Item
1: Pension Fund
Check the box that indicates
the pension fund to which the member belongs:
PERS
— Public Employees' Retirement System
TPAF
— Teachers' Pension and Annuity Fund
PFRS
— Police and Firemen's Retirement System
CPFPF
— Consolidated Police and Firemen's Pension Fund
SPRS
— State Police Retirement System
JRS
— Judicial Retirement System
ABP
— Alternate Benefit Program
POPF
— Prison Officers' Pension
Fund
Item
2: Member's Name
The member must complete
this information.
The Designation of
Beneficiary form requires the member's full name—no nicknames.
Item
3: Member's Date of Birth
The member must provide
his or her date of birth—recommended format: MM/DD/YYYY.
Item
4: Member's Social Security Number, Membership Number, or Retirement
Number
The member must complete
this information.
Active members have
the option of providing either their Social Security number or
their pension membership number. An active member can obtain the
membership number from the annual Personal Benefits Statement.
Retired members have
the option of providing either their Social Security number or
their retirement number. A retired member can obtain the retirement
number from the pension check stub, or from the Statement of
Allowances and Deductions.
Item
5: Group Life Insurance Beneficiaries
Primary
Group Life Insurance Beneficiaries
This section must be
completed by all members (except members of the CPFPF and of the
POPF). The member indicates his/her primary beneficiary information.
The member must include each primary beneficiary's full name,
address, relationship to member, and date of birth. The member
may also include each beneficiary's Social Security number, although
the beneficiary Social Security number is optional.
The beneficiary(ies)
listed in this section are those whom the member wishes to receive
group life insurance benefits in the event of the member's death.
The return of accumulated deductions is a separate designation
covered in Item 6.
Contingent Group Life Insurance Beneficiaries
When a member dies,
the contingent beneficiary or beneficiaries will receive death
benefits only if all primary beneficiaries have predeceased the
member. (See
Rules for Designation of Beneficiaries
below to ensure death benefit distribution
occurs in accordance with the member's wishes.)
The member indicates
his/her contingent beneficiary information here. The member must
include each contingent beneficiary's full name, address, relationship
to member, and date of birth. The member may also include each
beneficiary's Social Security number, although the beneficiary
Social Security number is optional.
Please note: If no primary
or contingent beneficiaries survive the member, then all death
benefits will be paid to the member's estate.
Item 6: Pension Beneficiary
(Does not apply to ABP members)
This designation is for any/all pension
benefits remaining at the time of a member's death.
Please read below carefully to help
members understand the pension benefits, if any, that apply to
them, based on the fund in which they have membership and whether
they have active or retired status.
Primary Beneficiary Information,
Pension Benefits
The member indicates his/her primary
beneficiary information. The member must include each primary
beneficiary's full name, address, relationship to member, and
date of birth. The member may also include each beneficiary's
Social Security number, although the beneficiary Social Security
number is optional.
The primary beneficiary(ies) named
will receive any/all pension benefits upon the member's death.
Contingent Beneficiary Information
After indicating the primary beneficiary
information, the member indicates his/her contingent beneficiary
information, including each contingent beneficiary's full name,
address, relationship to member, and date of birth. The member
may also include each beneficiary's Social Security number, although
this information is optional.
The contingent beneficiary receives
these benefits only if all primary beneficiaries have predeceased
the member. If no primary or contingent beneficiaries survive
the member, then any such benefits will be paid to the member's
estate.
Active
Members
Member contributions
made by active members of the defined benefit plans are intended
to help fund a retirement allowance.
If a Teachers'
Pension and Annuity Fund (TPAF) or Public
Employees' Retirement System (PERS)
member dies before retirement, these funds are not needed for
pension purposes and will be refunded to whomever the member has
designated as beneficiary--that is, there is a return of accumulated
deductions.
In the case of PFRS,
SPRS and JRS members, accumulated deductions are paid
only if the member has no spouse or domestic partner, minor children,
or dependent parents to whom a pension can be paid, in accordance
with statutes governing each fund.
The accumulated deductions
must be paid to the designated beneficiary in a lump sum
payment. There is no other option available for distribution of
accumulated deductions (pension contributions).
This designation does
not apply to ABP (Alternate Benefits Program) members.
Retired
Members (All retirees except those retired from the ABP)
For PERS, TPAF, and
JRS* members:
Last Check Benefit
Pension checks sent
to a member after death, or any uncashed pension checks as of
the date of death, should be returned to the Division of Pensions
and Benefits. When the last check is returned, a replacement
check will be issued in the name of the beneficiary named here.
Maximum
Option
Under the TPAF, the
PERS and the JRS*, if the member chose the maximum allowance,
the balance of the member's pension contributions, if any, that
have not been paid in the form of the retirement allowance would
be paid to the beneficiary named here.
Option
1 Benefit
If the member chose
Option 1, the balance of the Option 1 reserve, if any, would be
paid to the beneficiary named here.
All other Options
After the effective
retirement date, a beneficiary named under Options A, B, C, D,
2, 3, and 4 cannot be changed. However, if the named beneficiary
under Options A, B, C, D, 2, 3, or 4 predeceases the member, a
new beneficiary should be named for the Last Check Benefit and
life insurance, if applicable.
*JRS members:
In addition to the statutory monthly survivor benefits for an
eligible spouse or domestic partner, and/or dependent children,
you may also
elect one of the eight voluntary pension options that provide
a pension benefit to a named beneficiary of your choice.
For PFRS, SPRS, and
JRS members:
For PFRS, SPRS, and
JRS members, the pension benefit is a monthly pension determined
by the statutes governing each fund regarding surviving spouses,
domestic partners, minor children, and dependent parents.
Member
Signature and Date
All members who complete
a Designation of Beneficiary form must complete this section. The
member's signature, date of completion, mailing address, and daytime
telephone number, with area code, must all be completed. Notarization
of the Designation of Beneficiary form is no longer required.
Submit the completed
form to:
Beneficiary Services
The Division of Pensions and Benefits
PO Box 295
Trenton, NJ 08625-0295.
The Designation of
Beneficiary form does not become effective until received
at the Division of Pensions and Benefits. Once received,
any new designation will supersede any and all prior designations
of beneficiary.
Beneficiary
Designation When A Member Retires
When a member files
for retirement, any beneficiary designation made on the retirement
application will supersede all prior beneficiary designations. This
will be true even if:
After a designation
of beneficiary is made on a retirement application, any changes
must be made with a subsequent Designation of Beneficiary
form.
Order
of Payment of Death Benefits
Primary Beneficiaries
In the event of a member's death, the
primary beneficiary or beneficiaries will be first in line to receive
any death benefits payable under group life insurance. (See
Rules for Designation of Beneficiaries
below to ensure death benefit distribution occurs in accordance
with the member's wishes.)
Contingent Beneficiaries
In the event of a member's death, the contingent beneficiary
or beneficiaries will receive death benefits only if all primary
beneficiaries have predeceased the member. (See
Rules for Designation of Beneficiaries
below to ensure death benefit distribution
occurs in accordance with the member's wishes.)
If no primary or contingent
beneficiaries survive the member, then all death benefits will be
paid to the member's estate.
Rules
for Designation of Beneficiaries
- A member may nominate any person,
persons, institution, trust, estate, etc., as primary or contingent
beneficiary, including a religious or charitable
instiution.
- If a religious
or charitable institution is named, its tax identification number
and incorporation date should be included on the form.
- The same beneficiary(ies) may
be listed for both group life insurance and the return of accumulated
deductions or last check benefit. Using the words, "Same
as Above" is not acceptable; the member must repeat the
same information for both items.
- If more than one person
is named a primary beneficiary, the following shall apply: "Share
and Share Alike, Survivor or Survivors", unless
the member specifies an unequal distribution
(see below).
If multiple beneficiaries are named, it is to be understood that
the beneficiaries living at the member's death will share equally
in the distribution of the death benefits
(unless an unequal distribution has been
outlined by the member, see below). The same applies
to multiple contingent beneficiaries.
- If a member wants an unequal
distribution among beneficiaries, he or she can use a percentage
or a fraction next to the person's
name.
- If the
member specifies a percentage nomination, the percentages written
must add up to 100%, as in the following example: The
member writes, Mary Smith, sister - 70%; Thomas Jones, brother
- 30% (70% + 30% = 100%).
- In the
case of fractional nominations, the fractions must add up to
one (1). For example, the member writes: Joe Jones, son - 1/4;
Jim Jones, son - 1/4; Patty Smith, daughter- 1/2; (1/4 + 1/4
+ 1/2 = 1.)
- Please note that
in the case of an unequal distribution, if one of the
named beneficiaries predeceases the member, the deceased beneficiary's
share becomes payable to the member's estate, unless the member
has stated otherwise on the form.
- Specific dollar
amounts should not be indicated since the amount of group life
insurance changes with every change in the member's salary (for
active members) or retirement allowance (for retirees).
- The Division of Pensions and Benefits
cannot require that the member provide the beneficiary's Social
Security number. Providing the Social Security number of
a beneficiary, however, may hasten the death claim processing.
- If additional space is required,
write, "See attached", on the beneficiary line on
the form and attach a separate sheet, giving all the information
required for beneficiaries on the form. This separate sheet
should be signed by the member and dated.
- When naming a married female as
beneficiary, be certain her proper name is given, e.g.,
Mary J. Jones, not Mrs. John R. Jones. Nicknames
are also not acceptable.
- The member may change the beneficiary
designation for the group life insurance, accumulated pension
deductions or last check benefit (retired members) at any time.
- If no beneficiary designation is
in effect at the time of death, or the designation section is
incomplete or blank, payment will be made to the member's estate.
- For PFRS, SPRS and JRS ONLY:
The designation of beneficiary directs payment of all death
benefits described by the statutes which are not specifically
directed to a widow, widower, same-sex domestic partner, child
or parent. If an annual pension is payable to a surviving
widow, widower, same-sex domestic partner, child, or parent,
such pension would be payable in addition to the insurance coverage.
When
a Beneficiary is a Minor
If a member wishes to name a minor as
a beneficiary for pension death and/or group life insurance benefits,
the manner of the designation can make a huge difference in how benefits
are paid.
- If a member dies leaving pension,
death, and /or group life insurance benefits to a minor, the Division
of Pensions and Benefits will withhold payment of the benefit
until one of the following occurs:
- A court-ordered guardian of the
minor's property is appointed by the courts and proof
of this is forwarded to the Division, in which case the benefits
will be paid to the guardian on the minor's behalf, or;
- The minor attains age 18.
- The member may choose to leave
pension, death benefits, and/or group life insurance benefits
to a trust established on behalf of a minor beneficiary. There
are two types of trusts, formal and informal.
- A formal trust is established
by formal, legal documents filed with a NJ county court that
designate a person, persons, or corporation as "Trustee".
When designating a formal trust on behalf of a minor beneficiary,
the member must clearly state "Formal Trust" on behalf
of the minor and include the date of trust incorporation: For
example, John Taylor, Trustee for Joshua Taylor, under the terms
of my trust agreement, dated January 1, 1993. The name and address
of the trustee must also be provided, in order to provide contact
information upon the member's death. A copy of the trust agreement
does not have to be attached to the Designation of Beneficiary
form. All specified death benefits would then be paid to
the trust. NOTE: A financial institution can be named as the
trustee.
- An informal trust is one
that has not been filed with the courts and need not be a formal
agreement. In this case, the member designates a person or persons
to act as "informal trustee(s)" on behalf of the minor.
The informal trustee(s) would be paid the specified benefits
on behalf of the minor beneficiary. An example would be, "Jane
Miller, Informal Trustee for June Doe, daughter." June
Doe is the beneficiary, but since she is minor, Jane Miller
would receive the benefits on her behalf. The address and birth
date of the minor being named as the beneficiary must be included
on the form.
Power of Attorney
and the Designation of Beneficiary Form
Members may use a
Power of Attorney form to authorize another person to act
on their behalf, granting that individual the Power of Attorney.
An individual named by a member to have the Power of Attorney who
completes a Designation of Beneficiary on the member's behalf,
can nominate him/herself, or someone else, as beneficiary only
if the Power of Attorney form clearly states that he/she has
the power to do so.
Some Powers of Attorney
are "limited" Powers of Attorney, meaning the individual
is granted the Power of Attorney for only a limited period of time,
or has been given the Power of Attorney only over certain areas.
A member can, for example, grant limited Power of Attorney, allowing
that individual to complete the retirement application but not name
him/herself to be beneficiary. Be sure that a member granting limited
Power of Attorney clearly states what affairs or transactions are
being covered. In the case of group life insurance, the Power
of Attorney form must specifically state that the individual
given Power of Attorney on a member's behalf can name him/herself
as a beneficiary of life insurance policies.
Conservators/Legal Guardians and
the Designation of Beneficiary Form
A conservator is a person or institution
designated by the courts to take over and protect the interests
of a member who is deemed incapable to do so on his/her own. A legal
guardian is appointed by the courts to care for a child under the
age of 18 whose parents are deceased or found to be incapable of
caring for the child. Both legal guardians and conservators are
appointed by the courts, and act on behalf of the courts.
Legal guardians and conservators may
choose themselves or someone else as beneficiary on both the Designation
of Beneficiary and the Application for Retirement Allowance,
and may make any retirement option selection. They must, however,
report their selections to the courts.
Do's
and Don'ts of Beneficiary Designation
Based on frequent experience at the
Division, the following "Do's and Don'ts" are suggested
as a means to reduce the number of errors on beneficiary designation
forms and ensure that members are well served in this important
area.
Don't use "white-out"
or cross out names to make changes in designation. This makes the
form unacceptable. It will be rejected and a new form will be mailed
to the member.
Do complete a fresh form whenever
the member makes a mistake in designating a beneficiary. In the
long run, this will save the member time and will eliminate any
uncertainty regarding the desired designation.
Don't name the same person or
persons in both the Primary and Contingent Beneficiary sections.
This makes the form unacceptable. It will be rejected and a new
form will be mailed to the member.
Do choose both primary and contingent
beneficiaries with care.
Don't leave the address for
any beneficiary blank. This will require the Division of Pensions
and Benefits to generate a letter requesting the required information.
Don't neglect the birthdate
of each beneficiary. This will require the Division of Pensions
and Benefits to generate a letter to request the required information.
Don't forget to list the relationship
of each beneficiary to the member. This will require the Division
of Pensions and Benefits to generate a letter requesting the required
information.
Do have all beneficiary information
on hand when completing a Designation of Beneficiary form.
Do
periodically check the most recent Designation of Beneficiary
form submitted, making sure that all beneficiary information
is correct, especially names, addresses, and phone numbers.
Method
of Payment of Group Life Insurance Benefits
Active
Members
The group life insurance may be paid:
- in one lump sum,
- as a monthly annuity payable for
the life of the beneficiary, or
- in monthly installments over a fixed
number of years.
In most cases it is advisable that
the member indicate "lump sum payment"; this permits
the beneficiary to elect a manner of payment to suit his or her
needs at the time of death. If the member elects a form of
payment other than "lump sum", the benefit will
be paid accordingly.
Retired Members
The group life insurance for retirees will be paid in one lump
sum only.
(This does not apply to members who retired with less than 10 years
of service, or retirees of the CPFPF or the POPF.)
