All TRS retirement allowances pay a monthly retirement benefit for the lifetime of the retiree. However, when a retiree dies, the amounts that remain payable to a joint annuitant or to the retiree’s surviving beneficiary(ies) will depend upon the retirement allowance elected by the member at the time of retirement and the course of benefit payments made by TRS prior to the retiree’s death.
This Fact Sheet describes when and how TRS retired members may change their beneficiary designations or joint annuitant. It also explains the amounts that may remain payable after the retiree’s death under each type of retirement allowance and how those payments will be made as determined by application of TRS law.
Important note: The term “beneficiary” as used in this Fact Sheet does not include a joint annuitant.
If you are receiving a Joint and Survivor Annuity Retirement Allowance (Option A, B, or C)
When you elected this allowance at retirement, you designated a specific individual as your joint annuitant. Following your death, a monthly benefit will remain payable for the lifetime of your joint annuitant.
You may not designate any other beneficiary, nor may you remove or change your joint annuitant by submitting a beneficiary designation form to TRS. (Note: Your benefit election and your designation of a joint annuitant are irrevocable, unless your original joint annuitant dies or you and your joint annuitant divorce. In either case, you must notify TRS immediately to determine and preserve any rights you have to convert to a Normal Form retirement allowance or to elect a new Joint and Survivor Annuity retirement allowance and designate a new joint annuitant.)
Following your death, TRS will pay your surviving joint annuitant:
What happens if your joint annuitant dies?
If you are receiving a Normal Form Retirement Allowance
When you elected this allowance at retirement, you designated at least one primary beneficiary* and may also have designated additional primary or contingent beneficiaries*. You may change your beneficiary designations at any time, subject to the requirements and limitations described in this Fact Sheet.
Under the Normal Form allowance, no monthly benefit remains payable following your death, but TRS will pay:
The amount payable will be paid in a lump sum to your eligible beneficiary. If you have multiple eligible beneficiaries, TRS will divide the amount payable equally among them.
If you are receiving a 10- or 20-Year Period Certain and Life Retirement Allowance
When you elected this allowance at retirement, you designated at least one primary beneficiary and may also have designated additional primary or contingent beneficiaries. You may change your beneficiary designations at any time, subject to the requirements and limitations described in this Fact Sheet.
Following your death, TRS will pay your eligible beneficiary:
Important note. All months for which a benefit has been paid to you will count against the period certain, regardless of the number of calendar months in which TRS has made payment to you.
Example. You are eligible for retirement effective July 1 but your retirement application materials are not completed and verified until the following January. TRS issues your first monthly benefit payment at the end of January, and that payment includes retroactive benefits for the previous six months. All seven months of benefits count against the 10- or 20-year period certain
Changing your beneficiary designations
If you are receiving a TRS retirement allowance that permits you to change your beneficiary designations as described above, you may contact TRS to request the appropriate beneficiary designation form.
You may designate an individual (a human being), your estate, or your trust as your beneficiary, subject to the following requirements:
See Eligible Beneficiaries, below, for a list of criteria TRS will apply in determining which beneficiary/ies will be eligible to receive payment following your death.
Designating a minor child as a beneficiary
You may designate any minor child as your beneficiary. However, TRS is prohibited by law from making payment of any amount directly to a minor child. (Under Montana law, “minor child” for this purpose means any child under the age of 21.) TRS will make payment only to an individual legally authorized to receive the funds on behalf of the minor child by virtue of:
This means that if you designate a minor child as your beneficiary, you should also designate a custodian. If you should pass away before the child reaches the age of 21 and you did not designate a custodian, and there is no court-appointed conservator or guardian, TRS will be unable to make payment, even to the custodial parent. TRS will be required to withhold payment until a conservator or guardian is appointed or until the child turns 21.
Removing your spouse as a beneficiary
You are not required to designate your spouse as your beneficiary; however, if you do, you must meet additional requirements to change your spouse/beneficiary designation. If you submit a new beneficiary designation that either removes your spouse as your beneficiary or names another beneficiary to receive a share of any benefits that might have become payable to your spouse, TRS will require you to certify your marital status.
If a divorce is pending, Montana law prohibits you from revoking or reducing your spouse’s beneficiary interest (i.e., his or her right to receive payment as your beneficiary) unless:
If your divorce is pending, TRS requires that you submit either a court order signed by the judge in your divorce action or a Spouse’s Voluntary Waiver of Beneficiary Interest form (provided by TRS) signed by the spouse beneficiary in front of a notary public. TRS must receive and verify the appropriate documentation before your new beneficiary designation can take effect.
Please note: Submitting a beneficiary designation form to TRS has no effect on your own or your ex-spouse’s rights under the terms of a Family Law Order (FLO).
Eligible beneficiaries
An eligible beneficiary is a designated or alternate beneficiary entitled to receive all or a share of amounts payable by TRS following your death as a retired member.
An eligible beneficiary may be an individual (a human being), your estate, or your trust. TRS will apply the following criteria to determine whether a beneficiary is eligible.
Your individual beneficiary is eligible if, at the time payment is to be made by TRS, the individual:
Your estate is an eligible beneficiary if, at the time payment is to be made by TRS, the estate:
Your trust is an eligible beneficiary if, at the time payment is to be made by TRS, the trust:
Priority of payment
An amount payable by TRS following your death is payable, first, to your joint annuitant (if applicable) or to your eligible designated beneficiary/ies. It is important to remember that your surviving contingent beneficiaries have a right to receive payment only if no primary beneficiary survives you. If no joint annuitant or eligible designated beneficiary exists at the time payment is to be made, TRS will issue payment instead to your eligible alternate beneficiary, which is:
*Footnotes:
Account balance means the sum of member contributions and interest at the time of retirement, minus any amounts deducted for correction of errors and the aggregate amount of all benefits paid.
Eligible beneficiary is defined in the Requirements and Limitations section of this Fact Sheet.
Alternate beneficiary is defined under “Priority of Payment” in the Rrequirements and Limitations section of this Fact Sheet.
A primary beneficiary has a first right to receive payment in the event of the retiree’s death.
A contingent beneficiary has a right to receive a payment only if no primary beneficiary has survived the retiree.
Fact sheet updated: April 11, 2019
