2. Limitations. If a member designates as beneficiaries 2 or more persons, all must meet the requirements of one, and only one, of the subparagraphs of subsection 1, paragraph A,; otherwise their eligibility to receive a benefit under this article shall be is limited to section 17953, subsection 1 1-A or section 17954.

3.__Waiver by spouse.__The spouse of a qualifying member may waive designation as the sole beneficiary or as a beneficiary by filing a waiver with the board.__The waiver must be in writing on forms provided by the board.

Sec. 3. 5 MRSA §17953, sub-§1, as amended by PL 1991, c. 469, §2 and c. 619, §10 and affected by §18, is repealed.

Sec. 4. 5 MRSA §17953, sub-§§1-A and 1-B are enacted to read:

1-A. Refund of contributions.__The amount of the qualifying member's accumulated contributions, as determined under section 17705, is paid:

A.__To the qualifying member's spouse, if any, unless that spouse has waived designation as a beneficiary pursuant to section 17952, subsection 3;

B.__To the qualifying member's designated beneficiary, if any;

C.__If the qualifying member is not survived by a spouse or other designated beneficiary, to the first listed of the following relatives alive at the time of the qualifying member's death:

(1)__A child or children, regardless of age, sharing equally among themselves; or

(2)__The older parent; or

D.__To the qualifying member's estate.

1-B.__Refund of contributions.__The amount of the qualifying member's accumulated contributions is paid:

A.__To the qualifying member's spouse, if any, unless that spouse has waived designation as a beneficiary pursuant to section 17952, subsection 3;

B.__To the qualifying member's designated beneficiary, if any;

C.__If the qualifying member is not survived by a spouse or designated beneficiary, to the first listed of the following relatives alive at the time of the qualifying member's death:

(1) A child or children, regardless of age, sharing equally among themselves; or

(2)__The older parent; or

D.__To the qualifying member's estate.

Sec. 5. 5 MRSA §17953, sub-§2, ķA, as amended by PL 1991, c. 469, §2, is repealed and the following enacted in its place:

A.__Instead of accepting the payment provided in subsection 1-A, the first listed of the following persons who are living at the time of death of the qualifying member may elect the benefits described in subsections 3 to 5-B:

(1)__The spouse, if any;

(2)__The designated beneficiary, if any; or

(3)__If the qualifying member is not married and no beneficiary is designated, the dependent child or dependent children, or the parent or parents.

Sec. 6. 5 MRSA §17953, sub-§5-B, as enacted by PL 1991, c. 469, §2, is amended to read:

5-B. Reduced retirement benefits. Beginning July 1, 1993, instead of accepting the benefits under subsection 1 1-A or 2, the first listed person under paragraph A living at the time of death of the qualifying member may elect the benefits in this subsection.

A. The persons eligible to make the election under this subsection are the qualifying member's:

(1) Designated beneficiary Surviving spouse;

(2) Surviving spouse Designated beneficiary;

(3) Child or children; or

(4) Parent or parents.

B. Benefits under this subsection are paid as follows.

(1) The benefit is computed in accordance with section 17852, subsection 3, if applicable, as if the service retirement of the qualifying member had taken place on the date of the member's death.

(2) The beneficiary is paid beginning on the first day of the month after the death of the qualifying member and continuing until the last day of the month in which the beneficiary's death occurs.

(3) Benefits under this subsection are paid in accordance with section 17804, subsection 3.

C. If the monthly benefit payable under this subsection is $10 or less, in lieu of those payments a lump sum that is the actuarial equivalent of the benefit to which the beneficiary is entitled must be paid on the date the first monthly payment would otherwise be paid. A beneficiary who receives a lump sum payment under this subsection does not forfeit any other benefit to which the member would be entitled if the member were receiving a monthly benefit payment.

Sec. 7. 5 MRSA §17953, sub-§9, as amended by PL 1991, c. 469, §2, is further amended to read:

9. Defeat of survivor's option. A qualifying member may specify that the refund of the member's accumulated contributions be paid to a designated beneficiary or to the qualifying member's estate in lieu of any payment to survivors under subsections 3 4 to 5-B by filing an affidavit expressing that intent with the executive director. If the qualified member is married, this subsection does not apply unless the member's spouse has waived designation as the sole beneficiary pursuant to section 17952, subsection 3.

Sec. 8. 5 MRSA §17953, sub-§11, as enacted by PL 1991, c. 469, §2, is amended to read:

11. Special options. Instead of accepting the payment provided in subsection 1 1-A, 2, 5-A or 5-B, a beneficiary may elect to receive benefits under section 17852, subsection 4, paragraph A; section 17852, subsection 5 or 6; or article 5.

A. To elect these benefits, both the qualifying member and the beneficiary must comply with each requirement of those provisions.

B. If an election is not made under this subsection, benefits payable under this section are in lieu of any benefits payable under section 17852, subsection 4, paragraph A; section 17852, subsection 5 or 6; or article 5.

Sec. 9. Contingent effective date. That section of this Act that enacts the Maine Revised Statutes, Title 5, section 17953, subsection 1- B takes effect only if 26 Code of Federal Regulations, Part 31 is amended in a way that the retirement laws in effect on December 15, 1991 related to part-time, seasonal or temporary employees comply with federal law without requiring the State to contribute to the United States Social Security System for those employees. If such a change in federal law is enacted, the Executive Director of the Maine State Retirement System shall immediately notify the joint standing committee of the Legislature having jurisdiction over legal and veterans affairs. Upon this notification by the executive director, Title 5, section 17953, subsection 1-B takes effect.

Sec. 10. Contingent repeal. If 26 Code of Federal Regulations, Part 31 is amended in a way that the retirement laws in effect on December 15, 1991 related to part-time, seasonal or temporary employees comply with federal law without requiring the State to contribute to the United States Social Security System for those employees, the Executive Director of the Maine State Retirement System shall immediately notify the joint standing committee of the Legislature having jurisdiction over legal and veterans affairs. Upon this notification by the executive director, the Maine Revised Statutes, Title 5, section 17953, subsection 1-A is repealed.

SUMMARY

This bill amends the provisions of the Maine State Retirement System to require that all benefits paid on the death of a participating member are paid to the surviving spouse of that member. The spouse of a member may waive this requirement by filing a waiver with the Board of Trustees of the Maine State Retirement System. If the participating member is not married, then the beneficiary designated by that member receives the benefits.