Legal Question in Wills and Trusts in New Jersey
Pension Preretirement Survivor Benefit
I have information from my late husband's pension company which outlines the Retirement Equity Act's requirements for the provision of a preretirement survivor benefit for the spouse of a deceased participant of a qualified plan. If my husband (the participant) named his spouse (now ex-wife)as the beneficiary when the plan was opened, and didn't update the beneficiary after the divorce, would I automatically become the beneficiary when we married, or no? I ask because the same outline I mentioned stated that a subsequent spouse is not bound by the prior spouse's consent (to waive spousal coverage)--leading one to believe that the current spouse has the right to benefits. Any light you can shed on this would be greatly appreciated. Thank you--
1 Answer from Attorneys
Re: Pension Preretirement Survivor Benefit
What rights were given the ex-wife when the divorce was finalized? Did she get any rights to the pension? If so, this would supercede any changes made after your marriage.
If not, the employee should immediately process a new beneficiary form upon your marriage to replace the prior one.
Beneficiary designations are contracts once filed with the Plan Administrator - any outdated designations are usually still valid if not updated.
The rights of a spouse are usually automatic only if there is no written designation to the contrary on file with the Plan.
Wally
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