Death


Before Retirement

If you die before retirement, your surviving spouse is entitled to receive a death benefit equal to the commuted value of your pension. Your spouse may choose to have the death benefit paid in one of the following forms:

If you do not have a surviving spouse, the benefit is payable as a taxable lump sum payment to your designated beneficiary or estate.

Prior to your death your spouse may waive their right to receive the pre-retirement death benefit by signing the Spouse's Waiver of Pre-Retirement Survivor Benefit form. If SHEPP has a signed waiver on file, the death benefit would be payable to your beneficiaries or to your estate if no beneficiaries have been designated. Your spouse may revoke the waiver at any time before your death by delivering a written and signed notice of revocation to SHEPP. If the waiver is revoked, your spouse is again first in line for the death benefit, regardless of any other beneficiary you have designated.

Shortened Life Expectancy

In the unfortunate event that you become terminally ill before you are eligible for an unreduced pension, you may be able to access your pension benefit through SHEPP's Shortened Life Expectancy Provision. To qualify, you must have a life expectancy of 24 months or less, and your spouse must willingly waive their entitlement to the survivor benefit. If approved, you will receive the commuted value of your pension benefit as a lump sum cash payment less the applicable income tax. You will remain a member of the Plan and continue to accrue a new pension benefit until your death or until you terminate employment with all SHEPP employers.

After Retirement

If you die after retirement, the payment of death benefits depends on the form of pension you elected at retirement. Refer to Choosing a Form of Pension for more information.