35 IAC 1.2-5-13 Beneficiary designation

Sec. 13. (a) "Designated beneficiary" means the person or entity designated by the member on a form approved by INPRS and part of the member's record as of the member's date of death. Beneficiary designations made electronically, via INPRS' website, are deemed to have met the requirements of this subsection. (b) Members may designate more than one (1) primary beneficiary to receive the balance of their defined contribution account (ASA or RSA). Members may also designate more than one (1) contingent beneficiary. (c) The primary beneficiary or contingent beneficiary designated by the member shall be: (1) one (1) or more persons; (2) the member's estate; or (3) a trust. (d) If multiple persons are designated the following shall apply: (1) The member shall indicate the percentage in whole numbers (no decimals or fractions) of total benefits each person is to receive. (2) If percentages are not indicated or not indicated in whole numbers, payments will be disbursed as nearly equally to the named beneficiaries with the first designated beneficiary listed receiving an additional percentage amount in order to distribute in whole percentages. For example: Mona has fifty thousand dollars ($50,000) in her ASA (defined contribution account) when she dies. Mona designated three (3) primary beneficiaries without assigning a whole percentage number of the total benefit for each to receive. The first listed beneficiary would receive thirty-four percent (34%) and the remaining two (2) beneficiaries would receive thirty-three percent (33%) each. (3) If percentages indicated do not total one hundred percent (100%), each beneficiary shall receive an increased or decreased percentage, which is proportional to the percentages allotted him or her by the member. (4) Subject to subdivision (2), if any of the multiple beneficiaries die prior to the member's death, the remaining beneficiaries shall be entitled to the deceased beneficiary's percentage of the total benefits, and each shall receive a percentage of the deceased's share which is nearly equal to the percentage allotted them by the member. (5) So long as a primary beneficiary survives the member, a designated contingent beneficiary is not entitled to a share of the benefit unless the primary beneficiary disclaims the benefit. (6) INPRS shall not accept per stirpes beneficiary designations. (e) The primary and contingent beneficiary designation established by the member shall remain in full force and effect until changed by the member. Beneficiary designations made on a member's retirement application supersede the designation of all previous beneficiaries, unless the notification of retirement is withdrawn, invalid, or voided. (f) Upon receipt of evidence the primary beneficiary did not survive the member, the contingent beneficiary is eligible to receive the member's defined contribution account. (g) A member's RSA shall be combined and distributed according to the member's beneficiary designation for the defined contribution account (ASA). A defined contribution account and RSA may not have separate beneficiaries. (h) The designated beneficiary's right to a benefit vests upon the death of the member in the designated beneficiary on file with the fund. 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 time of death of the member. A change of beneficiary designation received after the time of death of the member is not valid. A written beneficiary designation for the ASA or RSA must be signed by the member. 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.