The bill amends the State Employees' Retirement Act by updating Section 31, which outlines the options available to members or deferred members eligible for retirement. Key changes include the clarification of terms such as "retirement allowance beneficiary" and the introduction of new provisions regarding the payment of retirement allowances. Specifically, the bill stipulates that a member must elect to receive their retirement benefits before the effective date of retirement and provides various payment options for beneficiaries. It also emphasizes that the election of a payment option cannot be changed after retirement begins and specifies the conditions under which a retirement allowance beneficiary can be designated.

Additionally, the bill introduces provisions regarding the impact of divorce on retirement allowance elections, stating that if a retirant is divorced from their designated beneficiary, the election may be considered void under certain conditions. Furthermore, it allows for retirement allowances to be paid to trusts established under specific federal laws, ensuring that beneficiaries who are minors or incapacitated can still receive their benefits. Overall, the amendments aim to clarify and modernize the retirement benefits process for state employees while ensuring that the rights of beneficiaries are protected.

Statutes affected:
House Introduced Bill: 38.31