By naming a beneficiary (or beneficiaries) a member can determine who receives certain death benefit(s) if eligibility requirements are met. You have the ability to name beneficiaries for two (2) different types of death benefits:
1. A Lump Sum Death Benefit Beneficiary that receives any Lump Sum Death benefit in an amount as may be designated by the Board of Trustees to members who qualify; and
2. A Residue Beneficiary that receives accumulated member contributions, if any, that remain credited to your retirement account upon your death.
If a member of the Arkansas Teacher Retirement System (ATRS) dies with residual account balance(s) standing to the member’s credit at his/her death, the residual balance(s) will be paid to such person(s) as the member has designated in writing and filed with ATRS. Note that the residual contribution and T-DROP balances are only paid to beneficiaries if a survivor or retirement option annuity does not become payable at the member’s death.
Important: If a member chooses someone other than their spouse as one of their primary residue beneficiaries, the member waives any right their spouse may have to a survivor benefit based on the member's service in the Arkansas Teacher Retirement System.
There is a separate beneficiary form for each type of death benefit and beneficiaries do not have to be the same for each death benefit. For example, you can name your spouse to receive your residue, if any, and your trust or estate to receive your lump sum death benefit.
Each time you complete and submit a new beneficiary form, it cancels and replaces all prior forms you have completed for that type of death benefit.
You must complete all requested information for a beneficiary form to be accept and processed (including notary). The member's completed beneficiary form(s) must be received by ATRS in order to become effective.
It is important to keep your beneficiary forms up to date. You can contact ATRS at (501) 682-1517 or info@artrs.gov to review your designations periodically or whenever you have a significant life event such as marriage, divorce, birth or adoption of a child, address change for a designated beneficiary, or a death in the family.
PLEASE NOTE:
- If you do not name a beneficiary or all of your named beneficiaries are not living at the time of your death, then your estate will receive the benfits as the default beneficiary under the ATRS plan statues.
- A divorce decree does not cancel your former spouse as your beneficiary if he/she was previously designated by you. You must submit a new beneficiary form(s) to cancel any prior designation forms.
Eligible Beneficiaries
You can choose:
- A living person (including a minor*)
- A trust**
- Your estate**
- A charitable organization
- A corporation
- A partnership
If you choose more than one beneficiary, each will share in your benefits equally. You can also name a contingent beneficiary to receive your benefits if your primary beneficiary is not living upon payment of the death benefits.
Only members can complete beneficiary forms. If a member has a conservator, agent with Powers of Attorney, or Guardian they must submit all relevant legal documents to ATRS for legal review before any changes can be made to a member's record.
*Naming a Minor Person as Your Beneficiary - If you name a minor as a primary beneficiary and the money is paid to the minor before he or she reaches age eighteen (18) the benefits will be paid out in accordance with current law. Please contact an ATRS counselor for further information regarding this process.
**Naming a Trust or Estate - If you name a trust, please provide the name of the trust (e.g. John Doe Living Trust) and the name of the trustee(s) if known. If you designate your estate, simply write "my estate" or "Estate of Jane Member." You can name another primary beneficiary in addition to your estate or a trust and each will share your benefit equally.
Changing your Beneficiaries
You can simply submit a new Beneficiary Designation Form (Residue and/or Lump Sum Death) to change your beneficiary. Each time you complete and submit a new beneficiary form, it cancels and replaces all prior forms you have completed for that type of death benefit.
You must complete all requested information for a beneficiary form to be accept and processed (including notary). The member's completed beneficiary form must be received by ATRS in order to be effective.
For questions regarding your beneficiaries, contact ATRS at (501) 682-1517 or info@artrs.gov.