What the rule says
Pennsylvania is one of a number of states that has enacted automatic revocation of beneficiary designations after divorce. Under 20 Pa.C.S. § 6111.2, when a Pennsylvania resident's marriage is terminated by divorce, the former spouse is automatically treated as having predeceased the policyholder for purposes of most beneficiary designations.
The rule applies to:
- Life insurance policies. Designations of the former spouse as beneficiary are revoked. - Annuities. Beneficiary designations naming the former spouse are revoked. - Retirement plans (IRAs, 401(k)s, pensions, etc.). With important exceptions for plans subject to federal preemption — see below. - Other contracts that include death-benefit provisions. Various non-probate transfer mechanisms naming the former spouse.
When the rule applies, the policy or account passes as if the former spouse had died before the policyholder. Typically this means the policy passes to a designated alternate beneficiary, or, if no alternate is designated, to the policyholder's estate.
The statute applies to designations in effect at the time of divorce. Designations made after the divorce that name the former spouse remain effective — the rule revokes existing designations at the time of divorce, but does not preclude future designations.
ERISA preemption affects retirement plans
The most significant exception to the rule involves retirement plans subject to the federal Employee Retirement Income Security Act (ERISA). The U.S. Supreme Court, in *Egelhoff v. Egelhoff*, 532 U.S. 141 (2001), held that ERISA preempts state-law revocation rules for plans subject to ERISA.
This means that for many employer-sponsored retirement plans (including many 401(k) plans, pension plans, and group life insurance plans subject to ERISA):
- Pennsylvania's automatic revocation rule does not apply. - The plan's beneficiary designation, as filed with the plan administrator, controls regardless of divorce. - A designation naming the former spouse remains effective after divorce until the participant changes it directly with the plan administrator.
This ERISA preemption is one of the most important wrinkles in post-divorce estate planning. Pennsylvania residents who divorce often assume their state's automatic revocation rule covers all their non-probate assets. For ERISA-governed retirement plans, it does not. The participant must affirmatively change the designation with each plan administrator after divorce.
Plans not subject to ERISA — including most IRAs, individual annuities, individual life insurance not provided through employer-sponsored ERISA plans, and certain government and church plans — are subject to Pennsylvania's automatic revocation rule.
Comparison to other state approaches
Pennsylvania's protective rule contrasts with the approaches of some other states:
- Illinois does NOT automatically revoke beneficiary designations after divorce. Under Illinois law (see the canonical fixture il_divorce_fiduciary_auto_revoke for details on the parallel rule for wills), divorce does not affect existing designations. Active revocation is required. - California, Texas, New York, and Florida have varying rules — some have specific revocation statutes, some apply revocation more narrowly, some address only certain types of designations.
The state-by-state variation produces significant traps for residents who relocate. A divorced Illinois resident who moves to Pennsylvania benefits from automatic revocation; a divorced Pennsylvania resident who moves to Illinois loses that protection prospectively (although designations made before the move may have already been revoked).
What this means in practice
The Pennsylvania rule produces several distinctive outcomes:
- Most ex-spouses are removed automatically. For non-ERISA assets, Pennsylvania residents do not need to take affirmative action after divorce to remove the ex-spouse from beneficiary designations. The statute does it. - ERISA-governed retirement plans require affirmative action. This is the most common trap. Divorced participants who do not update their employer plan designations may inadvertently leave significant assets to the former spouse. - Subsequent designations are honored. A Pennsylvania resident who, after divorce, designates the former spouse as beneficiary again — perhaps in a desire to provide for the former spouse despite the divorce — is honored. The rule revokes existing designations at divorce; it does not prevent future ones. - Will provisions are governed separately. Pennsylvania has rules for wills under 20 Pa.C.S. § 2507(2) that revoke provisions favoring a former spouse. The non-probate beneficiary rule under § 6111.2 operates similarly but addresses different assets.
What you can do about it
For Pennsylvania residents going through divorce or already divorced:
- Verify which assets are governed by the Pennsylvania rule and which by ERISA. Employer-sponsored 401(k)s, pension plans, and group life insurance are usually ERISA-governed. IRAs and individual policies usually are not. - Update beneficiary designations on ERISA-governed plans. This must be done directly with each plan administrator after divorce. Pennsylvania law does not do it automatically. - Confirm the automatic revocation took effect on non-ERISA assets. Although the rule operates by law, it is good practice to update those designations explicitly to remove ambiguity. - Designate alternate beneficiaries. With the former spouse removed, the policy or account may default to the estate or to a contingent beneficiary. Designating new specific alternates avoids estate-administration consequences. - Coordinate with overall estate planning. Divorce is one of the most consequential moments for revisiting estate plans. Update the will, beneficiary designations, durable POA, advance directive, and any trusts. - Consult a Pennsylvania family law or estate planning attorney. The intersection of divorce, beneficiary designations, and ERISA preemption is technical and benefits from professional guidance.
Who this affects most
The Pennsylvania post-divorce revocation rule is most consequential for:
- Pennsylvania residents who divorce and have life insurance, retirement accounts, or other non-probate assets with beneficiary designations - Divorced Pennsylvanians who have never updated their employer-sponsored retirement plan designations - Estate planners advising recently divorced clients - Surviving family members of deceased divorced Pennsylvanians, where competing claims to designated assets may arise
The protective statute removes a common cause of post-divorce dispute over inheritance — the former spouse on a life insurance policy or retirement plan whom the policyholder forgot to remove. For ERISA-governed plans, however, the protection does not apply, and that gap continues to produce surprises and litigation.