Court Allows Annuity Contracts Beneficiary Switch
January 29, 2010
(PLANSPONSOR.com)–A federal judge in Pennsylvania has ruled that a
participant in TIAA-CREF annuity contracts met the requirements to change his
beneficiary from his ex-wife to his long-time friend.
U.S. District
Judge Stewart Dalzell of the U.S. District
Court for the Eastern District of Pennsylvania found that participant John L. Turner
had “substantially” complied with
TIAA-CREF’s requirements for a beneficiary designation change from ex-wife
Pamela Turner to a friend, Thomas Bernardo. Turner, a physician and a professor
at several Philadelphia-area universities, lived with Bernardo for 27
years before Turner’s death, according to the court.
Dalzell ruled that Turner had
adequately communicated his wishes about his beneficiary to TIAA-CREF including
twice sending the investment company written notice of his intention to make
the change.
The court also ruled that Turner had substantially
complied with TIAA-CREF requirements under New York and Pennsylvania state law,
asserting that substantial compliance was the proper standard to determine the beneficiary
of a benefit plan under the Employee Retirement Income Security Act (ERISA).
TIAA-CREF asked the court to determine the proper
beneficiary of the five annuity contracts Turner owned when he died in 2008. Both Bernardo and Pamela Turner claimed they were the proper recipient.
The
case is Teachers Insurance and Annuity Association of America v. Bernardo, E.D.
Pa., No. 09-911, 1/26/10.
Fred Schneyer
editors@plansponsor.com