State Public Pensions in North Carolina: when someone dies

If the retiree elected a survivor option — Option 2, 3, 6-2, or 6-3 — the survivor beneficiary receives a monthly lifetime benefit. Otherwise the Guaranteed Refund pays out any contributions and interest not already returned, in a lump sum, and an optional $10,000 Contributory Death Benefit is paid if the retiree enrolled in it.

Yes. The beneficiary receives a return of contributions plus interest, and if the member died in active service after one year as a contributing member, a lump-sum death benefit equal to the highest 12 consecutive months of salary in the prior 24 months — at least $25,000 and no more than $50,000. A sole eligible beneficiary may instead qualify for a monthly Survivor's Alternate Benefit.

No. The member is due the payment for the month of death, and the legal representative is entitled to that full check. Checks representing benefits for later months must not be cashed — state retirement law requires reimbursement, and fraudulently receiving a deceased retiree's benefit is a Class 1 misdemeanor.