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 without any payment to the spouse. 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, but does not require spousal consent. The new provisions aim to enhance protections for spouses in retirement benefit elections, aligning with similar requirements found in private sector plans governed by the Employees Retirement Income Security Act (ERISA). The bill also allows for exceptions to the consent requirement if it can be demonstrated that the spouse cannot be located or there are other circumstances as defined by the Division of Pensions and Benefits.

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