DE HB398

Adds grandchildren as eligible survivors to receive survivor's pension benefits from the State Employees' Pension Plan if the employee had court-ordered guardianship of the grandchild.

Grandchildren must meet age and status requirements: be unmarried and either under age 18, between 18-22 and attending full-time school, or over 18 with a permanent disability that began before age 18.

Grandchildren are eligible only if there is no eligible widow, widower, child, or other higher-priority survivors, making them fourth in the priority order for survivor pension benefits.

Extends survivor pension termination provisions to grandchildren, specifying pensions cease when the grandchild dies or no longer meets eligibility conditions.

Allows widows or widowers caring for a grandchild (in addition to children) to avoid actuarial reduction of their survivor pension benefits during that period of care.