University of Illinois Chapter State Universities Annuitants Association

Benefit Info

According to the Illinois Department of Central Management Services' website, "The State of Illinois is facing a difficult and unprecedented funding situation which has significantly impacted the State Employees' Group Insurance Program through the delay of claim payments under the Quality Care Health Plan and the Quality Care Dental Plan." More information about the delay of claim payments for the Quality Care Health Plan and Quality Care Dental Plan is available at: http://www2.illinois.gov/cms/Employees/benefits/Insurance/Pages/QCHPQCDPClaimPaymentDelay.aspx

Survivor Assistance (November 26, 2011)

One purpose of the UIUC Chapter of SUAA is to help members of the State Universities Retirement System (SURS) better understand what steps survivors will need to take when the death of a member of SURS occurs. We have therefore scheduled Survivors’ Assistance Workshops each semester. Information on these Workshops has been in each issue of The Annuitant, the Chapter’s Newsletter.

As another way of helping our members, we are providing the information developed by the members of the SUAA Chapter at Illinois State University (ISUAA) that covers this topic. We feel that this is an excellent summary of the information needed in this situation.

We want to emphasize that this information is intended to complement, not replace that provided by SURS in their publications and by their representatives. Also, as indicated in the first paragraph of the ISU document, it does not constitute legal, tax or professional advice.

SURVIVOR ASSISTANCE: The following is from the ISUAA web site: http://www.annuitants.ilstu.edu/Survivor/

This document was prepared by the ISU Annuitants Association (ISUAA) to provide information for members of the State Universities Retirement System (SURS) and their survivors. It does not constitute legal, tax or professional advice.

Definitions:

• Annuitant – any person receiving a SURS annuity (pension)

• Survivor – spouse or dependent

• Dependent – a spouse or minor child, college student under age 22, disabled child or parent

• Beneficiary – anyone named by the annuitant to receive death benefits

SURS – www.surs.org or call 1-800-275-7877

Documents that should be on file with SURS for all annuitants today:

• Updated beneficiary form, along with current address of all beneficiaries

• Annuitants birth certificate

• Survivors birth certificate

• Marriage certificate or divorce papers

Upon the death of a spouse the annuitant should contact SURS immediately to report the death.

Upon the death of the annuitant the survivor should immediately notify SURS of survivors’ and/or beneficiaries names, addresses, phone numbers, birth dates and social security numbers.

Within 7 – 10 days after SURS is notified of the death of an annuitant, SURS will send the survivor or beneficiaries a quote letter and forms. To expedite processing of a claim the following forms mailed by SURS should be returned immediately:

• Application for Widow’s or Widower’s Survivor Benefit

• Certified copy of the death certificate (obtain ample copies from the funeral director)

• Certified copy of the death certificate for any primary beneficiaries

• Certified copy of the Letters of Office or Letters of Administration (if payable to estate)

• Copy of trust agreement (if payable to a trust)

• Agreement to Hold or Use Payments for the Benefit of a Minor (if payable to a minor child)

The survivor will continue to receive health care insurance after the death of the annuitant assuming that person is the eligible survivor and receiving the survivor benefit. It is very important that there is no delay in notifying SURS when death occurs. Pharmacies will not change the name on the account until SURS officially notifies the pharmacy. Should there be a delay and medication is needed, the survivor must pay the full retail price for the prescription, but will be reimbursed by the insurance carrier later upon filing of appropriate forms.

Upon the death of an annuitant the survivor “inherits” the subsidized health care premium of the annuitant.

Upon the death of an annuitant and depending on the plan and time period contracted at the time of retirement, the survivor will be given a monthly annuity that amounts to approximately 50% of what was paid to the annuitant at the time of his/her death. If there are contributions and interest remaining in the account SURS will give the survivor the option to take either the monthly survivor benefit or a lump sum benefit. Experience indicates that those taking the lump sum will exhaust their contributions and interest within three or four years. If the survivor decides to take the lump sum payment the following documents will be needed: Waiver of Survivors Insurance Benefit, Application for Death Benefit and Certified Copy of Death Certificate.

If there is an eligible survivor (spouse or dependent), SURS will pay a $1,000 lump sum payment ($500 if reciprocal with TRS or SERS). If there is no spouse or dependent, the death benefit will be paid to the beneficiaries.

Survivors sometimes experience delays in finalizing claims because of delays in notifying SURS of an annuitant’s death and/or delays in promptly returning to SURS the necessary forms and documentation. SURS will pay a full month’s annuity if death occurs in the middle of a month and will continue to pay until notified of an annuitant’s death. If SURS overpays, it will delay processing the death claim until the overpayment is returned to SURS. Delays may also be caused by marriage and/or birth certificates not being on file, and/or because of certifying reciprocal data when another system such as TRS or SERS, is involved.

In addition to using the above information relative to SURS, it is important to have all other necessary legal papers readily available, including wills and powers of attorney.

Last Updated on February 7, 2012
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