§ 213.45. Change in benefit payment plan.
(a) Notwithstanding the otherwise irrevocable nature of the election of a benefit payment plan, an annuitant may declare an intent to change the final terms of the benefit payment plan by filing a written intent with the System within 30 days of the annuitant’s receipt of the initial benefit letter sent to the annuitant by the System. The letter will be deemed to be received by the annuitant 3 business days after the date of mailing.
(b) Notwithstanding the otherwise irrevocable nature of the election of a benefit payment plan, an annuitant may declare an intent to change the final terms of the benefit payment plan by filing a written intent with the System within 30 days of the annuitant’s receipt of the statement provided for in section 8505(g) of the Retirement Code (relating to duties of board regarding applications and elections of members), which statement will be deemed to be received by the annuitant 3 business days after the date of mailing, if one of the following conditions are met:
(1) The annuitant’s retirement records contain an error regarding service credit, salary or accumulated deductions that was not corrected by the System until after the application for an annuity was filed, and either of the following exists:
(i) The difference between the monthly annuity as corrected and the monthly annuity calculated with the error is more than 5%.
(ii) The error results in the member losing eligibility for a benefit other than an annuity.
(2) The annuitant demonstrates that the annuitant, or the annuitant’s agent, made a written error on the application for an annuity. The System will not consider a change in the life circumstances of the annuitant, beneficiaries or survivor annuitants (for example, death, divorce, illness, accident) as evidence of a written error.
(c) The intended changes may include one or a combination of the following:
(1) A change in the amount of money withdrawn under Option 4.
(2) A change in the retirement annuity type, if the member is otherwise eligible for the annuity.
(3) A change in the retirement option, including a change in the survivor annuitant under the existing option selection.
(4) A voiding of the application for an annuity.
(5) A change in the effective date of retirement, if the date is not:
(i) Before the earliest date the annuitant was eligible to select on the date the original application for an annuity was filed.
(ii) Later than 90 days after the intent to change is filed.
(d) An annuitant who has declared an intent to change under subsection (a) or (b) will not be permitted to complete the change unless the annuitant receives counseling on the benefits available under the Retirement Code, or executes a written waiver of counseling on a form prescribed by the System. The counseling is subject to the following rules:
(1) The counseling is provided by an employee or authorized representative of the System.
(2) Counseling, or a written waiver, takes place within 30 days of the filing of the intent to change.
(3) The Secretary of the Board or a designee may extend the period for counseling upon written request filed within the 30-day period, but in no case will the period for counseling be greater than 90 days.
(4) If counseling takes place over several sessions, the sessions take place within the allowed time period.
(5) If the annuitant fails to receive counseling, or to file a written waiver of counseling within the allowed time period, the intent to change will be deemed withdrawn.
(6) Counseling may be conducted by telephone when approved, and under conditions specified by the Secretary.
(e) A formal request to void or change the application for an annuity shall be filed with the System within 30 days of the date of completion of counseling, or within 30 days of the filing of the written waiver of counseling. If the System does not receive the formal request to void or change the application for an annuity within the prescribed time period, the intent to change will be deemed withdrawn.
(f) The right to void or change a benefit payment plan is personal to the annuitant and may only be exercised by the annuitant or the annuitant’s attorney in fact. The estate, spouse, alternate payee, survivor annuitants or beneficiaries of an annuitant may neither file nor complete an intent to void or change the benefit payment plan. If an annuitant dies before filing or completing an intent to void or change the benefit payment plan, the intent will be deemed withdrawn.
(g) An annuitant may file an intent to change one time under subsection (a) and one time under subsection (b).
(h) Changes will be retroactive to the member’s original effective date of retirement unless the date is changed as part of the changed application for an annuity.
(1) For a changed application to become effective, the annuitant shall either return any excess monthly annuity payments or moneys withdrawn under Option 4 within 30 days after the date of certification of the amount due or elect an actuarial reduction to be applied to the annuitant’s account.
(2) For an annuity to be voided, the annuitant shall either return all moneys received in a lump sum within 30 days after the date of certification of the amount due or elect an actuarial reduction to be applied to the annuitant’s account.
(3) If the annuitant fails to return the required amounts or elect an actuarial reduction as set forth in paragraphs (1) and (2), as the case may be, within 30 days, an actuarial reduction shall be applied to the annuitant’s account.
(i) For purposes of this section, the System will consider a document as filed only upon actual receipt by the System. For a document properly sent by certified mail, return receipt requested, the System will deem the postmark date to be the date of filing. For a document sent by facsimile, the System will accept the date of the facsimile as the date of filing, if the original document is actually received within 10 days of the date of the facsimile.
(ii) Actuarial reduction.
(2) For an annuity to be voided, the annuitant shall either return all moneys received in a lump sum within 30 days after the date of certification of the amount due or elect a debt to be applied to the annuitant’s account.
(3) If the annuitant fails to return the required amounts or elect a debt as the case may be, the intent to change or void will be deemed withdrawn.
(i) For purposes of this section, the System will consider a document as filed only upon actual receipt by the System. For a document properly sent certified mail, return receipt requested, the System will deem the postmark date to be the date of filing. For a document sent by facsimile, the System will accept the date of the facsimile as the date of filing, if the original document is actually received within 10 days of the date of the facsimile.
(j) This section shall be effective June 13, 1998. This section also applies to annuitants who, prior to June 13, 1998:
(1) Requested a change in their benefit payment plan.
(2) Appealed the System’s denial.
(3) Otherwise qualify under this section.
(k) This section does not allow the annuitant to change a benefit payment plan in a manner inconsistent with the terms of an approved domestic relations order under sections 8533.1—8533.4 of the Retirement Code.
(l) Retirement Code reference: Section 8345 of the Retirement Code (relating to member’s options).
Source The provisions of this § 213.45 amended June 12, 1998, effective June 13, 1998, 28 Pa.B. 2688; amended October 16, 1998, effective October 17, 1998, 28 Pa.B. 5226; amended August 1, 2008, effective August 2, 2008, 38 Pa.B. 4083. Immediately preceding text appears at serial pages (328584) and (249417) to (249418).
Notes of Decisions Application
The death benefits payable to a decedent’s beneficiary is governed by the retirement benefits option elected by the decedent in her retirement application, and that application may not be changed after her death to increase the death benefits of her beneficiary, where the Retirement System and the decedent entered into a binding retirement benefits contract when she filed the properly completed application before the effective date of her retirement. Krill v. Public School Employees’ Retirement Board, 713 A.2d 132 (Pa. Cmwlth. 1998).
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