What happens to pension benefits if death occurs after retirement?

In the case of pension benefits after retirement, if a retiree passes away, the option that best reflects standard practice is that the spouse may receive a survivor's death benefit. Many pension plans are designed to provide support for the spouse of the deceased retiree, recognizing the financial stability that such benefits can offer during a time of loss. This survivor benefit is usually a portion of the pension that would have been received by the deceased retiree, ensuring that the surviving spouse has continued access to financial resources.

The structure of these benefits can vary significantly based on the specific pension plan and governing laws, but the principle of supporting the surviving spouse is a common element. Forfeiture of benefits, equal distribution among descendants, or upward adjustment of the pension amount does not align with typical pension plans, which aim to provide for immediate family members rather than being distributed among all descendants or adjusting amounts due to mortality.