Beneficiary

PURPOSE: This rule sets forth the procedure for naming benefi ciaries and their eligibility as provided by sections 169.070 and 169.075, RSMo. (1) Each member may designate a beneficiary and contingent beneficiaries by filing with the retirement system a form furnished by the board for this purpose. If a member fails to designate a beneficiary, the beneficiary shall be determined pursuant to section 169.076, RSMo. (2) A member may change a beneficiary(ies) at any time prior to retirement by filing a request for change with the board of trustees on a form furnished by the board for this purpose. (3) Accumulated contributions of a deceased member due a beneficiary or estate upon the death of a member shall be paid within sixty (60) days of the establishment of the claim. If the beneficiary is a minor, payment shall be made to the conservator of the minor appointed by the court after the filing of a certified copy of the court order making the appointment or to the custodian designated under the Missouri Transfers to Minors Law, upon receipt of appropriate documentation. (4) Upon the death of a member or retiree, payments shall be made as set forth below. (A) The designated beneficiary of a deceased member prior to retirement shall be entitled to receive payment of the accumulated contributions of the deceased member if an alternate benefit is not elected by the beneficiary. If the member fails to designate a beneficiary on the form provided, if the beneficiary designation form on file is deemed invalid by operation of section 169.076.2., RSMo, or if no beneficiary designated on the form provided survives the member, the benefit shall be paid in accordance with section 169.076, RSMo. (B) The designated beneficiary of a deceased retiree who retired before January 1, 2012, and elected Option 1 at retirement shall be entitled to receive any balance of the deceased retiree’s accumulated contributions in excess of the total retirement allowances paid. If the retiree fails to designate a beneficiary on the form provided or if no beneficiary designated on the form provided survives the member, the benefit shall be paid in accordance with section 169.070.4., RSMo. (C) All members retiring on or after January 1, 2012, who elect Option 1 must designate a beneficiary at or after the time of their retirement and any beneficiary designation made prior to the member’s retirement shall be deemed void at the time of their retirement. Any beneficiary designated at or after retirement by a retiree electing Option 1 shall, upon the retiree’s death, be entitled to receive any balance of the deceased retiree’s accumulated contributions in excess of the total retirement allowances paid. If the retiree fails to designate a beneficiary at or after retirement on the form provided or if no beneficiary designated on the form provided survives the member, the benefit shall be paid in accordance with section 169.070.4., RSMo. (D) If both a retiree who elected Option 2, 3, or 4 and the designated joint survivor under the option are deceased, any existing balance of the deceased retiree’s accumulated contributions in excess of the total retirement allowances paid to the retiree and to the joint survivor shall be paid to the beneficiary designated for that purpose. If the retiree fails to designate a beneficiary on the form provided or if no beneficiary designated on the form provided survives the member, the benefit shall be paid in accordance with section 169.070.4., RSMo. (E) No payment of accumulated contributions shall be made to an estate except through the personal representative who has been legally qualified and who shall file a certified copy of the appointment; except, that in cases where the court does not appoint a personal representative, payment shall be made upon order of the court to the person(s) designated by the court, or in the absence of court order, the system may make payment to a surviving heir if all known surviving heirs sign an Indemnity Agreement and file this agreement with the board of trustees prior to the payment where such agreement would adequately protect the system; or payment may be made in accordance with the provisions of section 473.097, RSMo, relating to small estates. (5) Payments due a beneficiary of a deceased service retiree under Option 2, 3, 4, 5, or 6 shall commence with the month following the month in which the retiree dies. Payments due a beneficiary under Option 2, 3, or 4 shall cease with the payment at the end of the month in which the death of the beneficiary occurs. Under Options 5 and 6, if the retiree dies prior to receiving one hundred twenty (120) or sixty (60) monthly payments, respectively, the remainder of such monthly payments shall be paid to the retiree’s primary beneficiary. If the primary beneficiary dies prior to receiving the remainder of the one hundred twenty (120) or sixty (60) monthly payments under Option 5 or 6, respectively, the remainder of such monthly payments shall be paid to the retiree’s first contingent beneficiary. If the first contingent beneficiary dies prior to receiving the remainder of the one hundred twenty (120) or sixty (60) monthly payments under Option 5 or 6, respectively, the remainder of such monthly payments shall be paid to the retiree’s second contingent beneficiary. If there is no primary or contingent beneficiary who survives the retiree for the remainder of the one hundred twenty (120) or sixty (60) monthly payments under Option 5 or 6, respectively, the reserve of the remainder of such payments shall be paid in accordance with section 169.070.3.(1), RSMo. (6) A beneficiary who is eligible to receive benefits as provided for in section 169.075, RSMo, in lieu of the other benefits payable at death of the member or disability retiree must elect to receive these benefits in writing on a form provided by the board of trustees and before the date the first payment would begin to accrue, except that an election made within one (1) year of the death of the member or disability retiree may be effective from the first of the month following the event which establishes eligibility for the benefits. An election may not be changed after a payment has been made. No beneficiary shall be eligible to receive benefits pursuant to section 169.075, RSMo, after a member’s initial retirement even in the event of the previously retired member’s death during a subsequent membership with the system. (7) A beneficiary electing to receive benefits under section 169.075, RSMo, at the time of the election shall furnish to the board of trustees upon forms provided by the board the information necessary to determine the eligibility of the beneficiary to receive the benefits; and proof of date of birth of the beneficiary or dependents, if any, shall be furnished before benefits are paid. (8) Benefits payable because of an election provided for in section 169.075, RSMo, shall accrue from the first day of the month following the date on which the beneficiary becomes eligible for the benefits. The monthly benefit payment amounts shall be those provided under the law in effect at the death of the member or disability retiree. Such payments shall be made until the age provided under current law. (9) Payments due a survivor shall cease with the last monthly payment prior to the event terminating eligibility for such payments except when the terminating event is the death of the survivor, in which case payments shall cease with the payment made at the end of the month in which death occurs. (10) If the survivor receiving benefits is a dependent, unmarried, disabled child of a member who dies before retirement, the following applies: (A) If the surviving spouse is the designated beneficiary, the child will be considered as any other child until s/he has become age eighteen (18); s/he will be considered as any other child until becoming age twenty-four (24) if s/he continues in school on a full-time basis; s/he will become eligible for a monthly benefit as a disabled, unmarried child upon becoming age eighteen (18) or twenty-four (24) and will receive this allowance each month as long as s/he remains eligible; the surviving spouse will be returned to the roll to receive the statutory benefit upon becoming sixty (60) years of age, if eligible; (B) If a child is the designated primary beneficiary, the benefits prior to attainment of age eighteen (18), or twentyfour (24) if the child is enrolled in school on a full-time basis and after age eighteen (18) for the disabled child, will be in accordance with subsection 4 of section 169.075, RSMo, and the monthly payment will be continued as long as the disabled child is eligible; (C) In either subsection (10)(A) or (B) of this rule, if there is no eligible child of the deceased member under age eighteen (18), or twenty-four (24) if the child is enrolled in school on a fulltime basis except the disabled child who would no longer be eligible were it not for the disability, the monthly payment for the disabled child will be paid as long as s/he remains eligible; and the surviving spouse will not be excluded from a benefit upon attainment of age sixty (60) because of the eligibility of the surviving dependent child; and (D) A child eligible under section 169.075.3., RSMo, who has attained age eighteen (18), and for whom the monthly allowance has been paid, will be eligible to receive the benefit during the three (3) summer months of June, July, and August if s/he was enrolled in school on a full-time basis in the period immediately preceding these summer months and plans to be in attendance during the next regular term. The same interpretation will apply if the surviving dependent is receiving an allowance under section 169.075.4., RSMo. A qualified dependent under this section includes a child who is disabled prior to the attainment of age eighteen (18) because of mental or physical impairment which renders the child unable to engage in substantial gainful activity, and which disability continues after the child has attained age eighteen (18). (11) Payments which are to be made because of a surviving dependent unmarried child(ren) as provided in section 169.075, RSMo, shall be made in accordance with court orders. (12) Option 2 benefits payable under section 169.070, RSMo, to a beneficiary of a member or a disability retiree who dies prior to becoming retired on service retirement shall accrue as follows: (A) If the beneficiary elects to receive an immediate benefit, then the benefit shall be payable the first day of the month following the death of the member or disability retiree. If the beneficiary elects to receive a deferred benefit to begin when the member or disability retiree would have been eligible to receive a retirement allowance under section 169.070.1. or 2., RSMo, then the benefit shall be payable the first day of the month following the event which would have established the eligibility for such retirement allowance. If the beneficiary elects to receive a deferred benefit to begin when the member or disability retiree would first have been eligible to receive an actuarial equivalent of a retirement allowance, then the benefit shall be payable the first day of the month following the event which would have established eligibility for the actuarial equivalent. (B) The benefits payable shall be those provided under the law in effect at the date the payments begin. Any actuarial equivalent factors applied in the benefit calculation shall be those in effect at the time benefit payments begin. (C) The election by the beneficiary for Option 2 benefits must be made before the date the first payment would begin to accrue, except that an election made within one (1) year of the death of the member or disability retiree may be effective from the first of the month following the event which established eligibility for the retirement allowance. An election may not be changed after a payment has been made. (D) Option 2 benefits payable pursuant to section 169.070, RSMo, to a beneficiary of a member or a disability retiree who dies prior to becoming retired on service retirement shall be paid only to a sole beneficiary who had an insurable interest in the life of the member or disability retiree on the date of death. An “insurable interest” shall be considered to exist because of the relationship to a member of a wife, husband, father, mother, child (including a stepchild or adopted child), or any other person who has a financial interest in the continued life of the member or who is dependent upon the member for all or part of his or her support. (13) The five thousand dollar ($5,000) death benefit payable pursuant to section 169.070.20., RSMo, shall be payable to the beneficiary designated by the member to receive such benefit. If the member fails to designate a beneficiary on the form provided or if no beneficiary designated on the form provided survives the member, the death benefit shall be paid in accordance with section 169.070.21., RSMo. (14) Proof of the death of the member or beneficiary is required before any benefits, including, but not limited to, accumulated contributions are paid to an estate or other beneficiary. Proof of death shall be established by submission of an original or a certified copy of a death certificate issued by the authority of the governmental entity responsible for issuing such certificates. Other documentation, including, but not limited to, an appropriate court order may be submitted for evaluation if it is not possible to obtain a death certificate. (15) Pursuant to section 169.076.2, RSMo, the member’s marriage, divorce, withdrawal of accumulated contributions, or the birth of the member’s child, or the member’s adoption of a child, shall result in an automatic revocation of the member’s previous designation in its entirety only if such event occurred on or after August 28, 2005, and before the member’s effective service retirement date. (16) If a member’s child eligible to receive a benefit pursuant to section 169.075, RSMo, due to the application of section 169.076.1., RSMo, elects to receive the member’s accumulated contributions in lieu of benefits under section 169.075, RSMo, the accumulated contributions shall be distributed to all surviving children, regardless of their eligibility for benefits pursuant to section 169.075, RSMo, in equal shares pursuant to section 169.070.5., RSMo. However, if the application of section 169.076, RSMo, is not required due to the member having a valid nomination of beneficiary form filed with the system, then the member’s accumulated contributions, if chosen by the named beneficiary or beneficiaries, shall be distributed according to such nomination of beneficiary form. AUTHORITY: section 169.020, RSMo Supp. 2013.* Original rule filed Dec. 19, 1975, effective Jan. 1, 1976. Amended: Filed Aug. 11, 1977, effective Nov. 15, 1977. Emergency amendment filed Oct. 29, 1993, effective Nov. 8, 1993, expired March 7, 1994. Amended: Filed Oct. 29, 1993, effective May 9, 1994. Amended: Filed June 15, 1994, effective Nov. 30, 1994. Amended: Filed July 31, 1995, effective Feb. 25, 1996. Amended: Filed Dec. 12, 1996, effective June 30, 1997. Amended: Filed Oct. 15, 1997, effective April 30, 1998. Amended: Filed Aug. 10, 1998, effective Feb. 28, 1999. Amended: Filed Aug. 9, 1999, effective Feb. 29, 2000. Amended: Filed Dec. 15, 2000, effective June 30, 2001. Amended: Filed June 7, 2001, effective Dec. 30, 2001. Amended: Filed Sept. 1, 2005, effective Feb. 28, 2006. Amended: Filed Nov. 1, 2005, effective April 30, 2006. Amended: Filed Dec. 19, 2011, effective June 30, 2012. Amended: Filed Feb. 15, 2013, effective July 30, 2013. Amended: Filed April 30, 2014, effective Oct. 30, 2014. *Original authority: 169.020, RSMo 1945, amended 1951, 1953, 1967, 1973, 1983, 1990, 1995, 1996, 1998, 2005, 2009. Op. Atty. Gen. No. 163, Black (10-20-77). Under the 1977 amendments to section 169.070, RSMo, a member of the Public School Retirement System of Missouri having twenty-five (25) years of creditable service, but being less than age sixty, may retire and draw an actuarially reduced retirement allowance. Also, if such a member dies after gaining twenty-five years or more creditable service before retirement, his/her spouse if named as beneficiary may receive either survivorship benefits or payment of the member’s accumulated contributions.