Prohibits certain post-divorce earnable compensation in the Firefighters' Retirement System from being included in a former spouse's portion of community property (RE NO IMPACT APV)
Impact
By excluding specific post-divorce earnable compensation from community property calculations, HB 47 effectively reduces the amount a former spouse may claim from the retirement benefits of the member. This is significant as it alters the existing balance of rights within community property laws, particularly affecting retired firefighters who could experience changes in how their retirement benefits are distributed upon divorce. However, the bill does not create any new financial burdens on the retirement system itself, as actuarial and fiscal analyses indicate no associated costs.
Summary
House Bill 47 addresses the definition of 'earnable compensation' within the Firefighters’ Retirement System (FRS) concerning community property laws after divorce. The bill specifies that any increase in earnable compensation resulting from a member's passing of both a written examination and a working test, occurring after the divorce, will not be included in the calculation of the former spouse’s share of community property. This change aims to protect a member's post-divorce financial interests and redefine the division of retirement benefits in the event of a divorce.
Sentiment
The sentiment surrounding HB 47 appears to be mixed among lawmakers and stakeholders. Proponents argue that the measure is a necessary step to safeguard the financial rights of firefighters, ensuring they are not penalized for pursuing further qualifications post-divorce. Critics might contend that the bill favors members to the detriment of former spouses, raising ethical concerns about equity in post-divorce financial arrangements, especially those with established community property rights.
Contention
The potential contention arises from differing views on equity and fairness in the context of community property laws. On one side, supporters of HB 47 believe it enhances fairness for individuals seeking to improve their professional qualifications and financial future without fear of losing benefits due to marital dissolution. On the other hand, opponents could argue that it undermines the financial rights of spouses who have contributed to the marital partnership, particularly when those contributions could translate into significant financial security upon retirement.
Provides relative to the removal of a former spouse as a designated beneficiary of an active member of the Firefighters' Retirement System (EN NO IMPACT APV)
Provides relative to the offset of disability retirement benefits of members of the Firefighters' Retirement System based on receipt of workers' compensation benefits (EN NO IMPACT APV)
Allows members of the Firefighters' Retirement System to allocate Deferred Retirement Option Plan funds between two separate interest bearing accounts (EN NO IMPACT APV)