Requires spousal consent to election of certain pension payout options under TPAF, JRS and PERS.
Impact
The implementation of A2207 is expected to significantly impact state pension laws by aligning them with the requirements typically found in private retirement plans regulated by the Employees Retirement Income Security Act (ERISA). The legislation aims to provide additional protections for spouses, ensuring they are informed and consenting participants in decisions affecting their financial future. The bill is designed to mitigate the risk that a member could elect a benefit option detrimental to their spouse, thus providing an emotional and economic safeguard for married couples reliant on these pension funds.
Summary
Assembly Bill A2207 aims to enhance the financial security of spouses in the event of a member's death by requiring spousal consent for certain pension payout options under the Teachers' Pension and Annuity Fund (TPAF), the Judicial Retirement System (JRS), and the Public Employees' Retirement System (PERS). Specifically, the bill mandates that if a member elects a retirement benefit that is payable solely for their lifetime without refund or any provision for their spouse, the member must obtain written consent from their spouse prior to making that election. This provision also applies to any other payout option offering less than half of the member's retirement allowance for the spouse's lifetime.
Contention
While the bill is positioned as a protective measure for spouses, potential points of contention may arise regarding the implications for individual autonomy. Some critics might argue that requiring spousal consent could unnecessarily complicate the process of retirement planning for members who may wish to choose a payout option based solely on their circumstances. Additionally, there are concerns about how the bill may affect situations where a spouse is unavailable or unlocatable to provide that consent, potentially leaving members without viable options that were previously available to them.
Bars certain employees of certain public agencies from participating in PERS; repeals law permitting PERS and TPAF members on leave who work for labor organization to purchase pension credit.
Bars certain employees of certain public agencies from participating in PERS; repeals law permitting PERS and TPAF members on leave who work for labor organization to purchase pension credit.
To Amend The Survivors' Benefit Options Under The State Police Retirement System; And To Amend The Provisions Concerning The Tier Two Deferred Retirement Option Plan Under The State Police Retirement System.
In membership, contributions and benefits, further providing for member's options, for death benefits and for payment of benefits from the system; in administration and miscellaneous provisions, further providing for duties of board regarding applications and elections of members and participants and for rights and duties of school employees, members and participants; in benefits, further providing for member's options, for death benefits and for payment of benefits from the system; and, in administration, funds, accounts, general provisions, further providing for duties of board regarding applications and elections of members and participants and for rights and duties of State employees, members and participants.
Property tax: assessments; transfer of ownership of certain real property to certain individuals; exempt from uncapping of taxable value upon transfer. Amends sec. 27a of 1893 PA 206 (MCL 211.27a).
Property tax: other; certain references in the general property tax act; make gender neutral. Amends sec. 27a of 1893 PA 206 (MCL 211.27a). TIE BAR WITH: HJR F'23
Property tax: assessments; transfer of ownership of certain real property to certain individuals; exempt from uncapping of taxable value upon transfer. Amends sec. 27a of 1893 PA 206 (MCL 211.27a).
Property tax: assessments; transfer of ownership of certain real property to certain individuals; exempt from uncapping of taxable value upon transfer. Amends sec. 27a of 1893 PA 206 (MCL 211.27a).
Establishes survivor support liaison in Department of Treasury to assist beneficiaries of emergency responders who die in line of duty; "designated as Captain Augusto Acabou's, Wayne Brooks', and Plainfield Firefighter Marques Hudson's act"; appropriates $1,000,000.
Establishes survivor support liaison in Department of Treasury to assist beneficiaries of emergency responders who die in line of duty; "designated as Captain Augusto Acabou's, Wayne Brooks', and Plainfield Firefighter Marques Hudson's act"; appropriates $1,000,000.