Missing beneficiary form

[Guest bmurphy]

Plan participant dies, no one can locate a beneficiary form. Death certificate says he was divorced at time of death. The ex-wife is making a claim for his balance. Absent of a designated beneficiary wouldn't the payment be made to the participant's estate? We already have death cert so we'd need letters of administration showing who executor is. Anything else we may need in this case?

[jpod]

1. Ask the person who you think is the EX-spouse why she believes she is entitled to anything. Maybe they were not divorced; maybe they were but she has a QDRO; maybe she has a copy of a good beneficiary designation naming her, specifically, as the beneficiary, and that would survive a divorce.

2. Ask the executor/administrator what he/she knows.

3. What are the three "default" rules in the plan (if the participant dies unmarried and there is no valid beneficiary designation).

You must address these two points first. Then, if no beneficiary designation can be found, you'll know what to do.

[mbozek]

Ex spouses generally have no claim to benefits after divorce except through QDRO because divorce decree usually terminates spousal rights to all property. If participant was not married at death and there is no designated beneficiary, the distribution is to be made under default provisions in plan document. For unmarried participant, defaut bene is usually the estate or the children in equal shares. Deat cert should indiciate marital status at death.

[Mary Kay Foss]

The U.S. Supreme Court in Egelhoff V. Egelhoff held that ex-spouse was beneficiary despite a state law terminating employer benefits to a former spouse. The Texas Court of Appeals followed Egelhoff in Heggy v. American Trading Employee Retirement Acct. Plan by saying the beneficiary card controlled without regard to state law. These were both 2001 cases.

[mbozek]

I beleive that Egelhoff v. Egelhoff held the death benefits were determined under the terms of the plan not state law. An ex spouse is entitled death benefits only if the plan terms would continue the designation of the ex spouse as beneficiary after the divorce from the employee. If there is no beneficary designation then benefits are distributed under default provision of plan.