What Are My Beneficiary Designation, Death Benefit, and Spousal Options?

It is important that you name beneficiaries for all of your Boeing retirement accounts. 

Additionally, you should review those beneficiaries at least annually, and after a major life event, such as getting married, having a child, divorce, the death of a spouse, or a career change. 

Making sure that your loved ones are cared for according to your wishes is an important step towards using your Real Wealth to secure a lasting legacy. 

Boeing 401(k) Retirement Plan (VIP)

Beneficiary Designation

• Designate a beneficiary to receive your account balance if you die before it's fully paid out. Your spouse is the default sole primary beneficiary. 
• You can designate anyone as your beneficiary, including a trust or charitable organization (if permitted by the Plan Administrator), and can change it at any time.
• Spousal Consent for Beneficiary Designation: If you are married and wish to designate someone other than, or in addition to, your spouse as your primary beneficiary, you must obtain your spouse’s written, notarized consent on the Beneficiary Designation Authorization form. This is a federal law requirement.
• Regularly review your beneficiary designation to ensure it reflects your current wishes.

Beneficiary Options and Death Benefits

• Payment to Beneficiaries upon Death: In the event of your death, your valid beneficiary or beneficiaries are entitled to the full value of your entire 401(k) account.
• Deferral of Receipt: If your beneficiary is a sole individual (e.g., your spouse, domestic partner, or child), or an estate or trust, and the account balance exceeds $1,000, they may be eligible to defer receipt of the account. After the account is established in their name, they can direct the investment of the account and may name a subsequent beneficiary if they defer receipt.
• Automatic Payout for Small Balances: If the account balance is $1,000 or less, the account will be automatically paid out as a lump sum approximately 90 days after notification, unless the beneficiary elects a distribution or rollover beforehand.
• Multiple Beneficiaries: Multiple beneficiaries are generally not eligible to defer receipt. The account will be divided and paid to each in a lump sum.

Rollover Options: 

• A surviving spouse may roll over a distribution to an IRA or an eligible retirement plan if it's an eligible rollover distribution.

• Any non-spouse beneficiary may roll over a distribution directly to an IRA if it is an eligible rollover distribution.

Supplemental Savings Plan (SSP)

Beneficiary Designation

• Your SSP beneficiary can be different from your Boeing 401(k) beneficiary.
• If you do not designate a beneficiary, of if the designated beneficiary predeceases you, your SSP benefit will be paid in the following order of priority: 
  • The designated Boeing 401(k) beneficiary 
  • Your surviving spouse, if none then 
  • Your estate

Beneficiary Options and Death Benefits

• Payment to Beneficiaries upon Death: If you die before your SSP benefits have been paid, any remaining vested benefits will be paid to your beneficiary.
• Default Payment: If no elections have been made, your benefits will be paid to your beneficiary in a single sum in January of the year following your death.
• Death of Beneficiary: If your beneficiary dies while receiving SSP benefits in installments, the remaining installments will be paid to your beneficiary’s designated beneficiary, or if none, to your beneficiary’s estate in a single lump sum.

Boeing BCERP and PVP

Beneficiary Designation

• You can designate a person or persons to receive your benefit under any benefit payment option.
• Corporations, partnerships, trusts, estates, or any other entities cannot be designated as beneficiaries for pension plans.
• If you are not married and have not properly designated a domestic partner at the time of your death, no benefits will be paid from the pension plan.

Spousal Consent for Payment Options

• Federal law requires that your spouse receive at least a 50% Joint and Survivor Annuity if you die after your Benefit Commencement Date, unless your spouse consents to a different form of payment.
• If you are married and choose to elect any payment option other than the 50% Joint and Survivor Annuity (with your spouse as the designated beneficiary), you must have your spouse’s written, notarized consent on the Election Authorization Statement.
• If you complete your Election Authorization Statement on or after October 1, 2023 and are married, you may elect any Joint and Survivor Annuity Option that provides your spouse with a survivor benefit of 50% or greater without obtaining your spouse’s consent.

Beneficiary Options and Death Benefits

If you die after your Benefit Commencement Date, benefits payable to your beneficiaries depend on the payment option you chose:

• Single Life Annuity: Benefits stop upon your death.

• Joint and Survivor Annuity Options: These options are available if you are lawfully married or have a valid Designated Domestic Partner. You receive a monthly benefit for life, and if you die before your spouse or Designated Domestic Partner, they will receive a specified percentage (50%, 75%, or 100%) of your monthly benefit for their life. The 100% option for PVP is not available if commencing benefits before age 55 and not otherwise eligible for Early Retirement. If your spouse or Designated Domestic Partner dies before you, your monthly benefit will revert to a Single Life Annuity payment.

• Life Annuity with 10 Years Guaranteed: If you die within 10 years after payments begin, your designated beneficiary will continue to receive the same monthly benefit for the remainder of the 10-year period. If you live longer than 10 years, no further benefits are payable after your death.

• Accelerated Income Option: If you die before age 62 and 2 months, your beneficiary will continue to receive the accelerated income until the earlier of:
  
  • When you would have turned age 62 and 2 months or
  • The end of the 10-year Accelerated Income period. 

If the 10-year period extends past the date when you would have turned 62 and 2 months, your beneficiary will receive the reduced amount for the balance of the 10 years.

• Lump Sum: If you received your pension as a lump sum, no additional benefits will be paid. 
  • If the total present value of a death benefit is $5,000 or less, it will be paid immediately as a lump sum to your surviving spouse or Designated Domestic Partner.

• Rollover Options for Beneficiaries
  • Surviving spouses, former spouses (with a Qualified Domestic Relations Order), and Designated Domestic Partners may roll over eligible lump-sum distributions from the pension plan to another qualified plan (including the Boeing 401(k) if they maintain an account) or an IRA, including a Roth IRA.
  • Designated Domestic Partners and non-spouse beneficiaries may only elect a direct rollover to an IRA.
  • If you are vested and die before your Benefit Commencement Date, your surviving spouse or Designated Domestic Partner may be eligible for a preretirement survivor benefit.

Changing Your Beneficiary Designations

• The Boeing Financial Benefits Service Center: 866-422-3539
• NetBenefits.com

Real Wealth Questions

• • Last Will and Testament
  • Power of Attorney
  • Healthcare Directive
  • Living Will

Are your current beneficiaries on file with Boeing up to date? Are they the same as beneficiaries in your other accounts? If not, why?

Have you talked to your spouse or designated beneficiary about the benefit options available to them and how they work?

Would naming a trust or contingent beneficiary create complications for your estate or opportunities to secure and grow your Real Wealth for future generations?

How do your survivor’s benefits complement the rest of your legacy plan?

What survivor options should you elect for your pension to balance lifetime income and spouse protection?

Should you consider life insurance to complement your survivor benefits?

Questions? Visit the Boeing Benefits Glossary.