Marriage by proxy - "spouse" required as beneficiary??

[Guest Sara H]

A participant of one of our client's plans recently got married in Peru by proxy. The participant is trying to bring his "wife" to the US, although they are not sure if this will ever happen. The plan sponsor is wondering if he needs to assign his "wife" as his primary beneficiary. He currently has his two children from a previous marriage listed as beneficiaries. Does anybody have any ideas on this?

[david rigby]

Not sure, but my first guess would be to inquire whether this is a marraige recognized in the state of residence.

[Guest PeterGulia]

If the plan administrator has a well-designed form for a retirement plan beneficiary designation, the form should require a participant to show the spouse's consent (or one of the statutory excuses) or certify that he does not have a spouse.

If a participant certifies that he does not have a spouse but later informs the plan administrator that he has a spouse (for example, to get health coverage for her), the plan administrator may inform the participant that it requires him to furnish further evidence concerning which of his statements is truthful.

Even if there is no such opportunity to test for inconsistency, the participant takes most of the risk. The plan administrator always may investigate the facts at the relevant time.