$5,000 Death Benefit for PSRS Retirees
If you pass away after retirement, a one-time, lump-sum death benefit of $5,000 is payable to the beneficiary you designate. You may designate an individual(s), a legal entity(ies), an established trust, or your estate. Your designation can be changed at any time by filing a new $5,000 Death Benefit Beneficiary Designation with PSRS.
This is a taxable distribution, not a life insurance policy. If your beneficiary is your spouse, he or she can roll it over to a qualified retirement plan to avoid incurring an immediate tax liability. If your beneficiary is someone other than your spouse, he or she can roll it to an Individual Retirement Account (IRA) set up as an inherited IRA.