Whether you are newly enrolled in the Fund or starting to think about retirement, there is one to-do that you should tick off today: review your beneficiary information and update if necessary. That’s because the account you grow through your career of service to the YWCA doesn’t just impact your future, it could affect others when you die.
What is a beneficiary?
Your beneficiary is a person(s) or trust that will receive your retirement funds in the event of your death. This may be a loved one, a group such as a charity, or a minor with a designated custodian until the age of 18.
If you are legally married, the entire account will be paid to your spouse unless otherwise designated. If you are unmarried, it will be payable to your estate.
Why name a beneficiary if my funds will be distributed anyway?
Even if you intend to leave your retirement benefits to your spouse, it is worth reviewing the beneficiary information we have on file for accuracy every few years, or in the event of a significant life change. Tracing “lost” beneficiaries takes time and resources and can result in unnecessary confusion.
If you are unmarried and don’t name a beneficiary, deciding the distribution of your benefits in the event of your death can be a lengthy process - which could involve the court system.
And if you are married, you may name someone other than your spouse as your beneficiary. Federal law requires that your spouse provides written consent, witnessed by a notary public. This consent is irrevocable.
How do I view and update my beneficiary information?
If you have signed up for self-service, you may view your beneficiary information for accuracy within your online account portal. But please note: This information cannot be changed online.
To designate or change your beneficiary, you must complete the B1 Form and submit it to our Member Services department.
I am brand new to the Fund and retirement is far in the future. Do I really have to worry about this?
YES. We urge all participants to choose a beneficiary upon enrollment. In the event that you die before your account accrues $5,000 and you were still employed by a YWCA, the Fund would supplement to ensure that your beneficiary receives this minimum payout.
Regardless of who you choose to be your beneficiary, familiarize yourself with the various annuity options available to you.
Got a question? Contact us!