SB 0502 Changes public school retirement benefits for divorced members
LR Number:1941S.01I Fiscal Note:1941-01
Committee:Pensions and General Laws
Last Action:03/28/01 - SCS Voted Do Pass S Pensions & General Laws Journal page:
Committee (1941S.03C)
Effective Date:August 28, 2001
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Current Bill Summary

SCS/SB 502 - Both teacher and non-teacher members of the Public School Retirement System who elected a reduced retirement allowance with the member's spouse named as the beneficiary will receive an increase in the member's retirement allowance if the member divorces the spouse beneficiary after the member's retirement. Upon the divorce of the member and beneficiary spouse, the member's retirement allowance will increase to the amount that the member would have received if that member choose a plan as an individual, rather than as a married person.

Currently, the member would only be able to name a subsequent spouse as a beneficiary and only if the divorce decree provided for sole retention of the retirement plan by the member.

The member may name a subsequent spouse as the successor beneficiary, if the member's spouse is deceased.

This act allows members who are divorced after retirement and subsequently remarry to name their new spouse as the successor beneficiary.

Current members may participate in the options created by this act within ninety days after August 28, 2001 or within ninety days after the member's dissolution or remarriage.