Inheritance Dilemma: Can CalPERS Pension Be Passed Down to Siblings?

How to Transfer Your CalPERS Pension to Your Siblings After You Die 

If you are a member of the California Public Employees’ Retirement System (CalPERS), you may be wondering what will happen to your pension benefits when you pass away.

Can you leave them to your siblings, or are they only for your spouse and children?

In this blog post, we will answer this question and explain the steps you need to take to ensure that your pension is inherited by your chosen beneficiaries.

CalPERS Pension Inheritance to Siblings

 

What You Need to Know about Monthly Allowance Option

The monthly allowance option is only available if you choose the Option 2 or Option 3 retirement plan when you retire.

These plans allow you to provide a lifetime benefit to one beneficiary, in exchange for a reduced pension for yourself. The amount of the reduction depends on the age difference between you and your beneficiary, and the option you choose.

Option 2 provides the same amount of benefit to your beneficiary as to yourself, while Option 3 provides a lesser amount of benefit to your beneficiary.

The monthly allowance option is also subject to certain eligibility criteria. Your sibling must be at least 18 years old, and must not be married or registered as a domestic partner.

Your sibling must also be financially dependent on you, meaning that they receive at least 50% of their support from you. You need to provide proof of your sibling’s age, marital status, and dependency when you name them as your beneficiary.

The monthly allowance option is also limited by the duration of the payment. Your sibling will receive the monthly payment for as long as they live, or until they marry or register as a domestic partner.

If your sibling dies before you, the payment will stop, and you will not be able to name another beneficiary. If your sibling dies after you, the payment will stop, and there will be no residual benefit for their heirs.

Conclusion

In conclusion, if you are a CalPERS member and you want to leave your pension benefits to your siblings, you need to plan ahead and name them as your beneficiaries.

You also need to choose the option that best suits your and your siblings’ needs and preferences, whether it is a lump sum payment or a monthly allowance.

By doing so, you can ensure that your pension benefits are inherited by your siblings, and that they are well taken care of after you die.

 

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