Board Resolution 2019-08-10(c)

Meeting room

Topic: Plan Administration
Subtopic: Individual Representatives
Date: 8/23/2019
Status: Active

WHEREAS, death benefits payable by the Fund are often made payable to minors as designated beneficiaries, and

WHEREAS, child annuities payable by the Fund are payable to minors, and

WHEREAS, other benefits such as reversionary and beneficiary annuities may in some instances be payable to minors, and

WHEREAS, it is desirable to establish a policy for the direction of the staff in processing such payments;

RESOLVED, that the following procedures shall be used in regard to benefits and annuities payable to persons under the age of 18:

1. Death benefits may be paid on behalf of minors without formal guardianship if the representative payee for the minor is the natural or adoptive parent.

2. Death benefits may be paid on behalf of minors without formal guardianship if the amount payable is $25,000 or less and the representative payee for the minor is not the natural or adoptive parent.

3. Death benefits in excess of $50,000 payable to minors shall be made only to legal guardians of the estate of the minor. Death benefits payable to minors in excess of $25,000 but not more than $50,000 shall be made only to court appointed guardians of the minor unless the representative payee is the natural or adoptive parent.

4. Payments of child annuities shall not be made except to guardians of the estate of the orphan appointed by a court, unless the representative payee is the natural or adoptive parent of the minor.

5. Payments of any other annuities payable to minors shall be made only to a guardian of the estate of the minor appointed by a court, unless the representative payee is the natural or adoptive parent of the minor.

6. Any election by a minor necessary under Article 7 of the Illinois Pension Code, such as the election to receive a beneficiary annuity in lieu of a death benefit or a lump sum survivor’s benefit, may be made only by a court appointed guardian of the estate of the minor, unless the representative payee for the minor is the natural or adoptive parent.