MADDEN BILL TO ALERT RETIREES, MEMBERS OF STATE RETIREMENT SYSTEM OF POTENTIAL HURDLES TO CHANGING BENEFICIARIES ADVANCES

Senator Fred Madden at the first meeting of the Senate Task Force on Health Insurance Exchange Implementation

TRENTON – Legislation sponsored by Senator Fred H. Madden that would provide clarity to certain members and retirees of the state-administered retirement system who attempt to change the beneficiary of their life insurance policies, by flagging potential legal hurdles to doing so, was approved today by the full Senate.

“Individuals looking to change their beneficiaries in the state retirement system should be notified of any policies that could override their request,” said Senator Madden (D-Gloucester/Camden). “While every situation is different, some members and retirees may find themselves in circumstances that could make it difficult to make any changes to their current beneficiary status. By alerting employees or retirees of potential hurdles, we can help to avoid misunderstandings that may occur in situations such as divorce settlements and remarriage.”

The bill, S-2432, would require the Division of Pensions and Benefits of the Department of the Treasury to notify a member or retiree of a State-administered retirement system that a previous beneficiary is on file when requesting to change this status in certain circumstances. Specifically, the bill would require notification if a member or retiree has had a court approved order designating a beneficiary.

S-2432 was approved by a vote of 40-0. It now heads to the Assembly for consideration.