How to Receive Beneficiary Benefits
People mistakenly think that eligible family members will automatically receive survivor benefits when a benefactor passes away. Typically, however, benefits only start after survivors apply for them. It's important to learn about how to receive beneficiary benefits to avoid unnecessary financial hardships.
- Difficulty:
- Easy
Instructions
-
-
1
Report the death of a benefactor or participant to Pension Benefit Guaranty Corporation (PBGC); the phone number is (800) 400-7242. Be ready to provide the following information: participant's full name, social security number and address. Be ready to state your relationship to the deceased person, your full address and the exact date of death.
-
2
Expect to receive a request from PBGC for the death certificate. If you're due any benefits, you'll also receive forms that you'll need to fill out and return to PBGC.
-
3
Return any payments you receive addressed to the deceased participant after the date he died.
-
4
Keep in mind that PBGC makes three types of benefit payments. One type of payment is survivor benefits; you receive this benefit if the deceased person participated in an annuity plan and your name appeared as the beneficiary. The second is retirement survivor benefits (paid to the surviving spouse). The third type of payment is any amounts owed to the participant when he died; the beneficiary is entitled to receive the balanced owed.
-
5
Apply for beneficiary benefits online at PBGC.gov or contact the customer service department and request an application. Provide your banking information if you request benefits via direct deposit.
-
1
Tips & Warnings
Premiums collected from benefit plan sponsors fund PBGC. The agency serves as a trustee for defined-benefit plans, which is a source of funds.
If you need to collect beneficiary payments from an insurance company, call the company directly and have all of the deceased person's information available, such as Social Security number, date of birth, date of death and complete address. The insurance agency will provide instructions for you on how to proceed or request any additional information.
