Designate Bene Form

MFS Defined Contribution Plan
Designation of Beneficiary
All participants in the MFS Defined Contribution Plan should complete a Designation of Beneficiary form. If you do not complete a
Designation of Beneficiary form, your spouse will automatically be your beneficiary upon your death if you are married and if you are
not married, your estate would automatically become your beneficiary upon your death.
Upon receipt of a completed Designation of Beneficiary form, any previous form(s) on record will become void.
Completed forms should be returned to:
Retirement Plans Administration
MFS Investment Management
111 Huntington Avenue
Boston, MA 02199-7618
If You Are
Single
Married
Married
Section 1
Beneficiary Choice
You wish to name anyone to be your Primary and Contingent
Beneficiary.
You wish to name your spouse as your Primary Beneficiary.
You may name anyone as your Contingent Beneficiary.
You wish to name anyone other than your spouse (including a
trust, children, etc.) as a Primary Beneficiary-You may name
anyone as your Contingent Beneficiary.
Participant Information
Name _________________________________________
(Last)
Address
You must complete Sections
Section 1 Participant Information
Section 2 Beneficiary Information
Section 1 Participant Information
Section 2 Beneficiary Information
Section 1 Participant Information
Section 2 Beneficiary Information
Read Section 3 Important Notice and
QPSA Explanation
Section 4 Participant Waiver
Section 5 Spousal Consent (spouse's
signature must be notarized)
___________________________
(No. & Street)
Social Security Number _____/____/_____
____________________________
(First)
________________________
(City)
____________
(State)
____
(MI)
___________
(Zip Code)
Birth Date ____/____/____
I certify that I am:
Not married.
Married. My spouse's name is_________________________________________
Under federal law, the sole Primary Beneficiary of a married participant is his or her spouse, unless the spouse consents in
writing to another designation or additional beneficiaries, and this consent is witnessed by a notary public or Plan
representative. If you are (or become) married, your spouse will automatically be your Primary Beneficiary. You may not
designate a Primary Beneficiary who is not your spouse unless:
„
You are (or reach during this calendar year) age 35 or older;
„
You sign and return the Qualified Preretirement Survivor Annuity (QPSA) Waiver (Section 4); and
„
Your spouse completes the Spousal Consent section beneath the QPSA Waiver (Section 5) in the presence of a notary public
or Plan representative.
MFS Defined Contribution Plan
Designation of Beneficiary
Section 2
Designation of Beneficiary
I hereby designate the following person(s) as my beneficiary(ies) under the Plan, to receive my account balance which becomes
payable due to my death. If I name more than one Primary Beneficiary and one or more of such primary beneficiaries should die
before me, the deceased Primary Beneficiary's interest shall be apportioned among any surviving primary beneficiaries before any
Contingent Beneficiary receives any amount, unless I have stipulated a per stirpes designation within my Primary Beneficiary
designation. The same rule shall apply within the category of contingent beneficiaries. Unless specified otherwise, I understand that
my account balance will be divided equally among my primary beneficiaries or contingent beneficiaries, as the case may be.
Primary Beneficiary(ies) (if additional beneficiaries are named on a separate sheet, please check this box )
Name
Relationship
Address
Date of
Birth
Percentage
1
2
3
4
You may wish to consult with an estate planning attorney before using per stirpes.
I elect to add a per stirpes stipulation to all named individuals in my Primary Beneficiary Designation. If this box is checked and
any Primary Beneficiary does not survive me, but leaves descendants surviving me, then any share otherwise payable to such
beneficiary shall instead be paid to such beneficiary’s descendants surviving me, by right of representation.
Contingent Beneficiary(ies) (if additional beneficiaries are named on a separate sheet, please check this box )
Name
Relationship
Address
Date of
Birth
Percentage
1
2
3
4
You may wish to consult with an estate planning attorney before using per stirpes.
I elect to add a per stirpes stipulation to all named individuals in my Contingent Beneficiary Designation. If this box is checked
and any Contingent Beneficiary does not survive me, but leaves descendants surviving me, then any share otherwise payable to such
beneficiary shall instead be paid to such beneficiary’s descendants surviving me, by right of representation.
I understand that I may revoke this designation at any time prior to the date that payment of my account balance commences
by completing this form again or otherwise giving a written revocation notice to MFS Retirement Plans Administration. By
properly completing this form and returning it to MFS Retirement Plans Administration, I hereby rescind any prior election I
may have made to the contrary. I understand that if I am married and I am designating a Primary Beneficiary other than my
spouse, I must obtain my spouse's consent (as described in Section 1 above) to this designation unless my spouse has
previously given a general consent to all my future changes in beneficiary.
___________________________________________________________________________________
Signature of Participant
2
________________
Date
MFS Defined Contribution Plan
Designation of Beneficiary
Section 3
Important Notice/Qualified Preretirement Survivor Annuity (QPSA) Explanation
This notice applies to married Plan participants
This form explains the Qualified Preretirement Survivor Annuity (QPSA) benefit under the Plan. The QPSA provides a death benefit
for the surviving spouse if a Plan participant dies prior to commencing benefit distributions from the Plan. The QPSA is described
below. However, your spouse may elect to receive benefits in another form permitted under the Plan if you die prior to
commencement of benefits. You may designate a beneficiary other than or in addition to your spouse if you complete Section 2Designation of Beneficiary and Section 4-Participant Waiver and your spouse voluntarily completes Section 5-Spousal Consent.
Qualified Preretirement Survivor Annuity. If you die before you begin to receive benefits, and you are married, the Plan must
automatically pay a spouse's death benefit consisting of your entire account balance to your surviving spouse as beneficiary. Unless
your spouse elects a different form of benefit after your death, the plan must pay that death benefit in the form of a straight life
annuity called a preretirement survivor annuity. (See additional information below). Once you begin receiving benefits from the
plan, the method of distribution in effect on the date of your death will dictate the manner in which the Plan will distribute your
remaining vested account balance, if any.
Under the QPSA, your spouse will receive a lifetime level monthly payment. The Plan will distribute a QPSA contract purchased
from an insurance company using your vested account balance. Generally, the QPSA payments would not begin prior to the date a
participant would have attained normal retirement age under the Plan. However, the surviving spouse may elect an earlier benefit
distribution date. If, at the time of your death, your non-forfeitable account balance is not greater than $1000, your surviving spouse
would be paid a lump sum distribution in lieu of providing the QPSA.
The actual level monthly payments made under the QPSA will depend on the annuity purchase rate used by the insurance company,
your surviving spouse's age at the time distribution begins, and the amount of your vested account balance at the time the Plan
purchases the annuity contract, as well as any commissions or other charges incurred from the insurance company. The following
table provides the approximate monthly annuity payments under an immediate annuity purchase per $1000 of vested account balance
for a surviving spouse ranging from age 50 to age 80. The table assumes an annuity factor based on the UP-1984 mortality tables and
a 6% interest rate. The insurance company from which the Plan purchases the annuity may use different factors. Different
factors will produce a different monthly payment. The Plan administrator, upon request, will provide a more precise calculation.
Surviving Spouse's Age
50
52
54
56
58
60
62
64
Monthly Payment
$6.63
$6.74
$6.97
$7.23
$7.53
$7.86
$8.25
$8.68
Surviving Spouse's Age
66
68
70
72
74
76
78
80
Monthly Payment
$9.17
$9.72
$10.34
$11.06
$11.90
$12.86
$13.97
$15.24
For example, if a participant's vested account balance at death is $10,000, a surviving spouse who is age 60 will receive a monthly
annuity payment approximately equal to $78.60 ($7.86 x 10). These approximate monthly payments are only estimates.
Waiver election. The Plan requires payment of your entire vested account balance to your spouse unless you have a valid waiver
election in effect on the date of your death. To have a valid waiver you must complete the waiver in Section 4. Please note, your
spouse must consent to the waiver by signing the form in Section 5 and a notary public or a Plan representative must witness your
spouse's signature for your waiver election to be valid. The waiver and consent must be completed within the election period which
begins on the first day of the calendar year during which you attain age 35 or, if later, the date you receive this notice. The election
period ends on the date of your death or when you begin receiving payments, whichever comes first. You may revoke a waiver
election, or make a new waiver election following a revocation. You may revoke a waiver election without your spouse's consent, but
your spouse would have to consent to a new waiver. A waiver election is valid only for the spouse consenting to the waiver.
Therefore, you should inform the Plan administrator of any change in your marital status.
3
MFS Defined Contribution Plan
Designation of Beneficiary
Financial Effect of your Election. If you and your spouse do not waive the QPSA and you die prior to commencement of benefits,
the Plan permits your surviving spouse to elect to receive your vested account balance in a lump sum or in installment payments in
lieu of the QPSA. Under the QPSA, your surviving spouse will receive lifetime income. The QPSA will not pay any benefits to other
beneficiaries after your spouse's death.
If you and your spouse waive the QPSA, and designate a Primary Beneficiary other than or in addition to your spouse, the Plan will
pay your entire vested balance to your designated beneficiary(ies). The election will reduce or eliminate the amount of death benefit
paid to your spouse. The Plan administrator will provide the beneficiary a notice of the special tax benefits, if any, available for the
distribution. If your vested account balance at the time of your death exceeds $1,000, the Plan permits your non-spouse designated
beneficiary to elect a lump sum or an installment distribution. Under an installment distribution the Plan will continue payments from
your account until your full interest in the Plan has been paid out. Furthermore, the portion of your vested account balance that
remains in the Plan will continue to be subject to investment gains and losses.
Procedure. If you wish to have your entire vested account balance paid to your spouse, you do not need to make any election. To
designate a Primary Beneficiary other than or in addition to your spouse, you must complete the Participant Waiver (Section 4) and
have your spouse complete the Spousal Consent (Section 5).
4
MFS Defined Contribution Plan
Designation of Beneficiary
QUALIFIED PRERETIREMENT SURVIVOR ANNUITY (QPSA) WAIVER
Section 4
Participant Waiver
Having read and understood the information concerning death benefits under the Plan above, I hereby elect to waive the Qualified
Preretirement Survivor Annuity to which my spouse is entitled under the Plan. I understand that this waiver will not be effective
unless my spouse completes and signs the Spousal Consent in the presence of a notary public or a Plan representative.
____________________________________________________________________________________
Signature of Participant
Date
____________________________________________________________________________________
Name of Participant
Date of Birth
Section 5
Spousal Consent
I, the spouse of _________________________________, a participant in the Massachusetts Financial Services Company Defined
Contribution Plan (the "Plan"), have read the notice entitled "Qualified Preretirement Survivor Annuity (QPSA) Explanation" and
understand my rights concerning the QPSA. I acknowledge that my spouse has waived the QPSA, which would provide me with
benefits upon the death of my spouse prior to the commencement of his or her retirement benefits.
By signing this Spousal Consent I hereby consent to: (1) my spouse's waiver of the QPSA, and (2) the beneficiary (or beneficiaries)
designated by my spouse. I acknowledge that I am foregoing any rights I would otherwise have to a QPSA under the Plan except to
the extent that I am designated as a beneficiary by my spouse. I understand that I cannot revoke this consent.
My consent is specific to the method of distribution and beneficiary(ies) my spouse has designated on this form. If my spouse
should make any future changes in beneficiary, such changes will not be valid unless I give a subsequent consent. If no box is
checked, this is the default option.
My consent is a general waiver of the Qualified Preretirement Survivor Annuity and a general consent to my spouse's designation
of beneficiary(s) other than me. If my spouse should make any future changes in beneficiary, such changes will not require my
consent.
By signing below, I hereby certify that as of the date indicated below, I am legally married to the participant whose name appears
above. I further understand that I do not have to consent to my spouse’s waiver of the QPSA. I am doing so voluntarily.
_______________________________________________________________________________________________
Signature of Participant's Spouse
Date
Witnessed by:
_______________________________________________________________________________________________
Signature of Plan Representative
Date
OR,
____________________________________________________________
Notary Public
___________________________________
Date
THIS SPOUSAL CONSENT MUST BE WITNESSED BY A PLAN REPRESENTATIVE OR NOTARY PUBLIC.
5
MFS Defined Contribution Plan
Designation of Beneficiary
Frequently Asked Questions
1. What is a Qualified Preretirement Survivor Annuity (QPSA)?
Federal law states that the spouse of the participant in the Plan will receive a special death benefit paid from the vested
account balance if the participant dies before he or she begins receiving retirement benefits. The participant's spouse has the
right to receive this monthly payment or elect an alternative form of benefit. The special death benefit is called a "Qualified
Preretirement Survivor Annuity" or QPSA benefit. The participant's spouse's right to this QPSA benefit may not be taken
away without their consent. So, if a married participant wishes to name anyone other than their spouse as a Primary
Beneficiary (trust, children), federal law requires that the spouse consents to the election. The consent must be witnessed by
a Notary Public or Plan representative.
2. How do I name my spouse as my Primary Beneficiary?
Your spouse is automatically your Primary Beneficiary. You should complete the Designation of Beneficiary section of this
form with your spouse's name and complete your Contingent Beneficiary designation.
3. Is a same-gender spouse automatically the Primary Beneficiary?
7Ke federal laws that apply to qualified retirement plans recognize same-gender marriage.
4. I am going through a divorce and no longer want my spouse named as my Primary Beneficiary. What do I need to
do?
While you are legally married, your spouse is automatically your beneficiary. If you are over the age of 35, you may change
this designation with your spouse's consent. Once your divorce is final, you are considered single and may change your
beneficiary election at will unless or until you remarry. You may be asked for documentation supporting your marital status.
5. How can I name my children as my primary beneficiaries if I am married?
If you are over the age of 35, you may name your children (or other person(s)) as your primary beneficiary(ies). However,
such a designation would be a waiver of the QPSA so your spouse would have to consent to it.
6. I just got married. Am I required to complete a new beneficiary form?
Since you are married, your spouse is automatically your beneficiary. However, it is recommended that you complete the
designation form listing your spouse as your Primary Beneficiary and complete your Contingent Beneficiary designation.
6
MFS Defined Contribution Plan
Designation of Beneficiary
7. If I do not complete the QPSA waiver will my spouse be required to receive a death benefit in the form of an
annuity?
If you die prior to receiving benefits from the Plan, the Plan permits your spouse to elect an alternate form of payment
available under the Plan upon your death even if you have not waived the QPSA. If you die after commencement of benefit
distributions, the form of payment after your death will be depend on the payment method in effect at the time of your death.
8. I am single. Who can I name as my beneficiary?
You may name anyone you wish as your primary and contingent beneficiary(ies). If you do not complete a beneficiary
designation and you die while you have a benefit in the Plan, your account balance will be distributed to your estate.
9. I am married. What if I do not complete a beneficiary designation and die while I am a plan participant?
Since your spouse is automatically your sole Primary Beneficiary, your spouse must elect a distribution option available
under the Plan to be paid immediately or at any time prior to the date on which you would have turned age 65. If your
spouse dies before or at the same time as you, your Plan benefit will become payable to your estate because you have not
designated any other contingent beneficiaries.
10. How often can I change my beneficiary designation?
As often as you wish, provided you obtain the proper spousal consent if required.
11. What if my Primary Beneficiary dies before I do?
If any primary or contingent beneficiary dies, you should update your beneficiary designation so that you can be sure that the
deceased beneficiary's share of benefits will pass according to your wishes. If you do not update your beneficiary
designation upon the death of a beneficiary, what will happen will depend on how you completed your beneficiary
designation. If you designate more than one primary beneficiary, the deceased primary beneficiary's share of the benefits
will be divided by your remaining primary beneficiaries, unless you elect the "per stirpes" option. Per stirpes provides that
the descendents of the deceased beneficiary (children, grandchildren) will receive his or her share. If all your primary
beneficiaries predecease you and you have not elected the per stirpes option or you elected per stirpes and there are no
descendents, the surviving contingent beneficiaries you have named will divide the death benefits.
Remember, even if you elect per stirpes and/or contingent beneficiaries, , it is always wise to appropriately update your
designation when events such as births, deaths, adoptions, marriages and divorces occur to make sure your beneficiary
designation is in step with your overall estate plan.
12. Why is it important to make a beneficiary designation?
The most obvious reason is so that that any benefits that become payable in the event of your death go to the beneficiaries of
your choosing. As stated previously, if you are married, your spouse will automatically be your sole Primary Beneficiary,
but in the event that your spouse predeceases you or you and your spouse die simultaneously, if you have not made a
Contingent Beneficiary designation, the account will be payable to your estate. Likewise, if you are not married and do not
make a beneficiary designation, your benefits will be paid to your estate. Naming a beneficiary would enable your benefits
to be paid directly to your beneficiaries without going through probate, which could spare your survivors undue effort and
expense. In addition, a designated beneficiary generally has more options regarding the manner and timing of benefit
distributions than an estate does. This means that your designated beneficiaries may be able to receive the benefits in a more
tax-efficient way than they could if they received them through your estate.
7