PRINTER'S NO. 1658
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1185
Session of
2015
INTRODUCED BY SANTARSIERO, SCHREIBER, FRANKEL, M. DALEY, THOMAS,
SCHLOSSBERG, BROWNLEE, ROZZI, KINSEY, O'BRIEN, McNEILL, SIMS,
HARKINS, GALLOWAY AND DEAN, JUNE 1, 2015
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, JUNE 1, 2015
AN ACT
Amending the act of February 1, 1974 (P.L.34, No.15), entitled
"An act creating a Pennsylvania Municipal Retirement System
for the payment of retirement allowances to officers,
employees, firemen and police of political subdivisions and
municipal authorities and of institutions supported and
maintained by political subdivisions and municipal government
associations and providing for the administration of the same
by a board composed of the State Treasurer and others
appointed by the Governor; imposing certain duties on the
Pennsylvania Municipal Retirement Board and the actuary
thereof; providing the procedure whereby political
subdivisions and municipal authorities may join such system,
and imposing certain liabilities and obligations on such
political subdivisions and municipal authorities in
connection therewith, and as to certain existing retirement
and pension systems, and upon officers, employes, firemen and
police of such political subdivisions, institutions supported
and maintained by political subdivisions, and upon municipal
authorities; providing for the continuation of certain
municipal retirement systems now administered by the
Commonwealth; providing certain exemptions from taxation,
execution, attachment, levy and sale and providing for the
repeal of certain related acts," in general provisions,
further providing for the definitions of "beneficiary" and
"survivor annuitant"; in provisions relating to municipal
employes, providing for rights of municipal employes'
spouses, and further providing for options on superannuation
or early retirement; in provisions relating to municipal
firemen and municipal police, further providing for options
on superannuation or early retirement; and, in optional
retirement plans, further providing for options on
superannuation or early retirement.
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The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The definitions of "beneficiary" and "survivor
annuitant" in section 102 of the act of February 1, 1974
(P.L.34, No.15), known as the Pennsylvania Municipal Retirement
Law, are amended to read:
Section 102. Definitions.--As used in this act:
* * *
"Beneficiary" means a person designated by a contributor or
an annuitant to receive benefits after the death of such
contributor or annuitant[.], provided the contributor is not
permitted to select a beneficiary other than his spouse, if
married, unless:
(1) (i) the spouse of the contributor consents in writing
to such election;
(ii) such election designates a beneficiary that cannot be
changed without spousal consent or the consent of such spouse
expressly permits designations by the contributor without a
requirement of further consent by the spouse; and
(iii) the spouse's consent acknowledges the effect of such
election and is witnessed by a member of the board or a notary
public; or
(2) it is established to the satisfaction of the board that
the consent required under paragraph (1) cannot be obtained
because there is no spouse or because the spouse cannot be
located.
Any consent by a spouse, or establishment that the consent of a
spouse cannot be obtained, under this definition shall be
effective only with respect to such spouse.
* * *
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"Survivor annuitant" means any person who has been named by a
member under a joint and survivor annuity option to receive an
annuity upon the death of such member[.], provided that a member
is not permitted to select a survivor annuitant other than his
spouse, if married, unless:
(1) (i) the spouse of the member consents in writing to
such election;
(ii) such election designates a survivor annuitant that
cannot be changed without spousal consent or the consent of such
spouse expressly permits designations by the member without a
requirement of further consent by the spouse; and
(iii) the spouse's consent acknowledges the effect of such
election and is witnessed by a member of the board or a notary
public; or
(2) it is established to the satisfaction of the board that
the consent required under paragraph (1) cannot be obtained
because there is no spouse or because the spouse cannot be
located.
Any consent by a spouse or establishment that the consent of a
spouse cannot be obtained under this definition shall be
effective only with respect to such spouse.
* * *
Section 2. The act is amended by adding a section to read:
Section 209.1. Rights of Municipal Employes' Spouses.--(a)
A retirement system or retirement plan of a municipality shall
be required to provide that a designation by an employe, service
provider or retiree of a beneficiary or survivor to receive
payments under the retirement system or retirement plan shall
not be valid without the express written consent of the spouse
of such member if such person:
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(1) is married at the time of his selection of a beneficiary
or survivor annuitant;
(2) is married at the time of his selection of a form of
benefit payment or distribution unless such spouse has
previously consented to an alternative designation; or
(3) becomes married following a selection of a beneficiary
or survivor annuitant but prior to becoming entitled to or
selecting a form of benefit payment or distribution.
Any consent of a spouse obtained under this subsection shall be
effective only with respect to such spouse.
(b) A retirement system or retirement plan of a municipality
shall be required to provide that retirement benefits, other
than benefits payable under a defined contribution or account
balance plan, shall be payable in the form of a joint and
survivor annuity, with at least a fifty per cent survivor
annuity to such member's surviving spouse, unless:
(1) (i) the spouse of the member consents in writing to
another form of benefit;
(ii) such election designates a beneficiary or form of
benefits that may not be changed without spousal consent or the
consent of such spouse expressly permits designations by the
member without a requirement of further consent by the spouse;
and
(iii) the spouse's consent acknowledges the effect of such
election and is witnessed by a member of the board or a notary
public; or
(2) it is established to the satisfaction of the plan or
system administrator that the consent required under paragraph
(1) may not be obtained because there is no spouse or because
the spouse cannot be located.
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Any consent by a spouse or establishment that the consent of a
spouse may not be obtained shall be effective only with respect
to such spouse.
Section 3. Sections 211, 312 and 409 of the act are amended
by adding subsections to read:
Section 211. Options on Superannuation or Early
Retirement.--* * *
(c) Notwithstanding anything to the contrary in this act, a
member, including a contributor, who is married at the time of
his selection of a beneficiary or survivor annuitant, who is
married at the time of his selection of a form of benefit
payment or who becomes married following such selection of a
beneficiary or survivor annuitant but prior to becoming entitled
to or selecting a form of payment or distribution shall not be
permitted to select a beneficiary or survivor annuitant other
than his spouse, if married at the time, unless:
(1) (i) the spouse of the eligible member consents in
writing to such election;
(ii) such election designates a beneficiary, or form of
benefit, that may not be changed without spousal consent or the
consent of such spouse expressly permits designations by the
member without a requirement of further consent by the spouse;
and
(iii) the spouse's consent acknowledges the effect of such
election and is witnessed by a member of the board or a notary
public; or
(2) it is established to the satisfaction of the board that
the consent required under paragraph (1) may not be obtained
because there is no spouse or because the spouse cannot be
located.
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Any consent by a spouse or establishment that the consent of a
spouse may not be obtained shall be effective only with respect
to such spouse.
Section 312. Options on Superannuation or Early
Retirement.--* * *
(c) Notwithstanding anything to the contrary in this act, a
member, including a contributor, who is married at the time of
his selection of a beneficiary or survivor annuitant, who is
married at the time of his selection of a form of benefit
payment or who becomes married following such selection of a
beneficiary or survivor annuitant but prior to becoming entitled
to or selecting a form of payment or distribution shall not be
permitted to select a beneficiary or survivor annuitant other
than his spouse, if married at the time, unless:
(1) (i) the spouse of the eligible member consents in
writing to such election;
(ii) such election designates a beneficiary, or form of
benefit that may not be changed without spousal consent or the
consent of such spouse expressly permits designations by the
member without a requirement of further consent by the spouse;
and
(iii) the spouse's consent acknowledges the effect of such
election and is witnessed by a member of the board or a notary
public; or
(2) it is established to the satisfaction of the board that
the consent required under paragraph (1) may not be obtained
because there is no spouse or because the spouse cannot be
located.
Any consent by a spouse or establishment that the consent of a
spouse may not be obtained shall be effective only with respect
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to such spouse.
Section 409. Options on Superannuation or Early
Retirement.--* * *
(c) Notwithstanding anything to the contrary in this act, a
member, including a contributor, who is married at the time of
his selection of a beneficiary or survivor annuitant, who is
married at the time of his selection of a form of benefit
payment or who becomes married following such selection of a
beneficiary or survivor annuitant but prior to becoming entitled
to or selecting a form of payment or distribution shall not be
permitted to select a beneficiary or survivor annuitant other
than his spouse, if married at the time, unless:
(1) (i) the spouse of the eligible member consents in
writing to such election;
(ii) such election designates a beneficiary or form of
benefit that may not be changed without spousal consent or the
consent of such spouse expressly permits designations by the
member without a requirement of further consent by the spouse;
and
(iii) the spouse's consent acknowledges the effect of such
election and is witnessed by a member of the board or a notary
public; or
(2) it is established to the satisfaction of the board that
the consent required under paragraph (1) may not be obtained
because there is no spouse or because the spouse cannot be
located.
Any consent by a spouse or establishment that the consent of a
spouse may not be obtained shall be effective only with respect
to such spouse.
Section 4. This act shall take effect in 60 days.
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