Indiana Administrative Code › Title 35 - BOARD OF TRUSTEES OF THE INDIANA PUBLIC RETIREMENT SYSTEM › Article 14 - INDIANA STATE TEACHERS' RETIREMENT FUND › Rule 4 - Membership › Section 4-4 - Member designation of beneficiaries

Current through July 10, 2024
Authority: IC 5-10.4; IC 5-10.5-4-2
Affected: IC 5-10.2-3-7.5; IC 5-10.2-3-10; IC
				  5-10.4-4-10
Sec 4.
(a) A new
				member shall designate, by name, primary and secondary beneficiaries to receive
				the assets present in the annuity savings account equally or designated by
				whole percentage increments on the occasion of the member's death prior to
				retirement, less any disability benefits paid.
(b) A member who establishes a rollover
				account pursuant to IC 5-10.2-3-10 may designate a beneficiary or beneficiaries
				separate from those designated on the member's annuity savings account under
				the requirements as stated herein.
(c) A member may name more than one (1)
				individual as primary or contingent beneficiaries of the member's annuity
				savings account or rollover account. 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. Upon the member's death,
				the assets held in the account shall be divided equally among the surviving
				primary beneficiaries or, if none, among the surviving contingent
				beneficiaries, or by whole percentage increments to such beneficiaries if the
				member has designated percentage increments on a TRF form. Alternative
				beneficiary designations, such as per stirpes or by representation, will not be
				accepted or recognized by the fund. 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.
(d) A member may name a trust, the member's
				estate, or other legal entity as the beneficiary of the member's annuity
				savings account or rollover account.
(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 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. 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 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.
Transferred from the Board of Trustees of the Indiana State
					 Teachers' Retirement Fund (
					 550 IAC
					 2-4-5 ) to the Board of Trustees of the Indiana Public
					 Retirement System ( 35 IAC 14-4-4 ) by P.L. 23-2011, SECTION 22, effective July
					 1, 2011.