ONLINE DESIGNATION REQUIREMENT

Transcription

1 December 13, 2012 TO: FROM: SUBJECT: Certifying Officers Florence J. Sheppard, Acting Director, Division of Pensions and Benefits Online Requirement for Designation of Beneficiary The Division of Pensions and Benefits is implementing significant changes to the procedure for designating a beneficiary for members of the Public Employees Retirement System (PERS), Teachers Pension and Annuity Fund (TPAF), Police and Firemen s Retirement System (PFRS), and State Police Retirement System (SPRS). ONLINE DESIGNATION REQUIREMENT Effective February 1, 2013, an active employee who wishes to verify, update, or change their beneficiary information with the retirement system, must use the online Designation of Beneficiary Application accessible through a personal account with the Member Benefits Online System (MBOS) 1. The MBOS Designation of Beneficiary Application provides your employees with a secure, fast, and efficient method to verify, update, or change beneficiary information. Confirmation of receipt of a new beneficiary designation is provided to the member on screen and by . Using MBOS improves the designation process for all participants, saving money by eliminating printing and mailing costs, saving time by reducing the handling and processing time required with paper forms, and eliminating keying or transcription errors or the need to return incomplete forms or unacceptable designations. Employees who are registered with MBOS already have access to the online Designation of Beneficiary Application through their MBOS account. Employees who are new to MBOS can access MBOS after they register with both MBOS and the MyNewJersey Web site. Registration is free. New users should be provided with the MBOS Registration Instructions (see attachment). If, after following the MBOS Registration Instructions, your employees still need assistance registering for or using MBOS, they should call the MBOS Help Desk at (609) or send an with the subject line "MBOS " to: pensions.nj@treas.state.nj.us Also effective February 1, 2013, the paper Designation of Beneficiary form will no longer be accepted by the Division of Pensions and Benefits except for Special Provisions as detailed on the next page. 1 MBOS is a set of applications that allow registered users access to their pension account information over the Internet. Log on or register for MBOS at: New Jersey Is An Equal Opportunity Employer Printed on Recycled and Recyclable Paper

2 Online Requirement for Designation Beneficiary Page 2 December 13, 2012 SPECIAL PROVISIONS While most employees can and must use the online Designation of Beneficiary Application in MBOS, the following Special Provisions will still require a paper form. Designations to a trust, organization, charity, or corporation; a formal or informal trust; through a power of attorney; by court order; or for an unequal distribution of a fixed percentage or definite dollar amount. Instructions for obtaining and using the Special Provisions Beneficiary Form are provided in MBOS when the member accesses the online Designation of Beneficiary Application. Special Provisions are the only circumstances when the use of a paper form will be permitted. Paper forms that are received for any other type of designation after February 1, 2013, will be returned to the member with instructions for submitting the designation through MBOS. Limited access to a computer or reluctance to use MBOS is not considered sufficient reason to permit the use of a paper Designation of Beneficiary form. EMPLOYER PARTICIPATION Employer communication with employees is a key element for a smooth transition to meeting the requirement that all beneficiary designations be processed through MBOS. The Division expects employers to assist with the change. Employers should take all available opportunities to inform employees of the coming change to the online Designation of Beneficiary Application using any inhouse communication channels. Employers should make the attached fliers, or similar messages, available to employees to inform them of the pending change. Please also advise your employees that as of February 1, 2013, the paper Designation of Beneficiary form will no longer be accepted by the Division of Pensions and Benefits except for the Special Provisions listed above. ADDITIONAL INFORMATION For additional information about the designation of beneficiary and your retirement system benefits, please refer to your retirement system s Member Handbook or Fact Sheet #68, Designating a Beneficiary, which are available for viewing or printing on the Division of Pensions and Benefits Web site at: If you have questions regarding any of the other information provided in this letter, contact the Division s Office of Client Services at (609) , or the Division at: pensions.nj@treas.state.nj.us Enclosures MBOS Online Designation of Beneficiary Flier MBOS Registration Instructions Fact Sheet #68, Designating a Beneficiary

3 State of New Jersey Department of the Treasury Division of Pensions and Benefits MEMBER BENEFITS ONLINE SYSTEM (MBOS) REQUIRED FOR DESIGNATION OF BENEFICIARY ATTENTION: The Division of Pensions and Benefits is implementing a significant change to the process for designating a beneficiary. Effective February 1, 2013, Designations of Beneficiary for the retirement systems must be submitted online using the Designation of Beneficiary Application of the Member Benefits Online System (MBOS). This requirement applies to active employees enrolled in the Public Employees Retirement System (PERS), Teachers Pension and Annuity Fund (TPAF), Police and Firemen s Retirement System (PFRS), and State Police Retirement System (PFRS). MBOS is a set of applications that allow registered members access to their pension account information over the Internet. MBOS provides you with a secure, fast, and efficient method to verify, update, or change your beneficiary information. With MBOS you receive immediate confirmation on screen and by follow-up that a change to your Designation of Beneficiary has been received. If you are currently a registered MBOS user, you already have access to the online Designation of Beneficiary application through your MBOS account. If you are new to MBOS you can access MBOS after you register with both MBOS and the MyNewJersey Web site. Registration is free at: Registration requires several steps new users should read and carefully follow the MBOS Registration Instructions. Please note that as of February 1, 2013, paper Designation of Beneficiary forms will no longer be accepted by the Division except in the following situations: Certain Special Provisions may still require a paper form. These include designations to a trust, organization, charity, or corporation; a formal or informal trust; through a power of attorney; by court order; or for an unequal distribution of a fixed percentage or definite dollar amount. Instructions for obtaining the correct forms are provided in MBOS when accessing the Designation of Beneficiary online application. If, after following the MBOS Registration Instructions, you still need assistance registering for or using MBOS, call the MBOS Help Desk at (609) or send an with the subject line "MBOS " to: pensions.nj@treas.state.nj.us EB w

4 ACCESS YOUR PENSION ACCOUNT ONLINE THROUGH THE MEMBER BENEFITS ONLINE SYSTEM (MBOS) REGISTRATION INSTRUCTIONS FOR FIRST TIME USERS To use MBOS you must register with both MBOS and the mynewjersey Web site. These instructions will guide you through both processes. REGISTRATION FOR MBOS IS FREE READ AND FOLLOW THESE INSTRUCTIONS CAREFULLY! STEP ONE SET UP YOUR MBOS ACCOUNT WITH THE DIVISION OF PENSIONS AND BENEFITS. 1. Go to: 2. On the Division of Pensions and Benefits home page click the link Register for MBOS. 3. Read the Disclaimer Page that opens and click the Continue button if you are an Active Member or a Retiree. 4. Complete all of the information requested on the MBOS Member Registration page. 5. Be sure to select whether you are an Active Member or a Retiree. You will need both your Social Security number and your pension Member ID Number. Your pension Member ID can be obtained from your employer or by contacting the Division's Office of Client Services. Note: If you register for MBOS as an active member, do not register again when you retire you can continue to use your Logon ID and password from your active account. Pension ID Number: 6. When all of the information has been entered click the Submit button. Note: At this point, MBOS checks to see if you have already registered. If it finds that you are a registered MBOS user, it will automatically take you to the mynewjersey Log On Page. If the "Log On Page" opens, see the MBOS log -on instructions for registered users. Otherwise, continue to item #7. 7. The mynewjersey Account Page will open. STEP TWO SIGN-ON TO, OR CREATE, YOUR mynewjersey ACCOUNT If you already have a mynewjersey account, click "Yes" on the mynewjersey Account Page and follow these directions starting with item #1 below. If you do not have a mynewjersey account, you need to create one. Click "No" on the mynewjersey Account Page and follow these directions starting with item #4 below.

5 MBOS REGISTRATION INSTRUCTIONS FOR FIRST TIME USERS (Continued) 1. If you already have a mynewjersey account, enter your Logon ID and Password on the mynewjersey Account Page. 2. When done, click the Link MBOS to My Account button. 3. Proceed to STEP THREE If you do not have a mynewjersey account, Start Here! 4. To create your personal mynewjersey account, enter all of the information requested on the mynewjersey Account Page. 5. Be sure to select a Logon ID and Password that is easy to remember! Note: Forgotten Logon IDs and Passwords are the most common problem members have when using MBOS. Be sure that you can remember your Logon ID and Password for future use. Passwords must be at least 6 characters long and must include attributes from at least two of these groups: lowercase letters, uppercase letters, digits, and other characters (except space, quotes and \). 6. When done, click the Create this new mynewjersey Account and Link MBOS to it button. 7. Proceed to STEP THREE STEP THREE START USING MBOS 1. Once you successfully create, or link to, your mynewjersey account your MBOS Home Page will open. Members with Multiple User Roles If you have MBOS access to other pension fund accounts or employer access to the Employer Pensions and Benefits Information Connection (EPIC), you will need to select the "user role" you wish to open each time you log on to MBOS or EPIC. After you log on to MBOS or EPIC you can click the "Select Different Role" button to leave the current MBOS or EPIC session and access your other accounts or user roles. 2. From the MBOS Home Page you can access the MBOS Applications that are currently available to active or retired members. MBOS Applications provide information about your pension account and link you to benefit calculators and online application forms. Additional information about using MBOS Applications is provided online in the MBOS User s Guide just click the Search Help button on the MBOS Home Page. If you need help, call the MBOS Help Desk at: (609) SP Emp

6 EB Fact Sheet #68 A PUBLICATION OF THE NEW JERSEY DIVISION OF PENSIONS AND BENEFITS An important aspect of membership in a New Jersey State-administered pension system is the payment of benefits to your named beneficiaries. Upon your death, the Division of Pensions and Benefits will pay death benefits to the last named beneficiary, or beneficiaries, on file with the Division. It is, therefore, very important to keep your beneficiary information up to date. You should consider updating your Designation of Beneficiary any time you experience a major life event such as marriage, civil union, divorce, dissolution of a civil union or domestic partnership, birth or adoption of a child, or the death of a spouse/partner, child, or parent. Active members and retirees who are unsure of their beneficiary designations may obtain this information online using the Member Benefits Online System (MBOS). MBOS is a set of Internet based applications that allow registered members access to information about their pension. You must be registered with MBOS to begin the process go to: If you wish to change your beneficiary designation, you can safely do so using MBOS. The new designations will become effective immediately. Exceptions to Online Designations Designating a Beneficiary All Funds Except in specific circumstances, paper Designation of Beneficiary forms are no longer accepted by the Division of Pensions and Benefits. The only times that a paper form may be used are for the following Special Provisions. Designations to a trust, organization, charity, or corporation; A formal or informal trust; Through a power of attorney; By court order; Unequal distributions of a fixed percentage; or Distributions of a definite dollar amount. These situations are described in more detail in the following section on Special Provisions. Instructions for obtaining the proper forms for these exceptions are provided in MBOS when the member accesses the Designation of Beneficiary online application. Limited access to a computer or a member s reluctance to use MBOS is not considered a sufficient reason to permit the use of a paper Designation of Beneficiary form. Paper Designation of Beneficiary forms that are received for any other type of designation will be returned to the member with instructions for submitting the designation through MBOS. SPECIAL PROVISIONS There are special procedures to follow if you nominate a trust or minor as beneficiary; choose a distribution of benefits other than the standard "share and share alike"; nominate a civil union or domestic partner; or act as power of attorney, as explained below. Nominating a Trust as Beneficiary You may choose to designate an established trust to receive the group life insurance and/or pension benefit. If you elect to do so, you MUST provide the name and date of the trust and the name and address of the January 2013 Page 1 Fact Sheet #68

7 Fact Sheet #68 A PUBLICATION OF THE NEW JERSEY DIVISION OF PENSIONS AND BENEFITS EB trustee to contact upon your death. You need not provide a copy of the trust with your Designation of Beneficiary, but upon your death, we will request a copy from the trustee. Nominating a Minor as Beneficiary If you name a minor as beneficiary for the group life insurance and/or pension benefit, the manner of the designation makes a difference in how benefits are paid. The Division of Pensions and Benefits will withhold payment until one of the following occurs: The minor attains age 18 (funds can be held until the minor is emancipated), or; A court-ordered guardian of the property of the minor is appointed by the courts and proof of this is forwarded to the Division, in which case the benefits will be paid to the guardian on the minor's behalf and/or the court (according to the court document). You may, however, choose to leave the group life insurance and/or pension benefit to a trust established on behalf of a minor. There are two types of trusts: A formal trust is established through legal documents filed with your county court that designates a person or persons as "Trustee." When designating a formal trust on behalf of a minor beneficiary, you must clearly state "Formal Trust" on behalf of the minor and include the date of trust incorporation. For example: "John Taylor, Formal Trustee for Joshua Taylor, under the terms of the trust agreement dated January 1, 1993." An informal trust is one that has not been filed with the courts on behalf of the minor. The informal trustee(s) would be paid the specified benefits on behalf of the minor beneficiary. For example: "Jane Miller, Informal Trustee for June Doe, daughter." June Doe is the beneficiary but since she is a minor, Jane Miller would receive the benefits on June's behalf. Please state the minor's relationship to you, not to the trustee. The minor's address and birth date MUST be included on the form, as well as the informal trustee's address, whom we will contact upon your death. Note: The person(s) you designate as trustee(s) will assume all rights and privileges to the benefits that are paid and the Division will not be held responsible for any mishandling of the benefits. Unequal Distribution If you wish to specify an unequal distribution among beneficiaries, you may indicate a percentage or a fraction next to the person's name. Percentages must add up to 100%. For example: "Mary Smith, sister, 70%; Thomas Jones, brother, 30%" (70% + 30% = 100%) Fractions must add up to 1. For example: "Joe Jones, son, ¼; Jim Jones, son, ¼; Patty Smith, daughter, ½" (¼ + ¼ + ½ = 1) Note: In the case of an unequal distribution, if a designated beneficiary predeceases you, the deceased beneficiary's share becomes payable to your estate, unless you have stated otherwise on the form. Definite Dollar Amounts Active members may list a definite dollar amount for a beneficiary, but because the member s group life insurance fluctuates due to salary changes, a beneficiary must be named to receive the remaining balance. For example: "Bob Smith, brother, $10,000; Joe Smith, son, the remaining balance." Retired members may list definite dollar amounts for their group life insurance beneficiaries since the retired Fact Sheet #68 January 2013 Page 2

8 EB Fact Sheet #68 A PUBLICATION OF THE NEW JERSEY DIVISION OF PENSIONS AND BENEFITS group life insurance amount is established at the time of retirement and does not change. However, the total amount listed on your form must equal the exact amount of the retired group life insurance benefit. For example: Betty Smith is a retired PERS member with a group life insurance benefit of $4, An acceptable designation would be: "Dan Smith, son, $3,000; Dave Smith, grandson, $1, " Nominating a Spouse, Civil Union or Domestic Partner State employees who are members of the Police and Firemen s Retirement System (PFRS), State Police Retirement System (SPRS), or Judicial Retirement System (JRS), may name a spouse, civil union partner, or eligible same-sex domestic partner to receive the monthly survivor pension benefit upon your death as an active employee or retiree. A photocopy of the Marriage Certificate, Civil Union Certificate, or Certificate of Domestic Partnership must be provided for verification. Note: A New Jersey Certificate of Domestic Partnership dated prior to February 19, 2007 or a valid certification from another jurisdicition that recognizes same-sex domestic partnerships is required for verification before survivor benefits will be paid. For local employees who are PFRS members the local employer must have adopted a resolution extending domestic partnership For members of the other State-administered retirement systems (Public Employees Retirement System (PERS), Teachers Pension and Annuity Fund (TPAF), etc.), proof of marriage, civil union, or domestic partnership is not normally required; however, proof would be required in the event of your accidental death in service before an eligible surviving spouse/partner would receive a monthly survivor pension benefit. Power of Attorney In accordance with the New Jersey Administrative Code, you may choose to nominate someone to act as your power of attorney. However, the power of attorney document must specifically grant that person the right to change or update beneficiary information if you wish for them to have that power. Further, if you wish to give them the power to do so, it must specifically state that they may name themselves as beneficiary. How to Change Your Beneficiary Form Active members can immediately update their beneficiary information using the Member Benefits Online System (MBOS). Register with MBOS at: (select Online Services - Register for MBOS ). Except in specific circumstances (see page 1) paper Designation of Beneficiary forms are no longer accepted by the Division of Pensions and Benefits. For More Information If you have questions about your Designation of Beneficiary: Write to: Division of Pensions and Benefits, PO Box 295, Trenton, NJ Send an to: pensions.nj@treas.state.nj.us Call the Division s Office of Client Services at: (609) This fact sheet has been produced and distributed by: New Jersey Division of Pensions and Benefits PO Box 295 Trenton, New Jersey (609) TDD for the hearing impaired (609) URL: pensions.nj@treas.state.nj.us This fact sheet is a summary and not intended to provide total information. Although every attempt at accuracy is made, it cannot be guaranteed. January 2013 Page 3 Fact Sheet #68