Changes to Option D Beneficiary Selection

Due to a recent Division of Administrative Law Appeals (DALA) decision, the Cambridge Retirement Board (CRB) can no longer allow its members to designate multiple beneficiaries under Option D.  To ensure that our members have Option D forms that comply with the decision, we are requesting members who previously designated multiple beneficiaries for Option D to complete a new form designating one beneficiary.

 

What are the two payout options for my beneficiary with the CRB?

The Lump-Sum Option provides a lump-sum payment of your retirement account to your beneficiary.  You may name any person(s) or organization you wish under this option.

The second option, called Option D, provides the designated beneficiary with a monthly allowance for life.  In most cases, this is a significantly more valuable benefit than the Lump-Sum Option.  When choosing this option, you may only designate a spouse, former unmarried spouse, parent, child or sibling as the beneficiary.

For more information, you can also review our FAQ post on this subject at http://www.cambridgeretirementma.gov/article/what-are-different-options-naming-beneficiary

 

Does this decision affect the Lump-Sum Option?

No.  Under the Lump-Sum Option, you can continue to designate multiple beneficiaries.

 

How do I know if my beneficiary designation is affected by this decision?

Please review your beneficiary selection to verify your current option and designated beneficiaries. This information is shown on the annual statements, which were mailed to members on March 28, 2019.  You can also review this information by signing in to your account on this website.  If you are unsure, please call our office directly to review your selections.

 

Is my current Option D beneficiary selection void?

No.  However, only a beneficiary selection made within the prescribed boxes will be valid.  If you have more than one Option D beneficiary listed, we strongly urge you to complete new forms. 

The CRB has designated two forms for the Lump-Sum Option and Option D, Primary and Contingent, to make sure our members’ designations are clear.

 

What if I currently have a contingent beneficiary under Option D?

A contingent beneficiary is someone who receives a benefit from the CRB if the primary beneficiary predeceases the member.

This decision does not affect the designation of a single primary and contingent beneficiary.  However, you cannot have multiple contingent beneficiaries.  For example, you can designate your spouse as your primary beneficiary and one child as a contingent beneficiary.

Each selection would need to be on its own Option D form and clearly labeled “primary” or “contingent.”

All the revised forms are now posted at http://www.cambridgeretirementma.gov/resources/forms

Completed forms can be submitted to the following address:

Cambridge Retirement Board

100 CambridgePark Drive, Suite 101

Cambridge, MA 02140

ATTN: Christopher McLaughlin

Please remember, all beneficiary forms MUST be signed and dated by a witness who is not the designated beneficiary.  If you have any additional questions or concerns, please feel free to contact the Cambridge Retirement Board at (617) 868-3401.