05apr01...0072h

13june01...1547eba

2001 SESSION

01-0337

10/01

HOUSE BILL 302-FN

COMMITTEE: Executive Departments and Administration

ANALYSIS

This bill allows for a retired member who has remarried to elect to nominate his or her spouse as a beneficiary of an optional allowance.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

05apr01...0072h

13june01...1547eba

01-0337

10/01

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand One

Be it Enacted by the Senate and House of Representatives in General Court convened:

175:1 Optional Allowances; Nomination of Current Spouse Upon Remarriage. Amend RSA 100-A:13, II(a) to read as follows:

(a) Any retired member who has elected option 2, 3, or 4, and whose beneficiary nominated by the retiree under such option was the retiree's spouse at the time of such election, may:

(1) Terminate such elected option upon the issuance of a divorce decree and subsequent remarriage of the former spouse. Upon termination, the allowance received under the elected option shall be converted to the retirement allowance that would have been payable in the absence of such election. Any supplemental allowance, or COLAs, granted to the retiree and effective before the date of termination of the option shall continue in effect and shall not be adjusted as a result of the termination. Notice of such termination shall be given by the retiree on a form designated by the board. Payment of the converted allowance shall commence on the first day of the month following receipt of termination by the board. For any retiree whose divorce and the subsequent remarriage of the former spouse occurred on or before July 1, 1990, the notice shall be given to the board on or before October 1, 1990. Said termination action shall become effective on the first day of the month following receipt of such notice by the board. If the retiree dies after giving valid notice of such termination but before the effective date, the option shall terminate as of the date of the retiree's death.

(2) Due to the death of a former spouse and the retiree's subsequent remarriage, elect to nominate the current spouse as beneficiary under one of the options named in paragraph III. The notice of election shall be on a form designated by the board. The optional allowance shall be effective the first of the month following receipt of the notice. If a retiree dies after filing such notice but before the effective date, the change shall be effective as of the date of death. The optional allowance shall be of equivalent actuarial value. Any supplemental allowances, or COLAs, granted to the retiree before the effective date of the election shall terminate on such effective date, but the value of such COLA's shall be included in the actuarial determination of the amount of the allowance payable under the elected option.

175:2 Optional Allowances; References Added. Amend RSA 100-A:13, III to read as follows:

III. The options, each of which shall be of equivalent actuarial value to the allowance payable in the absence of election of an option, are:

Option 1. A reduced retirement allowance payable during the retired member's life, with the provision that at [his] the member's death a lump sum equal in amount to the difference between [his] the accumulated contributions at the time of [his] retirement and the sum of the member annuity payments made to [him] the member during [his] the member's lifetime shall be paid to the beneficiaries or contingent beneficiaries, if any, nominated [by him] by written designation duly acknowledged and filed with the board of trustees if such beneficiaries or contingent beneficiaries survive [him] the member, otherwise to the retired member's estate.

Option 2. A reduced retirement allowance payable during the retired member's life, with the provision that it shall continue after [his] the member's death for the life of, and to, the beneficiary nominated [by him] by written designation duly acknowledged and filed with the board of trustees at the time of retirement, or as provided in subparagraph II(a)(2).

Option 3. A reduced retirement allowance payable during the retired member's life, with the provision that it shall continue after [his] death at 1/2 the rate paid to [him] the member and be paid for the life of, and to, the beneficiary nominated [by him] by written designation duly acknowledged and filed with the board of trustees at the time of retirement, or as provided in subparagraph II(a)(2).

Option 4. A reduced retirement allowance payable during the retired member's life, with some other benefit payable after [his] death, provided that such other benefit shall be approved by the board of trustees, or a reduced retirement allowance payable during the retired member's life, with some other benefit payable after death, pursuant to the provisions of subparagraph II(a)(2).

175:3 Effective Date. This act shall take effect 60 days after its passage.

(Approved: July 5, 2001)

(Effective Date: September 3, 2001)