Rhode Island Code of Regulations
Title 120 - Treasury Department
Chapter 00 - N/A
Subchapter 00 - N/A
Part 1 - Employees' Retirement System of Rhode Island and Municipal Employees' Retirement System Regulations
Section 120-RICR-00-00-1.7 - Rules Regarding the Use of R.I. Gen. Laws Section 36-10-18 Multiple Beneficiaries

Universal Citation: 120 RI Code of Rules 00 00 1.7

Current through December 26, 2024

A. Regulation Summary

1. In 1994, the Rhode Island General Assembly amended R.I. Gen. Laws § 36-10-18 to allow members of the Employees Retirement System of Rhode Island (public school teachers and State employees only) to elect more than one (1) beneficiary to be the recipient of a survivor option under Rhode Island retirement law. The option to elect multiple beneficiaries is not available to State Police, judicial, general municipal, or police & fire members of retirement plans administered by ERSRI.

2. This Regulation explains the procedure to be utilized by ERSRI in determining the amount due each qualified beneficiary.

B. ERSRI Methodology on Multiple Beneficiaries Optional Annuity

1. § 1.7 of this Part and all applicable R.I. Gen. Laws statutory Rules shall be used in determining a member's optional annuity.

2. Optional Annuity Multiple Beneficiary benefits will be determined as follows:
a. The amount of the ex-member's contributions shall be divided by the number of multiple beneficiaries identified on the Optional Annuity Form in order to calculate an equal amount of "return of contributions" to be due each multiple beneficiary.

b. The ex-member's retirement benefit shall be calculated according to the standard method for service retirement annuity (SRA or maximum plan). If the member on the date of their death was not eligible for retirement, the optional annuity shall be calculated using an actuarial adjustment determined by the number of years the member was below age or service requirements.

c. The resulting SRA retirement benefit due the deceased member shall be divided in equal shares between the multiple beneficiaries.

d. The multiple beneficiaries shall have the choice of selecting either:
(1) Return of contributions; or

(2) An Optional Annuity benefit that has been split evenly amongst the named multiple beneficiaries.

e. It is not necessary that all multiple beneficiaries make the same selection (i.e. One (1) beneficiary may choose a return of contributions while the others may choose the optional annuity.)

C. ERSRI Methodology on Multiple Beneficiaries/Joint and Survivor Option One

1. § 1.7 of this Part and all applicable R.I. Gen. Laws statutory Rules shall be used in determining a member's survivor retirement benefit.

2. Option One Multiple Beneficiary benefits will be determined as follows:
a. The retiring member's retirement benefit shall be calculated according to standard method for service retirement annuity (SRA or maximum plan);

b. The SRA retirement benefit is then divided into equal shares according to the number of named multiple beneficiaries;

c. For a non-spouse beneficiary who is ten (10) years (or more) younger than the retiring member, Internal Revenue Service Rules require an actuarial reduction for retiring members utilizing Option One; See IRS Proposed Regulation 1.401(a)(9) - 2 (26 C.F.R. § 1.401(a)(9)-2).

d. Option One factors based on the multiple beneficiaries ages are then applied to the equal shares;

e. The sum of the actuarially reduced benefits shall be the retiring member's benefit during their lifetime.

D. ERSRI Methodology on Multiple Beneficiaries/Joint and Survivor Option Two

1. § 1.7 of this Part and all applicable R.I. Gen. Laws statutory Rules shall be used in determining a member's survivor retirement benefit.

2. Option Two Multiple Beneficiary benefits will be determined as follows:
a. The retiring member's retirement benefit shall be calculated according to standard method for service retirement annuity (SRA or maximum plan);

b. The SRA retirement benefit is then divided into equal shares according to the number of named multiple beneficiaries;

c. Option Two factors will be applied to multiple amounts;

d. The sum of the actuarially reduced benefits shall be the retiring member's benefit during their lifetime.

E. Restrictions on the use of Multiple Beneficiaries as provided under R.I. Gen. Laws § 36-10-18

1. Beneficiaries must be natural or adopted children or stepchildren and/or a spouse or domestic partner of the ERSRI member. There is no restriction as to the number of multiple beneficiaries.

2. In the case of the death of a multiple beneficiary, the benefit of remaining beneficiaries shall not be increased nor decreased.

3. A multiple beneficiary's benefit shall cease upon their death. There is no additional benefit due the survivor or beneficiary of a multiple beneficiary.

4. The multiple beneficiary option is not available to State Police, judicial, general municipal, or police & fire members of the retirement system.

Disclaimer: These regulations may not be the most recent version. Rhode Island may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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