When you start a new job, you fill out lots of forms, including enrollment in a retirement plan. In the middle of that process, there’s a small section that many people rush through or skip: naming a beneficiary.
When you start to work in an INPRS-covered position, you have the option to go online and designate your beneficiary(s) for your Defined Contribution account. But sometimes this task is put off until later.
It’s understandable. Most of us would rather plan for life’s next milestones than think about what happens after we’re gone. But the truth is, unexpected events do happen, and choosing a beneficiary for your INPRS account is one of the simplest and most important ways to protect the people you care about.
A beneficiary designation determines who receives your retirement funds when you pass away. Taking a few minutes to handle this task now can prevent confusion later and help you create financial stability for your loved ones.
Clarifying the terms
A survivor is a type of beneficiary, but a beneficiary is not always a survivor.
- A beneficiary is the person(s), your estate or trust you designate to receive all or part of your Defined Contribution (DC) INPRS account balance after your passing.
- A survivor beneficiary is the person you may designate at the time of retirement to receive your Defined Benefit (DB) pension payments after your death. If you are a member of a fund other than PERF/TRF, survivors are designated by statute, meaning that the law specifically determines who qualifies as a survivor eligible to receive benefits from the retirement fund after a member’s death.
Each INPRS plan has its own rules, and your personal situation may change over time. That’s why it’s so important to keep your beneficiary information up-to-date and understand the impact of your choices.
When should you review your beneficiary information?
You should review your beneficiary information after each major life event, including but not limited to:
- When you start to work in or leave an INPRS-covered position.
- If you get married or divorced.
- After the birth or adoption of a child.
- After the death of a previously named beneficiary.
- Every year, as part of your financial checkup.
You can update your Defined Contribution plan beneficiaries for PERF and TRF online here under “Personal Information” in your profile drop-down menu or by submitting a paper form available here.
If you need assistance on this and other retirement-related topics, please call us at (844) 464-6777.