- If you die before retiring, IPERS pays the higher of two amounts. One is the present value of your earned benefit. The other is your contributions plus your highest year's wages times your years of service divided by 30. A sole beneficiary can take a lifetime monthly benefit instead of a lump sum.Member Handbook (2025), p. 29, If You Die Before Retirement
- IPERS's example: Mark, 43, had 20 years of service, $50,281.09 in contributions and $55,988.05 in wages. The formula gives $87,606.46, more than the $63,895.74 present value, so IPERS pays $87,606.46.Member Handbook (2025), p. 30, Death Benefit Examples
- After you retire, any death benefit depends on the payment option you chose. Beneficiaries must apply, generally within five years of your death.Member Handbook (2025), p. 54, Death After Retirement
Before you retire
IPERS pays the higher of (1) the actuarial present value of your accrued benefit at death and (2) your accumulated contributions + your highest annual covered wage x years of service / 30. An inactive member not vested by service gets only (2), as a lump sum. A sole individual beneficiary may choose a lifetime monthly benefit instead of a lump sum (lump sum if the monthly amount would be under $50). Member Handbook (2025), pp. 29-30, If You Die Before Retirement
IPERS's example: Mark
| Mark, age 43 | Amount |
|---|---|
| Contributions plus interest | $50,281.09 |
| Highest year's wages × 20 years ÷ 30$55,988.05 × 20 ÷ 30 | $37,325.37 |
| Formula total | $87,606.46 |
| Present value of his earned benefit | $63,895.74 |
| IPERS pays the higher | $87,606.46 |
IPERS shows $87,606.46. Member Handbook (2025), p. 30, Death Benefit Examples The Mark death-benefit example calls $55,988.05 his 'average salary' in the text but 'highest annual covered wage' in the calculation; the IPERS web page repeats the example with Calculation 1 total $63,895.41 against $63,895.74 on the line above. The statute uses the highest year of covered wages. We use the highest year, as Iowa law does. Member Handbook (2025), p. 30; IPERS web page Death Before Retirement; Iowa Code §97B.52(1)(a)
After you retire
What your beneficiary gets depends on the option chosen. Option 2: contributions plus interest minus total gross benefits received, if positive. If you die before your first payment, the application is canceled and the pre-retirement death benefit applies. Member Handbook (2025), p. 54, Death After Retirement; p. 38, Option 2
| Option | When you die, IPERS pays |
|---|---|
| Option 1 | The lump-sum death benefit you picked. |
| Option 2 | Whatever is left of your contributions plus interest after the payments you received. |
| Option 3 | Nothing. |
| Option 4 | Your contingent annuitant gets 100%, 75%, 50% or 25% of your monthly amount for life. |
| Option 5 | The rest of the 120 monthly payments, if you die before 120. |
| Option 6 | Your contingent annuitant gets the chosen percentage for life. |
Claiming
Beneficiaries have to apply. The deadline is generally 5 years after the member's death. Member Handbook (2025), p. 9, Death Benefit Payment Deadline; Iowa Code §97B.52(5)
See Payment options for IPERS's worked examples of each option.
Common questions
What does IPERS pay if a member dies before retiring?
The higher of the present value of the benefit earned, and contributions plus interest plus the highest year's wages times years of service divided by 30. A sole beneficiary can choose a monthly benefit for life instead.
What does IPERS pay if a retiree dies?
It depends on the payment option chosen at retirement. Under Option 2, the formula amount, the beneficiary gets whatever is left of the member's contributions plus interest after the payments received.
Source: IPERS Member Handbook, Updated July 2025, pp. 9, 29-30, 38, 54. Also: IPERS web pages; Iowa Code § 97B.52. Last reviewed .