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 yesterday by the Senate State Government, Wagering, Tourism, and Historic Preservation Committee.
“While not all situations are the same, there are some circumstances that could make it difficult for members or retirees of the state retirement system to change beneficiaries,” said Senator Madden (D-Gloucester/Camden). “A proper notification is necessary to let individuals know of legal documents and orders that could override their request for a change. This could ultimately clear up 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, if a member or retiree has had a court approved order designating a beneficiary.
S-2432 was approved by a vote of 4-0. It now heads to the Senate for consideration.