Senate Bill No. 378, introduced by Senator Jackson-Andrews, amends existing laws regarding beneficiary designations in the context of divorce. The bill stipulates that upon divorce, any benefits payable to a former spouse from pension, profit-sharing, retirement plans, life insurance policies, or annuity contracts are automatically revoked, provided that the divorce occurs after the beneficiary designation and the parties remain divorced at the time of death. Additionally, it clarifies that a payor is not liable for payments made in good faith reliance on a beneficiary designation before receiving written notice of the divorce or any related agreements.

The bill also introduces provisions for both prospective and retroactive application of these revocations, ensuring that the changes apply to past and future cases. This amendment aims to provide clarity and consistency in the treatment of beneficiary designations following a divorce, thereby protecting the interests of individuals and their beneficiaries. The effective date for these changes is set for August 1, 2026.

Statutes affected:
SB378 Original: