who gets the death benefit?

[Santo Gold]

A participant in a 403(b) plan passed away some time ago. We obtained the death certificate and the spouse is listed (Mrs. A). However, we have a copy of the enrollment form from when the individual first enrolled in the plan (many years ago) and a different individual is listed as beneficiary (we're not sure but it appears to be his first wife, we'll call her Mrs. B).

Is this as clear cut as I think it is? Unless Mrs. A signed a waiver of beneficiary form, she is the rightful beneficiary, no questions asked, correct? Mrs. B may be listed as the beneficiary and may have been his spouse at one time. But that automatically goes away when he married Mrs. A? Do you see any reason why we should not pay out Mrs. A?

Thanks

[david rigby]

Perhaps you've already checked?

- Reivew plan definition of "beneficiary".

- Check all possible files (yours, ER, prior TPA?) for possible QDRO (It's easy to forget as time passes.) It's also possible that an earlier QDRO paid something to first wife, and the net effect is to automatically negate the prior beneficiary form.

[mbozek]

A participant in a 403(b) plan passed away some time ago. We obtained the death certificate and the spouse is listed (Mrs. A). However, we have a copy of the enrollment form from when the individual first enrolled in the plan (many years ago) and a different individual is listed as beneficiary (we're not sure but it appears to be his first wife, we'll call her Mrs. B).

Is this as clear cut as I think it is? Unless Mrs. A signed a waiver of beneficiary form, she is the rightful beneficiary, no questions asked, correct? Mrs. B may be listed as the beneficiary and may have been his spouse at one time. But that automatically goes away when he married Mrs. A? Do you see any reason why we should not pay out Mrs. A?

Thanks

Mrs A is the beneficary only if the 403b plan is subject to ERISA. Otherwise Mrs B is the beneficiary unless removed under a state law provision, e.g., on account of divorce.

[jpod]

Good chance that the custodial account agreement or annuity contract says that Mrs. A gets the $$ whether or not the plan is subject to ERISA, unless she gave consent in accordance with the ERISA requirements.

[mbozek]

Good chance that the custodial account agreement or annuity contract says that Mrs. A gets the $$ whether or not the plan is subject to ERISA, unless she gave consent in accordance with the ERISA requirements.

That makes no sense b/c annuity owners are not required to notify insurance co if they marry after contract is issued. Why would the insurance co be liable to spouse for paying the designated beneficary under the annuity contract in non ERISA plan without knowing that the participant later married? Since annuity owner is sole party who can change beneficiary designation, insurer is obligated to pay designated beneficaries in non ERISA plans.