What to do when a TRS of Texas account holder dies
Report the death to TRS of Texas' Pension Member Services at 1-800-223-8778
When an account holder at TRS of Texas passes away, the next step depends on how the pension benefits were set up. Accounts with beneficiary designations or trust ownership transfer outside of probate. Accounts titled solely in the deceased's name require the estate's legal representative to work with TRS of Texas' Pension Member Services (1-800-223-8778) to access and distribute the funds.
To start, call TRS of Texas at 1-800-223-8778. Have the account holder's full name, account numbers, and the death certificate ready before you call.
Death claim process
Here is the step-by-step death claim process at TRS of Texas:
Filing a claim
- The TRS participant's date of death
- The name, address and telephone number of a family member, friend or other person who can act as the contact for TRS
- A copy of the death certificate when it becomes available. For an active member's death, TRS needs a death certificate that includes the cause of death
Required Documents
- Copy of the death certificateFor an active member's death, the certificate must include the cause of death.
- Completed TRS death claim formsTRS mails the forms to the beneficiary after the death is reported.
- Salary and employment information from the member's last employer, for an active member's deathTRS requests it from the employer.
- Certified copy of the divorce decree, if a former spouse named before the divorce is the designated beneficiary and the designation is to be revokedTRS must receive it before payment is made.
- Documents from the court probating the estate, if the member's estate is the beneficiaryTRS pays an estate only if it is probated in some manner.
- Further documentation TRS may require, if a trust or other legal entity is the beneficiary
Forms TRS of Texas issues1
What happens to each kind of account1
- Pension
When a retiree dies, the TRS 15 beneficiary receives a $10,000 lump-sum survivor benefit in addition to any continuing Option One, Two, Three, Four or Five annuity; the two can be different people. A surviving joint-and-survivor beneficiary must also designate a beneficiary to claim their benefit.1
A divorce does not automatically revoke a former spouse named before the divorce. TRS must receive a designation made after the divorce before the death, or a certified copy of the decree before it pays benefits. A decree does not change the beneficiary of an Option 1 through 5 retirement annuity.4
What TRS of Texas's agreement and guidance say3
- Telling the institution
Timely notice of a retiree's death prevents overpayments the beneficiary could be responsible for paying back.1
- How proceeds are paid
When an active member dies, the beneficiary chooses the payment plan: up to $80,000 as a lump sum, 60 monthly payments, an Option One lifetime annuity, the accumulated contributions, or $2,500 plus monthly survivor payments. Benefits are not assignable, so they cannot be assigned to a funeral home.1
- What it says about taxes
TRS says its death and survivor benefits are not life insurance payments and are usually subject to federal income tax. Its benefits handbook says the $160,000 line-of-duty assault benefit is not subject to federal income tax.1, 5
TRS's page says the beneficiaries should complete and file the claim forms and related documents before the first anniversary of the member's death to avoid adverse tax consequences.1
Sources5
Most death benefits are processed within 31 days after all required forms and documents are received.
Frequently asked questions
TRS allows a trust to be named for certain benefits, but not every trust works for every benefit. The TRS Benefits Handbook states that the beneficiary of a joint-and-survivor annuity (Option One, Two, or Five) must be a person or an irrevocable trust with only one person as the beneficiary of the trust, so a revocable living trust cannot receive a continuing TRS joint-and-survivor annuity. A trust may be named for death benefits designated on form TRS 15, though TRS states that naming a trust, an organization, or your estate may affect the ability to roll the benefit over to another eligible retirement plan, and further documentation may be required. TRS benefits are not assignable.
No. TRS states that a divorce does not automatically revoke the designation of a former spouse made before the divorce. To revoke it, TRS must receive either a new designation of beneficiary signed after the divorce date and received before your death, or a certified copy of the divorce decree before it pays any death benefits. A divorce decree does not change the beneficiary of an Option 1 through 5 retirement annuity: for a retiree's optional annuity, the former spouse must consent, or a court with jurisdiction over the marriage must order or authorize the change.
Only within set limits, and the two beneficiaries follow different rules. The joint-and-survivor annuity beneficiary (Option One, Two, or Five) can be changed only ONE time after the first annuity payment, and only if the original beneficiary consents (when that person was the spouse) or a court orders or authorizes the change, and only if you have not outlived the original beneficiary's remaining life expectancy. TRS then pays the new beneficiary for the shorter of the original beneficiary's remaining life expectancy or the new beneficiary's life, and states it is possible that no annuity payment will be paid to the new beneficiary. That change uses form TRS 30C, with the Beneficiary Revocation Consent form (TRS 571) where a spouse or former spouse is involved; TRS provides both on request. A guaranteed-period beneficiary (Option Three or Four) can be changed at any time during the guaranteed period using form TRS 30D. The beneficiary of the $10,000 survivor benefit, named on TRS 15, can be changed any number of times.
TRS pays under the plan terms in Texas law. TRS states that if no valid designation is on file at death, the surviving spouse is eligible to receive the benefits; if there is no surviving spouse, TRS pays according to the statutory order of other related survivors; and if there are none, TRS pays the deceased member's estate. The statute (Tex. Gov't Code § 824.103(b)) lists that order as the surviving spouse, the decedent's children or their descendants, the parents, the executor or administrator of the estate, and then the persons entitled by law to distribution of the estate. A designation is effective only if TRS receives it before the member's death, and an employer is not authorized to accept the form for TRS. You can also name "my estate" on the form, but TRS pays an estate only if it is probated in some manner, which may delay payment.
For an active member who dies before retirement, the beneficiary, not the member, selects among five payment plans: twice the member's annual salary capped at $80,000; 60 monthly payments equal to the standard annuity (5+ years of service credit); a lifetime Option One 100 percent joint-and-survivor annuity (5+ years, not available to joint beneficiaries); the accumulated contributions; or $2,500 plus monthly survivor payments to a spouse, minor children, or dependent parent. A further $160,000, not subject to federal income tax, is payable if a member working in a TRS-covered position dies as a result of a physical assault during regular duties. For a retiree, the TRS 15 beneficiary receives a $10,000 lump-sum survivor benefit in addition to any continuing annuity. Report the death at 1-800-223-8778; TRS mails the claim forms, states that most benefits are processed within 31 days of receiving all required documents, and asks that the claim be filed before the first anniversary of the death to avoid adverse tax consequences.
TRS of Texas' Pension Member Services can be reached by phone at 1-800-223-8778 and fax at 1-512-542-6597 for questions throughout the claims process.
Sources
Data sourced from TRS of Texas primary sources (14 pages reviewed). How we research.
TRS of Texas death claims support
Pension Member Services (report a member or retiree death)
Phone
Toll-free
Fax
Hours
Mailing address
Website
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