(a)

1. (1) A member may designate one (1) or more natural persons or a duly formed legal entity, including a corporation, trust, partnership, or other legal entity, as his or her lump-sum death benefit beneficiary.

2. (2) If a member designates a funeral home as his or her lump-sum death benefit beneficiary and the member is a qualifying member who may receive a lump-sum death benefit at the time of his or her death, the Arkansas Teacher Retirement System shall not be obligated to do any of the following:

   1. (A) Issue payment to the funeral home in an amount that exceeds the:

(i) Lump-sum death benefit amount that the member qualifies to receive in accordance with the laws, rules, and resolutions of the Board of Trustees of the Arkansas Teacher Retirement System; or

1. (ii) Share of the lump-sum death benefit amount that the funeral home would be entitled to receive if the member designates more than one (1) lump-sum death benefit beneficiary;

   1. (B) Reimburse any person or entity for any amount received by the funeral home that exceeds the cost of the member’s funeral service; or
   2. (C) Recoup or assist any person or entity in recouping any amount received by the funeral home that exceeds the cost of the member’s funeral service.

2. (3)

   1. (A) A member’s designation of his or her former spouse as the member’s lump-sum death benefit beneficiary shall not be honored by the system with regard to the former spouse if the:

      1. (i) Member remarries; and
      2. (ii) System receives proof of the member’s remarriage in the manner required by the system before payment of the lump-sum death benefit is issued to the former spouse.

   2. (B) A member who remarries and desires to maintain his or her former spouse’s designation as the member’s lump-sum death benefit beneficiary shall file with the system a lump-sum death benefit beneficiary designation form that:

      1. (i) Designates his or her former spouse as the member’s lump-sum death benefit beneficiary; and
      2. (ii) Has a signature date of the member that is on or after the date of the member’s remarriage.
   3. (C) The system shall not be obligated to recoup or reimburse a member’s current spouse for any lump-sum death benefit amount paid to the member’s former spouse in accordance with this subpart.

(b)

1. (1) A completed lump-sum death benefit beneficiary form shall not be considered effective if the form is received by the system after the member’s death.

2. (2) A member’s most recently completed, executed, and filed lump-sum death benefit beneficiary form shall supersede all previous lump-sum death benefit beneficiary forms completed, executed, and filed by the member.

   1. (c)
3. (1) A lump-sum death benefit beneficiary form that is signed by a member’s authorized agent, including an attorney-in-fact, agent under a power of attorney, or any other legally recognized agent, shall not be processed until the document appointing the member’s authorized agent is filed with and accepted by the system.
4. (2) Only a document that appoints and authorizes the member’s authorized agent to transact retirement plan business on behalf of the member shall be effective for the system’s purposes.

5. (3) Only a document that specifically authorizes a member’s authorized agent to change the member’s beneficiary designations shall be effective to allow the authorized agent to change a beneficiary designation on the member’s behalf with the system.

   1. (d) A lump-sum death benefit beneficiary form signed by a guardian of the member’s estate or another court-appointed conservator shall not be effective to allow the guardian or court-appointed conservator to change a beneficiary designation on the member’s behalf with the system unless there is an accompanying court order specifically authorizing the guardian or court-appointed conservator to change a beneficiary designation on the member’s behalf.