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The Importance of Updating
Your Beneficiary Designation Form
When you retire, you will be
permitted to choose to have a benefit paid to a beneficiary
after you die. You can direct the payments to a beneficiary
of your choosing. In the event of your death, in most
instances, the pension plan administrator must honor the
designated beneficiary you have selected. You should always
make sure that your beneficiary designation is up to date.
If you have had any changes in your family unit such as
births, deaths, or relationship changes you may want to
change or update your designated beneficiary. Additionally,
you need to be aware of a recent piece of legislation known
as Florida House Bill 401. In certain circumstances, House
Bill 401 can nullify upon divorce or annulment the
designation of a spouse as a beneficiary in certain employee
benefit plans, among other types of assets. Certain
state-administered retirement plans are exempt from the
bill, but it applies to Pompano’s plan. If the provisions of
the bill apply, an asset will pass as if the former spouse
predeceased the decedent. Therefore, if you have had a
divorce it is especially important to check with the pension
plan administrator to see if you need to update your
designated beneficiary.
George Mitchell, Chairman
March 29, 2013
Subsequent articles will be posted on our website
www.pompgers.org
from time to time.
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