How to Claim Pension and Annuity Benefits After a Death

Pensions and Annuities Are Easy to Overlook — and Worth a Lot

In the immediate aftermath of a death, it's easy to focus on the most visible financial accounts and overlook pension and annuity benefits. These can be among the most valuable assets in an estate, and claiming them requires specific, time-sensitive steps.

There are two distinct types of retirement plans to consider: defined benefit pension plans (where the employer promises a specific monthly payment) and annuities (insurance products designed to pay income over time). The rules differ for each.

Defined Benefit Pension Plans: What Happens to the Payments?

A traditional "defined benefit" pension pays a set monthly amount based on the employee's years of service and final salary. When the pensioner dies, what happens next depends entirely on the form of benefit they elected when they retired.

Single Life Annuity: Payments stop at death. The surviving spouse or family receives nothing from the pension going forward. This election maximizes the retiree's monthly payment during their lifetime, but leaves survivors with nothing.

Joint and Survivor Annuity: This is the most common election for married pensioners, and federal law (ERISA) actually requires it as the default unless the spouse specifically waives it. Under a joint and survivor annuity, payments continue to the surviving spouse after the pensioner dies — typically at 50%, 75%, or 100% of the original monthly benefit, depending on the election. This is called the "survivor benefit."

Period Certain: Some retirees elect a "period certain" option, which guarantees payments for a minimum period (say, 10 or 20 years). If the retiree dies before that period ends, payments continue to a named beneficiary for the remainder of the guaranteed period.

How to find out what was elected: Contact the pension administrator (the HR department or benefits office of the deceased's former employer, or a union pension fund office). Ask for a copy of the pension election paperwork. This document will specify exactly what benefit, if any, continues after death.

Notifying the Pension Administrator

Act promptly. Contact the pension administrator as soon as reasonably possible after the death. Payments received after the month of death typically must be returned, and catching this quickly minimizes the hassle.

• Certified copy of the death certificate
• The pensioner's employee ID or pension number (found on pension statements)
• Your relationship to the deceased and your own ID
• Possibly a marriage certificate if claiming as a surviving spouse

Some pension funds will require a formal claim form; others process the notification and survivor benefit automatically. Ask specifically what you need to do to receive the survivor benefit if one exists, and ask for written confirmation once you've notified them.

Defined Contribution Plans: A Quick Distinction

"Defined contribution" plans — 401(k)s, 403(b)s, profit-sharing plans — work differently. There is no ongoing monthly benefit; the account has a balance, and that balance passes to the named beneficiary (or to the estate if no beneficiary was named). These are treated as inherited retirement accounts, subject to the rules described in our separate guide on inherited IRAs and 401(k)s.

The PBGC: A Safety Net for Failed Pensions

If the deceased's employer has gone out of business or the pension plan has failed, the Pension Benefit Guaranty Corporation (PBGC) is the federal safety net. The PBGC insures most private-sector defined benefit pension plans and continues paying benefits (up to a legal maximum) when a plan fails.

If you're trying to claim a pension from a company that no longer exists, search the PBGC's database at pbgc.gov. The PBGC maintains records of all plans they've taken over and has a process for beneficiaries to claim benefits.

The PBGC maximum guarantee for 2025 is approximately $7,578 per month for a retiree who retired at age 65 with a single life annuity — significant protection, though it may be less than what was promised for very high earners.

Annuities: A Different Animal

An annuity is a contract between the deceased and an insurance company. In exchange for a lump sum or a series of premium payments, the insurance company promises to pay income — either for a fixed period or for the rest of the annuitant's life.

Immediate vs. Deferred Annuities: An "immediate" annuity is already paying income. A "deferred" annuity is in the accumulation phase — it has a cash value but hasn't started paying income yet.

What happens at death depends on the contract type:

• **Fixed-period annuity with payments remaining:** If payments were guaranteed for a set number of years and the annuitant dies before that period ends, the remaining payments go to the named beneficiary.
• **Life-only annuity:** Payments stop at death. Nothing goes to the beneficiary, similar to a single-life pension election.
• **Deferred annuity with a named beneficiary:** The accumulated value (the "account value") passes to the named beneficiary, who typically has options: take a lump sum (taxable), spread distributions over time, or continue the annuity.
• **Annuity with a death benefit rider:** Some annuities include death benefit guarantees — for example, a guarantee that the beneficiary will receive at least the amount originally invested, even if the account value has declined.

Filing an Annuity Death Claim

1. Find the annuity contract. Check filing cabinets, safe deposit boxes, and look for statements from insurance companies. 2. Contact the insurance company's annuity service department. The contract will have a customer service number; if not, search the company's website for "annuity death claim." 3. Request the death claim forms. The company will send a packet that typically includes a claimant statement, distribution election form, and instructions for submitting the death certificate. 4. Choose your distribution carefully. Lump sums are taxable in the year received. If the annuity has significant value, spreading distributions across multiple tax years may reduce the total tax burden. A financial advisor can help model these options. 5. Submit everything via certified mail and keep copies.

Don't Assume — Verify

Many people don't tell their families about pension survivor benefits or annuities they hold. Before assuming there is nothing, check thoroughly: look through mail and email for annual statements, search for past tax returns (annuity income appears on Form 1099-R), and if the deceased was a union member, contact the union directly — union pension and annuity funds often have benefits that aren't well-known to family members.