If a member dies before retiring
Vested (actual + reciprocal service) and dies while active, in T-DROP, or as a working (return-to-work) retiree; disability retirees too. Member Handbook p. 36, Member Requirements; General Info pamphlet p. 2, Survivor Benefits; 24 CAR § 10-803
A surviving spouse
- Married at least 1 year. Computed as if the member had retired on the date of death, elected Option A (100%) and named the spouse. Actuarial valuation 2025 p. C-4, item 9 (A.C.A. § 24-7-710)
- Immediately (month after death, if applied within 6 full calendar months) if the member was retirement-eligible; otherwise the month after the member would have turned 60. Member Handbook p. 37; 24 CAR § 10-804(b), (d)(4)-(5)
- Payable for life regardless of remarriage. 24 CAR § 10-804(d)(1)
- No spouse annuity if the member named an alternative residue beneficiary (other than the spouse) unless that beneficiary waives the residue. Member Handbook pp. 36-37; 24 CAR § 10-805(b)
Dependent children
A surviving child's benefit is 1% of the member's highest salary year for each quarter of actual service, up to 20% or $20,000 a year; with more than one dependent, the total is capped at the lesser of 60% of the highest salary or $60,000 a year, divided equally. Paid through the last month in which the child is 22 (incapacitated children for as long as the incapacity lasts). Member Handbook pp. 36-38; 24 CAR §§ 10-807, 10-810, 10-812; Actuarial valuation 2025 p. C-5, item 9 (amounts)
Child survivor amounts come only from the actuary's summary (p. C-5); the handbook gives no amounts.
What would settle it: A.C.A. § 24-7-710 (blocked).The lump-sum death benefit
Members with 10 or more years of actual contributory service: $10,000. Only noncontributory service: $6,667. A mix: prorated. Paid in equal shares to designated beneficiaries; non-taxable. Member Handbook pp. 29-30, Residue and Lump-Sum Death Benefit; General Info pamphlet p. 2; 24 CAR §§ 10-815, 10-816
Who: Active members (and for one fiscal year after the last year with at least 0.25 year of service), T-DROP participants and retirees. Not inactive members. Purchased and free military service don't count toward the 10 years. Member Handbook p. 12
| With 10+ years of actual service | Benefit |
|---|---|
| 10+ contributory years | $10,000 |
| Only noncontributory service | $6,667 |
| A mix: 5 contributory years (our example) Check with ATRS | $8,333.50 |
Actuarial valuation 2025 p. C-5, item 10 (Resolution 2020-27: $6,667 minimum plus $333.30 per contributory year, or $666.60 per contributory year for members who retired on or before July 1, 2007, up to $10,000)
The handbook says a mix of contributory and noncontributory service is 'prorated'. Our calculator uses the actuary's formula ($6,667 + $333.30 per contributory year, max $10,000; $666.60 per year for those retired on or before July 1, 2007). Whether 'contributory year' means actual contributory years only is not stated.
What would settle it: Board Resolution 2020-27 or A.C.A. § 24-7-720.Residue and T-DROP balances
Remaining member contributions (with interest) go to the residue beneficiary if no option beneficiary or survivor annuity applies; after option beneficiaries die, any remaining residue is paid. Member Handbook p. 29; 24 CAR § 10-613(g)
If a T-DROP participant dies before retiring, the T-DROP balance becomes residue; a spouse may choose Option A instead of the lump sum if no other residue beneficiary (or they waive). Member Handbook p. 38, T-DROP and Designated Beneficiaries; 24 CAR § 10-806
After you retire, what your family gets depends on the payment option you chose. Payment options →
From the sources
- If a vested member dies while working (or in T-DROP, or as a working retiree), a spouse married at least 1 year can get a lifetime monthly benefit. It's figured as if the member had retired and chosen Option A. It starts right away if the member was eligible to retire, otherwise when the member would have turned 60.Member Handbook pp. 36-37; Actuarial valuation 2025 p. C-4, item 9
- Naming someone other than your spouse as residue beneficiary can block the spouse's monthly benefit unless that person waives. ATRS suggests naming your spouse as the only primary residue beneficiary.Member Handbook pp. 36-37; 24 CAR § 10-805
- Check with ATRSDependent children get a monthly benefit through the month they turn 22 (incapacitated children for life). Each gets 1% of the member's highest salary per quarter-year of service, up to 20% or $20,000 a year.Member Handbook pp. 36-38; Actuarial valuation 2025 p. C-5
- Active members, T-DROP participants and retirees with 10+ years of actual service also have a tax-free lump-sum death benefit: $10,000 with 10+ contributory years, $6,667 with only noncontributory service, prorated in between.Member Handbook pp. 29-30; 24 CAR § 10-816(c)
Questions
What does a spouse get if an ATRS member dies while working?
If the member was vested and the spouse was married to them at least a year, a monthly benefit for life, figured as if the member had retired that day and chosen Option A (100% to the spouse).
What is the ATRS lump-sum death benefit?
A tax-free payment to your beneficiaries if you have 10+ years of actual service and die while active, in T-DROP or retired: $10,000 with contributory service, $6,667 with only noncontributory service, prorated for a mix.
What happens to my contributions when I die?
Any contributions not yet paid back in benefits (the residue) go to your residue beneficiary if no monthly benefit continues.
Source: ATRS Member Handbook, 2026-2027 school year (current as of July 2026), pp. 12, 29, 29-30, 36, 36-37, 36-38, 37, 38. Also: General Info pamphlet p. 2; Actuarial valuation 2025 pp. C-4, C-5; ATRS rules, 24 CAR §§ 10-613, 10-803, 10-804, 10-805, 10-806, 10-807, 10-810, 10-812, 10-815, 10-816. Last reviewed .