SENATE BILL NO. 457
INTRODUCED BY V. COCCHIARELLA
AN ACT PROVIDING THAT CERTAIN OPTIONAL RETIREMENT BENEFITS SELECTED BY A RETIRED MEMBER OF THE PUBLIC EMPLOYEES', JUDGES', SHERIFFS', AND GAME WARDENS' AND PEACE OFFICERS' RETIREMENT SYSTEMS WILL REVERT BACK TO THE REGULAR RETIREMENT BENEFIT UPON THE MEMBER'S REQUEST IF THE MEMBER'S CONTINGENT ANNUITANT DIES OR IF THE MEMBER'S MARRIAGE TO THE CONTINGENT ANNUITANT IS DISSOLVED AND THE DISSOLUTION SETTLEMENT OR FAMILY LAW ORDER DOES NOT ENTITLE THE CONTINGENT ANNUITANT TO THE OPTIONAL BENEFIT; AND AMENDING SECTIONS 19-3-1501, 19-5-701, 19-7-1001, AND 19-8-801, MCA.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Section 19-3-1501, MCA, is amended to read:
"19-3-1501. Optional forms of benefits. (1) The retirement benefit of a member or the survivorship benefit of a designated beneficiary who makes an election must be converted, in lieu of all other benefits under this chapter, into an optional retirement benefit that is the actuarial equivalent of the original benefit. The optional retirement benefit is initially payable during the member's or designated beneficiary's lifetime, with a subsequent benefit to the contingent annuitant whom the member or designated beneficiary nominated by written designation, executed and filed with the board on the application for benefits, as follows:
(a) Option 2--a continuation of the reduced amount after the death of the initial payee and payable during the lifetime of the named contingent annuitant;
(b) Option 3--a continuation of one-half of the reduced amount after the death of the initial payee and payable during the lifetime of the named contingent annuitant;
(c) Option 4--upon the initial payee's death, other actuarially equivalent amounts as may be approved by the board.
(2) Election of an optional retirement benefit must be by written application filed prior to the first payment of the benefit.
(3) If a benefit recipient or the recipient's contingent annuitant dies before the first payment has been made under option 2 or 3, the election of the option is automatically canceled.
(4) If a member dies after retirement and within 30 days from the date the member's election or changed election of an optional retirement benefit is received by the board, then the election is void and the death is considered as that of a member before retirement.
(5) (a) Upon written request to the board, a retired member who is receiving an optional retirement benefit that became effective before [the effective date of this act] may designate a different contingent annuitant, select a different option, or convert the member's optional retirement benefit to a regular retirement benefit if:
(i) the original contingent annuitant has died; or
(ii) the member has been divorced from member's marriage to the original contingent annuitant has been dissolved and
the original contingent annuitant has not been granted the right to receive the optional retirement benefit as part of the
divorce dissolution settlement or family law order.
(b) Upon receipt of the request, the board shall actuarially adjust the member's monthly retirement benefit to reflect the change.
(6) (a) A retired member receiving an optional retirement benefit pursuant to subsection (1)(a) or (1)(b) that is effective after [the effective date of this act] may file a written application with the board to have the optional retirement benefit revert to the regular retirement benefit available at the time of the member's retirement if:
(i) the contingent annuitant has died, in which case the optional benefit must revert effective on the first day of the month following the contingent annuitant's death; or
(ii) the member's marriage to the contingent annuitant is dissolved and the beneficiary was not granted the right to receive the optional retirement benefit as part of the dissolution settlement or a family law order, in which case the benefit must revert effective on the first day of the month following receipt of the written application and verification that the dissolution settlement or family law order does not grant the optional benefit to the contingent annuitant.
(b) A regular retirement benefit provided pursuant to this subsection (6) must be increased by the value of any postretirement adjustments received by the member since the effective date of the member's retirement.
(7) A written application pursuant to subsection (5) or (6) must be filed with the board within 18 months of the death of or dissolution of marriage to the contingent annuitant."
Section 2. Section 19-5-701, MCA, is amended to read:
"19-5-701. Optional forms of benefits. (1) The retirement benefit of a member or the survivorship benefit of a designated beneficiary who so elects, must be converted, in lieu of all other benefits under this chapter, into an optional retirement benefit that is the actuarial equivalent of the original benefit. The optional retirement benefit is initially payable during the member's or designated beneficiary's lifetime, with a subsequent benefit payable to the contingent annuitant that the member or designated beneficiary nominated by written designation, executed and filed with the board on the application for benefits, as follows:
(a) Option 2--a continuation of the reduced amount after the death of the initial payee and payable during the lifetime of the named contingent annuitant;
(b) Option 3--a continuation of one-half of the reduced amount after the death of the initial payee and payable during the lifetime of the named contingent annuitant;
(c) Option 4--upon the initial payee's death, other actuarially equivalent amounts as may be approved by the board.
(2) Election of an optional retirement benefit must be by written application filed prior to the first payment of the benefit.
(3) If a benefit recipient or the recipient's contingent annuitant dies before the first payment has been made under option 2 or 3, the election of the option is automatically canceled.
(4) If the member dies after retirement and within 30 days from the date the member's election or changed election of an optional retirement benefit is received by the board, the election is void and the death is considered as that of a member before retirement.
(5) (a) A retired member receiving an optional retirement benefit pursuant to subsection (1)(a) or (1)(b) that is effective after [the effective date of this act] may file a written application with the board to have the optional retirement benefit revert to the regular retirement benefit available at the time of the member's retirement if:
(i) the contingent annuitant has died, in which case the optional benefit must revert effective on the first day of the month following the contingent annuitant's death; or
(ii) the member's marriage to the contingent annuitant is dissolved and the beneficiary was not granted the right to receive the optional retirement benefit as part of the dissolution settlement or a family law order, in which case the benefit must revert effective on the first day of the month following receipt of the written application and verification that the dissolution settlement or family law order does not grant the optional benefit to the contingent annuitant.
(b) A regular retirement benefit provided pursuant to this subsection (5) must be increased by the value of any postretirement adjustments received by the member since the effective date of the member's retirement.
(6) A written application pursuant to subsection (5) must be filed with the board within 18 months of the death of or dissolution of marriage to the contingent annuitant."
Section 3. Section 19-7-1001, MCA, is amended to read:
"19-7-1001. Optional forms of benefits. (1) The retirement benefit of a member or the survivorship benefit of a designated beneficiary who so elects must be converted, in lieu of all other benefits under this chapter, into an optional retirement benefit that is the actuarial equivalent of the original benefit. The optional retirement benefit is initially payable during the member's or designated beneficiary's lifetime with a subsequent benefit to the contingent annuitant that the member or designated beneficiary nominated by written designation, executed and filed with the board on the application for benefits, as follows:
(a) Option 2--a continuation of the reduced amount after the death of the initial payee and payable during the lifetime of the named contingent annuitant;
(b) Option 3--a continuation of one-half of the reduced amount after the death of the initial payee and payable during the lifetime of the named contingent annuitant;
(c) Option 4--upon the initial payee's death, other actuarially equivalent amounts as may be approved by the board.
(2) Election of an optional retirement benefit must be by written application filed prior to the first payment of the benefit.
(3) If a benefit recipient or the recipient's contingent annuitant dies before the first payment has been made under option 2 or 3, the election of the option is automatically canceled.
(4) If the member dies after retirement and within 30 days from the date the member's election or changed election of an optional retirement benefit is received by the board, the election is void and the death is considered as that of a member before retirement.
(5) (a) A retired member receiving an optional retirement benefit pursuant to subsection (1)(a) or (1)(b) that is effective after [the effective date of this act] may file a written application with the board to have the optional retirement benefit revert to the regular retirement benefit available at the time of the member's retirement if:
(i) the contingent annuitant has died, in which case the optional benefit must revert effective on the first day of the month following the contingent annuitant's death; or
(ii) the member's marriage to the contingent annuitant is dissolved and the beneficiary was not granted the right to receive the optional retirement benefit as part of the dissolution settlement or a family law order, in which case the benefit must revert effective on the first day of the month following receipt of the written application and verification that the dissolution settlement or family law order does not grant the optional benefit to the contingent annuitant.
(b) A regular retirement benefit provided pursuant to this subsection (5) must be increased by the value of any postretirement adjustments received by the member since the effective date of the member's retirement.
(6) A written application pursuant to subsection (5) must be filed with the board within 18 months of the death of or dissolution of marriage to the contingent annuitant."
Section 4. Section 19-8-801, MCA, is amended to read:
"19-8-801. Optional forms of benefits. (1) The retirement benefit of a member or the survivorship benefit of a designated beneficiary who so elects must be converted in lieu of all other benefits under this chapter into an optional retirement benefit that is the actuarial equivalent of the original benefit. The optional retirement benefit is initially payable during the member's or designated beneficiary's lifetime with a subsequent benefit to the contingent annuitant that the member or designated beneficiary nominated by written designation, executed and filed with the board on the application for benefits, as follows:
(a) Option 2--a continuation of the reduced amount after the death of the initial payee and payable during the lifetime of the named contingent annuitant;
(b) Option 3--a continuation of one-half of the reduced amount after the death of the initial payee and payable during the lifetime of the named contingent annuitant;
(c) Option 4--upon the initial payee's death, other actuarially equivalent amounts as may be approved by the board.
(2) Election of an optional retirement benefit must be by written application filed prior to the first payment of the benefit.
(3) If a benefit recipient or the recipient's contingent annuitant dies before the first payment has been made under option 2 or 3, the election of the option is automatically canceled.
(4) If the member dies after retirement and within 30 days from the date the member's election or changed election of an optional retirement benefit is received by the board, the election is void and the death is considered as that of a member before retirement.
(5) (a) A retired member receiving an optional retirement benefit pursuant to subsection (1)(a) or (1)(b) that is effective after [the effective date of this act] may file a written application with the board to have the optional retirement benefit revert to the regular retirement benefit available at the time of the member's retirement if:
(i) the contingent annuitant has died, in which case the optional benefit must revert effective on the first day of the month following the contingent annuitant's death; or
(ii) the member's marriage to the contingent annuitant is dissolved and the beneficiary was not granted the right to receive the optional retirement benefit as part of the dissolution settlement or a family law order, in which case the benefit must revert effective on the first day of the month following receipt of the written application and verification that the dissolution settlement or family law order does not grant the optional benefit to the contingent annuitant.
(b) A regular retirement benefit provided pursuant to this subsection (5) must be increased by the value of any postretirement adjustments received by the member since the effective date of the member's retirement.
(6) A written application pursuant to subsection (5) must be filed with the board within 18 months of the death of or dissolution of marriage to the contingent annuitant."
- END -
Latest Version of SB 457 (SB0457.ENR)
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