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Note: The examples and case studies in this article are fictional but represent real situations I have encountered in my practice working with Washington State public employees. I opened an email recently that stopped me mid-sip of coffee. A client had just finished updating her will after her remarriage. Everything carefully reorganized, her new husband properly included, estate attorney fees paid. She felt relieved. Done. Then she logged into her DRS account and saw it. Her ex-husband's name. Still listed as the beneficiary on her PERS pension. From a form she'd filled out fifteen years ago when she first started with the state. The will she'd just spent money updating? Wouldn't cover this. What most people misunderstand about beneficiary forms Here's what catches people off guard. Your will is important. It controls a lot. But beneficiary designations work differently. Think about what that means for Washington State public employees. You have a DRS pension account. You have a DCP (457b) account. Maybe life insurance through work. Each one has its own beneficiary form. If you're married and name someone other than your spouse as your beneficiary, retirement system laws may require DRS to pay your spouse anyway¹. Washington is a community property state with specific rules that vary by plan. The beneficiary designation you filled out when you were hired? That's what DRS follows. Not what your will says. Not what you told your family. Not what you intended. The form. Why Washington public employees face unique complications I sit across from state and city employees regularly. What I've noticed is this: they have more accounts with beneficiary designations than they realize. PERS/LEOFF/other pension contributions. DCP accounts. PEBB life insurance. Sometimes additional voluntary life insurance. Your DCP beneficiaries must be declared separately from any beneficiaries you may have selected for another plan or program, like a pension². Each account. Separate form. Separate designation. One client I worked with had updated her will after her divorce. Removed her ex completely. But she'd forgotten about three separate beneficiary forms: her pension, her DCP, and her supplemental life insurance. The will was perfect. The beneficiary forms? Still listed her ex-husband. The specific times you need to check these forms Most estate planning guidance suggests reviewing your estate plan regularly. But certain life events demand immediate attention. Marriage or remarriage If you marry in retirement, you have a one-time option to add your spouse as a survivor between your first and second year of marriage¹. Miss that window and it's permanent. Before retirement? You can update anytime. But you have to actually do it. Divorce or separation Beneficiary designations don't automatically update. If you marry, divorce or have another significant change in your life, be sure to update your beneficiary designation because these life events might invalidate your previous choices³. Birth or adoption of children New parents are exhausted. I get it. I have two young kids myself. But this matters. Especially for public employees with guaranteed pension benefits that could provide for children if something happens. Death of your named beneficiary If your survivor dies before you do, you can contact DRS to remove the survivor and increase your monthly benefit payments back to the single amount¹. The same principle applies to beneficiaries who haven't been designated as survivors but were listed to receive remaining contributions. What actually happens with your retirement accounts Let me walk through how this works for Washington State public employees. If a member passes before separating from their Washington public service position, their contribution balance plus interest will be paid out to their beneficiaries³. But here's where it gets specific. If you don't submit beneficiary information, any benefits due will be paid to your surviving spouse or minor child. If you don't have a surviving spouse or minor child, DRS will pay your estate¹. That sounds like a safety net. And it is. But "estate" means probate. Delay. Legal fees. Court oversight.[GU1] Potentially bad tax result. Once you retire, the rules shift. If you select a survivor benefit option, within 90 days of receiving your first retirement payment, you can change your survivor selection. After 90 days, your survivor selection is permanent unless your survivor dies, you marry in retirement, or you want to remove a survivor who is not your spouse or registered domestic partner¹. That 90-day window matters enormously. How to get this right The process isn't complicated. It just requires attention. Start with an inventory List every account that has a beneficiary designation. For Washington public employees, that typically includes DRS pension contributions, DCP (457b) accounts, PEBB life insurance, any supplemental life insurance through work, and personal IRAs or 401(k)s from previous employers. Check each designation You can update your beneficiary designation at any time by logging into your online DRS account³. The website is straightforward. Takes maybe ten minutes. For DCP accounts specifically, you can update your beneficiaries online through drs.wa.gov or complete the paper form and mail it to DRS². Coordinate with your will Your beneficiary designations and your will should tell the same story. Not contradict each other. If your will leaves everything to your spouse but your DCP lists your adult children, that creates confusion and potentially conflict for your family. What to do this week Not someday. This week. Log into your DRS account. Review your current beneficiary designations. If you're married, make sure your spouse is properly listed (or that you both agree on a different arrangement with proper documentation). Check your DCP account separately. Remember, it's a different designation than your pension. If you have a will, pull it out. Compare what it says to what your beneficiary forms say. Look for conflicts. If you find outdated information, update it immediately. The online process takes minutes. This isn't exciting work. I know that. But it's the kind of detail that protects your family when it matters most. Sources
-Seth Deal
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AuthorsBob Deal is a CPA with over 30 years of experience and been a financial planner for 25 years. Archives
January 2026
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