Based on your circumstances you can name either your spouse, your minor child(ren), disabled child(ren) or a parent over the age of 65 as your beneficiary.
If you are married, Texas state law requires that your spouse be your beneficiary; however, upon your retirement or death, your spouse may sign a Spousal Waiver Form, allowing payment to go to your alternate beneficiary or designee(s).
If you and your spouse divorce, he or she is no longer your beneficiary. Additionally, if you marry after retirement, that spouse can not be your beneficiary, but you can name him or her as a designee.
Your beneficiary will receive a monthly benefit after your death. If you name a minor(s) as your beneficiary, the benefit will be paid to that child's legal guardian until he or she reaches age 18.
If your beneficiary dies or ceases to be eligible for a monthly benefit before 120 monthly payments have been paid, your designee(s) will receive a commuted lump sum benefit.
Upon your death, if you have no qualified beneficiary, your designee(s) will receive your benefit. You may name any person, organization or charity as a designee.
Designee(s) receive a lump sum benefit equal to the commuted value of the balance of 120 benefit payments.