The bill aims to amend the current practice regarding the payment of state retirement benefits upon the death of a retiree or beneficiary. Currently, benefits are only paid up to the exact date of death, which can result in the estate having to repay any benefits received after that date. The new legislation proposes that benefits will continue to be paid until the end of the month in which the death occurs, thereby eliminating the need for repayment for days within that month.

Additionally, the bill establishes that survivor benefits will commence on the first day of the month following the retiree's or beneficiary's death. It clarifies that this change applies to all benefit payments issued by the department, including optional annuities, and specifies that any repayments required for benefits issued after the month of death will still be enforced. Importantly, the bill states that it will only apply prospectively, meaning that no refunds will be granted for repayments made prior to January 1, 2026. The act is set to take effect on that same date.