2.__Time and manner of election.__The recipient may elect to change the named beneficiary at any time by sending a written request to the executive director.

3.__Amount of benefit.__The amount of the benefit payable under the option elected is the actuarial equivalent, at the date of the beginning of payment of benefits under this section, of the amount of reduced retirement benefit the recipient has been receiving, plus the amount expected to be paid to the original beneficiary after the recipient's death.

4.__Effective date of coverage of new beneficiary.__The effective date of the designation of the recipient's new beneficiary is the date the request is received.__The recipient's retirement benefit must be adjusted on the first day of the month following the effective date of the new designation of beneficiary.

SUMMARY

Current law requires a recipient of reduced benefits under the Maine State Retirement System who remarries, either due to the death of the recipient's spouse or divorce, and who wants to change the beneficiary of survivor benefits to obtain the permission of the ex-spouse, if living, or to have been remarried for at least 6 months.

This bill removes the restrictions on who may be named as beneficiary, allowing the recipient to name anyone as a beneficiary. The bill continues the current requirement that the original beneficiary be informed by the Maine State Retirement System that the recipient is changing the beneficiary.