Texas Government Code 814.401 – Member Death Benefits Generally
(a) Except as provided by Subsection (d), if a member dies under a circumstance described in Subsection (c), a lump-sum death benefit is payable from the state accumulation account in an amount computed at the rate of five percent of the amount in the member’s individual account in the employees saving account at the time of death, times the number of full years of service credit the member had at the time of death, but not more than 100 percent of the amount in the member’s individual account.
(b) The benefit provided by this section is payable to the beneficiary designated by the member under § 814.403(b). If a member does not designate a beneficiary or if the beneficiary designation cannot be made effective, the benefit is payable to the member’s estate.
Terms Used In Texas Government Code 814.401
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
(c) A benefit is payable under this section only if the member at the time of death was:
(1) actively employed by the state;
(2) receiving workers’ compensation benefits for an injury sustained while employed by the state; or
(3) on authorized sick leave.
(d) A death benefit may not be paid under this section if, at the time of death, a death benefit annuity became effective.
(e) A beneficiary designation that names a former spouse as beneficiary is invalid unless the designation is made after the date of the divorce.