Sec. 1. 5 MRSA §17805-A, sub-§1, as amended by PL 1995, c. 604, §3, is repealed and the following enacted in its place:

1.__Election of benefit for different beneficiary.__The recipient may elect to have the reduced retirement benefit paid under the same option to a different beneficiary if the spouse or former spouse who was originally named as retirement beneficiary was the sole beneficiary of the reduced retirement benefit under section 17804, subsection 3, 4 or 5.

Sec. 2. 5 MRSA §18405-A, sub-§1, as amended by PL 1995, c. 604, §6, is repealed and the following enacted in its place:

1.__Election of benefit for different beneficiary.__The recipient may elect to have the reduced retirement benefit paid under the same option to a different beneficiary if the spouse or former spouse who was originally named as retirement beneficiary was the sole beneficiary of the reduced retirement benefit under section 18404, subsection 3, 4 or 5.

SUMMARY

Current law requires a recipient of reduced benefits under the Maine State Retirement System who desires to change the beneficiary of survivor benefits to obtain the agreement of the member's spouse or former spouse in the event of divorce if that person was originally named the beneficiary.

This bill repeals that requirement, allowing the recipient to name a new beneficiary after a divorce without obtaining the permission of the spouse originally named beneficiary.