Ariz. Admin. Code § 2-8-133

Current through Register Vol. 30, No. 45, November 8, 2024

Section R2-8-133 - Survivor Benefit Applications

A. The definitions in R2-8-126 apply to this Section.

B. The ASRS shall not distribute a survivor benefit until a claimant notifies the ASRS of a member's death by telephone or submission of a death certificate, unless the member elected a Joint and Survivor Benefit Option upon retirement.

C. Upon notification of the death of a member, the ASRS shall distribute the survivor benefits according to the most recent, Acceptable Form that is On File with the ASRS that was received at least one day prior to the date of the member's death, unless otherwise provided by law.

D. The designated beneficiary or other person specified in A.R.S. § 38-762(E) shall provide the following:

1. An original certified death certificate or a certified copy of a court order that establishes the member's death;

2. If the claimant is not a designated beneficiary, but is a person specified in A.R.S. § 38-762(E), a copy of a document issued from a federal, state, local, sovereign, or medical institution showing the claimant's relationship to the deceased member;

3. A certified copy of the court order of appointment as administrator, if applicable; and

4. Except if the deceased member was retired and elected the joint and survivor option, complete and have notarized an Application for Survivor Benefits, provided by the ASRS that includes:

a. The deceased member's full name,

b. The deceased member's Social Security number or U.S. Tax Identification number,

c. The benefit the designated beneficiary or other person specified in A.R.S. § 38-762(E) is electing;

d. If the designated beneficiary or other person specified in A.R.S. § 38-762(E) is electing to roll over a benefit, the following information:

i. The claimant's full name;

ii. The name of the institution to which the claimant is electing to roll over;

iii. The address of the institution to which the claimant is electing to roll over;

iv. The full name of the authorized representative of the institution to which the claimant is electing to roll over;

v. The signature of the authorized representative of the institution to which the claimant is electing to roll over;

e. If the beneficiary is electing to have any of the survivor benefits directly deposited into a bank account, the following information:

i. Whether the bank account is a checking or savings account;

ii. The name of the banking institution to which the benefit is being sent;

iii. The routing number;

iv. The account number; and

f. The following information for the designated beneficiary or other person specified in A.R.S. § 38-762(E):

i. Full name;

ii. Mailing address, if not On File with ASRS;

iii. Date of birth, if applicable; and

iv. Social Security number or U.S. Tax Identification number, if not On File with ASRS.

g. The following statements of understanding:

i. The designated beneficiary or other person specified in A.R.S. § 38-762(E) has read and understands the Special Tax Notice Regarding Plan Payments they received with this application;

ii. The designated beneficiary or other person specified in A.R.S. § 38-762(E) authorizes the ASRS to make payments as indicated above and agree on behalf of themselves and their heirs that such payments shall be a complete discharge of the claim and shall constitute a release of the ASRS from any further obligation on account of the benefit;

iii. The designated beneficiary or other person specified in A.R.S. § 38-762(E) authorizes the ASRS and the Banking Institution listed above to debit their account for the purposes of correcting errors and returning any payments inadvertently made after their death;

iv. Under penalties of perjury, the designated beneficiary or other person specified in A.R.S. § 38-762(E) certifies that:

(1) The Social Security number or U.S. Tax Identification number shown on this application is correct;

(2) They are not subject to backup withholding because:

(a) They are exempt from backup withholding, or

(b) They have not been notified by the Internal Revenue Service that they are subject to backup withholding as a result of a failure to report all interest or dividends, or

(c) The Internal Revenue Service has notified them that they are no longer subject to backup withholding; and

(3) They are a legal resident of the United States, unless they are an estate or trust.

v. The designated beneficiary or other person specified in A.R.S. § 38-762(E) understands their right to a 30-day notice period to consider a rollover or a cash distribution and they elect to waive the notice period by their election for payment on this application;

vi. The designated beneficiary or other person specified in A.R.S. § 38-762(E) understands if they elect to roll over all or any portion of their distribution to another eligible retirement plan, it is their responsibility to verify that the receiving plan will accept the rollover and, if applicable, agree to separately account for the taxable and nontaxable amounts rolled over and the related subsequent earnings on such amounts;

vii. The designated beneficiary or other person specified in A.R.S. § 38-762(E) understands if they elect to roll over all or any portion of their distribution to an IRA plan, it is their responsibility to verify that the receiving IRA institution will accept the rollover and, if applicable, it is their responsibility to separately account for taxable and nontaxable amounts;

viii. The designated beneficiary or other person specified in A.R.S. § 38-762(E) understands if they elect to roll over to another eligible retirement plan, any portion of the distribution not designated for a rollover will be paid directly to them and any taxable amounts will be subject to federal and state income tax withholding;

ix. The designated beneficiary or other person specified in A.R.S. § 38-762(E) understands if they elect to roll over to an inherited IRA plan, any portion of the distribution not designated for a rollover will be paid directly to them and any taxable amounts will be subject to federal and state income tax withholding.

xi. The designated beneficiary or other person specified in A.R.S. § 38-762(E) understands if they elect to roll over to an inherited IRA plan, they may be required to receive a minimum distribution and they certify that the date of birth shown on this form is correct.

5. For a member who elected a Joint and Survivor Retirement Benefit Option, a contingent annuitant shall submit a Joint and Survivor Certification form containing:

a. The following information for the member:

i. Full name;

ii. Social Security number or U.S. Tax Identification number;

iii. Date of death; and

b. The following information for the beneficiary:

i. Legal relationship to the member;

ii. Full name;

iii. Social Security number or United States Tax Identification number, if not On File with ASRS;

iv. Mailing address, if not On File with ASRS;

v. Date of birth, if not On File with ASRS;

vi. If the contingent annuitant is electing to have any of the survivor benefits directly deposited into a bank account, the following information:

(1) Whether the bank account is a checking or savings account;

(2) The name of the banking institution to which the benefit is being sent;

(3) The routing number;

(4) The account number; and

c. The following statements of understanding:

i. The contingent annuitant has read and understands the Special Tax Notice Regarding Plan Payments they received with the Joint and Survivor Certification form;

ii. The contingent annuitant authorizes the ASRS to make payments as indicated above and agree on behalf of themselves and their heirs that such payments shall be a complete discharge of the claim and shall constitute a release of the ASRS from any further obligation on account of the benefit; and

iii. The contingent annuitant authorizes the ASRS and the Banking Institution listed above to debit their account for the purposes of correcting errors and returning any payments inadvertently made after their death.

d. The contingent annuitant's notarized signature.

E. Notwithstanding R2-8-132(H), if the beneficiary or contingent annuitant is a minor as of the date of the member's death, the beneficiary or contingent annuitant may submit a written request with the information contained in R2-8-132(G)(1) through (4) within nine months after the minor attains 18 years of age.

F. For a member who deceases prior to the member's retirement date, if there is no designation of beneficiary or if the designated beneficiary predeceases the member, the ASRS shall pay a survivor benefit as specified in A.R.S. § 38-762(E).

G. The ASRS shall begin disbursing a survivor benefit to a contingent annuitant according to A.R.S. § 38-760(B)(1) upon notification and verification of the member's death by a third party.

H. The ASRS shall suspend a survivor benefit for a contingent annuitant unless the contingent annuitant provides the information in subsection (D) within two months of the ASRS disbursing a survivor benefit.

I. If the member is domiciled in Arizona, according to A.R.S. § 14-3971, and there is no designated beneficiary, the ASRS shall distribute the balance of a member's account to a claimant if the claimant submits an Affidavit for Collection of Personal Property to ASRS with the following:

1. The claimant's name;

2. The claimant's Social Security number or U.S. Tax Identification number;

3. The claimant's mailing address;

4. The member's name;

5. The member's Social Security number or U.S. Tax Identification number;

6. The date of the member's death;

7. The state and county where the member died;

8. Statements indicating:

a. According to A.R.S. § 14-3971(B)(2)(a), no application or petition for the appointment of a personal representative is pending or has been granted in any jurisdiction and the value of the member's entire estate, less liens and encumbrances, does not exceed the amount in A.R.S. § 14-3971 as valued as of the date of the member's death;

b. According to A.R.S. § 14-3971(B)(2)(b), the personal representative has been discharged, or more than a year has elapsed since a closing statement has been filed and the value of the member's entire estate, less liens and encumbrances, does not exceed the amount in A.R.S. § 14-3971 as valued as of the date the ASRS receives the Affidavit for Collection of Personal Property;

c. The claimant is the successor of the member and is entitled to the member's personal property because:

i. The claimant is named in the member's will; or

ii. The member did not have a will and the claimant is entitled to the member's personal property by right of intestate succession according to A.R.S. § 14-2103;

d. If the claimant is entitled to the member's personal property according to subsection (I)(8)(c)(i), then a copy of the member's will;

e. If the claimant is entitled to the member's personal property according to subsection (I)(8)(c)(ii), then the relationship between the member and the claimant and whether there are other surviving heirs;

f. If there are other surviving heirs, then the name and relationship of each surviving heir;

g. A statement indicating the claimant is making the Affidavit for Collection of Personal Property according to A.R.S. § 14-3971 for the purpose of making a claim to the member's ASRS account; and

h. The claimant's notarized signature.

J. If the member is not domiciled in Arizona and there is no designated beneficiary, the ASRS shall distribute the balance of a member's account to a claimant if the claimant submits legal documentation to claim the member's ASRS account that complies with the statutory requirements of the state in which the member was domiciled at the time of the member's death.

K. Notwithstanding any other provision, if the amount of the survivor benefit as valued at the date of disbursement is less than $10,000 per annum, the ASRS shall not distribute a survivor benefit to a minor beneficiary unless the minor beneficiary's legal guardian submits the following written information:

1. The member's full name;

2. The member's Social Security number or U.S. Tax Identification number;

3. The minor beneficiary's full name;

4. The minor beneficiary's Social Security number or U.S. Tax Identification number;

5. The full name of the minor beneficiary's legal guardian;

6. The minor beneficiary's legal guardian's address, if not On File with ASRS; and

7. The minor beneficiary's legal guardian's signature certifying the minor beneficiary's legal guardian has care and custody of the minor beneficiary.

L. Notwithstanding any other provision, if the amount of the survivor benefit as valued at the date of disbursement is $10,000 or more per annum, the ASRS shall not distribute a survivor benefit to a minor beneficiary unless the minor beneficiary's conservator submits proof of court-appointed fiduciary responsibility for the minor beneficiary.

M. The ASRS shall remit payment to the minor beneficiary according to subsection (K) by sending the minor beneficiary's conservator a check, if the document providing proof of the court-appointed fiduciary responsibility requires payment to be made to a restricted or secure account.

N. If a person claims that a beneficiary or claimant is not entitled to a survivor benefit, then before ASRS disburses a survivor benefit, the person may notify ASRS of the person's intent to appeal the beneficiary's or claimant's right to a survivor benefit.

O. Within 30 days, a person who has notified ASRS of the person's intent to appeal a survivor benefit disbursement according to subsection (N), shall submit an appeal to ASRS according to 2 A.A.C. 8, Article 4.

P. If the ASRS receives documentation from, or confirmed by, a law enforcement agency, that a beneficiary or claimant may be guilty of the felonious and intentional killing of the member, the ASRS shall not distribute any benefits to the beneficiary or claimant that may be guilty of the felonious and intentional killing of the member until the matter has been adjudicated.

Q. If the member's estate has an appointed personal representative, the member's estate shall submit a court document identifying the personal representative for the member's estate before ASRS may distribute a survivor benefit.

R. If the member's estate is closed, the person claiming a right to the member's ASRS account shall provide a court document proving the estate is closed.

S. If the survivor receives a monthly annuity and does not provide the direct deposit information according to subsection (D)(4)(e) or (D)(5)(b)(vi), ASRS shall issue a debit benefit card.

T. If the survivor does not activate the debit benefit card the ASRS issues to the survivor within 75 days, the ASRS shall reclaim all the survivor benefits issued on the debit benefit card and suspend the survivor's benefits until the survivor:

1. Activates the debit benefit card or provides the direct deposit information according to subsection (D)(4)(e) or (D)(5)(b)(vi); and

2. Returns the notice of benefit suspension with the following information:

a. The survivor's Social Security number or U.S. Tax Identification number;

b. The survivor's address; and

c. The survivor's notarized signature.

Ariz. Admin. Code § R2-8-133

Adopted by final rulemaking at 26 A.A.R. 2036, effective 11/8/2020. Amended by final rulemaking at 30 A.A.R. 732, effective 5/17/2024.