The United States Supreme Court on January 26, 2009 held that a former spouse's waiver of her interest in her ex-husband's retirement benefit did not override the terms of the plan that required the participant to designate a beneficiary (Kennedy v. Plan Administrator for DuPont Savings and Investment Plan, 555 U.S. _ (2009)). The divorce decree containing the waiver did not qualify as a qualified domestic relations order and thus did not override the participant's written beneficiary designation form. The participant had failed to revoke the designation of his former spouse as the beneficiary under the plan prior to his death. Therefore, the former spouse was entitled to the death benefit under the plan upon the death of the participant, even though she had actually waived it in the divorce decree.
This case serves as an important reminder for employees to update their beneficiary designation(s) under University benefit plans when they experience a life event. Employees may designate the same or different beneficiaries for each benefit plan in which they are enrolled. It is important to note that changing a beneficiary designation under one benefit plan does not change the beneficiary under any other plan. A participant must complete a beneficiary change for each benefit plan.
University plans in the table below contain beneficiary designations. Employees may review and change beneficiary designations under an insurance plan by visiting NESSIE. Employees may review and change beneficiary designations under a retirement plan by contacting the appropriate plan service provider.
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Insurance Plans
(NESSIE)
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Retirement Plans
(contact the plan service provider)
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State Life
State Accidental Death and Dismemberment
University Life
University Accidental Death & Dismemberment
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SURS (1-800-275-7877)
University of Illinois Supplemental 403(b) Retirement Plan (TIAA-CREF 1-800-842-2776 or Fidelity Investments 1-800-343-0860)
State (of Illinois) Employees Deferred Compensation Plan (T. Rowe Price 1-888-457-5770)
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