Indiana Administrative Code › Title 35 - BOARD OF TRUSTEES OF THE INDIANA PUBLIC RETIREMENT SYSTEM › Article 1.2 - PUBLIC EMPLOYEES' RETIREMENT FUND › Rule 5 - Retirement and Disability Benefits › Section 5-13 - Beneficiary designation

Current through July 10, 2024
Authority: IC 5-10.5-4-2
Affected: IC 5-10.2; IC 5-10.3
Sec. 13.
(a) Active
				members may designate a primary beneficiary or beneficiaries and a contingent
				beneficiary or beneficiaries to receive the member's annuity savings account
				equally or designated by whole percentage increments upon the death of the
				member. Contingent beneficiaries shall receive the member's annuity savings
				account if no primary beneficiaries survive the member. If no primary and no
				contingent beneficiaries survive the member, the beneficiary shall be the
				member's estate. In lieu of a named individual, a member may designate a trust,
				estate, or other legal entity.
(b)
				Members electing a joint survivor option at retirement shall designate only one
				(1) person as beneficiary for their joint survivor benefits. The beneficiary
				must be a named individual.
(c)
				Retired members who choose a retirement option other than a joint and survivor
				option and who do not elect to withdraw the total balance of their annuity
				savings account may designate a primary beneficiary or beneficiaries and a
				contingent beneficiary or beneficiaries to receive the unpaid balance, if any,
				of the member's annuity savings account upon the death of the member. Members
				may designate that the assets held in the account shall be divided equally or
				allocated by whole percentage increments to primary and contingent
				beneficiaries. Such designations must be on the appropriate form. Forms must be
				filed and accepted by the fund before they are effective. Contingent
				beneficiaries shall receive the member's annuity savings account if no primary
				beneficiaries survive the member. If no primary and no contingent beneficiaries
				survive the member, the beneficiary shall be the member's estate. In lieu of a
				named individual, a member may designate a trust, estate, or other legal
				entity.
(d) If a member has
				designated more than one (1) primary beneficiary, and one (1) or more of the
				primary beneficiaries predecease the member and the member does not complete a
				new beneficiary designation form, the remaining primary beneficiaries will
				receive an apportioned pro rata share based on the remaining primary
				beneficiaries' allocated percentages of the deceased primary beneficiary or
				beneficiaries portion. For example, member X designates three (3) primary
				beneficiaries as follows: Ann 60%, Bob 30%, and Carl 10%. Ann predeceases
				member X, and member X does not submit a new beneficiary designation form.
				Member X had $10,000 in her annuity savings account (ASA) at the time of her
				death. Ann's 60% share will be divided between Bob and Carl as follows: Bob
				$4,500 and Carl $1,500. Therefore, the total amount that Bob will receive from
				member X's ASA is $7,500, and the total amount that Carl will receive from
				member X's ASA is $2,500.
(e) The
				designated beneficiary's right to a benefit vests upon the death of the member.
				A change of beneficiary designation must be made in a manner and form approved
				by the board and must be filed with the fund before the distribution of the
				amounts in the member's account has been made to the designated beneficiary on
				file with the fund at the time of the distribution or in the case of no
				designated beneficiary to the member's estate. A change of beneficiary
				designation received after the distribution of the amounts in the member's
				account has been made to the designated beneficiary on file with the fund at
				the time of the distribution or in the case of no designated beneficiary, to
				the member's estate is not valid. A beneficiary designation for the ASA or RSA
				must be witnessed by an individual other than the member's designated
				beneficiary. Timely electronic beneficiary designations submitted through the
				fund's website in a form and manner approved by the board shall be deemed to
				have met the requirements of this rule.