Indiana Code 5-10.2-4-7.2. Changes to beneficiary designation
(1) A member of the Indiana state teachers’ retirement fund after June 30, 2007.
Terms Used In Indiana Code 5-10.2-4-7.2
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Board: as used in this article , means the board of trustees of the Indiana public retirement system established by Indiana Code 5-10.2-1-1
- Fund: as used in this article means the Indiana state teachers' retirement fund and the public employees' retirement fund. See Indiana Code 5-10.2-1-2
- Guardian: A person legally empowered and charged with the duty of taking care of and managing the property of another person who because of age, intellect, or health, is incapable of managing his (her) own affairs.
- in writing: include printing, lithographing, or other mode of representing words and letters. See Indiana Code 1-1-4-5
- Member: as used in this article means a member of the Indiana state teachers' retirement fund or of the public employees' retirement fund. See Indiana Code 5-10.2-1-4
- Property: includes personal and real property. See Indiana Code 1-1-4-5
- Remainder: An interest in property that takes effect in the future at a specified time or after the occurrence of some event, such as the death of a life tenant.
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
- Year: means a calendar year, unless otherwise expressed. See Indiana Code 1-1-4-5
(b) Except as otherwise provided in this section, if a member is receiving a benefit from the fund, the member may make the election described in subsection (c) any number of times.
(c) Except as otherwise provided in this section, a member may elect to:
(1) change the member’s designated beneficiary or form of benefit under section 7(b) of this chapter; and
(2) receive an actuarially adjusted and recalculated benefit for the remainder of:
(A) the member’s life; or
(B) the member’s life and the life of the newly designated beneficiary.
(d) A member making the election under subsection (c) may not elect to change to a five (5) year guaranteed form of benefit under section 7(b) of this chapter.
(e) If a member elects a benefit under subsection (c)(2)(B), the member must indicate whether the newly designated beneficiary’s benefit will equal:
(1) the member’s full recalculated benefit;
(2) two-thirds (2/3) of the member’s recalculated benefit; or
(3) one-half (1/2) of the member’s recalculated benefit.
(f) The member bears the cost of recalculating a benefit under subsection (c)(2), and the member shall pay the cost in the manner prescribed by the board by rule. However, the board shall waive the cost associated with the first time after June 30, 2016, the member changes the member’s designated beneficiary or form of benefit under this section.
(g) A member may not make the election under subsection (c) if a final order or property settlement in an action for dissolution of marriage:
(1) prohibits a change in the member’s designated beneficiary; or
(2) provides a right to a survivor benefit to a person who would be removed as the designated beneficiary.
(h) Benefits may be recalculated under this section only to the extent permitted by the Internal Revenue Code and applicable regulations.
(i) Before implementing this section, the board may obtain any approvals that the board considers necessary or appropriate from the Internal Revenue Service.
(j) Subject to subsection (g), if a member is receiving a benefit from the fund and the member’s spouse is the member’s designated beneficiary, the member may not change the member’s designated beneficiary or elect to receive an actuarially adjusted and recalculated benefit under subsection (c) unless:
(1) the member’s designated beneficiary dies;
(2) the member and the member’s designated beneficiary have been parties in an action for dissolution of marriage in which a final order has been issued after the member’s first benefit payment is made; or
(3) the member’s designated beneficiary, or the guardian of the member’s designated beneficiary, authorizes the change in writing in the manner prescribed by the board.
With respect to a final order for dissolution of marriage described in subdivision (2), it is immaterial whether the final order was issued before, on, or after the date in subsection (a)(1) or (a)(2).
As added by P.L.149-2007, SEC.2. Amended by P.L.9-2008, SEC.1; P.L.93-2008, SEC.2; P.L.241-2015, SEC.9; P.L.193-2016, SEC.12.