Employment, Labor & Benefits Update - December 2017

Open Enrollment: Do Not Forget to Update Beneficiary Designations

By Frank Del Barto

While reviewing and electing your group medical and dental plan options for next year, please be sure to review and update (if needed) your group life insurance and 401(k) plan beneficiary designations. This is particularly important to do after experiencing a major life event such as a marriage, divorce, or other significant family change. Over the last year, more than one current spouse and/or child(ren) has been surprised to learn that their deceased loved one never updated his or her beneficiary designation(s). As a result, a former spouse or some other individual remained the actual named beneficiary. After being informed of the named beneficiary, the person who expected to be the beneficiary often argues that his or her loved one "would have wanted" or "intended" for him or her to receive the plan proceeds. However, because the plan sponsor must follow the last beneficiary