If you’re a Minnesota government employee, you may assume that the person(s) you list as the beneficiary of your PERA retirement account will receive those funds when you pass. I recently learned—both personally and unexpectedly—that this may not be the case.
I joined Hellmuth & Johnson after spending six years as a government attorney. Over that time, I built up a mid-five-figure balance in my PERA account and, like many parents, I listed my only child as my beneficiary. I thought I was doing everything correctly.
Then my mother, a young seventy, passed away suddenly. She worked in public schools for decades, and she had named my special-needs brother as the beneficiary of her own PERA account. As his power of attorney, I began the process of securing stable housing for him, relying on the funds she intended him to receive.
After months of reaching out to PERA with no response, I finally heard back—only to learn that her second husband had already begun collecting her retirement benefits, despite the beneficiary designation.
I was stunned. But I soon learned an important—and widely unknown—rule in Minnesota: a surviving spouse is legally entitled to PERA retirement funds, even if someone else is listed as the beneficiary, unless the spouse signs a waiver during the member’s lifetime.
In other words, your beneficiary designation alone may not accomplish what you think it does.
And here’s the part that surprised me the most: I’ve practiced law for many years. I’ve prosecuted criminals, tried jury cases, negotiated multimillion-dollar real estate contracts, and resolved complex association disputes. Yet I still had almost no understanding of how the estate and beneficiary rules worked—including the ways they could profoundly impact my own wishes and my family.
It was a humbling reminder that sometimes even lawyers need legal advice. I am incredibly fortunate to work at a firm with one of the most respected estate planning teams in Minnesota. I reached out to my colleague, Natalle Kezy, who is helping me to ensure my own designations and documents will actually carry out my wishes long after I’m gone. That peace of mind is invaluable.
If you’re a Minnesota public employee with a state pension or PERA account, I strongly encourage you to review your beneficiary designations—and, more importantly, the legal rules that control what really happens. Our estate planning team at Hellmuth & Johnson is exceptional, and they can help make sure your intentions are honored.
Feel free to reach out. Your future—and your family—will thank you.
