Employee Matters

This column is prepared by staff of the Employee Compensation and Benefits Services office. You may e-mail us at Employee@bussvc.wisc.edu, or call Employee Services at 263-7556 or 262-5650.

Beneficiary designations and their importance
Life insurance policies, retirement plans, tax-sheltered annuities and deferred compensation all are considered contracts in the sense that the beneficiaries you designate will inherit these assets directly, regardless of what your will states. The assets in these accounts pass directly to your named beneficiary or beneficiaries and bypass probate. Probate is the court proceeding that validates your will after your death and transfers property to your heirs after debts and taxes are paid.

For what UW 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, UW Employees Inc. insurance, accidental death and dismemberment insurance, dental and excess medical (Epic) insurance, and deferred compensation and tax-sheltered annuity plans. You do not have to name the same beneficiary for every plan.

Can I name more than one beneficiary?
As a general rule, you can name more than one beneficiary. You can name separate beneficiaries for various parts of your Wisconsin Retirement System account, such as required contributions, voluntary additional contributions or tax-sheltered contributions.

Must the distribution be in equal shares?
No, distribution does not have to be equal shares. You can stipulate by percentage how the amounts 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 if your named beneficiary dies before you.

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 designation naming specific beneficiaries. Generally, the standard sequence meets the needs of most employees. 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 consider updating your beneficiary designations after major life events such as marriage, divorce, birth or adoption of a child.

How can I find out who I named as beneficiary?
Unfortunately EC&BS cannot provide the names of beneficiaries, as this office does not retain copies of any beneficiary designations. If you are unsure of whom you named, it is recommended that you complete new forms. The latest form on file with the vendor plan will supersede any earlier designation.

Where can I get beneficiary forms for UW plans?
Many of the forms can be found on the EC&BS Web site.

For tax-sheltered annuity or deferred compensation plans, you must contact the vendor directly for beneficiary designation forms.

Questions?
Contact a benefit specialist at the EC&BS office via e-mail at employee@bussvc.wisc.edu, or visit the EC&BS Web site.