Louisiana Senate Bill SB97

Louisiana 2010 Regular Session

• Introduced: 3/29/10
• Refer: 3/29/10
• Report Pass: 4/20/10
• Engrossed: 4/27/10
• Refer: 4/28/10

Caption

Provides for a change in beneficiary under certain circumstances. (7/1/10) (RE +$3,760 FC SG)

Impact

The legislation impacts existing laws concerning retirement benefits by enabling more flexibility for retirees regarding beneficiary designations. Specifically, the former options, deemed irrevocable, will now have room for modification in the case of remarriage, assuming the stipulated conditions are satisfied. This amendment could lead to numerous retirees opting to ensure their current spouse is designated as the beneficiary, thereby reflecting their current personal circumstances in retirement benefits. However, it also raises questions about the financial implications for the retirement system as adjustments to payments may occur due to beneficiary changes.

Summary

Senate Bill 97, authored by Senator Morrish, proposes to amend the current regulations governing the Teachers' Retirement System of Louisiana. The primary purpose of this bill is to allow retirees, under specific conditions, to change their designated beneficiaries after they have remarried, without revoking their initial retirement option. This change ensures that a retiree may designate a new spouse as the beneficiary for an actuarially equivalent reduced retirement allowance option as long as certain eligibility criteria are met, including a minimum of ten years of marriage to the new spouse.

Sentiment

Sentiment around SB 97 appears to be supportive among those advocating for retirees' rights and flexibility in designating beneficiaries. Proponents argue that it aligns with the realities of personal relationships, allowing retirees to provide for their current families. Conversely, there may be concerns regarding the financial impact on the Teachers' Retirement System, with critics worried that adjusting beneficiary designations could lead to complications regarding the sustainability of retirement funds in the long term.

Contention

Notable contention arises from the bill's provision that ensures any changes in beneficiary designation will not create additional liabilities for the retirement system, which some may interpret as a necessary safeguard. This implies potential alterations to payment levels for retirees or new beneficiaries, thereby igniting discussions among stakeholders about the balance between ensuring the retirees' rights and protecting the integrity of the retirement fund. Additionally, questions about the indemnity agreement required from retirees when designating new beneficiaries further highlight the complexity and potential for legal disputes that could arise from such changes.