A divorce does not automatically revoke the former spouse as beneficiary of the death benefits payable by TRS. See Section 824.101 (g) of the Texas Government Code.
To revoke the former spouse as beneficiary of any death benefits, TRS must receive a certified copy of the divorce decree before any death benefit is paid.
If TRS does not receive a certified copy of the divorce decree between the participant and the former spouse designated as beneficiary, TRS will make payment to the former spouse.
If the TRS participant wants to continue to name the former spouse as beneficiary for any death benefits, the participant should complete a new designation of beneficiary form to ensure the benefits will be paid as desired.
The Change of Beneficiary form (TRS 15)(pdf) is available in the forms section.
The participant may also contact TRS and request the appropriate form.
Please note that payments of the continuing optional annuities, such as the joint and survivor annuities paid under Options 1, 2, and 5, are not death benefits.
The spouse or former spouse is not revoked as beneficiary of these annuities by TRS’s receipt of the certified copy of the divorce decree.
If the participant retired prior to the divorce, named the spouse as beneficiary of one of the joint and survivor annuities (Option 1, 2, or 5) at the time of retirement and wants to change the beneficiary, TRS plan terms permit the participant to change the beneficiary one time.
If the beneficiary is the spouse or former spouse of the participant, the spouse or former spouse must consent to the change in writing on a form provided by TRS, or a court with jurisdiction over the marriage must specifically order the change in the divorce decree and/or in the domestic relations order. See recommended language provided.
The participant must also complete the appropriate change of beneficiary form because the court order does not change the beneficiary. See Section 824.101(f), Texas Government Code.
The participant may contact TRS and request appropriate forms for changing the beneficiary and the spouse’s or former spouse’s consent to the beneficiary change. The form must be received by TRS prior to the death of the participant.
You should carefully consider the decision of changing the beneficiary of the joint and survivor annuities because TRS will only pay benefits to the new beneficiary for the shorter of the life of the new beneficiary or the remaining life expectancy of the original beneficiary. See Section 824.1013(b), Texas Government Code.
If the participant outlives the remaining life expectancy of the original beneficiary, it is possible that the new beneficiary would not receive any benefit, even though the participant took a reduced annuity for the entire retirement period.
In general, once the participant selects a retirement plan, retires, and begins receiving a monthly annuity, the type of retirement plan cannot be changed. However, the plan terms allow a retiree (service or disability) who selected a joint and survivor annuity (Option 1, 2, or 5) and who named a spouse as beneficiary to cancel the participant’s optional annuity selection and return to a standard annuity.
Generally, standard annuity payments are higher each month because the participant takes a reduced monthly payment in exchange for the survivor annuity benefit provided under Options 1, 2 and 5.
If the beneficiary is the spouse or former spouse, the spouse or former spouse must consent to the change in writing on a form provided by TRS, or a court with jurisdiction over the marriage must specifically approve or order the change in the divorce decree or domestic relations order. See recommended language below.
For the plan change to become effective, TRS must receive the appropriate plan change form (available from TRS) prior to the death of the participant.
The participant is eligible to begin receiving the standard annuity amount beginning with payment for the month following the month TRS receives the plan change form, provided the appropriate documentation is also submitted to TRS.
The participant may contact TRS and request appropriate forms for changing the plan and the spouse’s or former spouse’s consent to the plan change.
TRS recommends including the following or similar language in the divorce decree, amended order or clarifying order when the court has authorized (1) the change the optional retirement annuity plan (Options 1, 2, or 5) to standard annuity; and/or (2) the change of designation of the former spouse as beneficiary and designate a new beneficiary of the optional retirement annuity plan (Options 1, 2, or 5):
It is ordered pursuant to TEX. GOV’T. CODE §§ 824.1012 and/or 824.1013 that [Name of Retiree] (Retiree) is authorized to change the optional retirement annuity plan and/or to change the designation of [Name of Beneficiary], as the beneficiary of the optional retirement annuity plan, providing for beneficiary to receive at the death of Retiree, [100%, 75%, or 50%] of retiree’s monthly retirement annuity for the remainder of beneficiary’s life and to designate a new beneficiary in accordance with the terms of the plan.
Further, Retiree, as owner of all of the rights, title and interest, including the beneficial interest in the TRS benefits, is authorized to complete the forms necessary to effect the change of the beneficiary or retirement plan as ordered herein and to designate a new beneficiary as provided by the plan or to change the retirement plan from an optional retirement annuity to a standard retirement annuity.
Nothing in this order shall be construed as completing the change of beneficiary or retirement plan. Participant must comply with all plan requirements in order to effect the change of beneficiary or plan.
Annuity payments made by TRS to a beneficiary for a guaranteed period under retirement Options 3 and 4 are not death benefits. A spouse or former spouse designated as beneficiary of one of these retirement plans is not revoked as beneficiary by TRS’s receipt of a certified copy of a divorce decree.
If the participant retired prior to the divorce, named the former spouse as beneficiary of one of the guaranteed periods (Options 3 or 4), and the guaranteed period has not expired, the participant can change the beneficiary at any time and any number of times.
The change of beneficiary must be made on Change of Beneficiary for Continuing Optional Retirement Annuity (Option 3 or 4) form (TRS 30D)The participant may also contact TRS and request the appropriate form.