AN ACT TO ALLOW FOR THE REVOCATION OF A RETIREMENT ALLOWANCE BENEFICIARY AND A NEW NOMINATION TO BE MADE AT ANY TIME.
Amends GS 135-5(g), concerning member election of optional allowance under the Teachers' and State Employees' Retirement System. Makes organizational changes to establish subdivisions. Moves existing language to clarify that a member is prohibited from changing the member's retirement benefit option after the member has cashed the first retirement check or after the 25th day of the month following the month in which the first check is mailed, whichever is earlier, except as provided. No longer provides for election until the date the first payment becomes normally due or until the member's first retirement check has been cashed; removes and replaces this language in the provisions governing revocation of nomination when a nominated person dies under specified elected Options, and instead mirrors the new standard limitation language. Adds a new provision to allow for the nomination of a person under Option, 2, 3, 5, or 6, to be revoked by the member and a new nomination made within 10 years of the member's date of retirement. Makes a new nomination under this provision effective on the first day of the month in which it is made and provides for the retirement allowance computed to be the actuarial equivalent of the retirement allowance in effect immediately prior to the effective date of the new nomination. Removes the limitation language from the provision concerning revocation of a nomination of a spouse following divorce under specified elected Options. Makes further conforming and clarifying changes.
Applies to all benefit option elections or nominations made on or after the date the act becomes law, including benefit option change requests and nomination change requests made by members already receiving retirement allowances that are received on or after that date.