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Regular Session, 2010
SENATE BILL NO. 97
BY SENATOR MORRISH
TEACHERS RETIREMENT. Provides for a change in beneficiary under certain
circumstances. (7/1/10)
AN ACT1
To enact R.S. 11:783(D)(1)(c), (d) and (e), relative to the Teachers' Retirement System of2
Louisiana; to provide for a change in beneficiary under certain circumstances; to3
provide for an effective date; and to provide for related matters.4
Notice of intention to introduce this Act has been published.5
Be it enacted by the Legislature of Louisiana:6
Section 1. R.S. 11:783(D)(1)(c), (d) and (e) are hereby enacted to read as follows:7
ยง783. Selection of option for method of payment after death of member8
* * *9
D.(1) * * *10
(c) Notwithstanding the provisions of Subparagraphs (a) and (b) of this11
Paragraph, a retiree may choose not to revoke the elected option but instead to12
designate his current spouse as beneficiary for the actuarially equivalent13
reduced retirement allowance option previously elected pursuant to Paragraph14
(A)(2) of this Section if all of the following are satisfied:15
(i) The retiree selected Option 2, 2A, 3, 3A, 4, or 4A pursuant to16
Subsection A of this Section.17 SB NO. 97
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(ii) The retiree designated as his beneficiary the person who was the1
retiree's spouse at the time he elected his retirement option.2
(iii) A judgment of divorce has been rendered with respect to the retiree3
and the designated beneficiary.4
(iv) The retiree has been married to the current spouse for at least ten5
years.6
(v) The retiree files with the system a change of beneficiary designation7
authorized pursuant to this Subparagraph on or before August 2, 2010.8
(d) No change in beneficiary pursuant to Subparagraph (c) of this9
Paragraph, shall create additional liability for the system. The system shall10
make any adjustments to payments paid or payable in accordance with the11
option selected by the retiree which are actuarially necessitated by a change of12
beneficiary pursuant to Subparagraph (c) of this Paragraph. Such changes may13
include reduction or suspension of the monthly payments to the retiree or to his14
beneficiary named pursuant to Subparagraph (c) and shall not be applied to15
reduce any benefit payable to the originally selected beneficiary.16
(e) A retiree who designates his current spouse as beneficiary pursuant17
to Subparagraph (c) of this Paragraph shall agree to hold harmless and18
indemnify the system from any and all liability, loss or damages that the system19
may sustain as a result of actions, claims, demands and costs, including20
reasonable attorney fees, due to such change of designation.21
* * *22
Section 2. This Act shall become effective on July 1, 2010; if vetoed by the governor23
and subsequently approved by the legislature, this Act shall become effective on July 1,24
2010, or on the day following such approval by the legislature, whichever is later.25 SB NO. 97
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The original instrument was prepared by Lauren Bailey. The following
digest, which does not constitute a part of the legislative instrument, was
prepared by Linda Nugent.
DIGEST
Morrish (SB 97)
Present law (R.S. 11:783) provides that a member of the Teachers' Retirement System of
Louisiana (TRSL) may receive his retirement benefit as an allowance payable throughout
his life (the "maximum benefit") or may elect to receive the actuarial equivalent of the
maximum in the form of a reduced retirement allowance payable throughout his life plus a
lifetime allowance payable to his designated beneficiary after the retiree's death.
Present law (R.S. 11:783(A)(2)) provides for the options of payment of a retirement benefit
after death of a member of the TRSL. Present law provides generally that the option and
beneficiary selected by the member at the time of retirement are irrevocable.
Present law (R.S. 11:783(D)) provides that under certain circumstances, if the retiree's
spouse was designated as the beneficiary, and a judgment of divorce is rendered with respect
to the retiree and the spouse, and the spouse irrevocably, by court order, relinquishes the
spouse's survivorship rights under the option originally selected by the retiree, the originally
selected option shall be considered revoked.
Proposed law retains present law and adds that, rather than revoking the option selected, a
retiree may change the designation of beneficiary to his current spouse if after his retirement
he marries another and has been married to such person for at least 10 years.
Proposed law provides that such a retiree shall file a change of beneficiary designation with
the system on or before August 2, 2010.
Proposed law provides that no change in beneficiary pursuant to proposed law shall create
additional liability for the system. Requires the system to make any adjustments to
payments that are actuarially necessitated by proposed law and provides that such
adjustments may include reduction or suspension of the monthly payments to the retiree or
the new beneficiary. Provides that any such adjustments shall not be applied to reduce any
benefit payable to the original beneficiary.
Requires that a retiree who designates his current spouse as beneficiary pursuant to proposed
law agree to hold harmless and indemnify the system from liability, loss or damages that
the system may sustain as a result of actions, claims, demands and costs, including
reasonable attorney fees, due to a change of designation.
Effective July 1, 2010.
(Adds R.S. 11:783(D)(1)(c))
Summary of Amendments Adopted by Senate
Senate Floor Amendments to engrossed bill.
1. Provides that no change in beneficiary shall create additional liability for the
system.
2. Requires the system to make any adjustments to payments that are actuarially
necessitated by proposed law, which may include reduction or suspension of
the monthly payments to the retiree or the new beneficiary. SB NO. 97
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3. Provides that any such adjustments shall not be applied to reduce any benefit
payable to the original beneficiary.
4. Requires that a retiree who designates his current spouse as beneficiary
pursuant to proposed law agree to hold harmless and indemnify the system
from liability, loss or damages that the system may sustain as a result.