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S4429
SENATE, No. 4429
STATE OF NEW JERSEY
222nd LEGISLATURE
�
INTRODUCED JUNE 8, 2026
Sponsored by:
Senator� TROY SINGLETON
District 7 (Burlington)
SYNOPSIS
���� Permits TPAF and PERS retirees to change named
beneficiary upon death of previously named beneficiary.
CURRENT VERSION OF TEXT
���� As introduced.
��
An Act
concerning optional survivor benefits for retirees of
the Teachers� Pension and Annuity Fund and
the
Public Employees� Retirement System and amending N.J.S.18A:66-47
and P.L.1954, c.84.
����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:
���� 1.� N.J.S.18A:66-47 is amended
to read as follows:
���� 18A:66-47.� At the time of
retirement a member shall receive benefits in a retirement allowance payable
throughout life, or the member may on retirement elect to receive the actuarial
equivalent of the member's retirement allowance, in a lesser retirement
allowance payable throughout life, with the provision that:
���� Option 1.� If the member dies
before the member has received in payments the present value of the retirement
allowance as it was at the time of retirement, the balance shall be paid to a
legal representative or to such person as the member shall nominate by written
designation acknowledged and filed with the retirement system, either in lump
sum or by equal payments over a period of years at the option of the payee.� If
the member shall have designated a natural person as a payee, said payee may
elect to receive such payments in the form of a life annuity.�
If the payee
initially designated by the member dies before the member and after the date of
the member�s retirement, the member shall be permitted to name another payee in
accordance with subsection e. of this section.
���� Option 2.� Upon the member's
death, the member's retirement allowance shall be continued throughout the life
of and paid to such person as the member shall nominate by written designation
duly acknowledged and filed with the retirement system at the time of
retirement.�
If the person designated by the member dies before the member
and after the date of the member�s retirement, the member shall be permitted to
name another designee in accordance with subsection e. of this section.
���� Option 3.� Upon the member's
death, one-half of the member's retirement allowance shall be continued
throughout the life of and paid to such person as the member shall nominate by
written designation duly acknowledged and filed with the retirement system at
the time of retirement.�
If the person designated by the member dies before
the member and after the date of the member�s retirement, the member shall be
permitted to name another designee in accordance with subsection e. of this
section.
���� Option 4.� Some other benefit
or benefits shall be paid either to the member or to whomever the member
nominates, if such other benefit or benefits, together with the lesser
retirement allowance, shall be certified by the actuary to be of equivalent
actuarial value.� In no case, however, shall the lesser retirement allowance be
smaller than that provided under Option 2.�
If the person nominated by the
member to receive a benefit or benefits dies before the member and after the
member�s retirement date, the member shall be permitted to nominate another
person to receive such benefit or benefits in accordance with subsection e. of
this section.
���� Option 5.� Some other benefit,
which is equivalent to the full amount, three-quarters, one-half or one-quarter
of the member's retirement allowance, shall be paid to whomever the member
nominates and if that nominee dies before the member, the
member shall have
the option to nominate another person in accordance with subsection e. of this
section, or if the member does not nominate another person the
member's
retirement allowance shall increase to the maximum retirement allowance for the
member's lifetime, provided that such other benefit together with the member's
lesser and maximum retirement allowances shall be certified by the actuary to
be of equivalent actuarial value.
���� If the total amount of
benefits paid to a retirant who does not elect to receive benefits in the form
of an optional settlement, or to the retirant and the designated beneficiary in
the case of a retirant who does so elect, before the death of the retirant or
the retirant and the beneficiary is less than the deductions accumulated in the
retirant's account at the time of retirement, including regular interest, the
balance shall be paid in one lump sum to the retirant's designated beneficiary
or estate in the manner provided in N.J.S.18A:66-48.
���� Except in the case of members
who have elected to receive (1) a deferred retirement allowance pursuant to
N.J.S.18A:66-36 or (2) early retirement allowances pursuant to N.J.S.18A:66-37
after separation from service pursuant to N.J.S.18A:66-36, if a member dies
within 30 days after the date of retirement or the date of board approval,
whichever is later, the member's retirement allowance shall not become
effective and the member shall be considered an active member at the time of
death.� However, if the member dies after the date the application for
retirement was filed with the system, the retirement will become effective if:
���� a. �� (Deleted by amendment,
P.L.1995, c.221);
���� b. �� (Deleted by amendment,
P.L.1995, c.221);
���� c. �� The deceased member had
designated a beneficiary under an optional settlement provided by this section;
and
���� d. �� The surviving
beneficiary requests in writing that the board make such a selection.� Upon
formal action by the board approving that request, the request shall become
irrevocable.
���� The board may select an Option
3 settlement, on behalf of the beneficiary of a member who applied for and was
eligible for retirement but who died prior to the effective date of the
retirement allowance, if all of the above conditions, with the exception of c.,
are met.
����
e.���� If the beneficiary designated
by a member dies before the member and after the member�s retirement date, the member
shall be permitted to designate a new beneficiary by submitting a form to the
Division of Pensions and Benefits, which shall be developed by the division.
����
After receiving the
completed form, and any accompanying documentation which the division may
require, the division shall recalculate the allowance or benefits payable to
the member, a beneficiary, or both such that the actuarial value of the allowance
or benefits payable on the date the new designation becomes effective is
equivalent to the actuarial value of the allowance or benefits payable on that
date under the previous beneficiary designation. �The system actuary shall
certify that the allowance or benefits are of equivalent actuarial value and
that the recalculation will not increase the unfunded liability of the system. �In
performing the recalculation pursuant to this subsection, the division may
consider: the present value of the maximum allowance or benefit prior to any
reduction, the age of the member at the time of the new beneficiary
designation, the age of the newly designated beneficiary, the option selected
by the member at the time of the member�s retirement, and any other factors
deemed appropriate by the division.
(cf: P.L.2001, c.120, s.1)
���� 2.� Section 50 of P.L.1954,
c.84 (C.43:15A-50) is amended to read as follows:
���� 50.� At the time of
retirement, a member shall receive benefits in a retirement allowance payable
throughout life, or the member may, on retirement, elect to receive the
actuarial equivalent of the member's retirement allowance, in a lesser
retirement allowance payable throughout life, with the provision that:
���� Option 1.� If the member dies
before the member has received in payments the present value of the retirement
allowance as it was at the time of retirement, the balance shall be paid to a
legal representative or to such person as the member shall nominate by written
designation acknowledged and filed with the retirement system, either in a lump
sum or by equal payments over a period of years at the option of the payee.� If
the member shall have designated a natural person as the payee, said payee may
elect to receive such payments in the form of a life annuity.�
If the payee
initially designated by the member dies before the member and after the
member�s retirement, the member shall be permitted to name another payee in
accordance with subsection e. of this section.
���� Option 2.� Upon the member's
death, the member's retirement allowance shall be continued throughout the life
of and paid to such person as the member shall nominate by written designation
duly acknowledged and filed with the retirement system at the time of
retirement.�
If the person designated by the member dies before the member and
after the member�s retirement, the retiree shall be permitted to name another
designee in accordance with subsection e. of this section.
���� Option 3.� Upon the member's
death, one-half of the member's retirement allowance shall be continued
throughout the life of and paid to such person as the member shall nominate by
written designation duly acknowledged and filed with the retirement system at
the time of retirement.�
If the person designated by the member dies before
the member and after the member�s retirement, the member shall be permitted to
name another designee in accordance with subsection e. of this section.
���� Option 4.� Some other benefit
or benefits shall be paid either to the member or to whomever the member
nominates, if such other benefit or benefits, together with the lesser
retirement allowance, shall be certified by the actuary to be of equivalent
actuarial value.� In no case, however, shall the lesser retirement allowance be
smaller than that provided under Option 2.�
If the person nominated by the
member to receive a benefit or benefits dies before the member and after the
member�s retirement date, the member shall be permitted to nominate another
person to receive such benefit or benefits in accordance with subsection e. of
this section.
���� Option 5.� Some other benefit,
which is equivalent to the full amount, three-quarters, one-half or one-quarter
of the member's retirement allowance, shall be paid to whomever the member
nominates and if that nominee dies before the member, the
member shall have
the option to nominate another person in accordance with subsection e. of this
section, or if the member does not nominate another person the
member's
retirement allowance shall increase to the maximum retirement allowance for the
member's lifetime, provided that such other benefit together with the member's
lesser and maximum retirement allowances shall be certified by the actuary to
be of equivalent actuarial value.�
���� If the total amount of
benefits paid to a retirant who does not elect to receive benefits in the form
of an optional settlement, or to the retirant and the designated beneficiary in
the case of a retirant who does so elect, before the death of the retirant or
the retirant and the beneficiary is less than the deductions accumulated in the
retirant's account at the time of retirement, including regular interest, the
balance shall be paid in one lump sum to the retirant's designated beneficiary
or estate in the manner provided in section 51 of P.L.1954, c.84 (C.43:15A-51).
���� Except in the case of members
who have elected to receive (1) a deferred retirement allowance pursuant to
section 38 of P.L.1954, c.84 (C.43:15A-38) or (2) early retirement allowances
pursuant to subsection b. of section 41 of P.L.1954, c.84 (C.43:15A-41) after
separation from service pursuant to section 38, if a member dies within 30 days
after the date of retirement or the date of board approval, whichever is later,
the member's retirement allowance shall not become effective and the member
shall be considered an active member at the time of death.� However, if the
member dies after the date the application for retirement was filed with the
system, the retirement will become effective if:
���� a. �� (Deleted by amendment,
P.L.1995, c.221);
���� b. �� (Deleted by amendment,
P.L.1995, c.221);
���� c. �� The deceased member had
designated a beneficiary under an optional settlement provided by this section;
and
���� d. �� The surviving
beneficiary requests in writing that the board make such a selection.� Upon
formal action by the board approving that request, the request shall be
irrevocable.
���� The board may select an Option
3 settlement, on behalf of the beneficiary of a member who applied for and was
eligible for retirement but who died prior to the effective date of the
retirement allowance, if all of the above conditions, with the exception of c.,
are met.
����
e.���� If the beneficiary designated
by a member dies before the member and after the member�s retirement date, the member
shall be permitted to designate a new beneficiary by submitting a form to the
Division of Pensions and Benefits, which shall be developed by the division.
����
After receiving the
completed form, and any accompanying documentation which the division may
require, the division shall recalculate the allowance or benefits payable to
the member, a beneficiary, or both such that the actuarial value of the
allowance or benefits payable on the date the new designation becomes effective
is equivalent to the actuarial value of the allowance or benefits payable on that
date under the previous beneficiary designation.� The system actuary shall
certify that the allowance or benefits are of equivalent actuarial value and
that the recalculation will not increase the unfunded liability of the system.�
In performing the recalculation pursuant to this subsection, the division may
consider: the present value of the maximum allowance or benefit prior to any
reduction, the age of the member at the time of the new beneficiary
designation, the age of the newly designated beneficiary, the option selected
by the member at the time of the member�s retirement, and any other factors
deemed appropriate by the division.
(cf: P.L.2001, c.120, s.2)
���� 3. �This act shall take effect
90 days following the date of enactment.
STATEMENT
���� This bill permits retired
members of the Teachers� Pension and Annuity Fund (TPAF) and the Public
Employees� Retirement System (PERS) to change their named beneficiary if, after
the member�s retirement date, the retired member�s designated beneficiary dies
before the retired member.
���� Under current law, TPAF and
PERS members must select one of nine retirement options, some of which provide
certain survivor benefits which can be paid to the member�s designated
beneficiary.� However, under most of these options, once a beneficiary is designated,
the beneficiary cannot be changed following the member�s retirement.
���� �Under this bill, for all
retirement options, if the beneficiary designated by a member dies before the
member after the member�s retirement date, the member will be permitted to designate
a new beneficiary by submitting a form to the Division of Pensions and
Benefits, which will be developed by the division.� After receiving the
completed form, and any accompanying documentation which may be required by the
division, the division will recalculate the allowance or benefits payable to
the member, a beneficiary, or both such that the actuarial value of the allowance
or benefits payable on the date the new designation becomes effective is
equivalent to the actuarial value of the allowance or benefits payable on that
date under the previous beneficiary designation.�
���� Under the bill, the system
actuary must certify that the allowance or benefits are of equivalent actuarial
value and that the recalculation will not increase the unfunded liability of
the system.� In performing the recalculation, the division may consider: the
present value of the maximum allowance or benefit prior to any reduction, the
age of the member at the time of the new beneficiary designation, the age of
the newly designated beneficiary, the option selected by the member at the time
of the member�s retirement, and any other factors deemed appropriate by the division.