| If you die while | Lump sum |
|---|---|
| Working (in service)plus your account balance and interest | $18,000 |
| Retiredplus whatever your payment option provides | $5,000 |
| Left, not retired (inactive)account balance and interest only | none |
- If you die while working, your beneficiary gets $18,000 plus your account balance and interest. After retirement, your beneficiary gets $5,000, plus whatever your payment option provides.Member Handbook (2025), p. 30
- Check with TRS of OklahomaIf you die while working, already qualified for retirement with 10 or more years, and named one sole beneficiary for both the account and the $18,000, that person can choose a lifetime Option 2 benefit instead of the lump sums.The statute (17-105(P)) doesn't mention the retirement-eligibility requirement the handbook and rule 715:10-9-3 add.Member Handbook (2025), p. 30
- Beneficiaries of an inactive member (left employment, not retired) get the account balance and interest but not the $18,000.Member Handbook (2025), p. 30
- The $18,000 and $5,000 are taxable to the beneficiary. You can name a funeral home as beneficiary for that part, or your beneficiary can disclaim it to a funeral home within 9 months.Member Handbook (2025), pp. 30-31
- A former spouse named as beneficiary is treated as if they died before you, unless you name them again after the divorce.Member Handbook (2025), p. 31
The lifetime annuity instead of the $18,000
If an in-service member who qualified for retirement had 10+ years and named one sole primary beneficiary for both the account and the $18,000, that beneficiary may give up the lump sums and take a lifetime Option 2 benefit as joint annuitant. Member Handbook (2025), p. 30, Death of Retirement-Eligible Members; OAC 715:10-9-3 (p. 47); 70 O.S. § 17-105(P)
For the Option 2 annuity in place of the $18,000 in-service death benefit, the statute requires 10 years and one designated beneficiary; the handbook and rule 715:10-9-3 also require that the member qualified for (service) retirement, and the handbook requires the same sole beneficiary for both the account and the death benefit. This page follows the handbook.
Who counts as "in service"
'In-service' includes members actively employed at death, members rehired for the next year who die over the summer, and members on sick leave up to one year; not members who resigned. OAC 715:10-9-2(b)-(c) (rules eff. 9/1/25, p. 47)
After you retire
When a retiree dies, the $5,000 goes to the designated beneficiary (who can differ from the joint annuitant) and other payments follow the option chosen. The full benefit for the month of death is paid. Member Handbook (2025), pp. 30-31; 70 O.S. § 17-105(Q), (S) See Payment options for what Options 2 and 3 pay a joint annuitant.
Taxes, funeral homes and divorce
The $18,000 and $5,000 survivor benefits are taxable income to the beneficiary (Form 1099-R). Member Handbook (2025), p. 31, Is the survivor benefit taxable income? See taxes.
Beneficiaries may disclaim all or part of the $18,000 or $5,000 to a licensed funeral home within 9 months of death; the tax then falls on the funeral home. Member Handbook (2025), pp. 30-31; 70 O.S. § 17-105(P)-(Q)
A former spouse named as beneficiary is treated as having predeceased the member unless re-designated after the divorce. Member Handbook (2025), p. 31; OAC 715:10-9-7
A member who has left teaching without retiring has no lump-sum death benefit, only the account balance and interest; the choices at that point are on leaving teaching. To see the benefit a joint annuitant would be protecting, use the TRS of Oklahoma calculator.
Questions
What does TRS of Oklahoma pay if a member dies while working?
$18,000 to the beneficiary, plus the member's account balance and interest. A beneficiary of a retirement-eligible member with 10+ years may be able to take a lifetime Option 2 benefit instead.
What does TRS of Oklahoma pay when a retiree dies?
$5,000 to the beneficiary, plus whatever the retiree's payment option provides (for example, Option 2 or 3 to a joint annuitant).
Source: Member Handbook, Teachers' Retirement System of Oklahoma, Plan provisions as of July 1, 2025, pp. 30, 30-31, 31. Also: TRS of Oklahoma rules, OAC 715:10-9-2, 715:10-9-3, 715:10-9-7; 70 O.S. § 17-105. Last reviewed .