SEC. 16.79. BENEFICIARIES.

(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 State [1 ] 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

1. So in Ord. 259-22.

(a) The member shall certify that the Special Needs Trust complies with all requirements in clause A-6 of Section 1.401(a)(9)-4 of Title 26 of the Code of Federal Regulations, as amended from time to time, and requirements and conditions in this subsection (a) and Section 16.79(b). The certification shall be submitted to the retirement system at the time a member elects a beneficiary, and is required for the election to be valid. The certification shall be in the form of a declaration signed under penalty of perjury by the member and by all then-acting trustees of the Special Needs Trust.

(b) For the purpose of determining eligibility for, and the amount and duration of, benefits under the plan, the beneficiary of the Special Needs Trust, who is the beneficiary with respect to the Special Needs Trust’s interest in the member’s benefit, shall be considered the designated option beneficiary.

(c) The member or trustee of the Special Needs Trust shall provide to the retirement system a copy of the trust instrument at the time of the beneficiary designation. Failure to do so shall render the designation invalid.

(d) After the member’s death, the then-acting trustee or trustees of the Special Needs Trust shall provide a certification that includes each of the declarations prescribed by clause A-6 of Section 1.401(a)(9)-4 of Title 26 of the Code of Federal Regulations, as amended from time to time, and a declaration that the Special Needs Trust meets the requirements and conditions provided in this subsection (d). The certification by the trustee or trustees of the Special Needs Trust shall be submitted to the Retirement System upon the member’s death and shall additionally certify that the Special Needs Trust has not been revoked, modified, or amended in any manner which would cause the representations contained in the certification to be incorrect. The certification shall contain a statement that it is being signed by all of the then-acting trustees of the Special Needs Trust and shall be in the form of a declaration signed by all the then-acting trustees.

(e) The Retirement Board shall not be required to determine the powers of a trustee or the validity of a Special Needs Trust or of any of the terms of a Special Needs Trust that is elected as a beneficiary or option beneficiary. Such a determination by the Retirement Board shall not be inferred from the fact that a member or trustee has provided a copy of all or part of the trust instrument to the retirement system. The certification under subsection (a) by the member or trustee must state that the trustee has the powers declared therein and that the Special Needs Trust meets the enumerated

requirements in Section 16.79(b). Payment of benefits to a Special Needs Trust pursuant to the Retirement Board’s determination of the existence, identity, or other facts relating to entitlement of the Special Needs Trust to receive a benefit under this Chapter 16 constitutes a complete discharge and release of the Retirement Board, retirement system, and Retirement Plan from liability for the benefit.

rements in Section 16.79(b). Payment of benefits to a Special Needs Trust pursuant to the Retirement Board’s determination of the existence, identity, or other facts relating to entitlement of the Special Needs Trust to receive a benefit under this Chapter 16 constitutes a complete discharge and release of the Retirement Board, retirement system, and Retirement Plan from liability for the benefit.

(Added by Ord. 259-22, File No. 221024, App. 12/22/2022, Eff. 1/22/2023)