When you become an IPERS member you need to file an IPERS Beneficiary Designation form, naming the person or people who will be eligible for any benefits payable upon your death. It is essential that IPERS has a current IPERS Beneficiary Designation form on file for you so IPERS can carry out your wishes upon your death. If you die and have not designated a beneficiary, your estate may become your beneficiary. Your beneficiary designation is not affected by your will. However, your beneficiary designation may be superseded by legal documents after a divorce, such as an IPERS Qualified Domestic Relations Order. If you are an IPERS member and also a beneficiary for a member, you may receive IPERS retirement and death benefits at the same time.
Payments to minors
When designating a beneficiary, keep in mind that IPERS cannot make payments directly to minors. If the amount to be paid to the minor is less than $25,000, IPERS can make the payment to an adult as custodian for the minor. If the amount is $25,000 or more, the amount must be paid to a court-established conservator or trustee. Alternatively, if the minor will turn 18 before the application deadline, the minor can wait and apply upon reaching age 18. The minor’s legal guardian should contact IPERS to ensure that waiting to claim a death benefit will not cause the death benefit to be forfeited.
Changing beneficiaries
You may change your designated beneficiary by completing and submitting a new Beneficiary Designation form. If you are a retired reemployed member, your most recent beneficiary designation governs all death benefits that are payable.
However, if you retired under Option 4 or 6 (which provide joint and survivor annuities) and return to work, you can designate a different beneficiary for your reemployment period, but only if your contingent annuitant (the beneficiary of your monthly benefits) is either your former spouse or dies before you do.
When signatures are required
If you are married, your Beneficiary Designation form must be signed by your spouse and witnessed by a disinterested person. If, after reasonable efforts, you are unable to locate your spouse, you may submit a sworn statement asserting that your spouse cannot be located and file an Beneficiary Designation form without the usual spousal consent. IPERS is held harmless in acting upon your sworn statement if the missing spouse later comes forward. If either you or your beneficiary has a name change, contact IPERS to update and sign all applicable documents.
If your beneficiary dies
It is important to promptly file a new Beneficiary Designation form if your designated beneficiary dies or other circumstances warrant a change. If your beneficiary dies before you do and you do not name a new beneficiary, your death benefits become payable to your estate, or your benefits may pass in accordance with Iowa’s laws on intestate succession if no estate will be opened.
Death benefit payment deadline
Generally, your designated beneficiary must apply for a lump-sum death benefit within five years of the date of your death or the benefit is forfeited. A longer period may apply if your spouse is your designated beneficiary. A shorter claim period also may apply, depending on Internal Revenue Service rules for required minimum distributions of accounts. Discuss IPERS death benefits with your beneficiaries and stress the importance of notifying IPERS of your death within 30 days.
If you take a refund
If you leave public employment and take a refund, your beneficiary designation is canceled. If you return to covered employment, you must file a new Beneficiary Designation form.