In earlier editions, we wrote about some of the great benefits provided by the Teachers’ Retirement System while we are working.

We wrote about the significant death benefits the TRS provides that protect our loved ones when a member passes away while in service. We had the TRS check on how many in-service members passed away in an average year (168) and how many in-service members have no designation of beneficiary on file for the basic pension (30,849) and the Tax-Deferred Annuity (7,549).

Of the 1,681 in-service deaths over the past 10 years, beneficiaries were not listed for the Qualified Pension Plan for 545 deceased members and beneficiaries were not listed for the Tax-Deferred Annuity for 292 deceased members.

That’s an awful lot of members putting their loved ones in jeopardy of long delays and legal expenses when their needs are greatest. A separate designation of beneficiary form is needed for both the Qualified Pension Plan and the Tax-Deferred Annuity.

A second designation of beneficiary problem also exists: when members’ life situations change.

Let’s say that a young member names her parent or sibling as her beneficiary. Then the member marries and changes the beneficiary to her spouse, only to have the marriage end in divorce. The member should change her beneficiary, but doesn’t. If that member becomes one of the 168 members who die in-service each year, the significant death benefit goes to the former spouse.

Is this the outcome you want for yourself?

You must check your most recent Quarterly Account Statement or Annual Benefit Statement to see if the beneficiary you have on file is still appropriate. Please take care of this matter ASAP. Do not wait to protect your loved ones.

We have written about the Tax-Deferred Annuity, a tax-deferred supplement to the basic pension plan. In subsequent issues, we will discuss disability retirement and loans from the retirement system.