7) Can an accidental death benefit annuity pass from one statutory beneficiary to another?
Yes. If a statutory beneficiary who is receiving the annuity dies or becomes ineligible, the annuity will pass to the highest-ranking statutory beneficiary who remains eligible. If there are no remaining eligible statutory beneficiaries, the benefit will terminate.
For example, suppose that a member's spouse and a 12-year-old child are the current statutory beneficiaries. The annuity would be paid to the spouse, as the higher-ranking statutory beneficiary. If, in five years, the spouse becomes ineligible due to remarriage, the annuity would pass to the child, who would be 17 at the time. The annuity would be payable to the child until he or she reaches age 25. At that point, the benefit would terminate because there are no remaining statutory beneficiaries.