Or. Admin. Code § 459-050-0065 - Beneficiary Predeceases or Disclaims Benefit

Purpose. The purpose of this rule is to establish the criteria and process that must be used if a beneficiary predeceases the participant, alternate payee, or surviving beneficiary who made the designation as provided in OAR 459-050-0060, or a beneficiary disclaims a death benefit.

(1) Beneficiary predeceases or disclaims benefit. If one or more designated beneficiaries predecease the participant, alternate payee, or surviving beneficiary who made the designation as provided in OAR 459-050-0060, or if a designated beneficiary files a disclaimer as provided in section (2) of this rule, the beneficiary's interest in the respective account will be distributed to any remaining surviving beneficiaries or contingent beneficiaries in proportion to each remaining beneficiary's interest as defined by the deceased participant's, alternate payee's, or surviving beneficiary's most recent designation of beneficiary on file with the Deferred Compensation Program.

(2) Disclaiming beneficiary payment. If the Deferred Compensation Program receives written evidence to its satisfaction that a designated beneficiary has made a legally valid disclaimer, the benefit will be distributed as though the beneficiary died before the deceased participant, alternate payee, or surviving beneficiary. A disclaimer will be deemed valid if it complies with Oregon law and is an irrevocable and unqualified refusal by a beneficiary to accept any payment from the Deferred Compensation Program. However, a disclaimer is not effective until staff has received and reviewed it, and determined that the following conditions are satisfied:

(a) The disclaimer must be executed before the beneficiary accepts or uses any death benefit payment;

(b) The disclaimer must be in writing and signed by the disclaiming beneficiary;

(c) The disclaimer must state an irrevocable and unqualified refusal to accept the benefit;

(d) The disclaimer must have been filed with the Deferred Compensation Program administrator within nine months after the date of death of the participant, alternate payee, or surviving beneficiary or the date the disclaiming beneficiary attains 21 years of age, whichever is later; and

(e) The disclaimer must provide for or allow the benefit to pass without any direction from the disclaiming beneficiary.

Notes

Or. Admin. Code § 459-050-0065

PERS 12-2002, f. & cert. ef.7-17-02

Stat. Auth: ORS 243.470

Stats. Implemented: ORS 243.401 - ORS 243.507