MMC Benefits Handbook
409A Survivor Benefit If You Die While Actively Employed
This sub-section describes the 409A survivor benefit that will be paid to your Eligible Survivor if you die while actively employed.
If you accrued a Grandfathered SRP Benefit prior to January 1, 2005 and you are married to an eligible opposite-sex Spouse when you die, different rules apply to the grandfathered portion of your vested Grandfathered SRP Benefit. See "Grandfathered Survivor Benefit" for details.
The SRP does not pay a survivor benefit upon your death if you do not have a vested 409A SRP Benefit or you do not have an Eligible Survivor. See "Eligible Survivor" for details.
If you die before age 50:
If you die while actively employed before attaining age 50 and you are vested in your 409A SRP Benefit at the time of your death, your Eligible Survivor will receive the contingent annuitant's portion of your 409A SRP Benefit as if you had terminated employment and incurred a separation from service on your date of death and elected a 50% contingent annuity. The survivor benefit will commence on the first of the month following the month you would have attained age 55 and will be reduced by the Retirement Plan's early retirement reduction factors. The first payment will be made at the end of the month following the month you would have attained age 55. Subsequent monthly payments are made at the end of each month.
If you die on or after age 50:
If you die while actively employed after attaining at least age 50 and you are vested in your 409A SRP Benefit at the time of your death, your Eligible Survivor will receive 50% of your vested 409A SRP Benefit, calculated as if you had terminated employment and incurred a Separation from Service on your date of death.
The survivor benefit will commence as soon as administratively practicable after your death, provided that payments commence no later than ninety (90) days following the notification of your death. Subsequent monthly payments are made at the end of each month.