TRS Texas Active Member Death Benefit Options

Five Options, One Irreversible Decision

When a TRS member dies in a school year in which eligible service was performed, or while absent due to sickness, accident, or another involuntary cause, the designated beneficiary generally chooses among five statutory death benefit options under Texas Government Code § 824.402. The election cannot be reversed once the selected benefit is disbursed.

If the member filed Form TRS 30 for service retirement but died before retirement became effective or before the first annuity payment, the application supersedes prior beneficiary forms. The beneficiary may choose between the active-member death benefits and the post-retirement annuity selected on Form TRS 30.

Most families receive a claim packet from TRS containing all five calculated amounts but no recommendation on which to pick. Here is what each option actually pays and who qualifies.

Option 1: Lump Sum Salary Multiple

A single payment equal to twice the member's annual rate of compensation in the school year of death, or twice the compensation from the prior school year — whichever is larger. The statutory cap is $80,000.

Any beneficiary can elect this regardless of how many years the member worked. It provides immediate cash but gives up any ongoing monthly income stream from TRS.

Option 2: 60 Monthly Payments

Sixty consecutive monthly payments equal to the member's unreduced standard annuity — meaning no early-retirement reduction is applied, even if the member was decades away from retirement eligibility.

The catch: the member must have accumulated at least five years of TRS service credit. Fewer than five years means this option is not available.

Option 3: Lifetime Survivor Annuity

A permanent monthly payment for the beneficiary's entire lifetime, calculated as if the member had retired on the last day of the month before death and elected a 100% Joint and Survivor plan.

Two eligibility gates apply: the member needed five-plus years of service credit, and the beneficiary must be a sole primary beneficiary. If the member named multiple joint beneficiaries on Form TRS 15, Option 3 is off the table.

For younger members with long service records, this option can pay substantially more over a beneficiary's lifetime than the $80,000 lump sum — but the monthly amount may be modest if the member had a shorter career.

Option 4: Accumulated Contribution Refund

A total cash refund of every dollar the member contributed to TRS during their career, plus accrued interest. Available to any beneficiary regardless of service years.

TRS members currently contribute 8.25% of gross salary. A member earning $60,000 annually for 15 years would have roughly $74,250 in contributions before interest. For long-tenured members, the accumulated balance can exceed the $80,000 lump sum cap under Option 1.

Option 5: Survivor Benefits

A $2,500 lump-sum payment followed by ongoing monthly survivor payments:

• Surviving spouse or dependent parent: $250 per month starting at age 65, continuing for life
• Surviving spouse with minor children: $350 per month until the youngest child turns 18, then $250 per month for the spouse from age 65
• Dependent minor children only: $350 per month while two or more children are under 18, reducing to $250 per month when one child remains

This option has the lowest upfront value but provides decades of supplemental income for younger surviving spouses and dependent children.

How to Think About the Choice

The right option depends on the beneficiary's age, financial situation, and whether they have other income sources. A 35-year-old spouse with young children faces a completely different calculation than a 62-year-old spouse approaching Social Security eligibility.

A few practical benchmarks:

• If the member had fewer than five years of service, only Options 1, 4, and 5 are available
• If multiple beneficiaries are named, Option 3 is unavailable
• If the accumulated contribution balance exceeds $80,000, Option 4 pays more than Option 1
• The break-even point between Option 1's $80,000 lump sum and Option 3's lifetime annuity depends on the beneficiary's age and the calculated monthly amount — TRS provides both figures in the claim packet

TRS staff cannot advise on which option to choose. A CPA or financial planner can model the options against the beneficiary's full financial picture, but the Texas TRS Survivor Benefits Guide provides side-by-side comparison worksheets that help you evaluate each option before that conversation.

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