Sec. 1. 5 MRSA §17804, sub-§5-G is enacted to read:

5-G.__Death of beneficiary.__Notwithstanding any other provision of this Part, if a qualifying member has elected an option under subsection 3 or 4 and the beneficiary named pursuant to that option predeceases the qualifying member, the qualifying member must receive the amount of service retirement benefits the qualifying member would have received had the qualifying member elected the option under subsection 1.__The revised service retirement benefits received by a qualifying member under this subsection begin the first day of the first month following the receipt by the retirement system of proof of death of the beneficiary.

Sec. 2. 5 MRSA §18404, sub-§5-G is enacted to read:

5-G.__Death of beneficiary.__Notwithstanding any other provision of this Part, if a qualifying member has elected an option under subsection 3 or 4 and the beneficiary named pursuant to that option predeceases the qualifying member, the qualifying member must receive the amount of service retirement benefits the qualifying member would have received had the qualifying member elected the option under subsection 1.__The revised service retirement benefits received by a qualifying member under this subsection begin the first day of the first month following the receipt by the retirement system of proof of death of the beneficiary.

Sec. 3. Application. This Act applies to a current or future qualifying member of the Maine State Retirement System who may choose or who has chosen an option under the Maine Revised Statutes, Title 5, section 17804, subsection 3 or 4 or Title 5, section 18404, subsection 3 or 4, including a qualifying member whose beneficiary named under the chosen option has predeceased the qualifying member prior to the effective date of this Act.

SUMMARY

This bill allows a qualifying member of the Maine State Retirement System who elects to receive reduced benefits in exchange for a beneficiary to continuing to receive benefits after the member dies, to revert to receiving full benefits if the named beneficiary predeceases the member. This bill applies to current and future members who have or may elect to receive reduced benefits, including current members who have chosen reduced benefits and whose beneficiaries have died before the effective date of this legislation.