FINAL BILL REPORT

HB 1719

                                  C 191 L 89

BYRepresentatives Hine, Silver and D. Sommers; by request of  Department of Retirement Systems

Providing for disposition of excess retirement benefits upon death of the recipient.

House Committe on Appropriations

Senate Committee on Ways & Means

SYNOPSIS AS ENACTED

BACKGROUND:

Persons who retire on a service retirement under Plan II provisions of the Public Employee's Retirement System, Teachers' Retirement System, and Law Enforcement Officers and Fire Fighters Retirement System, may choose from several options with respect to the pay out of their benefit.  If they select the single life option and die before the total allowance paid to them equals the value of their accumulated contributions, a refund of the balance of their accumulated contributions is made either to a person designated by the retiree or to the estate.

For persons who retire on an earned disability, current law does not provide for any refund of accumulated contributions if the person dies prior to recovering earned disability payments equal to the value of accumulated contributions.  Accumulations are retained by the retirement system.

Accumulated contributions are the monies contributed by the employee during active employment, plus interest.

SUMMARY:

The balance of accumulated contributions for Plan II earned disability retirees must be refunded if the retiree dies before the earned disability payments equal the value of accumulated contributions.  This applies to members of the Public Employee's Retirement System, Teachers' Retirement System, and Law Enforcement Officers and Fire Fighters Retirement System.

VOTES ON FINAL PASSAGE:

      House 98   0

      Senate    45     0

EFFECTIVE:April 27, 1989