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:
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.