Maine Legislature, Session 123, LD 1996
Committee: Labor
Sponsors: BENOIT, PRESCOTT, SNOWE-MELLO, GILES, STRANG BURGESS
Amends: 4 MRSA §1357, 5 MRSA §18404

Legislative Document 
No. 1996 
S.P.790 
December 18, 2007 
AD Act To AlIew Chauges of Beneficiaries under the Mable Public 
Empleyees Retirement System 
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
203. 
Received by the Secretary of the Senate on December 18, 2007. Referred to the Committee 
on Labor pursuant to Joint Rule 308.2 and ordered printed. 
Presented by Senator BENOIT of Sagadahoc. 
JOY J. O'BRIEN 
Secretary of the Senate 
Cosponsored by Representative PRESCOTT of Topsham and Senator: SNOWE-MELLO of 
Androscoggin, Representatives: GILES of Belfast, STRANG BURGESS of Cumberland. 
Printed on recycled peper 
Be it enacted by tile People of the State of Maine as follows: 
Sec. 1. 4 MRSA §1357, sub-§3, as enacted by PL 1999, c. 744, §2, is amended to 
read: 
3. Cbange of beaeficiary. If the recipient of a service retirement benefit has elected 
an optional method of payment under subsection 2, paragraphs B to H, and has 
designated someone other than a spouse or ex-spouse as sole beneficiary, the recipient ts 
permitted a ofle time may change ffi the designated beneficiary, but may not ffi change the 
already elected payment option or ffi the amount of the benefits under that option, by 
filing a written designation of the new beneficiary, duly notarized, with the executive 
director on a form provided or specified by the Maine Judicial Retirement System. The 
II 
change of beneficiary permitted by this subsection may only be made prior to the death of 
the prior designated beneficiary. 
A. 
The benefit payable to the recipient and the new beneficiary must be paid under 
the same payment option. The amount of the recipient's benefit may not change, and 
the amount of the new beneficiary'S benefit must be the same as the amount of the 
prior beneficiary's benefit. 
B. 
The effective date of the designation of the new beneficiary is the date the 
designation is received by the executive director. As of the first day of the month 
following the effective date of the designation of the new beneficiary, the prior 
beneficiary is no longer entitled to any benefit payment and, if concurrent payment 
under subsection 2, paragraph E has been elected, the new beneficiary'S benefit must 
become effective on the same date. 
C. 
The new beneficiary'S entitlement to benefits ceases on the earlier of: 
(l) The date of the new beneficiary's death; or 
(2) The date established when the amount of the prior beneficiary's benefit was 
established, which is the initial commencement date of benefits to the retiree 
increased by the life expectancy of the prior beneficiary computed in years and 
months using actuarial equivalence assumptions recommended by the system's 
actuary . 
Payment of benefits to the new beneficiary must cease as of the first day of the month 
following the earlier of subparagraph (1) or (2). 
Sec. 2. 5 MRS A §17804, sub-§5-F, as amended by PL 1999, c. 790, Pt. K, § I 
and affected by §5, is further amended to read: 
5-F. Cbange of beneficiary. If the recipient of a service retirement benefit has 
elected an optional method of payment under subsection 3,4, 5, 5-A, 5-8, 5-C, 5-D or 5-
36-
E, and has designated someone other than a spouse or ex-spouse as sole beneficiary, the 
recipient is permitted a ORe time may change ffi the designated beneficiary, but !!lID: not 
ffi change the already elected payment option or ffi the amount of the benefits under that 
option, by filing a written designation of the new beneficiary, duly notarized, with the 
executive director on a form provided or specified by the retirement system. The change 
Page I - 123LRJ094(OI)-l 
of beneficiary pennitted by this subsection may only be made prior to the death of the 
prior designated beneficiary. 
A. 
The benefit payable to the recipient and the new beneficiary must be paid under 
the same payment option. The amount of the recipient's benefit may not change, and 
the amount of the new beneficiary's benefit must be the same as the amount of the 
prior beneficiary's benefit. 
B. 
The effective date of the designation of the new beneficiary is the date the 
designation is received by the executive director. As of the first day of the month 
following the effective date of the designation of the new benefICiary, the prior 
beneficiary is no longer entitled to any benefit payment and, if concurrent payment 
1 
under subsection 5-B has been elected, the new beneficiary's benefit must become 
effective on the same date. 
C. 
The new beneficiary's entitlement to benefits ceases on the earlier of: 
(1) The date of the new beneficiary's death; or 
(2) The date established when the amount of the prior beneficiary's benefit was 
established, which is the initial commencement date of benefits to the retiree 
increased by the life expectancy of the prior beneficiary computed in years and 
months using actuarial equivalence assumptions recommended by the system's 
actuary. 
Payment of benefits to the new beneficiary must cease as of the first day of the month 
following the earlier of subparagraph (1) or (2). 
Sec. 3. 5 MRSA §18404, sub-§5-F, as amended by PL 1999, c. 790, Pt. K, §2 
and affected by §5, is further amended to read: 
5-F. Change of beneficiary. If the recipient of a service retirement benefit has 
elected an optional method of payment under subsection 3, 4, 5, 5-A, 5-B, 5-C; 5-D or 5-
E, and has designated someone other than a spouse or ex-spouse as sole beneficiary, the 
recipient is peAllitted a one time may change ffi the designated beneficiary, but may not 
to change the already elected payment option or to the amount of the benefits under that 
option, by filing a written designation of the new beneficiary, duly notarized, with the 
executive director on a fonn provided or specified by the retirement system. The change 
of beneficiary pennitted by this subsection may only be made prior to the death of the 
prior designated beneficiary. 
A. 
The benefit payable to the recipient and the new beneficiary must be paid under 
the same payment option. The amount of the recipient's benefit may not change, and 
the amount of the new beneficiary'S benefit must be the same as the amount of the 
prior beneficiary'S benefit. 
B. 
The effective date of the designation of the new beneficiary is the date the 
designation is received by the executive director. As of the first day of the month 
following the effective date of the designation of the new beneficiary, the prior 
beneficiary is no longer entitled to any benefit payment and, if concurrent payment 
under subsection 5-B has been elected, the new beneficiary'S benefit must become 
effective on the same date. 
C. 
The new beneficiary's entitlement to benefits ceases on the earlier of: 
(I) The date of the new beneficiary's death; or 
(2) The date established when the amount of the prior beneficiary's benefit was 
established, which is the initial commencement date of benefits to the retiree 
increased by the life expectancy of the prior beneficiary computed in years and 
months using actuarial equivalence assumptions recommended by the system's 
actuary. 
Payment of benefits to the new beneficiary must cease as of the first day of the month 
following the earlier of subparagraph (1) or (2). 
SUMMARY 
Current law allows a retiree to make a one-time change of the retiree's previously 
designated beneficiary for retirement benefits without the permission of the beneficiary if 
the beneficiary is not the spouse or former spouse of the retiree. This bill would allow a 
retiree to change a previously designated beneficiary more than once.