(b) The death benefit under this subsection is an amount equal to the amount in the member account of the deceased member at the time of death.
(c) In the event that a beneficiary has not been named as provided in paragraph (a) of this subsection and ORS 238.390 (1), the death benefit under this subsection shall be paid in the manner provided for payment of money credited to the member account of the member in ORS 238.390 (2).
(d) The beneficiary designated under paragraph (a) of this subsection and ORS 238.390 (1) may elect to receive the amount payable in actuarially determined monthly payments for the life of such beneficiary as long as such monthly payments, plus the monthly amount if elected under ORS 238.390 (3), are at least $200.
(e) Interest upon the death benefit provided by this subsection accrues until the date that the benefit is distributed. The Public Employees Retirement Board shall establish procedures for computing interest to be credited on the benefit for the period between the date of death and date of distribution.
(2)(a) If a member of the system dies while employed in the service of a participating public employer or within 120 days after termination from service with a participating public employer and the member’s spouse is the member’s beneficiary under ORS 238.390, the member’s spouse may elect to receive the benefit provided under this subsection in lieu of the death benefits provided under ORS 238.390 and subsection (1) of this section.
(b) The member’s spouse must notify the board in writing of an election under this section no later than 60 days after the date of death of the member.
(c) The death benefit to be paid under this subsection is for the life of the member’s spouse and is:
(A) If the member dies before the earliest retirement date for the member under ORS 238.280, the actuarial equivalent of 50 percent of the service retirement allowance that would otherwise have been paid to the deceased member, which shall be calculated as if the member became an inactive member on the date of death and retired at the earliest retirement date for the member under ORS 238.280;
(B) If the member dies on or after the earliest retirement date for the member under ORS 238.280 and before normal retirement age, as defined in ORS 238.005, the actuarial equivalent of the service retirement allowance that would otherwise have been paid to the deceased member, which shall be calculated as if the member retired under ORS 238.280 and as if the member’s retirement date was the first of the month following the date of death of the member; or
(C) If the member dies on or after reaching normal retirement age as defined in ORS 238.005, the actuarial equivalent of the benefit that would otherwise have been paid to the deceased member, which shall be calculated under ORS 238.300 as if the member’s retirement date was the first of the month following the date of death of the member.
(d) The death benefit provided under this subsection shall be funded in the same manner as described under ORS 238.300 and is first effective on the first day of the month following the date of death of the member. The member’s spouse may elect to delay payment of the death benefit, which shall be actuarially adjusted for age and interest when payments commence, but payment must commence no later than December 31 of the calendar year in which the deceased member would have reached 72 years of age.
(3) Payment by the board of additional death benefits in the manner provided by this section completely discharges the board and system on account of the death, and shall hold the board and system harmless from any claim for wrongful payment. [Formerly 237.169; 2001 c.945 §57; 2003 c.625 §4; 2019 c.355 §17; 2019 c.487 §1; 2021 c.135 §10; 2021 c.456 §2]