Before you retire
If you die before retirement, your beneficiaries (other than a surviving spouse with the options below) or estate get a lump-sum refund of your contributions plus interest. School Handbook p. 46, General Beneficiary(ies) Options; Neb. Rev. Stat. §79-956(1), (4)
The spousal options apply only if your spouse is your sole primary beneficiary on a beneficiary form filed with NPERS. The spouse must apply within 12 months of your death. School Handbook pp. 46-47
20 or more years of service, or age 65 or older at death
Annuity choice: A 100% joint and survivor annuity for the spouse's life, effective on the date of death, not reduced for early retirement.
Or a refund: Contributions plus interest plus an additional 101% of contributions plus interest.
School Handbook p. 47, Surviving Spouse's Options; Neb. Rev. Stat. §79-956(2)5 to under 20 years of service and under 65 at death (employed on or after May 1, 2001)
Annuity choice: A 100% joint and survivor annuity for the spouse's life, reduced for early retirement. The statute says it starts when the member would have reached 60 (or at the member's age at death if older), reduced 3% a year before 65.
Or a refund: Contributions plus interest plus an additional 101%.
School Handbook pp. 47-48; Neb. Rev. Stat. §79-956(3)Under 5 years of service and under 65 at death
Refund: Contributions plus interest only.
School Handbook p. 48For a member with 5 to 20 years who dies before 65, the handbook says only that the spouse's annuity 'will be reduced for early retirement'. The statute says it commences when the member would have reached 60 (or the member's age at death if older), reduced 3% a year before 65, and separately that benefits commence immediately on death.
School Handbook p. 48; Neb. Rev. Stat. §79-956(3), (5)- 22 years: a 100% annuity with no early cut, or a refund of $160,800 ($80,000 plus 101% more).
- 12 years, age 50: a reduced annuity, or the same $160,800 refund.
- 3 years: $80,000, the balance only.
- If your spouse isn't your only primary beneficiary, your beneficiaries get $80,000.
If the 12-month deadline is missed, or the member terminated before May 1, 2001, the spouse gets contributions plus interest only. School Handbook pp. 47-48
For deaths on or after Jan. 1, 2007 during qualified military service, beneficiaries get any additional death benefit as if the member had returned to work. School Handbook p. 22, HEART Act; Neb. Rev. Stat. §79-956(7)
With no surviving designated beneficiary, the account refund goes to the spouse married to the member at death, otherwise the estate. School Handbook p. 17, Distribution of Benefits; Neb. Rev. Stat. §79-969
After you retire
Your beneficiaries or estate receive whatever remains under the payment option you chose. Once a beneficiary is being paid, anything left at the beneficiary's death goes to the beneficiary's estate. School Handbook p. 46, Death Benefit After Receiving Retirement Benefits; p. 49
- Option 1: Life Only Annuity: Monthly payment for life with no refund or death benefit; no beneficiary.
- Option 2: Modified Cash Refund Annuity: Monthly payment for life. If you die before receiving payments equal to your account balance (contributions plus interest) at retirement, the rest is paid in a lump sum to your beneficiaries or estate. Beneficiaries can be changed after retirement.
- Option 3(a): 5-Year Period Certain and Continuous: Monthly payment for life; if you die before 60 payments, the rest go to your beneficiaries or estate.
- Option 3(b): 10-Year Period Certain and Continuous: Monthly payment for life; 120 payments guaranteed.
- Option 3(c): 15-Year Period Certain and Continuous: Monthly payment for life; 180 payments guaranteed.
- Option 4: Joint and Survivor Annuity (spouse only; 50%, 75% or 100%): Monthly payment for life, then the chosen percentage to your spouse for life. Only your spouse may be named; if your spouse dies first you cannot name another. Not available to an alternate payee.
- Option 5: Non-Spousal Joint and Survivor Annuity (50%): Monthly payment for life, then 50% to one non-spouse beneficiary for life. The beneficiary cannot be changed after benefits start. Not available to an alternate payee.
Compare the payment options. For how refunds and benefits are taxed, see taxes on your pension. Leaving before you retire changes what's left: see refund or pension. To see the pension your option would start from, use the calculator.
From the sources
- If you die before retiring, your beneficiaries get your contributions plus interest. A spouse who is your only primary beneficiary may have more choices, but must apply within 12 months.School Handbook pp. 46-47
- With 20+ years, or at 65+, your spouse can take a lifetime 100% joint and survivor annuity with no early cut. Or they can take your contributions plus interest plus 101% more. With 5 to 20 years and under 65, the same choices apply, but the annuity is reduced for early retirement.School Handbook pp. 47-48; Neb. Rev. Stat. §79-956(2)-(3)
- After you retire, what your survivors get depends on the payment option you chose.School Handbook p. 46
Questions
What does my family get if I die before I retire?
Your contributions plus interest, at least. A spouse who is your only primary beneficiary may choose a lifetime annuity or a larger refund instead.
How long does my spouse have to apply?
12 months from your death. After that, only the refund of contributions plus interest is paid.
What happens after I retire?
It depends on the payment option you chose when you retired.
Source: Nebraska School Employees Retirement System Handbook, Revised 07/2026, pp. 17, 22, 46, 46-47, 47, 47-48, 48, 49. Also: Neb. Rev. Stat. §§ 79-956, 79-969. Last reviewed .