May I change my pension payment options after retirement?
There are only a few limited circumstances in which you will be able to change your retirement option once you actually retire.
If your beneficiary dies after you retire, you may change your retirement option at the same time you name a new beneficiary. If you are single at the time of your retirement and then you become married, or if you are married and then your spouse dies and you remarry, you may change your retirement option at the time you name a new beneficiary.
You must furnish a copy of your spouse’s or beneficiary’s death certificate, and in the case of marriage, a copy of your marriage license. We will also need the birth certificate of your new beneficiary for Options 30, 40, and 50. Changing your retirement option can have a significant impact on your monthly benefit.
Designating a Beneficiary
If you select any of the joint with survivor benefit options (30, 40, or 50), you can name only one beneficiary. If you select retirement options 10, 61, or 71, you may name a person, trust, your estate, or other legal entity as beneficiary. You may name more than one beneficiary. If you name more than one beneficiary, any benefits due upon your death will be prorated among your beneficiaries.
Changing Your Beneficiary after Retirement
If you select Option 10, 61, or 71 at retirement, you may change your beneficiary at any time prior to your death. If you select Option 30, 40, or 50 at retirement and your beneficiary dies after you retire, you may name a new beneficiary. If you are single at the time of your retirement and then become married, or if you are married and then your spouse dies and you remarry, you may change your beneficiary if your current spouse is not your beneficiary, or if you did not name a beneficiary at the time of retirement. You may name only one beneficiary. You must furnish a copy of your spouse’s or beneficiary’s death certificate, and in the case of marriage, a copy of your marriage license. We will also need the birth certificate of your new beneficiary. Please note that changing your beneficiary may have a significant impact on your monthly benefit.
Divorce
Indiana law prevents you or your beneficiary from assigning your PERF benefits. Accordingly, PERF cannot honor any divorce decree which requires it to pay anyone other than you or your legal beneficiary. In order to be consistent with the laws governing PERF, and in order to satisfy Indiana’s domestic relations laws, divorce decrees should order you (or your legal beneficiary thereof) to make payments to your ex-spouse, rather than ordering PERF to make such payments. In addition, Indiana law prohibits PERF from garnishing a member’s benefit for child support payments.
Qualified Domestic Relations Orders (QDROs)
You should also note that QDROs do not apply at all to PERF. Even though QDROs are the product of federal legislation, which normally supersedes state laws, they do not apply to PERF, as it is a governmental plan exempt from the QDRO requirements. Furthermore, under state law, benefits, distributions of contributions, and money in the Fund are exempt from any legal process.
