designated Period annuity (5, 10, 15, or 20 years) pays the remainder of the period.¹

Who receives the benefit

If no designated beneficiary survives, the spouse married to the member on the date of death is the sole primary beneficiary. If neither survives, the benefit is issued to the member's estate, and NPERS does not observe per stirpes distribution to a deceased beneficiary's own heirs.¹

NPERS warns that a death benefit is turned over as unclaimed property when the beneficiary lets the address go stale or misses a required minimum distribution. Beneficiaries must keep a current address on file with NPERS.¹

Under Neb. Rev. Stat. 79-956, if no legal representative or beneficiary applies for a deceased School plan member's accumulated contributions, they are distributed under the Uniform Disposition of Unclaimed Property Act.³

Governing law: Neb. Rev. Stat. 79-901 to 79-977.03; 79-978 to 79-9,124; 24-701 to 24-714; 81-2014 to 81-2041; 84-1301 to 84-1333; 23-2301 to 23-2334

Nebraska School plan surviving spouse's election of the annuity or the enhanced refund

within 12 months of the date of death; the spouse receives only the member's contributions plus interest^{3, 2}

Nebraska School Employees plan

Nebraska school employees; a defined benefit plan under Neb. Rev. Stat. 79-901 to 79-977.03⁴

Omaha School Employees plan

Omaha school employees; a defined benefit plan under Neb. Rev. Stat. 79-978 to 79-9,124⁴

Judges plan

Judges; a defined benefit plan under Neb. Rev. Stat. 24-701 to 24-714⁴

State Patrol plan

State Patrol employees; a defined benefit plan under Neb. Rev. Stat. 81-2014 to 81-2041⁴

State Employees plan

State employees; a cash balance / defined contribution plan under Neb. Rev. Stat. 84-1301 to 84-1333⁴

County Employees plan

County employees; a cash balance / defined contribution plan under Neb. Rev. Stat. 23-2301 to 23-2334⁴

Deferred Compensation Plan

A voluntary plan under Neb. Rev. Stat. 84-1504 to 84-1514⁴

1. 1.NPERS State Employees Retirement Plan handbook
2. 2.NPERS School Employees Retirement Plan handbook
3. 3.Neb. Rev. Stat. 79-956
4. 4.About Us (Nebraska Public Employees Retirement Systems)