H.B. 2054 Summary

• Expands retirement benefit options for Teachers' and State Employees' Retirement System and Local Governmental Employees' Retirement System members to include Option 6, allowing members to elect Options 2 or 3 with automatic reversion to unreduced benefits if designated beneficiary predeceases the member.

• Modifies survivor's alternate benefit eligibility by clarifying conditions apply to members who have not commenced receiving retirement allowances and establishing that "one and only one beneficiary is eligible" rather than requiring a single designated principal beneficiary.

• Extends response time for retirement benefit elections from 90 to 120 days after preliminary option figures are mailed, with an additional 120-day deadline after the effective date of retirement, whichever is later.

• Allows remarried members and divorced members to request new beneficiary designations for surviving spouse benefits and to revoke nominations after spousal death or divorce, respectively.

• Makes technical corrections regarding disability benefit eligibility, compensation reporting for wrongful demotions, Special Retirement Allowance transfers (allowing partial transfers of eligible contributions), and clarification of death benefits for retired members receiving benefits from the Supplemental Retirement Income Plan.

• Effective July 1, 2010.