Rescind or Revert Retirement Election ; Change of Contingent Annuitant

R2-8-130. Rescind or Revert Retirement Election ; Change of Contingent Annuitant A. The definitions in R2-8-126 apply to this Section. B. According to A.R.S. § 38-760(B)(2), for a member whos e Original Retirement Date is after August 9, 2001, upon th e expiration of a member’s period certain term the ASRS shall rescind the member’s election and the ASRS shall provide th e member a Straight Life Annuity retirement benefit subject t o any retirement reductions applicable at the member’s Original Retirement Date. C. According to A.R.S. § 38-760(B)(2), a member whose Original Retirement Date is after August 9, 2001 and before July 1, 2008 and who elected a Period Certain and Life Annuit y Retirement Benefit Option, may rescind the election and elect to receive a Straight Life Annuity retirement benefit prior t o the expiration of the member’s period certain term. D. According to A.R.S. § 38-760(B)(1), a member whose Original Retirement Date is before July 1, 2008 and who elected a Joint and Survivor Retirement Benefit Option may rescind th e election and elect to receive a Straight Life Annuity retirement benefit prior to the member’s death. E. A member whose Original Retirement Date is on or after Jul y 1, 2008 and who elected a Period Certain and Life Annuit y Retirement Benefit Option may exercise a one-time election t o rescind the election and elect to receive a Straight Life Annuity retirement benefit prior to the expiration of the member’ s period certain term if the member provides proof to ASRS of March 31, 2026 Supp. Administrative Code 2 A.A.C. 8 ADMINISTRATION RETIREMENT SYSTEM BOARD the death of the primary beneficiary or a DRO showing that the primary beneficiary has ceased to be a primary beneficiary. F. A member whose Original Retirement Date is on or after Jul y 1, 2008 and who elected a Joint and Survivor Retirement Benefit Option may exercise a one-time election to rescind th e election and elect to receive a Straight Life Annuity retirement benefit prior to the death of the member if the member provides proof to ASRS of the death of the contingent annuitant a DRO showing that the contingent annuitant has ceased to be a contingent annuitant. G. A member who elected to rescind a Period Certain and Lif e Annuity Retirement Benefit Option according to subsectio n (C) may elect to revert to the Period Certain and Life Annuit y Retirement Benefit Option by submitting an Application t o Rescind, Revert or Change Contingent Annuitant as specifie d in subsection (M). H. A member who elected to rescind a Joint and Survivor Retirement Benefit Option according to subsection (D) may elect t o revert to the Joint and Survivor Retirement Benefit Option b y submitting an Application to Rescind, Revert or Change Contingent Annuitant as specified in subsection (M). I. A member may only revert to the same Period Certain and Lif e Annuity Retirement Benefit Option the member rescinde d according to subsection (C) prior to the expiration of th e period certain term the member elected at the member’s most recent retirement. subsec- J. A member who rescinds their election according to tions (E) or (F) is not eligible to revert to a Period Certain an d Life Annuity Retirement Benefit Option or a Joint and Survivor Retirement Benefit Option. K. Notwithstanding any other provision, the time period of a Period Certain and Life Annuity Retirement Benefit Optio n shall be continuous from the member’s retirement date until the term expires regardless of whether the member rescinds or reverts to another retirement option. L. A member who wants to rescind or revert a retirement electio n according to subsections (C) through (H) shall ensure ASR S receives an Application to Rescind, Revert or Change Contingent Annuitant at least one day prior to the member’s death. M. In order to rescind, revert, or change a contingent annuitant, the member shall submit an Application to Rescind, Revert or Change Contingent Annuitant with the following information: 1. The member’s full name; 2. The member’s Social Security number or U.S. Tax Identification number; 3. The member’s marital status, if not On File with ASRS; 4. Whether the member is electing to rescind, revert, or change a contingent annuitant; 5. The member’s notarized signature acknowledging th e following statements of understanding: a. For rescinding a retirement election: i. By this action, and the member’s signature, th e member is aware that the member’s designate d beneficiary or contingent annuitant will not continue with monthly benefits after the member’s death; ii. The member is aware that a certified copy of the member’s designated beneficiary’s or contingent annuitant’s death certificate or a DRO i s required if the member retired or re-retired o n or after July 1, 2008; iii. At the time of the member’s death, if the ASR S contribu- has not disbursed the total employee tions on the member’s account, plus interest at 26-1 Page 17 2 A.A.C. 8 Arizona CHAPTER 8. STATE the Assumed Actuarial Investment Earning s Rate specified in R2-8-118(A) through th e month prior to the member’s retirement date, the balance will be payable in a lump sum t o the beneficiary named on the member’s most recent Acceptable Form. b. For changing a contingent annuitant or beneficiary: i. For a Joint and Survivor Retirement Benefit signa- Option, by this action, and the member’s ture, the contingent annuitant named on th e member’s most recent Acceptable Form will receive the previously elected percentag e amount of the member’s monthly benefit for their lifetime following the member’s death; ii. For a Joint and Survivor Retirement Benefit Option, the member is aware that a copy of th e contingent annuitant’s Legal Documentation i s required and the member’s benefit will b e recalculated based on the member’s age and th e age of the member’s new contingent annuitant as of the effective date of the member’s request according to this Section; iii. For a Joint and Survivor Retirement Benefit Option, the member is in compliance with th e age difference limitations in R2-8-128; and iv. For a Period Certain and Life Annuity Retirement Benefit Option, by this action, and th e member’s signature, the beneficiary named o n the member’s most recent Acceptable Form will receive the remaining term of monthl y payments. c. For reverting to a previously elected retirement benefit option according to A.R.S. § 38-760: i. For a Joint and Survivor Retirement Benefit Option, by this action, and the member’s signamem- ture, the contingent annuitant named the ber’s most recent Acceptable Form will receiv e the previously elected percentage amount of th e fol- member’s monthly benefit for their lifetime lowing the member’s death; ii. For a Joint and Survivor Retirement Benefit Option, the member is aware that a copy of Legal Documentation showing the contingent annuitant’s date of birth is required and th e member’s benefit will be recalculated based o n the member’s age and the age of the member’ s contingent annuitant as of the effective date of the member’s request according to this Section; iii. For a Joint and Survivor Retirement Benefit Option, the member is in compliance with th e age difference limitations in R2-8-128; and iv. For a Period Certain and Life Annuity Retirement Benefit Option, by this action, and th e member’s signature, the beneficiary named o n the member’s most recent Acceptable Form will receive the remaining term of monthl y payments. 6. If the member is electing to change a contingent annuitant, the following information for the new contingent annuitant: a. Full name; b. Social Security number, if the contingent annuitant is a U.S. citizen; c. Date of birth; and Supp. Administrative Code ADMINISTRATION RETIREMENT SYSTEM BOARD d. Legal relationship to the member. 7. If the member is married, whether the member’s spous e sig- consents to the following with the spouse’s notarized nature: a. The member making a beneficiary designation that provides the member’s spouse with less than 50% of the member’s account balance; b. The member electing a retirement option other tha n a Joint and Survivor Retirement Benefit Option; or c. The member changing or ending the spouse’s contingent annuitant status. 8. Whether the spouse’s consent is not required because: a. The spouse predeceased the member and if so, provide a copy of the spouse’s death certificate; or b. The member is divorced and if so, provide a DRO. N. If the ASRS is unable to verify the age of the member or a contingent annuitant, the member or contingent annuitant shall con- provide Legal Documentation showing the member’s or tingent annuitant’s age. O. The effective date of the member’s request according to thi s Section is the date on which ASRS receives the Application t o Rescind, Revert or Change Contingent Annuitant. P. According to A.R.S. § 38-760(B)(2), a member whose Original Retirement Date is on or after July 1, 2008 and who elect s a Period Certain and Life Annuity Retirement Benefit Option, may rescind the election according to subsection (E) and elect to receive a Straight Life Annuity prior to the expiration of th e member’s period certain term if one or more of the member’ s primary beneficiaries dies or ceases to be a beneficiary according to the terms of a DRO. Q. The ASRS shall cancel a member’s Application to Rescind, Revert, or Change Contingent Annuitant if ASRS does not receive all forms and information required under this Sectio n within six months immediately after the ASRS receives th e application. Historical Note New Section made by final rulemaking at 26 A.A.R. 2036, effective November 8, 2020 (Supp. 20-3). Amended by final rulemaking at 28 A.A.R. 1746 (July 22, 2022), effective September 4, 2022 (Supp. 22-3).