SECTION 76.11. Return of Excess Contributions

(a) Except as provided by subsection (c) of this section, when a person who receives a cash balance or disability retirement annuity dies, a lump-sum death benefit is payable from the retirement annuity reserve account in the amount, if any, by which the balance in the retiree's individual account in the employees saving account at the time of service retirement exceeds the total of annuity payments payable before the retiree's death.

(b) The benefit provided by subsection (a) of this section is payable to a person designated by the retiree at the time of retirement in a signed and witnessed document filed with the system. If a retiree does not designate a beneficiary or if the beneficiary does not survive the retiree, the benefit is payable to the retiree's estate.

(c) A death benefit may not be paid under subsections (a) and (b) of this section if the retiree selected an optional cash balance annuity under §76.6 of this chapter.

(d) If the person designated as the beneficiary of an optional cash balance annuity, other than one selected under §76.6(c)(3) or §76.6(c)(4) of this chapter, predeceases the retiree, a lump-sum death benefit is payable from the retirement annuity reserve account in the amount, if any, by which the balance in the retiree's individual account in the employees saving account at the time of service retirement exceeds the sum of annuity payments payable to the retiree before death.

(e) The benefit provided by subsection (d) of this section is payable to the deceased retiree's estate.

(f) If a beneficiary dies while receiving an optional cash balance annuity, other than one selected under §76.6(c)(3) or §76.6(c)(4) of this chapter, a lump-sum death benefit is payable from the retirement annuity reserve account in the amount, if any, by which the balance in the retiree's individual account in the employees saving account at the time of service retirement exceeds the sum of annuity payments payable to the retiree and the beneficiary before the beneficiary's death.

(g) If a beneficiary dies while receiving a cash balance annuity selected under Tex. Gov't Code §814.302 as described in §76.6(c)(1) of this chapter, or Tex. Gov't Code §814.304(a), a lump-sum death benefit is payable from the retirement annuity reserve account in the amount, if any, by which the balance in the member's individual account in the employees saving account at the time of death exceeds the sum of annuity payments payable to the beneficiary before the beneficiary's death.

(h) The benefits provided by subsections (f) and (g) of this section are payable to the deceased beneficiary's estate.

(i) A beneficiary designation that names a former spouse as beneficiary is invalid unless the designation is made after the date of the divorce.

Source Note: The provisions of this §76.11 adopted to be effective September 14, 2022, 47 TexReg 5498