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Generally, you can review and update your beneficiary designations by contacting the company or organization that provides your insurance or retirement plan. You can sometimes do this online. Otherwise, you'll have to complete, sign, and mail a paper form.
When you establish an IRA or 401(k), you complete a form to name your beneficiaries. Changes are made in the same way ? you complete a new beneficiary designation form. A will or trust does not override your beneficiary designation form. However, spouses may have special rights under federal or state law.
Death grants If you die within 5 years of retiring, and you are under age 75 at the date of your death, your dependants or the person previously chosen by you will get a lump sum, known as a death grant. This will be equal to five years' pension, less any pension you have already received.
When a participant in a retirement plan dies, benefits the participant would have been entitled to are usually paid to the participant's designated beneficiary in a form provided by the terms of the plan (lump-sum distribution or an annuity).
When TCRS is notified of a retired member's death, TCRS will review the member's record to determine what survivor benefits, if any, may be payable. TCRS will issue a notification to your named beneficiary requesting a death certificate, and if benefits are due, a payment form for the beneficiary to complete.
A survivor benefit is paid as a monthly amount to a qualifying survivor. The death benefit is usually paid in a lump sum to someone you name on your Beneficiary Designation who may or may not be a family member.
Generally, you will need to fill out a change of beneficiary form which includes information such as the policyholder's name, the new beneficiary's name, and the reason for the change. You may also need to provide a copy of the policyholder's death certificate if the beneficiary is being changed due to their death.
If you retire under the Civil Service Retirement System (CSRS), the maximum survivor benefit payable is 55 percent of your unreduced annual benefit.