Re(1): Death Benefit IP: 72.186.209.132 Posted on September 8, 2009 at 01:39:39 AM by Rich Griner
Jeff, I’m not sure if this was meant as a question for me, but I thought I would add my two cents. Actually, the current death benefit for LOD deaths is 50% of the previous year’s salary for the spouse. There is no longer a remarriage penalty. Minor children also receive up to 15%.
Current employees now enjoy the opportunity to designate a “Joint Annuitant” and they can designate that person to receive up to 100% of their pension benefit. There is a similar proposal, called Remarriage after Retirement that the pension board had prepared to help current retirees in a similar way. It is currently in the hands of the city and the unions so we will have to wait and see. There is no cost to fund so it should be an easy decision. The money is not actually set aside for any one retiree when they retire. The fund’s actuary does set aside COLA money in a sub-section of the PRAA, called the “Allocated” portion.
Remember, that the pension is like a ship. The pension board gets to steer it, but it is up to the members, through the City and the unions, to remodel the ship. The pension fund’s primary responsibility is to pay the specified benefits to those eligible and not to pay benefits to those who are not eligible. I do applaud the pension board’s efforts at recommending changes whenever possible.