The bill amends the State Employees' Retirement Act by updating Section 31, which outlines the options available to members and deferred members regarding their retirement allowances. Key changes include the clarification of terms such as "retirant" and "retirement allowance beneficiary," as well as the introduction of new provisions that allow for the payment of retirement allowances to trusts established under specific federal laws. The bill also specifies that the election of a payment option must be made before the effective date of retirement and cannot be changed thereafter, with certain exceptions.

Additionally, the bill modifies the language surrounding the designation of retirement allowance beneficiaries, ensuring that such designations must be made in writing and can only include specific family members. It also addresses the implications of divorce on retirement allowance elections, stating that if a retirant is divorced from their designated beneficiary, the election will be considered void, and the retirant's allowance will revert to a regular retirement allowance. Overall, the amendments aim to provide clearer guidelines and protections for both retirees and their beneficiaries.

Statutes affected:
House Introduced Bill: 38.31