Employee Matters

This column is prepared by staff from the Office of Human Resources. E-mail questions to benefits@ohr.wisc.edu or call 262-5650. For more information, visit http://www.bussvc.wisc.edu/ecbs/ecbs.html.

Beneficiary designations and their importance

Life insurance, retirement plans, tax-sheltered annuities and deferred compensation all are benefit plans that pay a death benefit to your survivors. You may designate or “name” the person(s) who will inherit these assets.

For what UW–Madison benefit plans can I name a beneficiary?

You can designate a beneficiary for your Wisconsin Retirement System account, State Group Life insurance, Individual and Family Group Life insurance, University Insurance Association Life insurance, UW Employees Inc. Life insurance, Accidental Death and Dismemberment insurance, Dental and Excess Medical (EPIC) insurance, Deferred Compensation and Tax-Sheltered Annuity plans.

Can I name more than one beneficiary?

As a general rule, you can name more than one beneficiary. In addition, you do not have to name the same beneficiary for every plan.

Must the distribution be in equal shares?

No, distribution does not have to be equal shares. You can indicate a percent for how the assets are to be distributed.

What if my beneficiary dies before I do?

You can name a contingent beneficiary who will receive the assets if your original named beneficiary dies before you. You also can complete new designation forms.

How specific should I be?

Make your intentions clear. You want to avoid any confusion about how you want the assets to be distributed.

What happens if I die without having beneficiary designations on file?

Each benefit plan has a default or “standard sequence” of beneficiaries to whom benefits will be paid if you do not file a form naming specific beneficiaries. The default payment sequences vary by benefit plan, and each benefit plan has a separate beneficiary designation form.

When should I update my beneficiary forms?

You should review your beneficiary designations and consider updating them after life events such as marriage, divorce, birth or adoption of a child, or death.

How can I find out who I named as beneficiary?

The Office of Human Resources cannot provide the names of beneficiaries; this office does not retain copies of any beneficiary designations. Plans typically will not offer this privileged information over the telephone. So if you are unsure of who you named, it is best that you complete new forms. The latest form on file will supersede any earlier designation.

Where can I get beneficiary forms for UW–Madison plans?

Benefit plan and WRS beneficiary forms, as well as standard sequence information, can be found on the Office of Human Resources (OHR) Web site.

For Tax-Sheltered Annuity or Deferred Compensation plans, you must contact the vendor directly for beneficiary designation forms.

What if I have further questions?

Visit the OHR Web site, http://www.bussvc.wisc.edu/ecbs, or e-mail a benefits specialist.