Who receives the RAI benefit when a participant dies?
The benefit will be paid to the beneficiary indicated on the RAI Beneficiary Designation Form. (These forms should be completed by each participant and submitted to NADART). If no RAI Beneficiary Designation Form was completed, NADART must pay the benefit to any named beneficiary on record for the NADART Retirement Plan. If no beneficiary was named for the NADART Retirement Plan, the benefit will be paid according to the provisions of The National Automobile Dealers and Associates Retirement Trust Master Salary Deferral 401(k) Plan or The National Automobile Dealers and Associates Retirement Trust Master Pension and Profit-sharing Plan.. Please note that the Retirement Equity Act (REA) automatic survivor benefits do not apply to RAI. This means that spouses are not automatically entitled to 50% of the life insurance benefit. Consequently, a married plan participant may exclude his/her spouse and name any beneficiary.
