On the death of an active or inactive member before retirement, the designated beneficiary receives the member's contributions and interest plus the employer's contributions and interest for credited service earned with an employer, plus contributions and interest for purchased military, leave or public service credit (and any transferred defined contribution balances), accumulated at compound interest at a board-set rate to the payment date. ASRS Employer Basics 2025, p. 14; ASRS Session 1, slide 26; A.R.S. 38-762(A)-(B)
Instead of a single payment, the beneficiary may elect the actuarial equivalent as monthly income for life, if the monthly amount is at least the board's minimum under 38-764(E). A.R.S. 38-762(C)
After benefits begin, the remaining benefits under the chosen option continue (IRC 401(a)(9)). At minimum, the estate or beneficiary receives the member's contributions plus interest, less benefits already paid, as a lump sum or at the same periodic rate. A.R.S. 38-763(A)-(B)
Under a survivor or period-certain option, payments continue as that option provides:
- Joint and survivor: 100% to contingent annuitant
- Joint and survivor: two-thirds to contingent annuitant
- Joint and survivor: one-half to contingent annuitant
- Period certain and life: 5 years
- Period certain and life: 10 years
- Period certain and life: 15 years
Payment options ASRS Re-Retirement Application, p. 1 (Section 3); A.R.S. 38-760(A)-(B); A.R.S. 38-711(2), (22)
Who gets paid
- No designated beneficiary (or the beneficiary predeceased the member): surviving spouse; then natural or adopted children in equal shares; then parents in equal shares; then the estate. A.R.S. 38-762(E)
- A married member must name and keep the current spouse as beneficiary of at least 50% of the account unless the spouse consents to a waiver (A.R.S. 38-776) or another law, contract or court order prevents it. The beneficiary can otherwise be changed at any time. A.R.S. 38-755(B)-(C)
- A retired member who is at least 75 and retired with at least 20 years of credited service gets at least $600 a month. A beneficiary aged 75+ of such a member gets $600 reduced by the option's actuarial figure and percentage. Not available after a 38-764(C) lump sum. A.R.S. 38-768(A)-(D)
From ASRS and the law
- If you die before retiring, your beneficiary receives all of your contributions, the matching employer contributions and any service purchase payments, plus interest.ASRS Employer Basics 2025, p. 14; ASRS Session 1, slide 26; A.R.S. 38-762(A)-(C)
- With no named beneficiary, ASRS pays your spouse, then your children equally, then your parents equally, then your estate.A.R.S. 38-762(E)
- After retirement, what continues depends on your option. At minimum, your beneficiary or estate gets your contributions plus interest, less benefits already paid.A.R.S. 38-763(A)-(B)
- If you are married, your spouse must be the beneficiary of at least half of your account unless your spouse signs a waiver.A.R.S. 38-755(C); A.R.S. 38-776
After retirement, what continues depends on the payment option you choose. A refund ends these protections, and a surviving contingent annuitant may keep the health premium benefit.
Questions
What does my family get if I die before retiring?
Your beneficiary gets your contributions and the employer's contributions with interest, or can choose a lifetime monthly amount instead (ASRS Employer Basics 2025, p. 14; ASRS Session 1, slide 26; A.R.S. 38-762(A)-(B); A.R.S. 38-762(C)).
What happens after I retire?
It depends on the payment option you chose. At minimum, your beneficiary or estate gets your contributions plus interest, less benefits already paid (A.R.S. 38-763(A)-(B)).
Source: ASRS Employer Basics 2025 handbook, March 2025 edition, saved Nov. 12, 2026; with other ASRS publications and the Arizona Revised Statutes, p. 14. Also ASRS Basics for Employers, Session 1: Intro to ASRS (slides), slide 26. Also ASRS Application for Re-Retirement Benefit, p. 1. Also A.R.S. 38-711, 38-755, 38-760, 38-762, 38-763, 38-768, 38-776 (Arizona Revised Statutes, Title 38, Ch. 5, Art. 2). Last reviewed .