Texas Government Code 824.402 – Benefits On Death of Active Member
(a) Except as provided by § 824.401, the designated beneficiary of a member who dies during a school year in which the member has performed service is eligible to receive at the beneficiary’s election the greatest of the following amounts:
(1) an amount equal to twice the member’s annual compensation for the school year immediately preceding the school year in which the member dies, or $80,000, whichever is less;
(2) an amount equal to twice the member’s rate of annual compensation for the school year in which the member dies, or $80,000, whichever is less;
(3) 60 monthly payments of a standard service retirement annuity, computed as provided by § 824.203;
(4) an optional retirement annuity for the designated beneficiary’s life in an amount computed as provided by § 824.204(c)(1) as if the member had retired on the last day of the month immediately preceding the month in which the member dies; or
(5) an amount equal to the amount of accumulated contributions in the member’s individual account in the member savings account.
(a-1) In determining under Subsection (a)(4) whether to reduce the optional retirement annuity amount because of early retirement and in determining the amount of that reduction, if applicable, the retirement system shall make the determination as if the member had retired with an additional five years of service credit on the last day of the month preceding the month in which the member dies. The additional five years of service credit used in making a determination under this subsection may not be used to determine the amount of the benefit under § 824.203 or whether the benefit under this subsection is authorized under § 824.401.
Terms Used In Texas Government Code 824.402
- 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
- Month: means a calendar month. See Texas Government Code 312.011
- Rule: includes regulation. See Texas Government Code 311.005
- Year: means 12 consecutive months. See Texas Government Code 311.005
(b) In addition to the benefits provided under Subsection (a), the designated beneficiary of a member who is an employee of a school district and who dies as the result of a physical assault during the performance of the employee’s regular duties is eligible to receive a lump-sum death benefit payment in the amount of $160,000.
(c) The board of trustees by rule may prescribe the manner of payment of benefits under this section.