H.B. 1194 Summary

• Allows members who remarry after a spouse's death to nominate a new spouse as beneficiary within 120 days of remarriage under certain retirement benefit options.

• Permits members who divorce to revoke their spouse beneficiary nomination and elect a new retirement benefit option, with benefits recalculated as actuarially equivalent.

• Adds language clarifying Option 4 (Social Security adjustment) becomes effective "as of the first of the month following the month of initial entitlement" to Social Security benefits.

• Modifies contribution penalty provisions to specify the 1% monthly penalty is "in lieu of interest" and allows the Board to waive one penalty per employer every five years if consistent good-faith compliance is demonstrated.

• Expands death benefits for retired members to allow designation of any beneficiary (not just spouse) effective January 1, 2015, and requires annual reporting on supplemental insurance offerings to retirees.

• Adds liability immunity protections for Board of Trustees members serving on Teachers' and State Employees' Retirement System and Local Governmental Employees' Retirement System.

• Specifies that domestic relations orders entered on or after January 1, 2015 limit former spouse payment to their lifetime, with benefits reverting to the member upon the former spouse's death.