SENATE, No. 1340

 

STATE OF NEW JERSEY

 

INTRODUCED JUNE 20, 1996

 

 

By Senator CIESLA

 

 

An Act concerning the revocation of certain retirement allowance elections and supplementing chapter 66 of Title 18A of the New Jersey Statutes and P.L.1954, c.84 (C.43:15A-1 et seq.).

 

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

    1. Notwithstanding the provisions of any law, rule or regulation to the contrary, if the spouse of a retiree under the Teachers' Pension and Annuity Fund dies and if the retiree is receiving a reduced retirement allowance because of the election of an option at the time of retirement to provide for a benefit to that spouse upon the retiree's death, the retiree may revoke that election and elect to receive instead the maximum allowance to which the retiree would have been entitled at the time of retirement plus any applicable cost of living adjustments. Revocation of the previous election and election of the maximum allowance shall be made on such forms as the Division of Pensions and Benefits shall provide. Payment of the maximum allowance shall commence with the first monthly payment which follows the 60th day after the date of revocation and shall not be retroactive to the retiree's retirement date.

 

    2. Notwithstanding the provisions of any law, rule or regulation to the contrary, if the spouse of a retiree under the Public Employees' Retirement System dies and if the retiree is receiving a reduced retirement allowance because of the election of an option at the time of retirement to provide for a benefit to that spouse upon the retiree's death, the retiree may revoke that election and elect to receive instead the maximum allowance to which the retiree would have been entitled at the time of retirement plus any applicable cost of living adjustments. Revocation of the previous election and election of the maximum allowance shall be made on such forms as the Division of Pensions and Benefits shall provide. Payment of the maximum allowance shall commence with the first monthly payment which follows the 60th day after the date of revocation and shall not be retroactive to the retiree's retirement date.


    3. This act shall take effect immediately.

 

 

STATEMENT

 

    This bill provides that if the spouse of a retiree under the Teachers' Pension and Annuity Fund (TPAF) or the Public Employees' Retirement System (PERS) dies and if the retiree is receiving a reduced retirement allowance because of the election of an option at the time of retirement to provide for a benefit to that spouse upon the retiree's death, the retiree may revoke that election and elect to receive instead the maximum allowance to which the retiree would have been entitled at the time of retirement plus any applicable cost of living adjustments. Revocation of the previous election and election of the maximum allowance shall be made on such forms as the Division of Pensions and Benefits shall provide. Payment of the maximum allowance shall commence with the first monthly payment which follows the 60th day after the date of revocation and shall not be retroactive to the retiree's retirement date. The maximum allowance stops at the death of the retiree and does not provide for continued survivorship benefits.

 

 

                             

Allows certain retirees to revoke a reduced retirement allowance election and receive a maximum allowance instead.