(a) Except as provided by Subsection (c), if a person dies after retirement, a lump-sum death benefit is payable in an amount, if any, by which the retiree’s contributions to the retirement system on the date of retirement exceed the amount of annuity payments made before the retiree’s death.
(b) The benefit provided by this section is payable to the retiree’s designated beneficiary. If a retiree dies without having designated a beneficiary, the benefit is payable to the person entitled to distribution of the decedent‘s estate if that person or the personal representative of the decedent’s estate claims the benefit before the second anniversary of the decedent’s death.

Terms Used In Texas Government Code 839.305

  • Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
  • Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
  • Decedent: A deceased person.
  • Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005

(c) A death benefit may not be paid under this section if an optional retirement annuity has been selected as provided by § 839.103 or 839.203(c).

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