35 IAC 1.2-5-9 Survivor benefits and defined contribution account beneficiaries

Sec. 9. (a) If the total amount of payments from a defined contribution account paid to a designated beneficiary does not exceed the member's total defined contribution account balance, the difference shall be paid to the designated beneficiary's estate. (b) If an active member with more than fourteen (14), but less than fifteen (15), years of creditable service dies after December 31, 2006, and before July 1, 2018, the surviving spouse or dependent is entitled to a benefit if: (1) the member was at least sixty-five (65) years of age at the time of death; (2) the member died in service in a PERF-covered position; and (3) the surviving spouse or dependent qualifies for a benefit. (c) As provided in IC 5-10.2-3-7.5, if an active member dies after June 30, 2018, regardless of whether the member dies in service in a covered position or the member dies out of service, the surviving spouse or dependent is entitled to a benefit, if the member had at least ten (10) years creditable service. The benefits shall be payable to the surviving qualifying surviving spouse or dependent(s) immediately after the member's death. The benefit shall be calculated according to the provisions of IC 5-10.2-4-5 and shall use the latter of: (1) fifty (50) years of age; or (2) the member's actual date of death. All beneficiaries and benefits paid under this subsection must meet the requirements set forth in IC 5-10.2-3-7.5. (d) For the purposes of IC 5-10.2-3-7.5, "survivor benefit" means the pension benefit and does not include the member's defined contribution account. (e) If a member did not designate a beneficiary of the defined contribution account or the designated beneficiary does not survive the member, a spouse or dependent entitled to a survivor benefit may elect to receive the balance of the account. (f) The following apply if no valid claim for the account balance is made within three (3) years of INPRS learning of the member's death: (1) Accounts with balances of at least one thousand dollars ($1,000) will continue to be invested according to the deceased member's direction. (2) Accounts with balances of less than one thousand dollars ($1,000) are subject to an automatic lump sum distribution.