Burial Allowance & Lump-Sum Benefits

In addition to any monthly survivor benefits that may be payable, SCERS may also issue a burial allowance and/or a lump-sum payment following the death of a retired member. These benefits are determined based on the member’s status at the time of death, the selected retirement option, and whether a survivor is eligible for a continuance.

Burial Allowance

SCERS provides a one-time burial allowance of up to $4,000 upon the death of a retired member. However, if the member is a Reciprocal Member and the final retirement system is a system other than SCERS, the burial allowance provided by SCERS will be offset by the burial allowance, if any, payable from the last Reciprocal System.

Key points:

  • The payment is taxable
  • A copy of the death certificate is required

The burial allowance if only payable by SCERS when a retired member dies. No burial allowance is paid when a beneficiary who is receiving a monthly continuance payment from SCERS dies, or when a former spouse/registered domestic partner who is receiving an allowance under a Domestic Relations Order (DRO) dies.

Lump-Sum Return of Contributions

In cases where:

  • The retiree selected a payment option that did not include a continuing survivor benefit, or
  • There are no eligible survivors, and
  • A balance of the member’s contributions remains unpaid at the time of death,

SCERS will issue a lump-sum payment of the remaining member contributions (if any).

This payment is payable to:

  • The named beneficiary on file, or
  • The estate of the deceased, if no beneficiary exists

If a continuing survivor benefit is paid out, no refund of member’s contributions will be issued.

Tax Considerations

  • The burial allowance is taxable
  • The lump-sum return of contributions is taxable
  • SCERS will issue a Form 1099-R for any taxable distributions

How to Receive These Benefits

SCERS will determine eligibility and contact the appropriate individual(s) after verifying the member’s record. Be prepared to provide:

  • A certified death certificate
  • Social Security Number (SSN) or Taxpayer Identification Number (TIN)