CHAPTER 129
SB 417-FN-LOCAL - FINAL VERSION
2/3/00....3060s
2000 SESSION
10/09
SENATE BILL 417-FN-LOCAL
AN ACT allowing a beneficiary of an optional allowance under the New Hampshire retirement system to renounce his or her benefits.
This bill allows a person named as a beneficiary of an optional allowance elected by a member of the retirement system, to renounce his or her benefits. The value of the renounced interest reverts to the retired member.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
2/3/00....3060s
00-2662
10/09
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand
AN ACT allowing a beneficiary of an optional allowance under the New Hampshire retirement system to renounce his or her benefits.
Be it Enacted by the Senate and House of Representatives in General Court convened:
129:1 Optional Allowances; Renunciation by Beneficiary. Amend RSA 100-A:13, II to read as follows:
II.(a) Any retired member who has elected option 2, 3, or 4, and whose beneficiary nominated by the retiree under such option was the retiree's spouse at the time of such election, may terminate such elected option upon the issuance of a divorce decree and subsequent remarriage of the former spouse. Upon termination, the allowance received under the elected option shall be converted to the retirement allowance that would have been payable in the absence of such election. Any supplemental allowance, or COLAs, granted to the retiree and effective before the date of termination of the option shall continue in effect and shall not be adjusted as a result of the termination. Notice of such termination shall be given by the retiree on a form designated by the board. Payment of the converted allowance shall commence on the first day of the month following receipt of termination by the board. For any retiree whose divorce and the subsequent remarriage of the former spouse occurred on or before July 1, 1990, the notice shall be given to the board on or before October 1, 1990. Said termination action shall become effective on the first day of the month following receipt of such notice by the board. If the retiree dies after giving valid notice of such termination but before the effective date, the option shall terminate as of the date of the retiree's death.
(b) Where a retired member has elected option 2, 3, or 4, and has designated a single beneficiary, the beneficiary may at any time voluntarily renounce his or her right to any future benefits by signing and filing with the board a form designated by the board. Upon such renunciation, the allowance received under the elected option shall be converted to the retirement allowance that would have been payable in the absence of such election. Any supplemental allowance, or COLAs, granted to the retiree and effective before the date of renunciation of the option shall continue in effect and shall not be adjusted as a result of the renunciation. The renunciation shall become effective, and payment of the converted allowance shall commence, on the first day of the month following receipt of the signed form by the board. If the retiree dies after the board's receipt of such renunciation but before the effective date, the option shall terminate as of the date of the retiree's death.
129:2 Effective Date. This act shall take effect upon its passage.
(Approved: May 8, 2000)
(Effective Date: May 8, 2000)
LBAO
00-2662
Revised 1/11/00
SB 417 FISCAL NOTE
AN ACT allowing a beneficiary of an optional allowance under the New Hampshire retirement system to renounce his or her benefits.
FISCAL IMPACT:
The N.H. Retirement System indicates this bill will have no fiscal impact on state, county and local revenue or expenditures.
METHODOLOGY:
The System indicates this bill will result in insignificant cost savings to the System.
The System states that this bill allows a person named as a beneficiary of an optional retirement allowance elected by a member of the System to voluntarily renounce his or her right to a future benefit. The benefit payable to the member will be converted into the no option allowance. The savings to the System will be the difference between the no option allowance and the optional allowance for each month that the optional allowance was paid, which will be minimal. The System indicates that there is no administrative expense associated with this legislation.
The Actuary's letter is on file in the bill jacket in the Senate Clerk's Office.