What happens if no beneficiary is named?

[Guest alg_00]

The plan participant dies without designating a beneficiary. There is a surviving spouse and 2 children. This is in Texas. The beneficiary designation form states if the participant "chooses not to designate a beneficiary, it is understood benefits are paid to the surviving spouse." The employer has no other written policy for distributing 457 survivor benefits, but refuses to release funds to the surviving spouse. What should happen here?

[TLGeer]

The plan document doesn't have default beneficiaries?

[Guest alg_00]

I have asked the employer to provide written information and/or policy procedures governing distribution of these funds. They state they have none. The only written procedure that seems to exist is what is stated in the Beneficiary Designation Form.

[QDROphile]

Then they had better get something in place. The plan will have to figure out to whom it will distribute benefits. One thing the plan cannot do is hold the money indefinitely. What do the plan reprsentatives say they will do?

[Guest alg_00]

Then they had better get something in place. The plan will have to figure out to whom it will distribute benefits. One thing the plan cannot do is hold the money indefinitely. What do the plan reprsentatives say they will do?

Hold the funds for 3 years then I assume it will be unclaimed money, and I do not know what happens then. I actually am the surviving spouse. My husband died intestate. I do not really understand why the employer does not have to follow the beneficiary designation form, which states very clearly that if the plan participant chooses not to designate a beneficiary, then benefits will be paid to the surviving spouse. We live in a community property state, and the plan does require spousal consent if the participant wants to designate someone other than a spouse a beneficiary.