MISSISSIPPI LEGISLATURE

1999 Regular Session

To: Finance

By: Senator(s) Furniss

AN ACT TO AMEND SECTION 25-13-16, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE BENEFICIARY OF A CERTAIN DECEASED RETIRED MEMBER OF THE HIGHWAY SAFETY PATROL RETIREMENT SYSTEM WHO RETIRED WITHOUT SELECTING AN OPTIONAL FORM OF BENEFIT PAYMENT, SHALL BE ENTITLED TO RECEIVE BENEFITS AS IF THE RETIRED MEMBER HAD SELECTED OPTION 2; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. Section 25-13-16, Mississippi Code of 1972, is amended as follows:

25-13-16. (1) Upon application for superannuation or disability retirement, any member who retires after July 1, 1990, may elect to receive his benefit pursuant to the provisions of Sections 25-13-11 and 25-13-13 or may elect to receive his benefit in a retirement allowance payable throughout life with no further payments to anyone at his death, except that in the event his total retirement payments under this article do not equal his total contributions under this article, his named beneficiary shall receive the difference in cash at his death. Or he may elect upon retirement, or upon becoming eligible for retirement, to receive the actuarial equivalent of his retirement allowance in a reduced retirement allowance payable throughout life with the provision that:

Option 1. If he dies before he has received in annuity payment the value of the member's annuity as it was at the time of his retirement, the balance shall be paid to his legal representative or to such person as he shall nominate by written designation duly acknowledged and filed with the board; or

Option 2. Upon his death, his reduced retirement allowance shall be continued throughout the life of, and paid to, such person as he has nominated by written designation duly acknowledged and filed with the board of trustees at the time of his retirement;

Option 3. Upon his death, one half (1/2) of his reduced retirement allowance shall be continued throughout the life of, and paid to, such person as he shall have nominated by written designation duly acknowledged and filed with the board of trustees at the time of his retirement, and the other one half (1/2) of his reduced retirement allowance to some other designated beneficiary;

Option 4-A. Upon his death, one half (1/2) of his reduced retirement allowance, or such other specified amount, shall be continued throughout the life of, and paid to, such person as he shall have nominated by written designation duly acknowledged and filed with the board of trustees at the time of his retirement; or

Option 4-B. A reduced retirement allowance shall be continued throughout the life of the retirant, but with the further guarantee of payments to the named beneficiary, beneficiaries or to the estate for a specified number of years certain. If the retired member or the last designated beneficiary receiving annuity payments dies prior to receiving all guaranteed payments due, the actuarial equivalent of the remaining payments would be paid to the estate of the retired member as intestate property.

Option 4-C. Such retirement allowance otherwise payable may be converted into a retirement allowance of equivalent actuarial value in such an amount that, with the member's benefit under Title II of the Federal Social Security Act, the member will receive, so far as possible, approximately the same amount annually before and after the earliest age at which the member becomes eligible to receive a social security benefit.

Option 5. With the added provision under Option 2 or Option 4-A that in the event the designated beneficiary predeceased the member, the retirement allowance payable to the member after the death of the designated beneficiary shall be equal to the retirement allowance which would have been payable had the member not elected the option.

(2) No change in the option selected shall be permitted after the member's death or after the member has received his first retirement check. Should a member retired on disability be returned to active service, the option previously selected shall be null and void. Upon subsequent retirement a new option may be selected.

(3) Any member in service who has qualified for retirement benefits may select any optional method of settlement of retirement benefits by notifying the Executive Secretary of the Board of Trustees of the Public Employees' Retirement System in writing, on a form prescribed by the board, of the option he has selected and by naming the beneficiary of such option and furnishing necessary proof of age. Such option, once selected, may be changed at any time prior to actual retirement or death, but upon the death or retirement of the member, the optional settlement shall be placed in effect upon proper notification to the executive secretary.

(4) Notwithstanding any provision of this section to the contrary, any beneficiary of a deceased retiree whose date of retirement was effective June 1, 1990 and whose death occurred May 30, 1997, and who retired without the benefit of selecting an optional form of benefit payment as provided under this section, shall be entitled to receive benefits, effective upon the effective date of Senate Bill No. 2443, 1999 Regular Session, as if the retired member had selected Option 2. (Such change in the optional form of payment for the surviving spouse shall not affect the rights of a dependent child receiving such benefits under Section 25-13-13.)

(5) For purposes of this section:

(a) "Beneficiary" means any person designated to receive a retirement allowance, an annuity or other benefit as provided by this chapter. Such designation shall be in writing filed in the office of the Executive Secretary of the Board of Trustees of the Public Employees' Retirement System, and no designation or change of beneficiary shall be made in any other manner; however, notwithstanding any provision of this chapter to the contrary, the lawful spouse of a member at the time of the death of a member shall be the beneficiary of such member unless the member has designated another beneficiary subsequent to the date of marriage.

(b) "Actuarial equivalent" shall mean a benefit of equal value to the accumulated contributions, annuity or benefit, as the case may be, when computed upon the basis of such mortality tables as shall be adopted by the board of trustees, and regular interest.

(c) "Actuarial tables" shall mean such tables of mortality and rates of interest as shall be adopted by the board in accordance with the recommendation of the actuary.

SECTION 2. This act shall take effect and be in force from and after its passage.