If the recipient of a reduced service retirement benefit under section 17804, subsection 3, 4 or 5, 5-A or 5-B remarries after the recipient's spouse dies the following provisions apply.

Sec. 6. 5 MRSA §17805-A, first ¶, as amended by PL 1999, c. 744, §11 and affected by §17, is further amended to read:

If the recipient of a reduced service retirement benefit under section 17804, subsection 3, 4, 5-A or, 5-B, 5-C, 5-D or 5-E is granted a divorce either after retirement or before a retirement beneficiary is named the following provisions apply.

Sec. 7. 5 MRSA §17805-A, sub-§1, ¶A, as amended by PL 1995, c. 604, §3, is further amended to read:

A. The spouse or former spouse who was originally named as retirement beneficiary must have been the sole beneficiary of the reduced retirement benefit under section 17804, subsection 3, 4 or 5, 5-A, 5-B, 5-C, 5-D or 5-E; and

Sec. 8. 5 MRSA §18404, sub-§5-E, as enacted by PL 1999, c. 744, §13 and affected by §17, is amended to read:

5-E. Option 8. The qualifying member may elect to have a reduced retirement benefit payable to the qualifying member while alive and at the qualifying member's death to have some benefit other than that available under subsection 3 or 4 payable to the beneficiary, who must be the sole beneficiary, that the member has designated, if the beneficiary survives the qualifying member. The total value of the benefit paid to the qualifying member plus the benefit paid after the qualifying member's death is the actuarial equivalent of the benefit that the qualifying member would have received without optional modification. If the qualifying member's beneficiary predeceases the qualifying member, the qualifying member's benefit must be changed, effective the first day of the month following the date of the beneficiary's death, to be the actuarial equivalent of the benefit that the qualifying member would have received without optional modification. The reduced retirement benefit must be actuarially calculated to reflect the fact that the benefit may be changed to the larger amount should the beneficiary predecease the member.

Sec. 9. 5 MRSA §18405, sub-§1, ¶A, as amended by PL 1987, c. 612, §7, is further amended to read:

A. The original spouse must have been the sole beneficiary of the reduced retirement benefit under section 18404, subsection 3, 4 or 5, 5-A or 5-B; and

Sec. 10. 5 MRSA §18405-A, first ¶, as amended by PL 1999, c. 744, §16 and affected by §17, is further amended to read:

If the recipient of a reduced service retirement benefit under section 18404, subsection 3, 4, 5-A or, 5-B, 5-C, 5-D or 5-E is granted a divorce either after retirement or before a retirement beneficiary is named, the following provisions apply.

Sec. 11. 5 MRSA §18405-A, sub-§1, ¶A, as amended by PL 1995, c. 604, §6, is further amended to read:

A. The spouse or former spouse who was originally named as retirement beneficiary must have been the sole beneficiary of the reduced retirement benefit under section 18404, subsection 3, 4 or 5 , 5-A, 5-B, 5-C, 5-D or 5-E; and

Sec. 12. 5 MRSA §18553, sub-§5-B, ¶B, as enacted by PL 1991, c. 469, §5, is amended to read:

B. Benefits under this subsection are paid as follows, notwithstanding that the qualified member may not be eligible to retire under section 18452, subsection 3.

(1) The benefit is computed in accordance with section 18452, subsection 3, if applicable, as if the service retirement of the qualifying member had taken place on the date of the member's death.

(2) The beneficiary is paid beginning on the first day of the month after the death of the qualifying member and continuing until the last day of the month in which the beneficiary's death occurs.

(3) Benefits under this subsection are paid in accordance with section 18404, subsection 3.

SUMMARY

This bill amends the laws governing the Maine State Retirement System as they relate to normal retirement age, the reduced retirement benefit election and death before service retirement.