Changing Life Insurance Beneficiary: A Peba User's Guide

Life insurance beneficiaries can be changed at any time through the MyBenefits online portal, which is the fastest and most convenient way to manage your benefits. Alternatively, you can use the Active Member Beneficiary Form (Form 1102) or Beneficiary/Trustee Designation Form (Form 1103) if you want to designate your estate as your beneficiary. All changes made using the paper form must be notarized and submitted to PEBA.

Changing beneficiaries for retirement benefits

As a general rule, it is good practice to review and update your beneficiary information after important life events, such as marriage or the birth of a child.

If you are a member of the South Carolina Public Employee Benefit Authority (PEBA), you can change your beneficiary for retirement benefits at any time. You can do this by completing a Retired Member Change of Beneficiary Form (Form 7201). If you have experienced a change in marital status (death of spouse, marriage, or divorce), you may also select a new payment option within five years of the qualifying event.

If you are a member of the New York State and Local Retirement System, you can change your beneficiary depending on the pension payment option you choose. If you select a pension payment option that provides a benefit for a certain period after retirement, you can change your beneficiary after you retire. However, if you choose a pension payment option that provides a lifetime benefit for a beneficiary, you cannot change your beneficiary, even if they die before you.

If you are a Federal employee or annuitant, you can designate a beneficiary by filling out a Designation of Beneficiary Form (SF 2823). If you are a Federal retiree, you will need to check with OPM's Retirement Office by email or by mail.

Changing Beneficiaries for Life Insurance

If you are a member of the South Carolina Public Employee Benefit Authority (PEBA), you can change your life insurance beneficiaries at any time through MyBenefits. You will need to have all beneficiary information, such as full names, dates of birth, and Social Security numbers. Any beneficiary changes you make will override your prior designations and will take effect immediately.

If you are a Federal employee or annuitant, you can designate a beneficiary by filling out a Designation of Beneficiary Form (SF 2823). If you are a Federal retiree, you will need to check with OPM's Retirement Office by email or by mail.

Updating beneficiary information online

Step 1: Access the Online Member Portals

Visit the South Carolina Public Employee Benefit Authority (PEBA) website and log in to your MyBenefits or Member Access account. Both portals are safe and secure, allowing you to access and manage your insurance and retirement accounts.

Step 2: Navigate to the Beneficiary Section

Once you are logged in to your chosen portal, navigate to the section for updating beneficiary information. In MyBenefits, look for the "Update beneficiary information" option under the relevant insurance program (Basic Life or Optional Life insurance). In Member Access, you can update beneficiary information by selecting "Update active member beneficiary information."

Step 3: Provide Beneficiary Information

To make changes to your beneficiary designations, you will need to provide detailed information about your beneficiaries. This includes their full names, dates of birth, and Social Security numbers. Ensure that you have all the required information before proceeding.

Step 4: Review and Confirm Changes

After entering the beneficiary information, carefully review the details to ensure accuracy. Before finalizing the changes, you may consider consulting an attorney or estate planner, especially for more complex situations. Once you are satisfied with the information provided, confirm the changes.

Step 5: Understand the Effective Date of Changes

It's important to note that any changes to your beneficiary designations will take effect immediately. This means that the new beneficiary information will be applicable from the date the request was made.

Additional Considerations:

• Paper Form Option: While updating beneficiary information online is convenient, PEBA also offers the option to submit changes via paper forms. You can find the relevant forms, such as the Active Member Beneficiary Form (Form 1102) or Beneficiary/Trustee Designation Form (Form 1103), on the PEBA website.
• Special Circumstances: If you are a State Optional Retirement Program (State ORP) participant, remember to update your beneficiaries with your chosen service provider. Additionally, if you are eligible for an incidental death benefit, you can make beneficiary changes through Member Access or using Form 1106.
• Life Events: Remember to review and update your beneficiary information whenever you experience important life events, such as marriage, divorce, or the birth of a child. This ensures that your beneficiary designations remain current and align with your wishes.

By following these steps, you can efficiently update your beneficiary information online, ensuring that your insurance and retirement benefits reflect your desired choices.

Changing beneficiaries before retirement

As a member of the South Carolina Public Employee Benefit Authority (PEBA), you can change your life insurance beneficiaries at any time before your retirement through MyBenefits. MyBenefits is the fastest, most convenient way for subscribers covered by PEBA-administered insurance programs to manage their benefits.

To change your beneficiary, you will need to have all the beneficiary information, such as full names, dates of birth, and Social Security numbers. Any beneficiary changes you make will override your prior designations and will take effect immediately. Before making any changes, you may wish to consult an attorney or estate planner.

You must complete an Active Member Beneficiary Form (Form 1102) or Beneficiary/Trustee Designation Form (Form 1103) if you choose to designate any of the following as your beneficiary:

• Your estate as a beneficiary for your account (monthly benefit payments cannot be paid to an estate)
• A beneficiary for an incidental death benefit

All beneficiary changes made using the paper form require your signature to be notarized and must be submitted to PEBA.

If you participate in the State Optional Retirement Program (State ORP), you must update your beneficiaries with your chosen service provider. Your beneficiary must submit a claim to receive your account balance in the event of your death.

If you are eligible for an incidental death benefit because your employer offers coverage, you may update your incidental death benefit beneficiaries through Member Access. You may also complete a State ORP Active Incidental Death Benefit Beneficiary Designation form (Form 1106). All beneficiary changes made using the paper form require your signature to be notarized and must be submitted to PEBA.

If you participate in the South Carolina Deferred Compensation Program (Deferred Comp), you must update your beneficiaries with Empower Retirement. Your beneficiary must submit a claim to receive your Deferred Comp account balance in the event of your death.

Naming an estate as a beneficiary

Firstly, in many states, life insurance proceeds are exempt from the claims of your creditors when there is a named beneficiary, but not when your estate is the beneficiary. By listing your estate as the beneficiary, the proceeds become an asset of the probate estate and are subject to the claims of creditors. This means that your life insurance proceeds could be used to pay off any outstanding debts you may have at the time of your death before distribution to your beneficiaries.

Secondly, the process of releasing the proceeds is much longer when an estate is named as the beneficiary compared to when an individual, charity, or trust is named. In the latter case, the process is shortened by the completion of forms and the presentation of the death certificate to the insurance company.

Thirdly, if you are a resident of Florida, there are additional unwanted consequences of naming your estate as a beneficiary.

Therefore, it is crucial to carefully review and update your life insurance policy's beneficiary designation to ensure proper estate planning. If you are considering naming your estate as a beneficiary, it is advisable to consult with an experienced attorney for assistance.

Completing the necessary forms

As a member of SCRS, PORS, GARS, JSRS, or SCNG Plan, you can change your life insurance beneficiary at any time through the MyBenefits online portal or by filling out and submitting the necessary forms.

To make changes online, log in to your MyBenefits account and select the option to update your beneficiary information. You will need to provide the full name, date of birth, and Social Security number of your new beneficiary. Any changes you make will override your prior designations and will take effect immediately.

If you prefer to update your beneficiary information by submitting forms, you can do so by completing the Active Member Beneficiary Form (Form 1102) or the Beneficiary/Trustee Designation Form (Form 1103). These forms can be found on the S.C. PEBA website.

When designating a new beneficiary, you may name your estate as the beneficiary of your account. However, please note that monthly benefit payments cannot be made to an estate. If you choose to submit the paper forms, remember that your signature on the forms must be notarized. Once completed, submit the forms to:

S.C. Public Employee Benefit Authority

Attention: Enrollment Department

202 Arbor Lake Drive

Columbia, South Carolina 29223

If you are a retired member, you can change your beneficiary for the retired member incidental death benefit by completing the Retired Member Change of Beneficiary Form (Form 7201 or Form 7201G, depending on your plan). This form can also be used if you have had a change in marital status, such as the death of a spouse, marriage, or divorce. Submit this form to the address provided above.

For members of the State Optional Retirement Program (State ORP), you must update your beneficiaries with your chosen service provider. If you are eligible for an incidental death benefit, you can update your beneficiary information through Member Access or by completing the State ORP Active Incidental Death Benefit Beneficiary Designation form (Form 1106). Remember that any paper forms must be notarized and submitted to S.C. PEBA at the address provided above.

Frequently asked questions