Section 1600.300  Effective Beneficiary Designations

Purpose.  Under Section 15-120 of the Code, "beneficiary" is defined as a person or persons designated by the participant or annuitant in the last written designation on file with the Board or, if no person so designated survives or if no designation is on file, the estate of the participant or annuitant.

a)         Definitions

1)         "Last written designation", for the purposes of Section 15-120 of the Code and this Section, shall mean the last valid beneficiary designation on file with SURS up to and including the date of death of the participant or annuitant.

2)         "On file", for the purposes of Section 15-120 of the Code and this Section, shall mean a beneficiary designation that has been received and date stamped by SURS.

3)         "Member", for the purposes of this Section, shall mean a participant or annuitant.

4)         "Agent", for the purposes of this Section, shall mean a participant's or annuitant's agent expressly authorized to change beneficiaries pursuant to an effective power of attorney or guardianship.

b)         Original Signature and Supporting Documentation.  A beneficiary designation shall be deemed valid only if the beneficiary designation received contains a valid original or electronic signature of the member or an agent.  An electronic signature is valid under this Section only if executed through an electronic signing process approved by SURS.  No electronic signature is valid if a notarized signature is required under the Code or this Part.  A copy of the power of attorney or a certified copy of the guardianship order expressly authorizing the change of beneficiaries must accompany a beneficiary designation executed by an agent.  No beneficiary designation that designates the attorney-in-fact or a guardian as the beneficiary shall be deemed valid unless the terms of the power of attorney or guardianship order, respectively, authorizes the attorney-in-fact or guardian to make gifts of the member's property to himself or herself.

c)         Disputed Designations.  If a dispute arises in the interpretation of the last written designation or, in the opinion of SURS, the designation is ambiguous, then the contesting beneficiaries shall seek a court determination as to the designation's interpretation.  If no beneficiary brings a court action within a reasonable time, depending on factors including, but not limited to, delays in obtaining paperwork and the extent to which the parties have attempted to resolve the dispute, SURS  may seek a court determination.

(Source:  Amended at 44 Ill. Reg. 17714, effective October 22, 2020)