This bill mandates that members of the Teachers Pension and Annuity Fund (TPAF), the Judicial Retirement System (JRS), and the Public Employees Retirement System (PERS) must obtain written spousal consent when electing certain retirement benefits. Specifically, this applies to options that provide a benefit to the member's spouse that is less than half of the member's retirement allowance or that are payable solely during the member's lifetime and terminate upon their death. The bill outlines that the election will not take effect unless the spouse consents in writing, the election designates a beneficiary or option that cannot be changed without spousal consent, and the spouse's consent is witnessed by a representative of the Division of Pensions and Benefits or a notary public.

Current law requires notification to the spouse regarding the member's election of a retirement benefit that does not provide for them after the member's death. However, the new provisions replace this notification requirement with a consent requirement, ensuring that spouses are actively involved in decisions that could affect their financial security. The bill also allows for exceptions to the consent requirement if it can be demonstrated that the spouse cannot be located or if there are other circumstances as determined by the Division of Pensions and Benefits. This aligns the state's requirements with federal regulations under the Employees Retirement Income Security Act (ERISA).

Statutes affected:
Introduced: 18A:66-47.1, 43:6A-16.2, 43:15A-50