Retiree and change of annuity form

[Guest shronesz]

I have a retiree that elected the 50% J&S form of benefit. He is in the process of getting a divorce. Once it is final, he would like to change his form of benefit to a life only. Must he wait a year to do this? Please site any regs.

Thanks, Sue

[david rigby]

Highly unlikely. Virtually all pension plans state that the form of payment cannot be changed by either the plan or by the retiree once payments have commenced. A QDRO does not have this right either.

BTW, it also very likely that the beneficiary under that J&S election is the soon-to-be-ex-wife, in name not "title". Thus, the divorce will have no bearing on her survivor rights; ditto if he remarries.

[Guest shronesz]

Thanks Pax.

So you are saying that even if he gets remarried, his first wife will be entitled to the 50% benefit?

[david rigby]

Correct.

Note also that if he outlives her, there will be no survivor benefit (unless specified by the plan), which is exactly the same as if there had been no divorce.