Ohio Admin. Code 3307:2-5-07 - [Rescinded] Beneficiaries

(A) Subject to section 3307.87 of the Revised Code and rule 3307:2-5-08 of the Administrative Code, a participant in the defined contribution program may designate a beneficiary as specified in the plan document. Such a designation shall be in writing on a form provided by and received by the retirement system before the member's participant's death and the form must be completed in a manner satisfactory to the retirement system in its sole discretion. The most recent designation filed with the retirement system revokes all previous designations. The member's participant's marriage, termination of marriage, legal separation, withdrawal or distribution of account, or the birth of the member's participant's child or the member's participant's adoption of a child shall constitute an automatic revocation of any previous designation. A permanent election by a member participant in the combined plan or defined contribution plan that results in a change from the member participant's's original retirement plan selection or a return to the defined benefit plan pursuant to section 3307.25 of the Revised Code shall also constitute an automatic revocation of any previous designation.

(B) For beneficiary designations received pursuant to paragraph (A) of this rule where the

member participant named two or more beneficiaries and specified percentages for each of the beneficiaries, the state teachers retirement system shall pay the specified percentage of a lump-sum payment to each named beneficiary if all of these conditions are met:

(1) Two or more beneficiaries were named in a valid designation.

(2) Percentages were provided for all named beneficiaries.

(3) The sum of the percentages is one hundred per cent.

If any one of these conditions is not met, the lump-sum payment will be divided equally among the beneficiaries. Should a designated beneficiary predecease the member participant, those funds shall be prorated based on the remaining percentages designated and paid to the other designated beneficiaries.

(C) In the event a designation of beneficiary is not in effect upon the death of a participant prior to retirement, any beneficiaries may qualify in accordance with the terms of the plan document in the following order of precedence:

(1) Surviving spouse;

(2) Children, share and share alike;

(3) Parents, share and share alike;

(4) Estate.

(5) Person responsible for funeral expenses up to the full amount of the funeral expenses.

(D) Prior to the effective date of an application for retirement by a participant in the combined plan, the same person must be designated as a beneficiary or determined to qualify as a beneficiary as set forth in paragraph (C) of this rule in the event of the participant's death. At retirement the participant may, however, designate different beneficiaries for the defined contribution and defined benefit portions of the combined plans.

(E) If the death of a participant is caused by one of the following beneficiaries, no amount due under a plan established under section 3307.81 of the Revised Code or Chapters 3307:2-1 to 3307:2-7 of the Administrative Code shall be paid to the beneficiary in the absence of a court order to the contrary filed with the retirement system:

(1) A beneficiary who is convicted of, pleads guilty to, or is found not guilty by reason of insanity of a violation or complicity in the violation of either of the following:

(a) Section 2903.01, 2903.02 or 2903.03 of the Revised Code;

(b) An existing or former law of any other state, the United States, or a foreign nation that is substantially equivalent to section 2903.01, 2903.02 or 2903.03 of the Revised Code;

(2) A beneficiary who is indicted for a violation of or complicity in the violation of the sections or laws described in this rule and is adjudicated incompetent to stand trial;

(3) A beneficiary who is a juvenile is found to be a delinquent child by reason of committing an act that, if committed by an adult, would be a violation of or complicity in the violation of the sections or laws described in this rule.

(F) If a beneficiary cannot be located or fails to submit the appropriate application within ninety days of notification of available benefits, the rights of that beneficiary shall be deemed waived and the next beneficiary in succession shall be entitled to payment. Any payment made to a beneficiary as determined by the retirement system shall be a full discharge and release to the system from any future claims.

Notes

Ohio Admin. Code 3307:2-5-07

Effective: 6/7/2019
Five Year Review (FYR) Dates: 3/22/2019
Promulgated Under: 111.15
Statutory Authority: 3307.80
Rule Amplifies: 3307.81, 3307.87
Prior Effective Dates: 07/01/2001 (Emer.), 09/17/2001, 08/09/2007, 06/18/2009, 01/07/2013 (Emer.), 03/24/2013, 07/01/2013 (Emer.), 09/09/2013, 06/12/2014