Louisiana Senate Bill SB62

Louisiana 2010 Regular Session

• Introduced: 3/29/10
• Refer: 3/29/10
• Report Pass: 4/20/10
• Engrossed: 4/26/10
• Refer: 4/27/10

Caption

Provides for a change of beneficiary under certain circumstances. (7/1/10) (EG SEE ACT NOTE APV)

Impact

The enactment of SB 62 may lead to significant changes in how beneficiary designations are managed within the MERS. It is expected that this will enhance the rights of retirees by recognizing post-retirement life changes such as remarriage. However, the bill stipulates that changes in the beneficiary designation cannot trigger additional liabilities for the retirement system, creating a safeguard for the system against potential financial repercussions arising from changes. Moreover, adjustments to retirement benefit payments due to a beneficiary change could result in their reduction or even a suspension depending on actuarial assessments, a point which may be a source of concern for some retirees.

Summary

Senate Bill 62, proposed by Senator Crowe, amends the Municipal Employees' Retirement System (MERS) regulations to allow retirees to change their designated beneficiaries under specific circumstances. Under the existing law, retirees were not permitted to alter their beneficiary designations once made. However, SB62 permits changes if the retiree was unmarried at the time of retirement or if they married a different individual after retirement, provided the new marriage has lasted at least five years. This added flexibility is designed to accommodate changes in personal circumstances that may occur after retirement, thereby providing retirees more control over their retirement benefits.

Sentiment

Discussions surrounding SB 62 seem to reflect a generally positive sentiment among supporters who believe that the ability to change beneficiaries is essential for accommodating life changes after retirement. Advocates argue that the flexibility granted by the bill acknowledges the realities of personal relationships and provides retirees with peace of mind regarding their benefits. Conversely, there may be concerns from those who feel that such flexibility could complicate the management of retirement benefits, leading to an administrative burden on the retirement system. Overall, the sentiment appears to balance between the need for personal autonomy in retirement planning and the administrative constraints placed upon the retirement system.

Contention

While no significant points of contention emerged in the supported discussions, the bill draws attention to the balance between personal rights and the operational integrity of the retirement system. One notable aspect of SB 62 is the requirement for retirees to hold harmless and indemnify the system from any liability created by their change of beneficiary. This clause could raise concerns regarding the legal implications faced by retirees and the adjustments to their benefits. Furthermore, the effectiveness of ensuring no additional liability for the system amidst these changes remains a critical aspect that could lead to debates in future discussions surrounding retirement policies.