What is a beneficiary designation and why is it important? - New York State Nurses Association Pension Plan and ...
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P
Published by the New York State Nurses Association Pension Plan
The
lanner
Volume 27 • Number 3 • August 2021
What is a beneficiary designation and why is it important?
Y
ou’re a busy healthcare professional, parent, child, and all- ing the PRSB Beneficiary Designation Form in the presence of a
around caregiver. You have a house to keep, errands to run, and Notary Public. You may also designate an additional non-spouse
might be navigating your way through some complicated life contingent beneficiary to receive your Preretirement Survivor Ben-
challenges, such as a divorce or illness. Regardless of the demands on efit in the event your spouse or non-spouse beneficiary predeceases
your time, you should take a moment to answer an important ques- you prior to your retirement date.
tion: Will your loved ones be protected when you die, especially if Participants who are single, widowed, or divorced and have not
you die unexpectedly? married/remarried may designate up to two beneficiaries and a
Beneficiary designations provide a way to transfer a retirement contingent beneficiary who will receive the entire Preretirement
benefit or insurance policy upon your death. You’ll find beneficiary Survivor Benefit if both of your designated beneficiaries prede-
designations associated with your Preretirement Survivor Beneficiary cease you. If you’re single and don’t designate a beneficiary, no
(PRSB) listed for the Pension Plan, life insurance policies, retirement Preretirement Survivor benefit will be paid.
accounts like a 401(k)/403 (b), annuities, IRAs, and stock options. If you have life insurance coverage through MetLife because
We often make our designations without giving them much you’re also a NYSNA Benefits Fund participant, you named a
thought before we’re married or before having children. But they’re beneficiary when you enrolled in the Fund. To change this desig-
actually very important and should be given more careful attention. nation whenever you wish, you need to send a notarized letter to
That’s because beneficiary designations take priority over what’s in the Fund. (Please remember that the NYSNA Pension Plan and the
other estate planning documents, such as a will or trust. NYSNA Benefits Fund are separate funds with separate benefits, so
Events such as marriage, divorce, a child’s birth, and the passing of make sure you correctly designate your beneficiary for benefits un-
a loved one are some of the significant life events that may have bear- der each of the funds. If you have a question about your beneficia-
ing on your beneficiary information and are why it’s so important to ry on file, contact the Plan office at (877) RN BENEFITS [762-3633].)
revisit the information on these forms periodically. Unfortunately, the To update the beneficiaries on any other retirement or life insur-
Pension Plan has seen far too many instances in which one of our par- ance accounts, contact the company that administers the accounts
ticipants failed to complete or update important beneficiary forms and to determine their procedures.
as a result their loved ones didn’t receive the benefits the participant KEEP IN MIND
may have wished them to receive upon the participant’s death. Because beneficiary designations are so important, it’s crucial to:
For example, if you’re married and subsequently divorce but don’t 1 Remember to name beneficiaries so that your wishes are carried
notify the Plan office of your change in marital status or complete and out the way you intend.
return a Beneficiary Designation form to the Plan office, nobody will
receive your Preretirement Survivor death benefit if you die before 2 Name both primary and contingent beneficiaries in case the pri-
retirement. mary beneficiary dies before you. This option is available for the
SIMPLE PROCESS Plan’s Preretirement Survivor Benefit (described above).
Today, it’s pretty simple to name or update your beneficiaries with
the NYSNA Pension Plan and/or financial institutions or insurance 3 Update for life events. Review your beneficiary designations reg-
companies. Most can be done online (including on our Web site, ularly and update them based on major life events, such as births,
rnbenefits.org) in just a few minutes and require just a few pieces of deaths, marriages, and divorces.
basic information, including:
• Full legal name of the person 4 Read the instructions. Beneficiary designation forms are not all
• Full address alike, so be sure to read each form carefully.
• Telephone number
• Social Security number 5 Coordinate beneficiary changes with your will and trust. If you
• Date of birth change your will or trust, it’s a good idea to consult with your at-
Forms for both married and unmarried Plan participants to designate torney about your beneficiary designations so you understand how
beneficiaries for the Plan’s Preretirement Survivor Benefit are avail- the different parts of your future estate plan work as a whole.
able on our Web site at rnbenefits.org/PRSB.
If you’re married at the time of your death, your current spouse 6 Be aware of tax consequences, especially if you’re thinking of
is automatically your Preretirement Survivor beneficiary and you naming a trust or estate as a beneficiary (only an individual may be
do not need to complete a form. However, if your spouse wishes to designated for the Plan’s Preretirement Survivor Benefit). It may be
waive his or her rights to the Preretirement Survivor benefit, you may helpful to work with a professional tax advisor, who can help you
then designate any other individual as your beneficiary by complet- make the best choice depending on your particular situation. •
In this issue
Your Money: Don’t let Marital status affects Ask the Pension Plan: What Why is my pension
billing mistakes cost you pension choices happens to my pension if I statement important?
money — Page 2 become disabled? — Page 4
— Page 2 — Page 3
MARITAL STATUS AFFECTS PENSION PAYMENT CHOICES FOR PARTICIPANTS Ask If you don’t qualify for a disability pension benefit,
you may still be eligible for a reduced early retirement
benefit if you’re vested and leave the Pension Plan before
the
your normal retirement age. Contact a Pension analyst
S everal forms of pension benefit payments are available
from the NYSNA Pension Plan depending on your
marital status upon retirement. Therefore, it’s important to
Year Certain & Life, or Contingent Annuitant form of payment.
Divorced – If you divorce prior to receiving your first pension
for more information.
Pension Q
keep the Plan updated on your marital status throughout benefit payment, you’re eligible for the same payment forms
the years and especially before you’re ready to retire. as a single participant. If you’re married when you retire and
Here are the payment options available to you if you’re: begin receiving your pension, then get divorced, your spouse is Can I borrow from the NYSNA Pension Plan?
entitled to your pension if you die unless you and your spouse
Single – The normal form of payment is the Five Year
Certain & Life. The optional forms of payment include the
Ten Year Certain & Life or Contingent Annuitant form of
waived the Joint and Survivor benefit in writing with the Plan
when you retired. Plan A
No, you can’t borrow money from the Plan
because it’s a defined benefit plan to which
only the Plan’s contributing employers make
payment. Widowed – You’re considered single by the Pension Plan if
specific, monetary contributions on your behalf. Par-
Q
your spouse predeceases you before retirement and you don’t
Married – The normal form of payment remarry. ticipants cannot add to, withdraw from, roll over, or
is the 50% Joint & Survivor. Or, you can What happens to my pension benefit if I conduct any other type of change to the Plan. This also
elect the 75% Joint & Survivor form of At retirement, the Plan office requires copies of your birth become totally disabled? includes rolling over money from a 401(k) or 403(b)
into your Pension Plan.
A
payment. If your spouse wishes certificate – and that of your spouse, if applicable – and any
The NYSNA Pension Plan provides a disability
Q
to waive the Joint and Survi- marriage or divorce decree. If you’re widowed, we require a
vor benefit in writing with certified original death certificate for your spouse, which will be benefit to participants who become disabled be-
the Plan office, you can elect returned to you. If you have any questions regarding how your fore they retire and meet certain criteria. If you Will my pension benefit reduce the amount
an optional form of payment marital status may affect your benefits from the Plan, please find yourself in this situation, call the Pension Plan office of my Social Security benefit?
including the Five Year contact a Pension Analyst at (877) RN BENEFITS [762-3633] and at (877 RN BENEFITS [762-3633] and one of our pension
analysts can determine whether you’re eligible for our dis-
A
Certain & Life, Ten notify us as soon as possible when your marital status changes
as the option you choose can impact your monthly benefit. • ability pension benefit. To be eligible, participants must: No. Your pension benefit doesn’t affect your
• Be totally and permanently disabled before their Social Security benefit payment. Any pension
normal retirement date while they’re working in covered disability benefits you may be receiving also
employment, are not affected by Social Security. In either case, your
• Be at least 50 years old, NYSNA Pension Plan benefit is totally separate and will
Your money:
• Have completed at least 15 years of credited service, and not be affected by your Social Security benefit.
• Be continuously receiving Social Security disability
DON’T LET BILLING MISTAKES COST YOU YOUR HARD-EARNED MONEY benefits.
You must apply for the benefit within 30 months of
the date you became totally and permanently disabled Have a question for the NYSNA Pension Plan that
A s consumers, being over-charged or billed incorrectly is unfor-
tunately all too common. Mistakes can happen by cell-phone or
Internet providers, credit card companies, medical offices, utilities,
to a claim denial.
How to resolve
it: You may re-
as defined by the Social Security Administration. Your
disability benefit will be determined in the same way
you’d like to see answered in this column? E-mail
the Editor at communications@rnbenefits.org. For
as your normal pension benefit, based on your earnings
and just about any other businesses. While these mistakes aren’t quest an itemized specific questions about your pension benefit
and years of credited service at the time you became dis-
usually deliberate, if they happen to you, they’ll cost you money bill after each visit contact a Pension Analyst at (877) RN BENEFITS
abled. Early retirement reductions don’t apply.
that could be used for something much more important – like add- to a medical profes- [762-3633], Monday through Friday 7:30 a.m. to
The benefit will continue to be paid as long as you
ing to your future retirement nest egg. sional to verify exactly
remain totally and permanently disabled as determined 5:30 p.m.
It doesn’t take much effort to help ensure you’re not losing mon- what you’re being billed for
by the Social Security Administration. When you reach
ey. By simply taking a closer look at your monthly bills and store and, therefore, can better ques-
your normal retirement age your disability pension bene-
receipts, while also using your voice to advocate for yourself, you tion specific charges. In addition,
fit will convert to your normal retirement pension benefit.
can save money and hold the companies billing you accountable. always check your insurance compa-
BE DILIGENT AND ACT FAST ny’s Explanation of Benefits, which shows
Be diligent with all bills that appear in your mailbox and e-mail. the exact amount the insurance company was
These include bank statements, hotel charges, and home services billed, what they paid, and your financial responsibility, if any.
like lawn care or other home maintenance. If you find a mistake, start by calling the provider’s office
Most importantly, don’t hesitate to question anything right billing number or your insurance company, depending on LEGAL DOCUMENTS YOU MAY NEED AS YOU AGE
away. The longer time passes, the harder it may be to adjust a bill how you made the billing mistake discovery. If you’re also a
or dispute a charge.
CREDIT CARDS
participant of the NYSNA Benefits Fund, you may always call
the Fund office at (877) RN BENEFITS to discuss your billing
T here are many types of legal documents that will help
you plan how your affairs can be handled in the future
if you’re unable to do so yourself. These documents have
• A general power of attorney allows you to give someone
else the authority to act on your behalf, but this power will
Common mistakes: Charges for good or services you ordered questions with one of the participant service representatives end if you’re unable to make your own decisions.
names that sound alike, so it’s important to make sure you’re • A durable power of attorney allows you to name some-
but didn’t receive, not posting credit for returned purchase, unau- who are trained to help you make sense of tricky billing issues
getting the correct documents for your needs. It’s also impor- one to act on your behalf for any legal task, but it stays in
thorized charges, incorrect annual or late fee charges, and unex- and prevent you from paying more than is necessary for your
tant to remember that state laws vary, so research the rules, place if you become unable to make your own decisions.
pected interest rate increases. medical care.
requirements, and forms used in your home state. According It makes sense to have both types of advance directives
How to resolve it: Always review your statement closely each
to the U.S. Department of Health & Human Services’ Nation- since a living will can’t cover every possible medical situation
month. Save all receipts from purchases until your credit card bill UTILITY BILLS
al Institute on Aging: but a medical power of attorney can be written to apply to
arrives and then check the charges against the receipts. Common mistakes: Higher bill than expected, fees for
Wills and trusts let you name the person you want your all medical decisions. Advance directives can be established
Start by calling the business that billed you incorrectly. If your services you don’t have, overlapping bill periods, incorrect
money and property to go to after you die. with the help of a lawyer, but it’s not necessary. However, it
problem isn’t resolved, you can then call your credit card compa- late fee charges, miscalculations and meter reading errors, or
Advance directives allow you to make arrangements for should be signed and witnessed.
ny or file a dispute online, explaining the situation. Fortunately, charges from a previous owner if you’ve recently moved.
your care if you become sick. Two common types include: For more information and free advance directive forms by
you’re protected from fraudulent charges on credit card bills by How to resolve it: A quick call is usually all that’s needed
• A living will gives you a say in your healthcare if you state, go to aarp.org and search the keywords “advance di-
the Fair Credit Billing Act, which provides legal protection from to dispute a charge. Be prepared to relay how you want the is-
become too sick to make your wishes known. In a living rectives.” Or you may consider consulting a financial advisor
unauthorized charges and limits your exposure to $50. sue resolved. For example, do you want the erroneous charge
will, you can state what kind of care you do or don’t want, or attorney specializing in these areas. Give copies to your
While the credit card company investigates your dispute, removed or do you want a credit on your next bill? Don’t hang
which may make it easier for family members to make doctor and anyone chosen to represent you.
you’re still responsible for paying your correct charges on time. up until you’re certain the representative made a note on your
tough healthcare decisions for you. If you have a power of attorney that impacts your NYSNA
The investigation may take up to two billing cycles to complete, account that the call was made and the resolution that was
• A durable power of attorney for health care lets you Pension Plan benefits, please send a copy to the Plan office so
during which time you may see the disputed charge on your bill. agreed upon.
name the person you want to make medical decisions for that we know who is authorized to act on your behalf. •
However, the bill should also note that you’re not responsible for If you can’t find resolution with a utility company on your
you if you can’t make them yourself. It’s a good idea to This information is provided as a courtesy to you and is not legal
the charge until the investigation is finalized. own, you can contact your state’s public utilities commission or
speak to the person ahead of time and ensure they’re willing or financial advice. It’s best for you to contact a professional to help
MEDICAL BILLS get help through the National Association of State Utility Advo-
to make those decisions for you. you make sure the appropriate documents are in place.
Common mistakes: Duplicate charges, overcharges, charges for cates. NASUCA specializes in consumer protection and can infor-
For legal matters, there are ways to give someone you
procedures that were never performed and, sometimes, incorrect mally investigate a dispute on your behalf. nasuca.org. •
trust the power to act in your place.
patient information (diagnosis codes, for instance), which can lead
The Pension Planner • August 2021 • Page 2 The Pension Planner • August 2021 • Page 3
PensionPlanner
Communications Department.
about this newsletter to the
ment. Please address questions
or the Plan’s official plan docu-
the Summary Plan Description
tion, and is not a substitute for
to be complete Plan informa-
this newsletter is not intended
sion Plan. The information in
State Nurses Association Pen-
participants of the New York
four times a year as a service to
The Pension Planner is published
Communications Representative
next issue of The Pension Planner.
Specialist/The Pension Planner
Pension Department Manager
Please notify us if your address
changes so you won’t miss the
Ronald F. Lamy, CPA, CEBS
Communications Specialist
Timothy M. Antoniak, ACS
Senior Communications
The
Chief Operating Officer
Chief Executive Officer
Albany, NY 12212-2430
NYSNA Pension Plan
Sharron Carlson, CEBS
Christopher J. Rosetti
(877) RN BENEFITS
Meighan C. Rask
PO BOX 12430
CPA, CFE, CFF
rnbenefits.org
Tricia E. Cupp
(800) 342-4324
(518) 869-9501
Editor
New York State Nurses Association
CHANGE SERVICE REQUESTED
Albany, NY 12212-2430
PO Box 12430
Pension Plan
N Y S N A
Non-Profit Org.
Permit No. 79
US Postage
Albany, NY
PAID
UNDERSTANDING YOUR ANNUAL PENSION STATEMENT
E ach year, the NYSNA Pension Plan collects and calculates
data related to our participants’ earnings in order to prepare
a personal pension statement that we mail to our active partici-
by your employer, any change in this information may affect
your eligibility and your calculated estimated benefit. When you
eventually apply for retirement from the Plan, we’ll verify all the
pants. These pension statements contain important information information sent by your employer is accurate.
that may be helpful as you make decisions about your retirement Assuming your earnings will increase over time, and you’ll
and financial future. accrue additional credited service, future pension statements sent
by the Pension Plan may reflect an increase in the
What is the purpose of the statement? Why didn’t I get a amount of your annual estimated pension benefit.
The Plan’s pension statement provides you with statement last year?
an estimated pension benefit as a participant of the There are several rea- What information is included in my statement?
NYSNA Pension Plan, subject to the Plan’s official Your pension statement always contains the
sons why the Pension Plan
plan documents. The statement is based on infor- following information:
mation provided to the Plan by your employer as may not be able to com- • Current employer,
of December 31 of the year prior to the statement plete a pension statement. • Date of birth,
date. As a multi-employer defined benefit plan, the Unfortunately, if you’ve • Beginning date of participation in covered
Pension Plan is funded entirely by contributions employment in the Plan,
had a leave of absence,
negotiated by NYSNA on your behalf and paid by • Pension earnings for the statement year as
participating facilities that are parties to collective break in service, or there reported by your employer,
bargaining agreements with NYSNA. are incomplete employ- • Total paid hours for the statement year as
reported by your employer,
ment records from your
How is my pension determined? • Estimated current accrued annual pension
Your pension benefit is dependent on your years employer, we may not benefit,
of credited service and your final average earnings, be able to calculate an • Years of credited service,
defined below, upon retirement (based on your estimated future pension • Vested status,
retirement date). Generally, the calculation is 1.6 • Final average earnings,
benefit.
percent of your final average earnings times your • Estimated benefit at age 65 (normal retire-
years of credited service. ment age for the Pension Plan), if vested,
Final average earnings are calculated by taking • Estimated unreduced early retirement benefit
your average earnings over the five highest calendar years in (if applicable) at age 60 with 20 years of service.
the last 10 or fewer calendar years of your covered employment. When you receive your pension statement from the Pension Plan, we
Your base salary plus experience differential is used to determine encourage you to review the statement, check your personal information
your pension benefit. Additional compensation, such as over- for accuracy, and contact the Plan office if any information appears in-
time, bonuses, or shift differential, isn’t included. correct. If you have any questions about your pension statement, please
Your statement reflects an estimated pension benefit. Since contact one of our pension analysts at (877) RN BENEFITS [762-3633].
information such as employment dates and salary is reportedYou can also read
