An Act To Allow Changes of Beneficiaries under the Maine Public Employees Retirement System
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 4 MRSA §1357, sub-§3, as enacted by PL 1999, c. 744, §2, is amended to read:
3. Change of beneficiary. If the recipient of a service retirement benefit has elected an optional method of payment under subsection 2, paragraphs B to H, and has designated someone other than a spouse or ex-spouse as sole beneficiary, the recipient is permitted a one-time may change in the designated beneficiary, but may not in change the already elected payment option or in the amount of the benefits under that option, by filing a written designation of the new beneficiary, duly notarized, with the executive director on a form provided or specified by the Maine Judicial Retirement System. The change of beneficiary permitted by this subsection may only be made prior to the death of the prior designated beneficiary.A. The benefit payable to the recipient and the new beneficiary must be paid under the same payment option. The amount of the recipient's benefit may not change, and the amount of the new beneficiary's benefit must be the same as the amount of the prior beneficiary's benefit.
B. The effective date of the designation of the new beneficiary is the date the designation is received by the executive director. As of the first day of the month following the effective date of the designation of the new beneficiary, the prior beneficiary is no longer entitled to any benefit payment and, if concurrent payment under subsection 2, paragraph E has been elected, the new beneficiary's benefit must become effective on the same date.
C.
The new beneficiary's entitlement to benefits ceases on the earlier of:
(1) The date of the new beneficiary's death; or
(2) The date established when the amount of the prior beneficiary's benefit was established, which is the initial commencement date of benefits to the retiree increased by the life expectancy of the prior beneficiary computed in years and months using actuarial equivalence assumptions recommended by the system's actuary.
Payment of benefits to the new beneficiary must cease as of the first day of the month following the earlier of subparagraph (1) or (2).
Sec. 2. 5 MRSA §17804, sub-§5-F, as amended by PL 1999, c. 790, Pt. K, §1 and affected by §5, is further amended to read:
5-F. Change of beneficiary. If the recipient of a service retirement benefit has elected an optional method of payment under subsection 3, 4, 5, 5-A, 5-B, 5-C, 5-D or 5-E, and has designated someone other than a spouse or ex-spouse as sole beneficiary, the recipient is permitted a one-time may change in the designated beneficiary, but may not in change the already elected payment option or in the amount of the benefits under that option, by filing a written designation of the new beneficiary, duly notarized, with the executive director on a form provided or specified by the retirement system. The change of beneficiary permitted by this subsection may only be made prior to the death of the prior designated beneficiary.A. The benefit payable to the recipient and the new beneficiary must be paid under the same payment option. The amount of the recipient's benefit may not change, and the amount of the new beneficiary's benefit must be the same as the amount of the prior beneficiary's benefit.
B. The effective date of the designation of the new beneficiary is the date the designation is received by the executive director. As of the first day of the month following the effective date of the designation of the new beneficiary, the prior beneficiary is no longer entitled to any benefit payment and, if concurrent payment under subsection 5-B has been elected, the new beneficiary's benefit must become effective on the same date.
C.
The new beneficiary's entitlement to benefits ceases on the earlier of:
(1) The date of the new beneficiary's death; or
(2) The date established when the amount of the prior beneficiary's benefit was established, which is the initial commencement date of benefits to the retiree increased by the life expectancy of the prior beneficiary computed in years and months using actuarial equivalence assumptions recommended by the system's actuary.
Payment of benefits to the new beneficiary must cease as of the first day of the month following the earlier of subparagraph (1) or (2).
Sec. 3. 5 MRSA §18404, sub-§5-F, as amended by PL 1999, c. 790, Pt. K, §2 and affected by §5, is further amended to read:
5-F. Change of beneficiary. If the recipient of a service retirement benefit has elected an optional method of payment under subsection 3, 4, 5, 5-A, 5-B, 5-C, 5-D or 5-E, and has designated someone other than a spouse or ex-spouse as sole beneficiary, the recipient is permitted a one-time may change in the designated beneficiary, but may not in change the already elected payment option or in the amount of the benefits under that option, by filing a written designation of the new beneficiary, duly notarized, with the executive director on a form provided or specified by the retirement system. The change of beneficiary permitted by this subsection may only be made prior to the death of the prior designated beneficiary.A. The benefit payable to the recipient and the new beneficiary must be paid under the same payment option. The amount of the recipient's benefit may not change, and the amount of the new beneficiary's benefit must be the same as the amount of the prior beneficiary's benefit.
B. The effective date of the designation of the new beneficiary is the date the designation is received by the executive director. As of the first day of the month following the effective date of the designation of the new beneficiary, the prior beneficiary is no longer entitled to any benefit payment and, if concurrent payment under subsection 5-B has been elected, the new beneficiary's benefit must become effective on the same date.
C.
The new beneficiary's entitlement to benefits ceases on the earlier of:
(1) The date of the new beneficiary's death; or
(2) The date established when the amount of the prior beneficiary's benefit was established, which is the initial commencement date of benefits to the retiree increased by the life expectancy of the prior beneficiary computed in years and months using actuarial equivalence assumptions recommended by the system's actuary.
Payment of benefits to the new beneficiary must cease as of the first day of the month following the earlier of subparagraph (1) or (2).
summary
Current law allows a retiree to make a one-time change of the retiree’s previously designated beneficiary for retirement benefits without the permission of the beneficiary if the beneficiary is not the spouse or former spouse of the retiree. This bill would allow a retiree to change a previously designated beneficiary more than once.