The bill amends the Public School Employees Retirement Act of 1979, specifically section 85, to update the language and clarify the procedures regarding retirement allowances for members and deferred 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 use of "the member's" instead of "his or her" to promote gender-neutral language. Additionally, the bill specifies that the retirement allowance options must be actuarially equivalent and introduces a provision for retirement allowance beneficiaries who are beneficiaries of certain trusts.

Further amendments include the stipulation that if a retirement allowance beneficiary predeceases the retirant, the benefit must revert to a straight retirement allowance, and the retirement system must consider the election of a reduced retirement allowance payment option void in the event of a divorce. The bill also allows for the designation of a new retirement allowance beneficiary under specific conditions, such as remarriage, and clarifies that payments to beneficiaries must start the month after the retirant's death. Overall, the bill aims to modernize the language and processes related to retirement allowances while ensuring clarity and fairness in the treatment of beneficiaries.

Statutes affected:
House Introduced Bill: 38.1385