RBS No. 268
1 STATE OF OKLAHOMA
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2 1st Session of the 59th Legislature (2023)
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3 SENATE BILL 448 By: Montgomery
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6 AS INTRODUCED
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7 An Act relating to retirement benefits payment;
7 amending 20 O.S. 2021, Section 1102C, which relates
8 to payment to members of the Uniform Retirement
8 System for Justices and Judges; conforming language;
9 amending 74 O.S. 2021, Section 918, which relates to
9 payment to members of the Oklahoma Public Employees
10 Retirement System; conforming language; and providing
10 an effective date.
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13 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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14 SECTION 1. AMENDATORY 20 O.S. 2021, Section 1102C, is
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15 amended to read as follows:
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16 Section 1102C. A. Except as otherwise provided for in this
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17 section and Section 1104.2 of this title, members who join the
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18 Uniform Retirement System for Justices and Judges on September 1,
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19 2005, or thereafter, may elect to have the retirement benefit paid
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20 under one of the options provided in this section in lieu of having
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21 it paid in the form stated in Section 1104 of this title. The
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22 election of an option must be made prior to the member’s retirement
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23 date or to receipt of a benefit after termination of service with a
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24 vested benefit. A specific person must be designated as joint
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1 annuitant at the time of the election of Option A or B. Election of
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2 an option is available with respect to the vested benefit. All
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3 retirement benefits of a married member shall be paid pursuant to
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4 the Option A plan or Option B plan as provided for in this section
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5 unless the spouse of a member consents in writing for the unreduced
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6 benefits to be paid as provided for in Section 1104 of this title.
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7 The spouse of the member is not required to consent in writing to
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8 the election of the Option B plan by the member.
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9 B. The amount of retirement benefit payable under an option
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10 shall be based on the age and sex of the member and the age and sex
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11 of the joint annuitant at the retirement date, and shall be such
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12 amount as to be the actuarial equivalent of the retirement benefit
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13 otherwise payable under Section 1104 of this title.
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14 C. The retirement options are:
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15 Option A. Joint and one-half to joint annuitant survivor. A
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16 reduced retirement benefit is payable to the retiree during his or
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17 her lifetime with one-half (1/2) of that amount continued to the
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18 joint annuitant during such joint annuitant’s remaining lifetime, if
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19 any, after the death of the retiree. If the named joint annuitant
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20 dies at any time after the member’s retirement date, but before the
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21 death of the retiree, the retiree shall return to the unreduced
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22 retirement benefit, including any postretirement post-retirement
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23 benefit increases, the member would have received had the member not
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24 selected Option A. The benefit shall be determined at the date of
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1 death of the named joint annuitant. This increase shall become
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2 effective the first day of the month following the date of death of
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3 the named joint annuitant, and shall be payable for the retiree’s
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4 remaining lifetime. The retiree shall notify the Uniform Retirement
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5 System for Justices and Judges of the death of the named joint
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6 annuitant in writing. In the absence of the written notice being
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7 filed by the member notifying the Uniform Retirement System for
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8 Justices and Judges of the death of the named joint annuitant within
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9 six (6) months of the date of death, nothing in this subsection
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10 shall require the Uniform Retirement System for Justices and Judges
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11 to pay more than six (6) months of retrospective benefits increase.
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12 Option B. Joint and survivor. A reduced retirement benefit is
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13 payable to the retiree during his or her lifetime with that amount
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14 continued to the joint annuitant during the joint annuitant’s
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15 remaining lifetime, if any, after the death of the retiree. If the
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16 named joint annuitant dies at any time after the member’s retirement
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17 date, but before the death of the retiree, the retiree shall return
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18 to the unreduced retirement benefit, including any postretirement
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19 post-retirement benefit increases, the member would have received
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20 had the member not selected Option B. The benefit shall be
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21 determined at the date of death of the named joint annuitant. This
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22 increase shall become effective the first day of the month following
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23 the date of death of the named joint annuitant, and shall be payable
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24 for the retiree’s remaining lifetime. The retiree shall notify the
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 RBS No. 268
1 Uniform Retirement System for Justices and Judges of the death of
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2 the named joint annuitant in writing. In the absence of such
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3 written notice being filed by the member notifying the Uniform
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4 Retirement System for Justices and Judges of the death of the named
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5 joint annuitant within six (6) months of the date of death, nothing
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6 in this subsection shall require the Uniform Retirement System for
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7 Justices and Judges to pay more than six (6) months of retrospective
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8 benefits increase.
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9 D. If a member who is eligible to retire in accordance with the
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10 provisions of this section or Section 1104 of this title but is not
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11 actually retired or is eligible to vest or has elected a vested
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12 benefit dies, the member’s spouse may elect to receive benefits as a
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13 joint annuitant under Option B, calculated as if the member retired
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14 on the date of death, in lieu of receiving the member’s accumulated
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15 contributions. However, no benefits shall be payable before the
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16 date the deceased member would have met the requirements for a
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17 normal or early retirement. The provisions of this paragraph shall
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18 be applicable to a surviving spouse of a deceased member who died
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19 prior to the effective date of this act September 1, 2005, but only
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20 if no benefits or distributions have been previously paid.
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21 SECTION 2. AMENDATORY 74 O.S. 2021, Section 918, is
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22 amended to read as follows:
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23 Section 918. (1) Except as otherwise provided for in this
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24 section and Section 918.1 of this title, a member may elect to have
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1 the retirement benefit paid under one of the options provided in
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2 this section in lieu of having it paid in the form stated in Section
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3 915 of this title. The election of an option must be made at any
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4 time prior to retirement or prior to termination of service with a
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5 vested benefit. A specific person must be designated as joint
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6 annuitant at the time of election of Option A or B. Election of an
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7 option is available with respect to the vested benefit. All
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8 retirement benefits of a married member shall be paid pursuant to
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9 the Option A plan or Option B plan as provided for in this section
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10 unless the spouse of a member consents in writing for the benefits
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11 to be paid as provided for in Section 915 of this title or pursuant
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12 to Option C as provided for in this section. The spouse of the
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13 member is not required to consent in writing to the election of the
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14 Option B plan by the member.
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15 (2) The amount of retirement benefit payable under an option
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16 shall be based on the age and sex of the member and the age and sex
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17 of the joint annuitant, and shall be such amount as to be the
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18 actuarial equivalent of the retirement benefit otherwise payable
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19 under Section 915 of this title.
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20 (3) The retirement options are:
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21 Option A. Joint and one-half to joint annuitant survivor. A
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22 reduced retirement benefit is payable to the retiree during his or
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23 her lifetime with one-half (1/2) of that amount continued to the
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24 joint annuitant during such joint annuitant’s remaining lifetime, if
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1 any, after the death of the retiree. If the named joint annuitant
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2 dies at any time after the member’s retirement date, but before the
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3 death of the retiree, the retiree shall return to the retirement
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4 benefit, including any post-retirement benefit increases the member
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5 would have received had the member not selected Option A. The
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6 benefit shall be determined at the date of death of the named joint
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7 annuitant or July 1, 1994, whichever is later. This increase shall
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8 become effective the first day of the month following the date of
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9 death of the named joint annuitant or July 1, 1994, whichever is
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10 later, and shall be payable for the retiree’s remaining lifetime.
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11 The retiree shall notify the Oklahoma Public Employees Retirement
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12 System of the death of the named joint annuitant in writing. In the
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13 absence of the written notice being filed by the member notifying
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14 the Oklahoma Public Employees Retirement System of the death of the
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15 named joint annuitant within six (6) months of the date of death,
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16 nothing in this subsection shall require the Oklahoma Public
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17 Employees Retirement System to pay more than six (6) months of
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18 retrospective benefits increase.
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19 Option B. Joint and survivor. A reduced retirement benefit is
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20 payable to the retiree during his or her lifetime with that amount
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21 continued to the joint annuitant during the joint annuitant’s
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22 remaining lifetime, if any, after the death of the retiree. If the
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23 named joint annuitant dies at any time after the member’s retirement
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24 date, but before the death of the retiree, the retiree shall return
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1 to the retirement benefit, including any post retirement post-
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2 retirement benefit increases the member would have received had the
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3 member not selected Option B. The benefit shall be determined at
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4 the date of death of the named joint annuitant or July 1, 1994,
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5 whichever is later. This increase shall become effective the first
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6 day of the month following the date of death of the named joint
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7 annuitant or July 1, 1994, whichever is later, and shall be payable
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8 for the retiree’s remaining lifetime. The retiree shall notify the
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9 Oklahoma Public Employees Retirement System of the death of the
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10 named joint annuitant in writing. In the absence of such written
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11 notice being filed by the member notifying the Oklahoma Public
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12 Employees Retirement System of the death of the named joint
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13 annuitant within six (6) months of the date of death, nothing in
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14 this subsection shall require the Oklahoma Public Employees
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15 Retirement System to pay more than six (6) months of retrospective
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16 benefits increase.
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17 Option C. Life with ten (10) years certain. A reduced
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18 retirement benefit is payable to the retiree during his or her
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19 lifetime and if the retiree dies within the ten-year certain period,
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20 measured from the commencement of retirement benefits payments, such
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21 payments will be continued to the beneficiary during the balance of
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22 the ten-year certain period. If the retiree dies within the ten-
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23 year certain period, and there are no living designated
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24 beneficiaries, the person responsible for the estate of the retiree
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1 may elect for the estate to be paid the benefits for the remainder
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2 of the term or to receive the present value of the remaining benefit
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3 payments according to rules adopted by the Board of Trustees of the
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4 System. If the retiree predeceases a designated beneficiary within
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5 the ten-year certain period, and the beneficiary dies after the
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6 beneficiary has begun to receive benefits, the person responsible
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7 for the estate of the beneficiary may elect for the estate to be
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8 paid the benefits for the remainder of the term or to receive the
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9 present value of the remaining benefit payments according to rules
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10 adopted by the Board of Trustees of the System.
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11 (4) If the selection of a joint annuitant would violate the
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12 distribution requirements contained in Section 918.1 of this title,
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13 such selection will not be permitted.
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14 (5) If a member who is eligible to retire in accordance with
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15 the provisions of Section 914 of this title but is not actually
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16 retired or is eligible to vest or has elected a vested benefit dies,
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17 the member’s spouse may elect to receive benefits as a joint
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18 annuitant under Option B calculated as if the member retired on the
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19 date of death, in lieu of receiving the member’s accumulated
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20 contributions. However, no benefits shall be payable before the
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21 date the deceased member would have met the requirements for a
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22 normal or early retirement. The provisions of this paragraph shall
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23 be applicable to a surviving spouse of a deceased member who died
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1 prior to the effective date of this act July 1, 2002, but only if no
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2 benefits or distributions have been previously paid.
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3 (6) Benefits payable to a joint annuitant shall accrue from the
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4 first day of the month following the death of a member or retiree
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5 and, in the case of Option A and Option B, shall end on the last day
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6 of the month in which the joint annuitant dies.
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7 SECTION 3. This act shall become effective November 1, 2023.
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9 59-1-268 RD 1/17/2023 9:53:23 AM
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