Death of a Member / Beneficiary

Reporting the Death of a Retiree or Beneficiary –
Post Retirement

The New Mexico Educational Retirement Board (NMERB) must always be notified in the event of a member or beneficiary’s death so we can properly process the account, including making any payment due to the beneficiary(ies). This can be done in the following three ways:

Calling the NMERB at (866) 691-2345
Mailing a letter to:
New Mexico Educational Retirement Board
PO Box 26129
Santa Fe, NM 87502-6129
In person to the Santa Fe office or the Albuquerque office.

After notifying NMERB, please send a copy of the death certificate to the NMERB. If the benefit continues to a beneficiary, the NMERB will mail out a letter and any necessary forms to the beneficiary. These forms should be completed as soon as possible so the beneficiary can begin receiving his/her benefit and avoid any delay in payment.

If the benefit of the deceased member received ends with the member’s death, the benefit will be stopped and the account will be closed once the copy of the death certificate has been received. The NMERB pays the retirement benefit through the member’s month of death. The benefit received on the last business day of the month of death will be the member’s final payment. There will be no additional payments made after this month. If the NMERB is not notified of a member’s or beneficiary’s passing in a timely manner, any overpayment of benefits will be recovered.

It is very important for a family member, beneficiary, or caregiver to notify the NMERB of the death of a retired member; this will allow the agency to stop the benefits, if necessary, and prevent an overpayment of benefits.

If you pass away while receiving a retirement benefit or disability benefit, here are a few things to know concerning what happens to your account.

1. Your benefits cease

After the Educational Retirement Board is notified of your death, your account will be closed and benefit payments will cease. A copy of your death certificate will need to be provided to the office to complete the process.

2. We issue survivor benefits (if applicable)

We notify your beneficiary (who you named through specific designation or automatic succession) in writing and send them all the necessary forms to complete. All required paperwork will need to be submitted by mail to the address shown below:

New Mexico Educational Retirement Board
PO Box 26129
Santa Fe, NM 87502

Once all the paperwork is received, your beneficiary will be placed on payroll to receive a monthly benefit for their lifetime. If any previous months payments are due, they will be paid on the last business day of the current month. Benefits will be paid out to your beneficiary according to the payment plan you chose at retirement.

3. Death Benefit

Survivors of retired members or disability benefit recipients may qualify for a death benefit.

This is a one-time, lump-sum payment. The amount paid is based on the retiree’s years of service and is paid to beneficiaries named through specific designation or, if no beneficiaries are designated, automatic succession.

If you have questions regarding the health or life insurance benefits of a deceased member, please contact New Mexico Retiree Health Care Authority at (800) 233-2576.

The Educational Retirement Board does not administer health or life insurance benefits.

Survivors Benefits

Survivor benefits depend on the option the member chose upon retirement.

Option A

Straight Life Benefit If you select this option, your monthly benefit is the full amount due you under the “FAS x service credit x .0235 (Tier 1, 2 & 3)” or “FAS x service credit x Tiered Multiplier (Tier 4)” formula. Option A is a life only annuity; meaning your pension payments end upon your death. There is no monthly survivor benefit under this option. In limited instances, your beneficiary or estate will receive the balance of your contributions to the plan if they have not been fully distributed to you in retirement benefits prior to your death. Generally, retiree contributions are exhausted within three to five years after retirement starts.

Option B

Joint 100% Survivor Benefit Under Option B, your monthly benefit is reduced to provide a designated beneficiary with a 100% survivor’s benefit for the remainder of his or her life. The monthly benefit is based on your age and your beneficiary’s age at the time of your retirement. If you plan on selecting a non-spouse as your beneficiary, they cannot be more than ten years younger than you. If your beneficiary dies before you, upon receipt of their death certificate, your monthly benefit will increase to the amount you would have received under Option A: Straight Life Benefit.

Option C

Joint 50% Survivor Benefit Under Option C, your monthly benefit is reduced to provide a designated beneficiary with a 50% survivor’s benefit for the rest of his or her life. If your beneficiary dies before you, upon receipt of their death certificate, your monthly benefit will increase to the amount you would have received under Option A: Straight Life Benefit. If you select Option B or C, you may name only one beneficiary and your beneficiary must be a person or, effective June 16, 2023, a supplemental needs trust. A supplemental needs trust is a third-party irrevocable trust that is authorized by the federal Social Security Act for the sole benefit and lifetime of a trust beneficiary who is disabled and is created for the purpose of providing, accounting for or receiving supplemental assets that do not supplant, impair or diminish any benefits or assistance of any federal, state or other government entity for which the beneficiary would otherwise be eligible. You may not name other types of trusts or other entities as the beneficiary. Prior to retirement, you may change your beneficiary at any time. Keep the information about your designated beneficiary current on your NMERB account.

Because both Options B and C provide for payments to your beneficiary after your death, your benefit will be reduced based on actuarial data. In Option B or C, you are choosing a lifetime benefit for the beneficiary in the event he or she outlives you.