WSR 05-12-041

PERMANENT RULES

DEPARTMENT OF

RETIREMENT SYSTEMS

[ Filed May 25, 2005, 2:29 p.m. , effective June 25, 2005 ]


Purpose: These rules clarify the requirements and process for an active member to designate a beneficiary or beneficiaries. They also address situations in which a surviving spouse is eligible to receive a benefit, but dies before requesting a distribution. These rules affect members of the Washington State Patrol retirement system, law enforcement officers' and fire fighters' retirement system, public employees' retirement system, school employees' retirement system and the teachers' retirement system.

Citation of Existing Rules Affected by this Order: Amending WAC 415-104-450, 415-108-315, 415-110-315, and 415-112-705.

Statutory Authority for Adoption: RCW 41.50.050(5).

Adopted under notice filed as WSR 05-08-030 on March 30, 2005.

Changes Other than Editing from Proposed to Adopted Version: Clarified that, in the event a surviving spouse dies before making an election, the eligible child or children may choose either the member's accumulated contributions or a monthly allowance. This was unclear in the proposed rule, even though it was the agency's intent. Changed Example 4 to clarify that the children would receive a monthly allowance until the age of majority. Provided a statutory reference to information about the defined benefit portion of Plan 3 (in the PERS, SERS and TRS rules). In WAC 415-112-705(7), added the pertinent subsection to the reference to RCW 41.32.520.

Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.

Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

Number of Sections Adopted on the Agency's Own Initiative: New 1, Amended 4, Repealed 0.

Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 0, Repealed 0.

Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 1, Amended 4, Repealed 0.

Date Adopted: May 25, 2005.

Sandra J. Matheson

Director

OTS-8003.2


NEW SECTION
WAC 415-103-275   How do I designate a beneficiary, and who will receive a distribution if I die before retirement?   This section applies to members commissioned on or after January 1, 2003.

(1) You may designate or change a beneficiary by submitting a Beneficiary Designation form to the department. Your designation will become effective upon the department's receipt of the form, only if it is completed properly and signed by you and a witness.

(2) You may name one or more of the following as a beneficiary or beneficiaries:

(a) An organization or person, including unborn or later adopted children. However, unborn or later adopted children must be specifically designated as beneficiaries on the form. You must indicate the date of birth for any living person you name as a beneficiary.

(b) Your estate.

(c) An existing trust, or a trust to be established at a later date or under your last will. If you designate a trust that is not in existence at the time of your death, or is not created under your last will, the designation will be invalid. Before making distribution to any trust, the department must receive:

(i) A copy of the entire trust document;

(ii) The name, address, telephone number of the current trustee; and

(iii) The tax identification number.

(3) You may name contingent beneficiaries in addition to primary beneficiaries.

(4) You may change your beneficiary designation at any time.

(5) A change in marital status may invalidate your prior designation.

(6) Your named beneficiary may not necessarily receive a distribution if you die prior to retirement. (See example three.) Distribution is governed by RCW 43.43.295.

(7) If your surviving spouse is eligible to receive a benefit under RCW 43.43.295(2), but your spouse dies before requesting a distribution, your minor children and your spouse's minor children may elect to receive either:

(a) Your accumulated contributions; or

(b) A monthly benefit, share and share alike, until each child reaches the age of majority. See example four.


EXAMPLE ONE.

Facts


John, a member, completes a Beneficiary Designation form. In the place on the form reserved for persons, he names his daughter Ann. He checks the box to indicate that Ann is a primary beneficiary.


In the place on the form reserved for trust/organizational beneficiaries, he lists the "Barbara Trust." His daughter Barbara is the trust beneficiary. He checks the box to indicate that the trust is a primary beneficiary.


Result


At John's death, Ann and the Barbara Trust are the primary beneficiaries. The department will require the name of the trustee, the tax identification number, a copy of the entire trust and other information specified in this rule before distribution to the trust. Distribution is governed by RCW 43.43.295.


EXAMPLE TWO.

Facts


John, a member, completes a Beneficiary Designation form. In the place on the form reserved for persons, he names his daughter Ann. He checks the box to indicate that Ann is a primary beneficiary.


In the place on the form reserved for trust/organizational beneficiaries, he lists his daughter Barbara personally; i.e., no trust name is provided. John checks the corresponding box to indicate a primary beneficiary designation. At John's death, the department learns that John has created no trusts.


Result


Because John has created no trust, the designation of the Barbara Trust is void. Barbara, personally, will not be a beneficiary.


EXAMPLE THREE.

Facts


When she became a WSPRS member, Joan named her mother as her beneficiary. Joan later married, but did not file a new beneficiary form before she died with eleven years of service.


Result


Unless required to do otherwise by court order, the department will comply with RCW 43.43.295(2) and pay Joan's surviving spouse either a retirement allowance or lump sum. In this case, Joan's mother will not receive a distribution.


EXAMPLE FOUR.

Facts


John is a member with eleven years of service. He and his wife Mary have a total of three minor children. They have one child together, and each has one child from a previous marriage.


John and Mary were in a skydiving accident. John died instantly making Mary eligible for a benefit under RCW 43.43.295(2). However, Mary died the following week before requesting a distribution from the department.


Result


Since Mary died before requesting a distribution of John's account, John and Mary's three minor children are eligible and opt to receive a monthly benefit, share and share alike, until each child reaches the age of majority.

[]

OTS-7762.3


AMENDATORY SECTION(Amending WSR 00-10-017, filed 4/21/00, effective 5/22/00)

WAC 415-104-450   ((Designation of beneficiaries -- Death benefit if a member dies before retirement.)) How do I designate a beneficiary, and who will receive a distribution if I die before retirement?   This section applies to Plan 2 members.

(1) ((As a member, you have the right to designate a beneficiary or beneficiaries to receive a benefit in the event of your death while you are an active member. You may change your beneficiary designation at any time by filing a change of beneficiary form with the department.)) You may designate or change a beneficiary by submitting a beneficiary designation form to the department. Your designation will become effective upon the department's receipt of the form, only if it is completed properly and signed by you and a witness.

(2) ((As a member)) You may name one or more of the following as a beneficiary or beneficiaries:

(a) An organization or person, including ((your)) unborn or later adopted children. However, unborn or later adopted children ((will not be included unless you)) must be specifically ((designate them)) designated as beneficiaries on the form. You must ((state)) indicate the date of birth for any living person you name as a beneficiary((;)).

(b) Your estate((;)).

(c) ((A trust in existence at the time of death.)) An existing trust, or a trust to be established at a later date or under your last will. If you designate a trust that is not in existence at the time of your death, or is not created under your last will, the designation will be invalid. Before making distribution to ((the)) any trust the department must receive:

(i) A copy of the entire trust document;

(ii) The name, address, telephone number of the current trustee; and

(iii) The tax identification number((;

(d) A trust to be established under your last will)).

(3) You may name contingent beneficiaries in addition to primary beneficiaries.

(4) You may change your beneficiary designation at any time.

(5) A change in marital status may invalidate your prior designation.

(6) Your named beneficiary may not necessarily receive a distribution if you die prior to retirement. (See example three.) Distribution is governed by RCW 41.26.510.

(7) If your surviving spouse is eligible to receive a benefit under RCW 41.26.510(2), but your spouse dies before requesting a distribution, your minor children and your spouse's minor children may elect to receive either:

(a) Your accumulated contributions; or

(b) A monthly benefit, share and share alike, until each child reaches the age of majority. See example four.


Examples:


EXAMPLE ONE.

Facts


John, a member, completes a beneficiary designation form.


In the place on the form reserved for persons, he names his daughter Ann. He checks the box to indicate that Ann is a primary beneficiary.


In the place on the form reserved for trust/organizational beneficiaries, he lists the "Barbara Trust." His daughter Barbara is the trust beneficiary. He checks the box to indicate that the trust is a primary beneficiary.


Result


((Subject to applicable statute,)) At John's death, ((the department will consider both)) Ann and the Barbara Trust ((and daughter Ann as)) are the primary beneficiaries. The department will require the name of the trustee, the tax identification number, a copy of the entire trust and other information specified in this rule before distribution to the trust. Distribution is governed by RCW 41.26.510.


EXAMPLE TWO.

Facts


John, a member, completes a beneficiary designation form.


In the place on the form reserved for persons, he names his daughter Ann. He checks the box to indicate that Ann is a primary beneficiary.


In the place on the form reserved for trust/organizational beneficiaries, he lists his daughter Barbara personally ((()); i.e., no trust name is provided(())). ((He checks the box labeled "primary beneficiary." John misunderstands the form and rather than provide the names of the trustee or trust administrator, John writes the word "both" in the blank provided.)) John checks the corresponding box to indicate a primary beneficiary designation. At John's death, the department learns that John has created no trusts.


Result


((At John's death, the department learns that John has created no trusts. Subject to existing statute, if the department receives no notice of competing claims to John's death benefit, the department will distribute the death benefit to Ann. If the department receives notice of competing claims, a court resolution may be required.)) Because John has created no trust, the designation of the Barbara Trust is void. Barbara, personally, will not be a beneficiary.


EXAMPLE THREE.

Facts


When she became a LEOFF Plan 2 member, Joan named her mother as her beneficiary. Joan later married, but did not file a new beneficiary form before she died with eleven years of service.


Result


Unless required to do otherwise by court order, the department will comply with RCW 41.26.510(2) and pay Joan's surviving spouse either a retirement allowance or lump sum. In this case, Joan's mother will not receive a distribution.


EXAMPLE FOUR.

Facts


John is a LEOFF 2 member with eleven years of service. He and his wife Mary have a total of three minor children. They have one child together, and each has one child from a previous marriage.


John and Mary were in a skydiving accident. John died instantly making Mary eligible for a benefit under RCW 41.26.510(2). However, Mary died the following week before requesting a distribution from the department.


Result


Since Mary died before requesting a distribution of John's account, John and Mary's three minor children are eligible and opt to receive a monthly benefit, share and share alike until each child reaches the age of majority.

[Statutory Authority: RCW 41.50.050. 00-10-017, 415-104-450, filed 4/21/00, effective 5/22/00.]

OTS-7763.3


AMENDATORY SECTION(Amending WSR 02-03-120, filed 1/23/02, effective 3/1/02)

WAC 415-108-315   ((Can I specify who can receive my benefits if I die in service?)) How do I designate a beneficiary, and who will receive a distribution if I die before retirement?   This section applies to the designation of beneficiaries for Plan 1 and Plan 2 members' defined benefit and Plan 3 members' defined contribution accounts. RCW 41.40.835 governs the defined benefit portion of Plan 3.

(1) ((You have the right to designate a beneficiary or beneficiaries to receive a benefit if you die while you are an active member. You may change your beneficiary designation at any time by filing a change of beneficiary form with the department.)) You may designate or change a beneficiary by submitting a beneficiary designation form to the department. Your designation will become effective upon the department's receipt of the form, only if it is completed properly and signed by you and a witness.

(2) ((As a member)) You may name one or more of the following as a beneficiary or beneficiaries:

(a) An organization or person, including ((your)) unborn or later adopted children. However, unborn or later adopted children ((will not be included unless you)) must be specifically ((designate them)) designated as beneficiaries on the form. You must ((state)) indicate the date of birth for any living person you name as a beneficiary((;)).

(b) Your estate((; and/or)).

(c) ((A trust.)) An existing trust, or a trust to be established at a later date or under your last will. If you designate a trust that is not in existence at the time of your death, or is not created under your last will, the designation will be invalid. Before making a distribution to any trust the department must receive:

(i) A copy of the entire trust document;

(ii) The name, address, and telephone number of the current trustee; and

(iii) The tax identification number.

(3) You may name contingent beneficiaries in addition to primary beneficiaries.

(4) ((If you are a member of Plan 3, you may name the same or different beneficiaries for your defined benefit and defined contribution accounts.)) You may change your beneficiary designation at any time.

(5) A change in marital status may invalidate your prior designation.

(6) Your named beneficiary may not necessarily receive a distribution if you die prior to retirement. (See example three.) Distribution is governed by:

(a) RCW 41.40.270 for Plan 1 members;

(b) RCW 41.40.700 for Plan 2 members; and

(c) RCW 41.34.070 for Plan 3 members.

(7) If your surviving spouse is eligible to receive a benefit under RCW 41.40.270(2) or 41.40.700(2), but your spouse dies before requesting a distribution, your minor children and your spouse's minor children may elect to receive either:

(a) Your accumulated contributions; or

(b) A monthly benefit, share and share alike, until each child reaches the age of majority. See example four.


Examples:


EXAMPLE ONE.

Facts


John, a member, completes a beneficiary designation form.


In the place on the form reserved for persons, he names his daughter Ann. He checks the box to indicate that Ann is a primary beneficiary.


In the place on the form reserved for trust/organizational beneficiaries, he lists the "Barbara Trust." His daughter Barbara is the trust beneficiary. He checks the box to indicate that the trust is a primary beneficiary.


Result


((Subject to applicable statute,)) At John's death, ((the department will consider both)) Ann and the Barbara Trust ((and daughter Ann as)) are the primary beneficiaries. The department will require the name of the trustee, the tax identification number, a copy of the entire trust and other information specified in this rule before distribution to the trust. Distribution is governed by RCW 41.40.270 for Plan 1 members, RCW 41.40.700 for Plan 2 members, and RCW 41.34.070 for Plan 3 members.


EXAMPLE TWO.

Facts


John, a member, completes a beneficiary designation form.


In the place on the form reserved for persons, he names his daughter Ann. He checks the box to indicate that Ann is a primary beneficiary.


In the place on the form reserved for trust/organizational beneficiaries, he lists his daughter Barbara personally; i.e., no trust name is provided. John checks the corresponding box to indicate a primary beneficiary designation. At John's death, the department learns that John has created no trusts.


Result


Because John has created no trust, the designation ((in the trust/organizational location on the form is void. Subject to existing law, the department will issue the death benefit to Ann unless it receives a notice of a competing claim. If the department receives notice of competing claims, a court resolution may be required)) of the Barbara Trust is void. Barbara, personally, will not be a beneficiary.


EXAMPLE THREE.

Facts


When she became a PERS 1 member, Joan was unmarried and named her mother as her beneficiary. Joan later married, but did not complete a new beneficiary form before she died with four years of service.


Result


Unless required to do otherwise by court order, the department will comply with RCW 41.40.270 (1)(b) and pay Joan's surviving spouse the accumulated contributions in her retirement account. In this case, Joan's mother will not receive a distribution
.


EXAMPLE FOUR.

Facts


John is a PERS Plan 2 member with eleven years of service. He and his wife Mary have a total of three minor children. They have one child together, and each has one child from a previous marriage.


John and Mary were in a skydiving accident. John died instantly making Mary eligible for a benefit under RCW 41.40.700(2). However, Mary died the following week before requesting a distribution from the department.


Result


Since Mary died before requesting a distribution of John's account, John and Mary's three minor children are eligible and opt to receive a monthly benefit, share and share alike, until each child reaches the age of majority.

[Statutory Authority: RCW 41.50.050(5), 41.40.270, 41.40.700, 41.40.835. 02-03-120, 415-108-315, filed 1/23/02, effective 3/1/02. Statutory Authority: RCW 41.50.050. 00-10-015, 415-108-315, filed 4/21/00, effective 5/22/00.]

OTS-7764.3


AMENDATORY SECTION(Amending WSR 01-01-059, filed 12/12/00, effective 1/12/01)

WAC 415-110-315   ((Designation of beneficiaries -- Death benefit if a member dies before retirement.)) How do I designate a beneficiary, and who will receive a distribution if I die before retirement?   This section applies to the designation of beneficiaries for Plan 2 members' defined benefit ((or)) and Plan 3 members' defined contribution ((distribution)) accounts. RCW 41.35.710 governs the defined benefit portion of Plan 3.

(1) ((As a member, you have the right to designate a beneficiary or beneficiaries to receive a benefit in the event of your death while you are an active member. You may change your beneficiary designation at any time by filing a change of beneficiary form with the department.)) You may designate or change a beneficiary by submitting a beneficiary designation form to the department. Your designation will become effective upon the department's receipt of the form, only if it is completed properly and signed by you and a witness.

(2) You may name one or more of the following as a beneficiary or beneficiaries:

(a) An organization or person, including ((your)) unborn or later adopted children. However, unborn or later adopted children ((will not be included unless you)) must be specifically ((designate them)) designated as beneficiaries on the form. You must ((state)) indicate the date of birth for any living person you name as a beneficiary((;)).

(b) Your estate((;)).

(c) ((A trust in existence at the time of death.)) An existing trust, or a trust to be established at a later date or under your last will. If you designate a trust that is not in existence at the time of your death, or is not created under your last will, the designation will be invalid. Before making distribution to any trust, the department must receive:

(i) A copy of the entire trust document;

(ii) The name, address, telephone number of the current trustee; and

(iii) The tax identification number((;

(d) A trust to be established under your last will)).

(3) You may name contingent beneficiaries in addition to primary beneficiaries.

(4) You may change your beneficiary designation at any time.

(5) A change in marital status may invalidate your prior designation.

(6) Your named beneficiary may not necessarily receive a distribution if you die prior to retirement. (See example three.) Distribution is governed by:

(a) RCW 41.35.460 for Plan 2 members; and

(b) RCW 41.34.070 for Plan 3 members.

(7) If your surviving spouse is eligible to receive a benefit under RCW 41.35.460(2), but your spouse dies before requesting a distribution, your minor children and your spouse's minor children may elect to receive either:

(a) Your accumulated contributions; or

(b) A monthly benefit, share and share alike, until each child reaches the age of majority. See example four.


Examples:


EXAMPLE ONE.

Facts


John, a member, completes a beneficiary designation form.


In the place on the form reserved for persons, he names his daughter Ann. He checks the box to indicate that Ann is a primary beneficiary.


In the place on the form reserved for trust/organizational beneficiaries, he lists the "Barbara Trust." His daughter Barbara is the trust beneficiary. He checks the box to indicate that the trust is a primary beneficiary.


Result


((Subject to applicable statute,)) At John's death, ((the department will consider both)) Ann and the Barbara Trust ((and daughter Ann as)) are the primary beneficiaries. The department will require the name of the trustee, the tax identification number, a copy of the entire trust and other information specified in this rule before distribution to the trust. Distribution is governed by RCW 41.35.460 for Plan 2 members, and RCW 41.34.070 for Plan 3 members.


EXAMPLE TWO.

Facts


John, a member, completes a beneficiary designation form.


In the place on the form reserved for persons, he names his daughter Ann. He checks the box to indicate that Ann is a primary beneficiary.


In the place on the form reserved for trust/organizational beneficiaries, he lists his daughter Barbara personally ((()); i.e., no trust name is provided(())). ((He checks the box labeled "primary beneficiary." John misunderstands the form and rather than provide the names of the trustee or trust administrator, John writes the word "both" in the blank provided.)) John checks the corresponding box to indicate a primary beneficiary designation. At John's death, the department learns that John has created no trusts.


Result


((At John's death, the department learns that John has created no trusts. Subject to existing statute, if the department receives no notice of competing claims to John's death benefit, the department will distribute the death benefit to Ann. If the department receives notice of competing claims, a court resolution may be required.)) Because John has created no trust, the designation of the Barbara Trust is void. Barbara, personally, will not be a beneficiary.


EXAMPLE THREE.

Facts


When she became a SERS Plan 2 member, Joan named her mother as her beneficiary. Joan later married, but did not file a new beneficiary form before she died with eleven years of service.


Result


Unless required to do otherwise by a court order, the department will comply with RCW 41.35.460(2) and pay Joan's surviving spouse either a retirement allowance or lump sum. In this case, Joan's mother will not receive a distribution.


EXAMPLE FOUR.

Facts

John is a SERS Plan 2 member with eleven years of service. He and his wife Mary have a total of three minor children. They have one child together, and each has one child from a previous marriage.


John and Mary were in a skydiving accident. John died instantly making Mary eligible for a benefit under RCW 41.35.460(2). However, Mary died the following week before requesting a distribution from the department.


Result


Since Mary died before requesting a distribution of John's account, John and Mary's three minor children are eligible and opt to receive a monthly benefit, share and share alike, until each child reaches the age of majority.

[Statutory Authority: Chapters 41.32, 41.34, 41.35, 41.50 RCW. 01-01-059, 415-110-315, filed 12/12/00, effective 1/12/01.]

OTS-7765.4


AMENDATORY SECTION(Amending WSR 00-10-015, filed 4/21/00, effective 5/22/00)

WAC 415-112-705   ((Designation of beneficiaries -- Death benefit if a member dies before retirement.)) How do I designate a beneficiary, and who will receive a distribution if I die before retirement?   This section applies to the designation of beneficiaries for Plan 1 and Plan 2 members' defined benefit and Plan 3 members' defined contribution accounts. RCW 41.32.895 governs the defined benefit portion of Plan 3.

(1) ((As a member, you have the right to designate a beneficiary or beneficiaries to receive a benefit in the event of your death while you are an active member. You may change your beneficiary designation at any time by filing a change of beneficiary form with the department.)) You may designate or change a beneficiary by submitting a beneficiary designation form to the department. Your designation will become effective upon the department's receipt of the form, only if it is completed properly and signed by you and a witness.

(2) ((As a member)) You may name one or more of the following as a beneficiary or beneficiaries:

(a) An organization or person, including ((your)) unborn or later adopted children. However, unborn or later adopted children ((will not be included unless you)) must be specifically ((designate them)) designated as beneficiaries on the form. You must ((state)) indicate the date of birth for any living person you name as a beneficiary((;)).

(b) Your estate((;)).

(c) ((A trust in existence at the time of death.)) An existing trust, or a trust to be established at a later date or under your last will. If you designate a trust that is not in existence at the time of your death, or is not created under your last will, the designation will be invalid. Before making distribution to any trust the department must receive:

(i) A copy of the entire trust document;

(ii) The name, address, telephone number of the current trustee; and

(iii) The tax identification number((;

(d) A trust to be established under your last will)).

(3) You may name contingent beneficiaries in addition to primary beneficiaries.

(4) You may change your beneficiary designation at any time.

(5) A change in marital status may invalidate your prior designation.

(6) Your named beneficiary may not necessarily receive a distribution if you die prior to retirement. (See example three.) Distribution is governed by:

(a) RCW 41.32.520 for Plan 1 members;

(b) RCW 41.32.805 for Plan 2 members; and

(c) RCW 41.34.070 for Plan 3 members.

(7) If your surviving spouse is eligible to receive a benefit under RCW 41.32.520 (1)(b) or 41.32.805(2), but your spouse dies before requesting a distribution, your minor children and your spouse's minor children may elect to receive either:

(a) Your accumulated contributions; or

(b) A monthly benefit, share and share alike, until each child reaches the age of majority. See example four.


Examples:


EXAMPLE ONE.

Facts


John, a member, completes a beneficiary designation form.


In the place on the form reserved for persons, he names his daughter Ann. He checks the box to indicate that Ann is a primary beneficiary.


In the place on the form reserved for trust/organizational beneficiaries, he lists the "Barbara Trust." His daughter Barbara is the trust beneficiary. He checks the box to indicate that the trust is a primary beneficiary.


Result


((Subject to applicable statute,)) At John's death, ((the department will consider both)) Ann and the Barbara Trust ((and daughter Ann as)) are the primary beneficiaries. The department will require the name of the trustee, the tax identification number, a copy of the entire trust and other information specified in this rule before distribution to the trust. Distribution is governed by RCW 41.32.520 for Plan 1 members, RCW 41.32.805 for Plan 2 members, and RCW 41.34.070 for Plan 3 members.


EXAMPLE TWO.

Facts


John, a member, completes a beneficiary designation form.


In the place on the form reserved for persons, he names his daughter Ann. He checks the box to indicate that Ann is a primary beneficiary.


In the place on the form reserved for trust/organizational beneficiaries, he lists his daughter Barbara personally ((()); i.e., no trust name is provided(())). ((He checks the box labeled "primary beneficiary." John misunderstands the form and rather than provide the names of the trustee or trust administrator, John writes the word "both" in the blank provided.)) John checks the corresponding box to indicate a primary beneficiary designation. At John's death, the department learns that John has created no trusts.


Result


((At John's death, the department learns that John has created no trusts. Subject to existing statute, if the department receives no notice of competing claims to John's death benefit, the department will distribute the death benefit to Ann. If the department receives notice of competing claims, a court resolution may be required.)) Because John has created no trust, the designation of the Barbara Trust is void. Barbara, personally, will not be a beneficiary.


EXAMPLE THREE.

Facts


When she became a TRS 1 member, Joan was unmarried and named her mother as her beneficiary. Joan later married, but did not complete a new beneficiary form before she died with four years of service.


Result


Unless required to do otherwise by a court order, the department will comply with RCW 41.32.520(1) and pay Joan's surviving spouse the accumulated contributions in her retirement account. In this case, Joan's mother will not receive a distribution.


EXAMPLE FOUR.

Facts


John is a TRS Plan 2 member with eleven years of service. He and his wife Mary have a total of three minor children. They have one child together, and each has one child from a previous marriage.


John and Mary were in a skydiving accident. John died instantly making Mary eligible for a benefit under RCW 41.32.805(2). However, Mary died the following week before requesting a distribution from the department.


Result


Since Mary died before requesting a distribution of John's account, John and Mary's three minor children are eligible and opt to receive a monthly benefit, share and share alike, until each child reaches the age of majority.

[Statutory Authority: RCW 41.50.050. 00-10-015, 415-112-705, filed 4/21/00, effective 5/22/00.]

Washington State Code Reviser's Office