§ 5-10.2-4-7.2 — Changes to beneficiary designation

Indiana § 5-10.2-4-7.2

• Jurisdiction: Indiana
• Title 5: STATE AND LOCAL ADMINISTRATION
• Art. 10.2: PUBLIC RETIREMENT AND DISABILITY
• Ch. 4: Retirement and Disability Benefits

Text

2. (a) This section applies to the following:
(1) A member of the Indiana state teachers' retirement fund after
June 30, 2007.
(2) A member of the public employees' retirement fund after June
30, 2008.
(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).

Legislative History

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.