Living needs benefit
If you are terminally ill, the living needs benefit offers you the option to receive a portion of your death benefits before you die to help pay expenses during the final stage of your illness.
You can apply for the living needs benefit if you have been enrolled in the Death and Disability Plan for two years or more and you are an active member or are receiving disability benefits under the Death and Disability Plan. Your doctor must certify that you are expected to live no more than 24 months, and your terminal condition is not related to an intentional, self-inflicted injury.
Amount of benefit
When applying for the living needs benefit, you may request
- the present value of up to 100% of your salary continuation benefit, and/or
- 75% of your
lump-sum death benefit (your disability benefits basis* multiplied by the applicable factor)
Present value
The present value, also called the actuarial present value, is the value of the future benefit payment expressed in present dollars. This is calculated using various assumptions, such as age, life expectancy, and interest, as recommended by the Benefits Plan actuary. These factors are applied to the face value of your coverage when you request the benefit. The plan's mortality and interest assumptions determine the cost of the plan.
*The disability benefits basis is the greater of effective salary, as reported to the Board, or the median effective salary, up to the IRS compensation limit, as of the date any benefits payments begin.
Applying for and receiving benefits
To apply, you must first request the living needs benefits kit by sending a signed letter to the attention of the Board of Pensions at this address:
The Board of Pensions of the Presbyterian Church (U.S.A.)
2000 Market St.
Philadelphia, PA 19103-3298
The kit includes necessary forms and information, such as the estimated amounts for which you are eligible.
A physician must certify your condition. The Board may require a second medical opinion (at its expense).
The living needs benefit is paid in a lump sum and only to you; it cannot be paid to another person or entity.
The Board will deduct the amount of your living needs benefit from death benefits payable to your designated beneficiary(ies) or eligible dependents on file when you die and will reduce your retiree death benefit by the amount you receive from the living needs benefit.