(a) “Beneficiary” means any person, or Special Needs Trust, as defined in subsection (b), except a corporation, designated by a member or a retired member to receive a benefit payable on account of the death of a member or a retired member. A member or retired member may also name the member’s estate or trust as a beneficiary for any lump sum death benefits. If there is no effective beneficiary designation the benefit shall be paid to the estate of the member.
(b) “Special Needs Trust” means an irrevocable trust with all the following characteristics:
(1) The trust satisfies the requirements of Section 1396p(d)(4)(A) of Title 42 of the United State1
Code, as amended from time to time.
(2) The trust satisfies Section 1.401(a)(9)-4 of Title 26 of the Code of Federal Regulations, as amended from time to time.
(3) The trust is for the sole benefit of a single, primary beneficiary.
(4) The trust identifies the beneficiary by name, date of birth, and social security number.
(5) The trust includes an affirmative duty by the trustee to inform the retirement system of the death of the trust’s beneficiary or any change in the trust’s status. The trustee must immediately return to the retirement system any payments received by the trust following the trust beneficiary’s death or revocation of the trust.
(Amended by Ord. 296-83, App. 5/27/83; Ord. 326-00, File No. 001921, App. 12/28/2000; Ord. 259-22, File No. 221024, App. 12/22/2022, Eff. 1/22/2023)
CODIFICATION NOTE