Lump Sum Death Benefits

The ATRS lump-sum death benefit (LSDB) is a legislatively created benefit for ATRS members. The LSDB is not a life insurance policy. It is a non-taxable benefit of up to $10,000 that may be paid to a member’s beneficiary (or beneficiaries) or estate when the member passes away. If an active member, T-DROP participant, or retiree has at least 10 years of actual service credit with ATRS, that member becomes immediately eligible for the LSDB.

The exact amount of a member's LSDB is calculated according to rules set by the ATRS Board of Trustees and varies depending on whether the member was contributory, noncontributory, or both. The amount of benefit, and the right to the benefit itself, is subject to change by the ATRS Board of Trustees and the Legislature.

Eligibility Requirements

In order for a member's beneficiary(ies) to be eligible for a Lump-Sum Death Benefit, the following conditions must be met:

• The member must be an *Active Member at the time of death. An *Active Member is currently working for an ATRS covered employer and is eligible to receive Service Credit. 

*For the purpose of eligibility for the Lump Sum Death Benefit, a member is considered active for an additional fiscal year following the last fiscal year the member rendered actual service to an ATRS covered employer and obtained at least a quarter (0.25) year of Service Credit.)

• The member must have a minimum of 10 years of actual credited service with ATRS.

• The member must be an ATRS Retiree at the time of his or her death.

• The retiree must have a minimum of 10 actual years of service at the time of retirement.

Benefit Payments

The Lump Sum Death Benefit is established pursuant to rules and resolutions approved by the ATRS Board of Trustees.

Beneficiaries of Active or Retired Members with at least 10 years of actual service at the time of the member's death are eligible for the following: