Requires spousal consent to election of certain pension payout options under TPAF, JRS and PERS.
Impact
The bill, once enacted, will alter existing state laws regarding pension elections by establishing that any retirement option allowing for payments only during the member's lifetime or any option yielding less than half of the retirement allowance to the spouse requires the spouse's written consent. This change is aimed at safeguarding spousal rights and ensuring that family financial planning incorporates both partners’ interests. The bill harmonizes state law with federal standards as laid out in the Employees Retirement Income Security Act (ERISA), reinforcing protections for spouses in retirement planning.
Summary
Senate Bill S1533 requires spousal consent for certain pension payout options under the Teachers' Pension and Annuity Fund (TPAF), Judicial Retirement System (JRS), and Public Employees' Retirement System (PERS). This legislation aims to ensure that spouses are informed and consent to benefit elections that provide minimal or no financial support to them after the member's death. Under the current law, members who select retirement benefits payable solely during their lifetime without offering any refunds to their spouses must notify their spouses, but there is no requirement for written consent from the spouse. This bill amends that requirement to mandate consent for particular scenarios.
Contention
Points of contention surrounding S1533 may arise from differing perspectives on individual autonomy versus spousal rights in retirement planning. Proponents of the bill argue that requiring spousal consent protects families and ensures informed decision-making, preventing situations where a member may inadvertently neglect their spouse's financial needs post-retirement. Conversely, opponents may argue that it encroaches on personal freedom and complicates the retirement choices of individuals, suggesting that such decisions should not require external approval. The framing of this bill may lead to discussions about the balance between regulatory oversight and personal choice in financial matters.
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: 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).
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.