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Healthcare Provider Update: For Entergy, the healthcare provider is typically UnitedHealthcare, which offers a range of health insurance plans to its employees and their families. As the backdrop of rising healthcare costs intensifies, Entergy may face significant healthcare cost increases in 2026. With the upcoming expiration of enhanced federal premium subsidies, millions of Americans could experience a staggering jump in monthly out-of-pocket costs-potentially exceeding 75% for those benefiting from the Affordable Care Act marketplace. Factors contributing to these surges include aggressive premium hikes from major insurers, coupled with higher medical costs attributed to inflation and increased healthcare utilization. As such, it will be imperative for Entergy and its employees to strategize and prepare for these escalating expenses to mitigate financial impacts in the coming year. Click here to learn more
What Is a Beneficiary?
The receiver of Death Proceeds
As an employee and retiree from Entergy, it's important to know about designating a beneficiary. A beneficiary is an individual or entity you name (designate) to receive the proceeds of a life insurance policy on your life.
Irrevocable Versus Revocable
A beneficiary can be irrevocable or revocable. You cannot change an irrevocable beneficiary. An irrevocable beneficiary has a vested property interest in the life insurance death benefit (effective immediately upon being named as a beneficiary). This interest cannot be taken away or decreased without his or her consent. A revocable beneficiary is someone whose interest is contingent; that is, it can be decreased or terminated at any time.
Primary Versus Secondary Versus Final
Entergy employees can name as many beneficiaries as they want, subject to limitations set by the policy. Most policies allow you to choose more than one beneficiary at each level and the proceeds would thereby be split equally between all beneficiaries surviving at a particular level upon the insured's death.
The beneficiary to whom the proceeds go first is called the primary beneficiary. If the primary beneficiary predeceases the insured, the secondary beneficiary becomes entitled to the proceeds upon the insured's death. A 'final' beneficiary can be named as well. Final beneficiaries will receive the proceeds only if they outlive the designated primary and secondary beneficiaries. Usually, charities or more remote relatives such as aunts, uncles, nieces, and nephews are named at this level.
In addition to the primary beneficiary, Entergy employees should consider naming both secondary and final beneficiaries in case you outlive the primary beneficiary, you and your primary beneficiary die simultaneously, or the primary beneficiary is unable to collect the proceeds. In such cases, if you have not named secondary or final beneficiaries, the proceeds of the policy will pass to your estate and may therefore be subject to estate taxes. Naming secondary and final beneficiaries gives some extra protection against such eventualities.
Technical Note: If you and your primary beneficiary die simultaneously (and there are no other named beneficiaries), the proceeds are distributed under the Uniform Simultaneous Death Act (USDA). That is, you are presumed to have survived the beneficiary and the proceeds go to your estate.
Technical Note: A beneficiary who kills you by accident, in self-defense, or through gross negligence or manslaughter will be unable to collect the proceeds of insurance on your life. Every state bars intentional killers from profiting from their act.
Why Is Designating the Proper Beneficiary Important?
Estate Planning Goals of Life Insurance
In estate planning, life insurance is purchased for two primary reasons: 1) to provide cash to the insured's family members for daily living expenses, and 2) to provide cash for death taxes and estate expenses. In order to ensure that your beneficiaries receive the maximum benefit from life insurance policies on your life, you must properly structure ownership of your policies to avoid income and estate taxes that might deplete the funds. Proper designation of your beneficiaries is also important.
Caution: Entergy employees should note that to avoid taxes, you must arrange proper ownership of policies on your life.
Subject to Federal Estate Taxes and/or Certain Limitations
Naming or changing the beneficiaries of your life insurance policies may have federal estate tax consequences. Additionally, naming or changing a beneficiary may be subject to some limitations. Therefore, Entergy employees need to understand all the ins and outs of naming/changing a beneficiary.
Who Should You Name As Your Beneficiary In Order to Avoid Federal Estate Taxes?
Not Your Estate or Your Personal Representative (Executor)
Life insurance proceeds will not be includable in your gross estate for federal estate tax purposes unless: (1) the proceeds are payable to or for the benefit of your estate, (2) you possessed 'incidents of ownership' in the policy at the time of your death or at any time during the three years prior to your death, or (3) you transferred ownership of a policy within three years of your death.
Therefore, in order to avoid inclusion of the proceeds in your estate, thereby subjecting them to estate tax, you should not name your estate or your executor as a beneficiary. If you own the policy on your death (or within three years of your death), the proceeds will be includable in your estate whether you name your estate as your beneficiary or not.
The primary reason for not naming your estate or your executor as your beneficiary is that doing so subjects the proceeds to probate expenses and claims of creditors, whereas, if someone other than your estate or your executor were named, the proceeds would pass to that person free of such expenses and claims. It is a good idea for Entergy employees to make sure that policies on their life that are owned by others do not name their estate or their executor as the beneficiary since this would cause inclusion of the proceeds in their estate when this would otherwise not be true.
Tip: Some state laws provide that proceeds payable to an estate or executor are treated as if they are paid to the ultimate beneficiaries of your estate (your heirs). The IRS honors state law in these cases. The effect of the IRS honoring such state laws is that the proceeds may not be taxable in the decedent's estate if the decedent did not own the policy prior to his or her death or within three years of his or her death or if the proceeds are directed by the decedent's will to a charitable beneficiary or the decedent's spouse.
Not to a Beneficiary to Satisfy a Debt
Naming a beneficiary to receive life insurance proceeds in payment of a debt will be considered by the IRS to be for the benefit of your estate, and the proceeds will be includable in your gross estate for estate tax purposes.
Not to a Beneficiary to Pay Death Taxes or Other Estate Debts or Expenses
Naming a beneficiary to receive proceeds under an agreement that requires him or her to pay death taxes or other estate debts or expenses will be considered by the IRS to be for the benefit of your estate, and the proceeds will be includable in your gross estate for estate tax purposes.
Not to a Beneficiary to Pay Alimony or Support
Naming a beneficiary to receive life insurance proceeds to pay alimony or support will be considered by the IRS to be for the benefit of your estate and these proceeds will also be includable in your gross estate for estate tax purposes. If the decedent/insured owns the policy on his or her death (or within three years of his or her death), ownership will cause the inclusion of the proceeds in the decedent/insured's estate regardless of who the ultimate beneficiaries are.
Who Should You Name As Your Beneficiary to Avoid Limitations?
No One, If You Are Incompetent
If you are incompetent (whether or not you are legally declared to be so), you cannot name or change a beneficiary. The test for incompetency to name or change a beneficiary is similar to the test for incompetency to execute a will; that is, do you have the capacity to understand your actions?
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Tip: There is a presumption that you are competent. If a party claims that you are incompetent, that party must prove it.
Not Your Employer, If You Have Coverage Under a Group Life Policy
Entergy employees should note that some states do not allow you to name your employer as the beneficiary if your coverage is under a group life policy provided by that employer.
Not A Minor, Unless a Guardian Has Been Appointed (or a Trust Is Used)
Generally, insurers will not make settlements directly to minors. Entergy employees should carefully consider whether to name a minor as a beneficiary unless they also appoint a guardian or use a trust.
Only As Allowed Under a Divorce Decree or Settlement Agreement
Your right to change a beneficiary may be limited by a divorce decree or settlement agreement. In some states, divorce automatically terminates a spouse's interest in insurance on the other spouse's life. In other states, divorce allows a policyowner to change the beneficiary upon divorce, even if the beneficiary is otherwise irrevocable.
Only a Specified Class, If You (The Insured) Are a Minor
In some states, if you (the insured) are a minor, you can name only a certain class of persons as beneficiaries. That class generally includes your spouse, parents, grandparents, and brothers and sisters.
Tip: Once a minor insured has reached the age of majority, he or she can change the beneficiary of a policy on his or her life.
Someone With an 'Insurable Interest'
Some states require that where you are not the owner of the policy, the beneficiary of the policy should have an 'insurable interest' in your life. The purpose of this rule is to prevent gambling. An insurable interest is a financial interest that would be adversely affected if you died. Blood and legal relatives are presumed to have an insurable interest.
Anyone, As Long As You Have an Existing Irrevocable Beneficiary's Consent
If you want to change the beneficiary, but have already named an irrevocable beneficiary, you need that irrevocable beneficiary's written consent to do so.
Tip: An irrevocable beneficiary's property right ends at his or her death.
Anyone, As Long as You Have Your Spouse's Consent If You Use Community Funds to Pay Premiums
If you live in a community property state, any assets acquired during the marriage are considered community property (i.e., each spouses owns an undivided one half interest in the property). A spouse's interest in community property cannot be disposed of by the other spouse. If you make premium payments from community funds, the insurance so purchased is also considered community property; you must, therefore, have your spouse's written consent when naming a beneficiary to such policies.
Should You Name Your Spouse As Beneficiary?
We'd like our Entergy clients to consider that naming your spouse as a beneficiary may not be a good idea. If a spouse is named as the beneficiary, the unlimited marital deduction applies, and the proceeds will pass free of estate taxes regardless of who owns the policy. However, the proceeds will be included in the surviving spouse's gross estate (unless, of course, they have been spent before the surviving spouse's death).
By naming your spouse as the beneficiary, you will only postpone estate taxes, not avoid them entirely. Additionally, if you and your spouse die simultaneously and your spouse is named as the beneficiary of a policy on your life, the USDA provides that the beneficiary (your spouse) will be presumed to have predeceased the insured (you). Since your spouse will be deemed to have predeceased you, the unlimited marital deduction will be inapplicable, and the proceeds may be subject to tax in your estate.
How Do You Name or Change (I.E., Designate) a Beneficiary?
Complete a Beneficiary Designation form
When you buy life insurance, the insurer will provide you with a beneficiary designation form. Generally, the form need only be completed (i.e., the names of the beneficiaries filled in), signed, and dated by you.
Specifically Identify All Beneficiaries and the Distribution They Are to Receive
Entergy employees should be specific when naming the beneficiaries. Make sure the designation clearly identifies to whom the proceeds are to be paid (and in what order if you are naming secondary and/or final beneficiaries). If you want the proceeds to be distributed to your children (including legitimate, illegitimate, and adopted children, and children from a previous marriage), specify the name of each child to be sure the ones you want to name as beneficiaries are included and the ones you don't want to name as beneficiaries are excluded. You may want to include a clause such as 'and any afterborn children' to provide for any children not yet born.
The phrase to my lawful children may disqualify illegitimate children in certain states. If you want to ensure that the proceeds go to your wife at your death, do not say 'to my wife, Anne Boleyn.' Rather, say 'to my present wife,' since one day Anne Boleyn may no longer be your wife.
Caution: Entergy employees should note that t erms such as heirs, issue, per stripes, and per capita have legal definitions. Be sure you understand what the terms mean before you use them. These Entergy employees should consult a lawyer if they are not sure.
Specifically Revoke Previous Designations
When changing a beneficiary, it is advisable to specifically revoke any previous designations by simply writing this on the change of beneficiary form.
Review Beneficiary Designations Every Two or Three Years or Upon a Change of Circumstances
You may want to review your beneficiary designations every two or three years to ensure they comport with your current circumstances and wishes. Additionally, Entergy employees should be sure to check and update their beneficiary designations upon the occurrence of certain life events, such as marriage, divorce, remarriage, and the birth of children.
Can You Change a Life Insurance Beneficiary In Your Will?
No. A beneficiary designation made in your will does NOT override the beneficiary designation made on the insurer's form. For any Entergy employees who want to change their beneficiary, you must execute a change of beneficiary form provided by your insurer. Do not rely on your will to do so.
How does Entergy Nuclear Operations, Inc. determine the eligibility criteria for employees participating in the pension plan, and what specific conditions must be met for an employee to qualify for benefits under Appendix G of the Plan?
Eligibility Criteria for Pension Plan: Entergy Nuclear Operations, Inc. determines pension eligibility based on Vesting Service and age. Employees generally become 100% vested after five years of service or upon reaching age 61 while employed. Special provisions may apply to employees who participated in the Vermont Yankee Plan as of July 31, 2002(Entergy_Nuclear_Operati…).
What are the specific steps and necessary documentation required for an employee of Entergy Nuclear Operations, Inc. to commence their pension benefits once they reach retirement age, and how does this process differ for those with previous employment at other participating companies?
Commencing Pension Benefits: To commence pension benefits, an employee must file an application with the Entergy Pension Resource Center (EPRC). This includes providing necessary documentation, such as proof of age and employment history. Employees who have worked for other participating companies must account for service under prior employers, which may impact the pension calculation(Entergy_Nuclear_Operati…).
In what ways does Entergy Nuclear Operations, Inc. ensure that employees understand their rights under the Employee Retirement Income Security Act (ERISA), and what resources are available for employees seeking clarification on their pension benefits?
ERISA Rights and Resources: Entergy Nuclear Operations, Inc. ensures employees understand their rights under the Employee Retirement Income Security Act (ERISA) by providing access to the plan documents and offering assistance through the Entergy Pension Resource Center. Employees can request clarification on pension benefits by contacting EPRC(Entergy_Nuclear_Operati…).
How does the non-bargaining and bargaining employee classification at Entergy Nuclear Operations, Inc. impact the pension benefits available, and what should employees consider when planning for retirement in light of these classifications?
Impact of Non-Bargaining and Bargaining Classifications: The classification between non-bargaining and bargaining employees affects pension benefits. Non-bargaining employees are covered under Appendix G of the Plan, which may provide different accrual rates and benefit options compared to bargaining employees. These classifications impact retirement planning, as different rules may apply depending on the classification(Entergy_Nuclear_Operati…).
What provisions are in place at Entergy Nuclear Operations, Inc. for beneficiaries to receive benefits upon an employee's death, and how do these benefits differ based on whether the employee had already commenced their pension?
Death Benefits for Beneficiaries: In the event of an employee's death, the Entergy pension plan provides benefits to beneficiaries. If the employee has already commenced pension payments, the form of payment selected will determine the survivor benefits. If the employee passes away before starting pension benefits, the spouse may receive pre-retirement survivor benefits(Entergy_Nuclear_Operati…).
How does Entergy Nuclear Operations, Inc. calculate the normal retirement pension, and what factors play a crucial role in determining an employee's monthly benefit under Appendix G of the Plan?
Pension Calculation Factors: The normal retirement pension at Entergy Nuclear Operations, Inc. is calculated using a formula based on Average Earnings and years of Benefit Service. The formula includes percentages of earnings, capped at certain limits, and service years to determine the monthly pension benefit under Appendix G(Entergy_Nuclear_Operati…).
What unique considerations should employees of Entergy Nuclear Operations, Inc. keep in mind regarding service credits, particularly if they have accrued time under a prior employer's defined benefit plan?
Service Credits for Prior Employers: Employees with service under a prior employer's defined benefit plan may have their service credited toward the pension plan at Entergy Nuclear Operations, Inc. This includes specific provisions for employees from companies like Vermont Yankee. Service credits from prior employers may affect both vesting and benefit calculations(Entergy_Nuclear_Operati…).
How does Entergy Nuclear Operations, Inc. handle the transition of employees who transfer from covered employment with the potential for pension benefits, and what impact does this have on their accrued service time?
Impact of Employee Transfers on Pensions: If an employee transfers from covered employment (i.e., eligible for the pension plan) to a position not covered by the plan, their Benefit Service is frozen. However, Vesting Service continues to accrue as long as the employee remains with the company, and previous service may impact final pension benefits(Entergy_Nuclear_Operati…).
What specific contact methods are available for employees of Entergy Nuclear Operations, Inc. to reach the Entergy Pension Resource Center for assistance regarding their pension benefits, and what type of inquiries can the center effectively handle?
Contacting the Entergy Pension Resource Center: Employees can contact the Entergy Pension Resource Center (EPRC) for assistance with their pension benefits via phone at 1-855-523-3772 or online at EPRC Website. Inquiries can include questions about benefits, beneficiary designations, and how to commence pension payments(Entergy_Nuclear_Operati…).
In what scenarios might an employee's pension benefits at Entergy Nuclear Operations, Inc. be suspended, and what steps can be taken to appeal or rectify such situations once they occur?
Suspension of Pension Benefits: Pension benefits may be suspended if an employee is rehired after retirement and works more than 40 hours in a month. Employees who experience benefit suspensions can have their pension recalculated upon final retirement, with offsets for any benefits previously received(Entergy_Nuclear_Operati…).
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