One-Time Beneficiary Deselection
You are allowed a one-time opportunity to change the survivor beneficiary after you retire if you named someone other than your spouse as your beneficiary under Form of Payment B or C and your named beneficiary is still living. If you named your former spouse as your beneficiary, you may only change your beneficiary if there is no court order requiring the election of a specific form of payment or designation of a specific survivor beneficiary.
There are two choices for deselection your current survivor beneficiary:
- Change to Form of Payment A. Your pension amount will increase and pension payments will end when you die; or
- Name another survivor beneficiary under the same Form of Payment (i.e.:B or C). If you choose to name a new beneficiary, your pension amount will be recalculated based on actuarial tables. Your pension may be reduced depending on the ages and life expectancies of you and the new beneficiary at the time the pension is recalculated.
A retiree whose survivor beneficiary dies can also name a new survivor beneficiary. You are eligible to make the one-time change to your survivor beneficiary selection if you meet the following criteria:
- A survivor beneficiary was named when you retired;
- You chose to receive your pension when you retired under either Form of Payment B or C.
- Your survivor beneficiary died; and
- PERA was notified of your survivor beneficiary’s death and your pension was increased to Form of Payment A.
The one-time change to a new survivor beneficiary is irrevocable.
PERA will recalculate your pension using the original Form of Payment A pension amount at the time you retired. PERA will use your current age and the current age and gender of the new survivor beneficiary to calculate your pension and the survivor beneficiary’s pension under Forms of Payment B or C.
Here is the process for changing a beneficiary under either of the above situations:
- Submit a copy of the birth certificate or other documentation accepted by PERA as proof of age for the person you want to designate as your new survivor beneficiary. See page 24 for other acceptable proof-of-age documents.
- Submit a Spousal Consent Form if you are naming someone other than your current spouse.
- Submit a check or money order for $100 made payable to “PERA” for the cost of actuarial determination of our new benefit and the benefit payable to your new survivor beneficiary. Your new benefit will be lower than your benefit under Form of Payment A.
- If you want PERA to calculate the benefit amount for different beneficiaries, the charge is $100 for each different survivor beneficiary you submit.
NOTE:The payment is not refundable if you decide not to name a new beneficiary after you receive the calculation of pension benefit amounts under Forms of Payment B and C. The payment covers the cost of actuarially calculating the benefits and must be paid whether or not you decide to go forward with naming a new survivor beneficiary.
Allow PERA 30-45 business days to process and respond to your request. You will then receive information on the survivor beneficiary amounts for Forms of Payment B or C and an Agreement for Selecting a New Beneficiary/Option.
Return the completed form to PERA if you decide to go forward with naming a new beneficiary or changing the payment option. If the agreement is received by PERA by the fifteenth of the month, the revised pension payment will be effective for that month. If the agreement is received after the fifteenth of the month, the revised pension payment amount will be effective with the following month’s pension benefit payment. The agreement will include an expiration date.
NOTE:If you named a beneficiary other than your spouse who is more than 10 years younger than you, the percentage paid to the beneficiary will be adjusted to meet Internal Revenue Code requirements.