SB1004 - 452R - House Bill Summary

House of Representatives

SB 1004

ASRS; spousal consent

Sponsors: Senators Smith, Cirillo

X	Committee on Retirement and Government Operations
	Caucus and COW
	Third Read	This bill as introduced contains *an Appropriation clause.*
	As Passed the House

SB 1004 requires Arizona State Retirement System (ASRS) members to obtain their current spouses’ consent when naming or changing a beneficiary or contingent annuitant if that beneficiary or contingent annuitant is not the member’s spouse.

History

A beneficiary is a person designated to receive the income of a member’s benefits upon the member’s death. This amount and length of benefit may vary. A.R.S. §38-711 states that a contingent annuitant is a type of beneficiary that will continue to receive the retirement income of a member even after the member dies. A.R.S. §38-755 allows members of ASRS to change their beneficiary at any time. This change must be submitted on forms provided by the Board of Directors for ASRS.

Provisions

· Requires ASRS members to obtain their current spouses’ consent before naming a beneficiary other than their current spouse and before changing the beneficiary from their current spouse to someone other than their current spouse.

· Specifies that the member shall obtain the consent of the contingent annuitant if the member’s current spouse is their contingent annuitant, before the member names a new contingent annuitant, rescinds the election of joint and survivor annuity, rescinds the election of a period certain and life annuity, or again elects a period certain and life annuity.

· Stipulates that if a member is not married at the time of retirement, the member shall receive a monthly life annuity, unless the member elects an optional form of benefit.

· Stipulates that if a member is married at the time of retirement, the member shall receive a monthly benefit in the form of a joint and survivor annuity and the member’s spouse shall be the contingent annuitant unless the spouse waives the right and consents to the member’s election.

· States that if the married member does not elect a type of joint and survivor annuity for the member’s spouse, the spouse’s contingent amount is ½ of the retirement income.

· States that any member who retires after August 9, 2001 may rescind the election of a period certain and life annuity.

· Mandates that a if a member has a current spouse, the spouse shall sign the following:

1. A member’s enrollment form.

2. Application for refund form.

3. Retirement application.

4. Change of beneficiary form or change of contingent annuitant.

5. Period certain form.

This acknowledges that the spouse consents to or waives the retirement option elected or beneficiary designation made by the member unless the member affirms in writing, under penalty of perjury, one of the following:

1. The member is not married.

2. The member’s current spouse has no identifiable community property interest in the member’s benefits.

3. The member does not know, and has taken all reasonable steps to determine, the location of the member’s current spouse.

4. The member’s current spouse is not capable of executing the acknowledgement because of an incapacitating mental or physical condition.

· States that this section of law does not abrogate any community property laws.

· Specifies that payments or distributions made by ASRS in good faith reliance on the consent or waiver or a member’s spouse relieves ASRS of all liability respecting these payments or distributions.

· Contains an applicability section.

· Appropriates $125,558 from the ASRS Administration Account to ASRS for administrative implementation of this act.

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· 45th Legislature