The bill amends the Public School Employees Retirement Act of 1979, specifically section 85, to update the language regarding retirement allowance options for members. Key changes include the requirement for members to elect their retirement allowance in writing at least 15 days before the effective date, and the clarification that the retirement allowance must be the actuarial equivalent of the specified options. The bill also modifies the terminology used throughout the section, replacing phrases like "his or her" with "the member's" and "shall" with "must" to enhance clarity and consistency.

Additionally, the bill introduces provisions for retirement allowance beneficiaries, allowing for changes in beneficiary designations under certain conditions, such as divorce or remarriage. It specifies that if a beneficiary predeceases the retirant, the benefit will revert to a straight retirement allowance. Furthermore, it allows for retirement allowance payments to be directed to a trust established under specific federal regulations, ensuring that the retirement system can accommodate the needs of beneficiaries who may be minors or incapacitated. Overall, these amendments aim to streamline the retirement process and provide clearer guidelines for both retirants and beneficiaries.

Statutes affected:
House Introduced Bill: 38.1385