PERMANENT RULES
RETIREMENT SYSTEMS
Date of Adoption: April 21, 2000.
Purpose: Changes to chapter 415-104 WAC to:
| • | Accommodate a recent change in the law that allows LEOFF Plan 2 members to designate a trust as a death benefit beneficiary; |
| • | Advise LEOFF Plan 2 members how to fill out forms so that their intended beneficiaries receive the preretirement death benefit. |
Statutory Authority for Adoption: RCW 41.50.050.
Adopted under notice filed as WSR 00-04-023 on January 24, 2000.
Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 1, Amended 0, Repealed 0.
Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.
Number of Sections Adopted on the Agency's Own Initiative: New 1, Amended 0, Repealed 0.
Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 1, Amended 0, Repealed 0.
Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 0, Repealed 0. Effective Date of Rule: Thirty-one days after filing.
April 21, 2000
John Charles
Director
OTS-3791.2
NEW SECTION
WAC 415-104-450
Designation of beneficiaries -- Death benefit
if a member dies before retirement.
(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.
(2) As a member you may name:
(a) An organization or person, including your unborn or later adopted children. Unborn or later adopted children will not be included unless you specifically designate them as beneficiaries on the form. You must state 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. Before making distribution to the trust the department must receive:
(i) A copy of the 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.
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 the Barbara Trust and daughter Ann
as primary beneficiaries. The department will require the name
of the trustee, the tax identification number, a copy of the
trust and other information specified in this rule before
distribution to the trust.
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 (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.
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.
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