How to Notify Employer and Pension Plans

Contact the deceased's employer's HR department as soon as possible. When you call, say: "I am calling to report the death of [name], employee ID [if known], who passed away on [date]. I am the [relationship] and need to discuss final benefits." Ask the HR representative about each of the following: final paycheck (including any commissions or bonuses owed), accrued and unused vacation or PTO payout, group life insurance (often 1x to 2x annual salary, sometimes more), accidental death and dismemberment insurance, 401(k) or pension plan beneficiary claims, health insurance continuation under COBRA, and any other employee benefits.

COBRA is critically important if you were covered under the deceased's employer health plan. You have 60 days from the qualifying event (the death) to elect COBRA continuation coverage, which allows you to keep the same health insurance for up to 18 months (36 months for dependent children in some situations). The cost is the full premium plus a 2 percent administrative fee — expect to pay $600 to $2,000 per month for family coverage. While expensive, COBRA provides gap coverage while you find a permanent alternative. Losing employer coverage also qualifies you for a Special Enrollment Period on the ACA marketplace (HealthCare.gov).

If the deceased had a pension plan (defined benefit plan), contact the plan administrator to ask about survivor benefits. Many pension plans provide a survivor annuity — a reduced monthly payment that continues to the surviving spouse for life. If the deceased had not yet retired, the pension may offer a lump sum death benefit or an early survivor annuity. Federal law (ERISA) generally requires that married participants' pension benefits include a survivor annuity unless the spouse explicitly waived it in writing. Gather any pension plan summary documents to understand your options before making an election.