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H.B. 62

1    

FIREFIGHTERS DEATH BENEFIT

2    
1998 GENERAL SESSION

3    
STATE OF UTAH

4    
Sponsor: Mary Carlson

5    AN ACT RELATING TO PENSIONS; PROVIDING A DEATH BENEFIT FOR FORMER
6    SPOUSES OF CERTAIN FIREFIGHTER AND PUBLIC SAFETY RETIREMENT SYSTEM
7    MEMBERS IN THE EVENT OF A COURT ORDER; AND PROVIDING AN EFFECTIVE
8    DATE.
9    This act affects sections of Utah Code Annotated 1953 as follows:
10    AMENDS:
11         49-1-609, as last amended by Chapter 197, Laws of Utah 1995
12         49-4-702, as enacted by Chapter 1, Laws of Utah 1987
13         49-4-703, as last amended by Chapter 90, Laws of Utah 1994
14         49-4-704, as last amended by Chapter 31, Laws of Utah 1997
15         49-4a-702, as enacted by Chapter 260, Laws of Utah 1989
16         49-4a-703, as last amended by Chapter 90, Laws of Utah 1994
17         49-4a-704, as last amended by Chapter 31, Laws of Utah 1997
18         49-5-702, as last amended by Chapter 157, Laws of Utah 1992
19         49-5-703, as last amended by Chapter 90, Laws of Utah 1994
20         49-5-704, as last amended by Chapter 31, Laws of Utah 1997
21    ENACTS:
22         49-4-705, Utah Code Annotated 1953
23         49-4-706, Utah Code Annotated 1953
24         49-4a-705, Utah Code Annotated 1953
25         49-4a-706, Utah Code Annotated 1953
26         49-5-705, Utah Code Annotated 1953
27         49-5-706, Utah Code Annotated 1953


1    Be it enacted by the Legislature of the state of Utah:
2        Section 1. Section 49-1-609 is amended to read:
3         49-1-609. Nonassignability of benefits or payments -- Exemption from legal process
4     -- Deduction of amounts owned.
5        (1) Except as provided in Subsection (4), the right of any member or beneficiary to any
6    benefit, payment, or any other right accrued or accruing to any person under this title and the assets
7    of the fund created by this title are not subject to alienation or assignment by the member or
8    beneficiary and are not subject to attachment, execution, garnishment, or any other legal or
9    equitable process.
10        (2) This section may not be construed to prohibit the administrator from deducting medical
11    or other insurance premiums from a retirant's allowance as requested by the retirant providing that
12    any request is within limitations and rules prescribed by the board.
13        (3) (a) Notwithstanding Subsection (1), the retirement board shall provide for the division
14    of a member's retirement allowance or refund of contributions upon termination to former spouses
15    and family members pursuant to an order of a court of competent jurisdiction with respect to
16    domestic relations matters on file with the retirement office.
17        (b) [The] Except as provided in Subsection (3)(c), the court order shall specify the manner
18    in which the retirement allowance or refund of contributions shall be partitioned, whether as a
19    fixed amount or as a percentage of the benefit.
20        (c) If there is a court order with respect to domestic relations matters for a Division B
21    member covered under Title 49, Chapter 4, Public Safety Retirement Act, Title 49, Chapter 4a,
22    Public Safety Noncontributory Retirement Act, or Title 49, Chapter 5, Firefighters' Retirement
23    Act, the member's death benefit shall be partitioned in accordance with the provisions of Section
24    49-4-702, 49-4-705, 49-4-706, 49-4a-702, 49-4a-705, 49-4a-706, 49-5-702, 49-5-705, or 49-5-706.
25        [(c)] (d) The board may also provide for the division of a member's defined contribution
26    account.
27        [(d)] (e) The board shall make rules to implement this section.
28        (4) In accordance with federal law, the board may deduct the required amount from any
29    benefit, payment, or other right accrued or accruing to any member of a system, plan, or program
30    under this title to offset any amount that member owes to a system, plan, or program administered
31    by the board.

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1        Section 2. Section 49-4-702 is amended to read:
2         49-4-702. Death of active member in Division B -- Payment of benefits.
3        (1) As used in this section, "former spouse" means a member's former spouse:
4        (a) to whom the member was married ten or more years; and
5        (b) with a court order complying with Section 49-1-609.
6        (2) If an active member of the system enrolled in Division B under Section 49-4-301 dies,
7    [the following] benefits are payable according to the conditions stipulated[:] in this section.
8        [(1)] (3) If the death is classified as a line-of-duty death, the dependent spouse shall receive
9    a lump sum of $1,500 [and a monthly allowance equal to 37-1/2% of the deceased member's final
10    average monthly salary].
11        (4) (a) Except as provided under Subsection (3), if the death is classified as a line-of-duty
12    death, the total death benefit payable to dependent or former spouses, or both, is a monthly
13    allowance not to exceed 37-1/2% of the deceased member's final average monthly salary.
14        (b) The effective date of accrual of the benefit as provided under this section for a
15    dependent spouse is the first day of the month following the month in which the member died.
16        (c) The effective date of accrual of the benefit as provided under this section for a former
17    spouse is the first day of the month following the month in which the former spouse is age 62.
18        (d) If the member does not have a former spouse or at any time no longer has a living
19    former spouse, the dependent spouse is entitled to the total death benefit under Subsection (4)(a).
20        (e) (i) If the member does not have a dependent spouse at the time of death or the member
21    has a total of more than one dependent and former spouses, each spouse's share of the member's
22    death benefit under Subsection (4)(a) shall be calculated as provided under this Subsection (4)(e).
23        (ii) If the member has a dependent spouse at the time of death, the dependent spouse shall
24    be entitled to the first 25% of the member's death benefit or the remainder of the death benefit after
25    the amount provided for any former spouse under Subsections (4)(e)(iii) and (4)(e)(iv), whichever
26    is greater.
27        (iii) Except as provided under Subsection (4)(e)(ii), a former spouse's share of a member's
28    death benefit shall be calculated by dividing the member's years of service in which the member
29    was married to the spouse by the member's total years of service and multiplying this fraction by
30    the member's death benefit.
31        (iv) If a member has more than one former spouse, the death benefit for each former

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1    spouse shall be apportioned using the calculation under Subsection (4)(e)(iii), subject to the
2    dependent spouse's share as provided under Subsection (4)(e)(ii).
3        [(2)] (5) If the death is not classified as line-of-duty death, and the deceased member has
4    two or more years of service credit at the time of death, the death is considered line-of-duty and
5    the benefit payable is the same as provided under [Subsection (1)] Subsections (3) and (4).
6        [(3)] (6) If the death is not classified as line-of-duty death and the deceased member has
7    less than two years of service credit at the time of death, the benefit payable is a refund of the
8    deceased member's contributions, plus 50% of the member's most recent 12 months' regular salary.
9        [(4)] (7) If the deceased member has two or more years of service at the time of death, the
10    benefit payable to each of the member's unmarried children to age 18 is a monthly allowance of
11    $50. Payments shall be made to the surviving parent or to a duly appointed guardian, or as
12    otherwise provided under Title 49, Chapter 1, Utah State Retirement Act.
13        [(5)] (8) In the event of the death of both parents, the dependent spouse's benefit shall be
14    prorated and paid to each of the member's unmarried children to age 18.
15        [(6)] (9) If the benefit is not distributed under this section, and there is a beneficiary, the
16    vested contribution shall be paid to the beneficiary.
17        [(7)] (10) The total monthly payments to be made on behalf of any one deceased member's
18    account may not exceed 75% of the member's final average monthly salary.
19        Section 3. Section 49-4-703 is amended to read:
20         49-4-703. Death of active or inactive member in Division A having no spouse or
21     minor children as beneficiary -- Benefits payable on death of inactive member.
22        (1) The death benefit payable on behalf of an active or an inactive member who dies and
23    has no spouse or minor children as a beneficiary is 100% of the deceased member's contributions
24    or $500, whichever amount is larger.
25        (2) (a) The death benefit payable on behalf of an inactive member who dies and is survived
26    by a spouse to whom that member was married at the time of death is a monthly pension if that
27    member had 20 or more years of public safety service at the time of retirement from public safety
28    employment.
29        (b) The pension payable to the spouse is 50% of the amount the member would have
30    received had retirement occurred on the first of the month in which death occurred, the benefit
31    being based upon years of service and final average salary under Section 49-4-402, reduced

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1    actuarially from age 50 to the age at death if the member is under age 50 at the time of death.
2        (3) The death benefit payable upon the death of an inactive member who has less than 20
3    years of public safety service and who leaves a spouse or minor children as the beneficiary is a
4    100% refund of the deceased member's contributions or $500, whichever is larger.
5        (4) This section only applies to active or inactive members enrolled in Division A under
6    Section 49-4-301.
7        Section 4. Section 49-4-704 is amended to read:
8         49-4-704. Death of retired member in Division A -- Benefits.
9        (1) (a) Except as provided in Subsection [(3)] (2), if the member retired under Division
10    A [or Division B], the death benefit payable to the dependent spouse after the death of the retired
11    member of this system is a monthly amount equal to 65% of the allowance that was being paid to
12    the retired member at the time of death.
13        [(2) (a) Except as provided in Subsection (3), if the member retired solely under Division
14    B or dies leaving dependent children, the children shall qualify for a benefit as prescribed for
15    children under Section 49-4-702, with the total being paid as limited by that section.]
16        (b) The effective date of accrual of this pension is on the first day of the month following
17    the month in which the retirant died.
18        (c) Except as provided in Subsection [(3)] (2), payment of the full pension for this latter
19    month shall be made to the dependent beneficiary [in lieu] instead of the deceased member.
20        [(3)] (2) (a) In the event of a court order complying with Section 49-1-609, a former
21    spouse of a retired member is entitled to the court designated share of the retired member's
22    monthly retirement benefit and the same percentage share of the spouse's death benefit.
23        (b) This subsection supersedes conflicting subsections of this section.
24        Section 5. Section 49-4-705 is enacted to read:
25         49-4-705. Death of retired member in Division B -- Benefits.
26        (1) As used in this section, "former spouse" means a retired member's former spouse:
27        (a) to whom the member was married ten or more years; and
28        (b) with a court order complying with Section 49-1-609.
29        (2) (a) The total death benefit payable to dependent or former spouses, or both, after the
30    death of a retired member in Division B is a monthly amount not to exceed 65% of the allowance
31    that was being paid to the retired member at the time of death.

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1        (b) Payment of the full pension for the month in which the retired member died shall be
2    made to the dependent beneficiary instead of the deceased member.
3        (c) The effective date of accrual of the benefit as provided under this section for a
4    dependent spouse is the first day of the month following the month in which the member died.
5        (d) The effective date of accrual of the benefit as provided under this section for a former
6    spouse is the first day of the month following the month in which the former spouse is age 62.
7        (3) (a) If the retired member does not have a former spouse or at any time no longer has
8    a living former spouse, the dependent spouse is entitled to the total death benefit under Subsection
9    (2)(a).
10        (b) If the retired member does not have a dependent spouse at the time of death or the
11    member has a total of more than one dependent and former spouses, each spouse's share of the
12    retired member's death benefit shall be calculated as provided under Subsection (4).
13        (4) (a) If the member has a dependent spouse at the time of death, the dependent spouse
14    shall be entitled to the first 25% of the member's death benefit or the remainder of the death benefit
15    after the amount provided for any former spouse under Subsections (4)(b) and (4)(c), whichever
16    is greater.
17        (b) Except as provided under Subsection (4)(a), a former spouse's share of a member's
18    death benefit shall be calculated by dividing the member's years of service in which the member
19    was married to the spouse by the member's total years of service used to calculate the member's
20    monthly retirement benefit and multiplying this fraction by the member's death benefit.
21        (c) If a member has more than one former spouse, the death benefit for each former spouse
22    shall be apportioned using the calculation under Subsection (4)(b), subject to the dependent
23    spouse's share as provided under Subsection (4)(a).
24        (5) If the retired member under Division B dies leaving dependent children, they qualify
25    for benefits as provided for children under Section 49-4-702, with the total being paid as limited
26    by that section.
27        Section 6. Section 49-4-706 is enacted to read:
28         49-4-706. Death of active or inactive member in Division B having no spouse or
29     minor children as beneficiary -- Benefits payable on death of inactive member.
30        (1) As used in this section, "former spouse" means a member's former spouse:
31        (a) to whom the member was married ten or more years; and

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1        (b) with a court order complying with Section 49-1-609.
2        (2) This section only applies to active or inactive members enrolled in Division B under
3    Section 49-4-301.
4        (3) The death benefit payable on behalf of an active or an inactive member who dies and
5    has no dependent spouse, former spouse, or minor children as a beneficiary is 100% of the
6    deceased member's contributions or $500, whichever amount is larger.
7        (4) (a) The death benefit payable on behalf of an inactive member who dies and is survived
8    by a dependent or former spouse, or both, is a monthly pension if that member had 20 or more
9    years of public safety service at the time of retirement from public safety employment.
10        (b) The pension payable to the dependent or former spouses, or both, is an amount not to
11    exceed 50% of the amount the inactive member would have received had retirement occurred on
12    the first of the month in which death occurred, the benefit being based upon years of service and
13    final average salary under Section 49-4-402, reduced actuarially from age 50 to the age at death
14    if the member is under age 50 at the time of death.
15        (5) The death benefit payable upon the death of an inactive member who has less than 20
16    years of public safety service and who leaves a spouse or minor children as the beneficiary is a
17    100% refund of the deceased member's contributions or $500, whichever is larger.
18        (6) (a) The effective date of accrual of the benefit as provided under this section for a
19    dependent spouse is the first day of the month following the month in which the member died.
20        (b) The effective date of accrual of the benefit as provided under this section for a former
21    spouse is the first day of the month following the month in which the former spouse is age 62.
22        (7) (a) If the member does not have a former spouse or at any time no longer has a living
23    former spouse, the dependent spouse is entitled to the total death benefit under this section.
24        (b) (i) If the member does not have a dependent spouse at the time of death or the member
25    has a total of more than one dependent and former spouses, each spouse's share of the member's
26    death benefit under this section shall be calculated as provided under this Subsection (7)(b).
27        (ii) If the member has a dependent spouse at the time of death, the dependent spouse shall
28    be entitled to the first 25% of the member's death benefit or the remainder of the death benefit after
29    the amount provided for any former spouse under Subsections (7)(b)(iii) and (7)(b)(iv), whichever
30    is greater.
31        (iii) Except as provided under Subsection (7)(b)(ii), a former spouse's share of a member's

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1    death benefit shall be calculated by dividing the member's years of service in which the member
2    was married to the spouse by the member's total years of service and multiplying this fraction by
3    the member's death benefit.
4        (iv) If a member has more than one former spouse, the death benefit for each former
5    spouse shall be apportioned using the calculation under Subsection (7)(b)(iii), subject to the
6    dependent spouse's share as provided under Subsection (7)(b)(ii).
7        Section 7. Section 49-4a-702 is amended to read:
8         49-4a-702. Death of active member in Division B -- Payment of benefits.
9        (1) As used in this section, "former spouse" means a member's former spouse:
10        (a) to whom the member was married ten or more years; and
11        (b) with a court order complying with Section 49-1-609.
12        (2) If an active member of the system enrolled in Division B under Section 49-4a-301 dies,
13    [the following] benefits are payable according to the conditions stipulated[:] in this section.
14        [(1)] (3) If the death is classified as a line-of-duty death, the dependent spouse shall receive
15    a lump sum of $1,500 [and a monthly allowance equal to 37-1/2% of the deceased member's final
16    average monthly salary].
17        (4) (a) Except as provided under Subsection (3), if the death is classified as a line-of-duty
18    death, the total death benefit payable to dependent or former spouses, or both, is a monthly
19    allowance not to exceed 37-1/2% of the deceased member's final average monthly salary.
20        (b) The effective date of accrual of the benefit as provided under this section for a
21    dependent spouse is the first day of the month following the month in which the member died.
22        (c) The effective date of accrual of the benefit as provided under this section for a former
23    spouse is the first day of the month following the month in which the former spouse is age 62.
24        (d) If the member does not have a former spouse or at any time no longer has a living
25    former spouse, the dependent spouse is entitled to the total death benefit under Subsection (4)(a).
26        (e) (i) If the member does not have a dependent spouse at the time of death or the member
27    has a total of more than one dependent and former spouses, each spouse's share of the member's
28    death benefit under Subsection (4)(a) shall be calculated as provided under this Subsection (4)(e).
29        (ii) If the member has a dependent spouse at the time of death, the dependent spouse shall
30    be entitled to the first 25% of the member's death benefit or the remainder of the death benefit after
31    the amount provided for any former spouse under Subsections (4)(e)(iii) and (4)(e)(iv), whichever

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1    is greater.
2        (iii) Except as provided under Subsection (4)(e)(ii), a former spouse's share of a member's
3    death benefit shall be calculated by dividing the member's years of service in which the member
4    was married to the spouse by the member's total years of service and multiplying this fraction by
5    the member's death benefit.
6        (iv) If a member has more than one former spouse, the death benefit for each former
7    spouse shall be apportioned using the calculation under Subsection (4)(e)(iii), subject to the
8    dependent spouse's share as provided under Subsection (4)(e)(ii).
9        [(2)] (5) If the death is not classified as line-of-duty death, and the deceased member has
10    two or more years of service credit at the time of death, the death is considered line-of-duty and
11    the benefit payable is the same as provided under [Subsection (1)] Subsections (3) and (4).
12        [(3)] (6) If the death is not classified as line-of-duty death, and the deceased member has
13    less than two years of service credit at the time of death, the benefit payable is a refund of the
14    deceased member's contributions, plus 50% of the member's most recent 12 months' regular salary.
15        [(4)] (7) If the deceased member has two or more years of service at the time of death, the
16    benefit payable to each of the member's unmarried children to age 18 is a monthly allowance of
17    $50. Payments shall be made to the surviving parent or to a duly appointed guardian, or as
18    otherwise provided under Title 49, Chapter 1, Utah State Retirement Act.
19        [(5)] (8) In the event of the death of both parents, the dependent spouse's benefit shall be
20    prorated and paid to each of the member's unmarried children to age 18.
21        [(6)] (9) If the benefit is not distributed under this section, and there is a beneficiary, the
22    vested contribution shall be paid to the beneficiary.
23        [(7)] (10) The total monthly payments to be made on behalf of any one deceased member's
24    account may not exceed 75% of the member's final average monthly salary.
25        Section 8. Section 49-4a-703 is amended to read:
26         49-4a-703. Death of active or inactive member in Division A having no spouse or
27     minor children as beneficiary -- Benefits payable on death of inactive member.
28        (1) The death benefit payable on behalf of an active or an inactive member who dies and
29    has no spouse or minor children as a beneficiary is 100% of the deceased member's contributions
30    or $500, whichever amount is greater.
31        (2) (a) The death benefit payable on behalf of an inactive member who dies and is survived

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1    by a spouse to whom that member was married at the time of death is a monthly pension if that
2    member had 20 or more years of public safety service at the time of retirement from public safety
3    employment.
4        (b) The pension payable to the spouse is 50% of the amount the member would have
5    received had retirement occurred on the first of the month in which death occurred, the benefit
6    being based upon years of service and final average salary under Section 49-4a-402, reduced
7    actuarially from age 50 to the age at death if the member is under age 50 at the time of death.
8        (3) The death benefit payable upon the death of an inactive member who has less than 20
9    years of public safety service and who leaves a spouse or minor children as the beneficiary is a
10    100% refund of the deceased member's contributions or $500, whichever is greater.
11        (4) This section only applies to active or inactive members enrolled in Division A under
12    Section 49-4a-301.
13        Section 9. Section 49-4a-704 is amended to read:
14         49-4a-704. Death of retired member in Division A -- Benefits.
15        (1) (a) Except as provided in Subsection [(3)] (2), if the member retired under Division
16    A [or Division B], the death benefit payable to the dependent spouse after the death of the retired
17    member of this system is a monthly amount equal to 65% of the allowance that was being paid to
18    the retired member at the time of death.
19        [(2) (a) Except as provided in Subsection (3), if the member retired solely under Division
20    B or dies leaving dependent children, the children shall qualify for a benefit as prescribed for
21    children under Section 49-4a-702, with the total being paid as limited by that section.]
22        (b) The effective date of accrual of this pension is on the first day of the month following
23    the month in which the retirant died.
24        (c) Except as provided in Subsection [(3)] (2), payment of the full pension for this latter
25    month shall be made to the dependent beneficiary [in lieu] instead of the deceased member.
26        [(3)] (2) (a) In the event of a court order complying with Section 49-1-609, a former
27    spouse of a retired member is entitled to a court designated share of the retired member's monthly
28    retirement benefit and the same percentage share of the spouse's death benefit.
29        (b) This Subsection (2) supersedes conflicting subsections of this section.
30        Section 10. Section 49-4a-705 is enacted to read:
31         49-4a-705. Death of retired member in Division B -- Benefits.

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1        (1) As used in this section, "former spouse" means a retired member's former spouse:
2        (a) to whom the member was married ten or more years; and
3        (b) with a court order complying with Section 49-1-609.
4        (2) (a) The total death benefit payable to dependent or former spouses, or both, after the
5    death of a retired member in Division B is a monthly amount not to exceed 65% of the allowance
6    that was being paid to the retired member at the time of death.
7        (b) Payment of the full pension for the month in which the retired member died shall be
8    made to the dependent beneficiary instead of the deceased member.
9        (c) The effective date of accrual of the benefit as provided under this section for a
10    dependent spouse is the first day of the month following the month in which the member died.
11        (d) The effective date of accrual of the benefit as provided under this section for a former
12    spouse is the first day of the month following the month in which the former spouse is age 62.
13        (3) (a) If the retired member does not have a former spouse or at any time no longer has
14    a living former spouse, the dependent spouse is entitled to the total death benefit under Subsection
15    (2)(a).
16        (b) If the retired member does not have a dependent spouse at the time of death or the
17    member has a total of more than one dependent and former spouses, each spouse's share of the
18    retired member's death benefit shall be calculated as provided under Subsection (4).
19        (4) (a) If the member has a dependent spouse at the time of death, the dependent spouse
20    shall be entitled to the first 25% of the member's death benefit or the remainder of the death benefit
21    after the amount provided for any former spouse under Subsections (4)(b) and (4)(c), whichever
22    is greater.
23        (b) Except as provided under Subsection (4)(a), a former spouse's share of a member's
24    death benefit shall be calculated by dividing the member's years of service in which the member
25    was married to the spouse by the member's total years of service used to calculate the member's
26    monthly retirement benefit and multiplying this fraction by the member's death benefit.
27        (c) If a member has more than one former spouse, the death benefit for each former spouse
28    shall be apportioned using the calculation under Subsection (4)(b), subject to the dependent
29    spouse's share as provided under Subsection (4)(a).
30        (5) If the retired member under Division B dies leaving dependent children, they qualify
31    for benefits as provided for children under Section 49-4a-702, with the total being paid as limited

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1    by that section.
2        Section 11. Section 49-4a-706 is enacted to read:
3         49-4a-706. Death of active or inactive member in Division B having no spouse or
4     minor children as beneficiary -- Benefits payable on death of inactive member.
5        (1) As used in this section, "former spouse" means a member's former spouse:
6        (a) to whom the member was married ten or more years; and
7        (b) with a court order complying with Section 49-1-609.
8        (2) This section only applies to active or inactive members enrolled in Division B under
9    Section 49-4a-301.
10        (3) The death benefit payable on behalf of an active or an inactive member who dies and
11    has no dependent spouse, former spouse, or minor children as a beneficiary is 100% of the
12    deceased member's contributions or $500, whichever amount is larger.
13        (4) (a) The death benefit payable on behalf of an inactive member who dies and is survived
14    by a dependent or former spouse, or both, is a monthly pension if that member had 20 or more
15    years of public safety service at the time of retirement from public safety employment.
16        (b) The pension payable to the dependent or former spouses, or both, is an amount not to
17    exceed 50% of the amount the inactive member would have received had retirement occurred on
18    the first of the month in which death occurred, the benefit being based upon years of service and
19    final average salary under Section 49-4a-402, reduced actuarially from age 50 to the age at death
20    if the member is under age 50 at the time of death.
21        (5) The death benefit payable upon the death of an inactive member who has less than 20
22    years of public safety service and who leaves a spouse or minor children as the beneficiary is a
23    100% refund of the deceased member's contributions or $500, whichever is larger.
24        (6) (a) The effective date of accrual of the benefit as provided under this section for a
25    dependent spouse is the first day of the month following the month in which the member died.
26        (b) The effective date of accrual of the benefit as provided under this section for a former
27    spouse is the first day of the month following the month in which the former spouse is age 62.
28        (7) (a) If the member does not have a former spouse or at any time no longer has a living
29    former spouse, the dependent spouse is entitled to the total death benefit under this section.
30        (b) (i) If the member does not have a dependent spouse at the time of death or the member
31    has a total of more than one dependent and former spouses, each spouse's share of the member's

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1    death benefit under this section shall be calculated as provided under this Subsection (7)(b).
2        (ii) If the member has a dependent spouse at the time of death, the dependent spouse shall
3    be entitled to the first 25% of the member's death benefit or the remainder of the death benefit after
4    the amount provided for any former spouse under Subsections (7)(b)(iii) and (7)(b)(iv), whichever
5    is greater.
6        (iii) Except as provided under Subsection (7)(b)(ii), a former spouse's share of a member's
7    death benefit shall be calculated by dividing the member's years of service in which the member
8    was married to the spouse by the member's total years of service and multiplying this fraction by
9    the member's death benefit.
10        (iv) If a member has more than one former spouse, the death benefit for each former
11    spouse shall be apportioned using the calculation under Subsection (7)(b)(iii), subject to the
12    dependent spouse's share as provided under Subsection (7)(b)(ii).
13        Section 12. Section 49-5-702 is amended to read:
14         49-5-702. Death of active member in Division B -- Payment of benefits.
15        (1) As used in this section, "former spouse" means a member's former spouse:
16        (a) to whom the member was married ten or more years; and
17        (b) with a court order complying with Section 49-1-609.
18        (2) If an active member of the system enrolled in Division B dies, [the following] benefits
19    are payable[:] according to the conditions described in this section.
20        [(1)] (3) If death is classified as line-of-duty, the dependent spouse receives a lump sum
21    of $1,500 [and a monthly allowance equal to 37-1/2% of the deceased member's final average
22    monthly salary, subject to Section 49-5-503].
23        (4) (a) Except as provided under Subsection (3), if the death is classified as a line-of-duty
24    death, the total death benefit payable to dependent or former spouses, or both, is a monthly
25    allowance not to exceed 37-1/2% of the deceased member's final average monthly salary, subject
26    to Section 49-5-503.
27        (b) The effective date of accrual of the benefit as provided under this section for a
28    dependent spouse is the first day of the month following the month in which the member died.
29        (c) The effective date of accrual of the benefit as provided under this section for a former
30    spouse is the first day of the month following the month in which the former spouse is age 62.
31        (d) If the member does not have a former spouse or at any time no longer has a living

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1    former spouse, the dependent spouse is entitled to the total death benefit under Subsection (4)(a).
2        (e) (i) If the member does not have a dependent spouse at the time of death or the member
3    has a total of more than one dependent and former spouses, each spouse's share of the member's
4    death benefit under Subsection (4)(a) shall be calculated as provided under this Subsection (4)(e).
5        (ii) If the member has a dependent spouse at the time of death, the dependent spouse shall
6    be entitled to the first 25% of the member's death benefit or the remainder of the death benefit after
7    the amount provided for any former spouse under Subsections (4)(e)(iii) and (4)(e)(iv), whichever
8    is greater.
9        (iii) Except as provided under Subsection (4)(e)(ii), a former spouse's share of a member's
10    death benefit shall be calculated by dividing the member's years of service in which the member
11    was married to the spouse by the member's total years of service and multiplying this fraction by
12    the member's death benefit.
13        (iv) If a member has more than one former spouse, the death benefit for each former
14    spouse shall be apportioned using the calculation under Subsection (4)(e)(iii), subject to the
15    dependent spouse's share as provided under Subsection (4)(e)(ii).
16        [(2)] (5) If death is classified as line-of-duty, and the member has 20 or more years of
17    service credit, the member shall be considered to have retired and the dependent [spouse] and
18    former spouse shall receive the death benefit payable to a retired member under Section 49-5-704.
19        [(3)] (6) If death is not classified as line-of-duty and the deceased member has five or more
20    years of service credit, the death is considered line-of-duty and the same benefits are payable as
21    established under [Subsection (1)] Subsections (3) and (4).
22        [(4)] (7) If death is not classified as line-of-duty and the deceased member has less than
23    five years of service credit, the benefit is a refund of the deceased member's contributions, plus
24    50% of the member's most recent 12 months regular salary.
25        [(5)] (8) If the deceased member has five or more years of service credit, the member's
26    unmarried children, until they reach age 21, receive a monthly allowance of $75. In the event of
27    the death of the member and dependent spouse, the dependent spouse's benefits are equally divided
28    and paid to each unmarried child until the child reaches age 21. The payments shall be made to
29    the surviving parent or duly appointed guardian or pursuant to Section 49-1-607.
30        [(6)] (9) If the benefit is not distributed under this section, and there is a beneficiary, the
31    vested contribution shall be paid to the beneficiary.

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1        [(7)] (10) The total monthly payments made on behalf of any one deceased member's
2    account may not exceed 75% of the member's final average salary.
3        Section 13. Section 49-5-703 is amended to read:
4         49-5-703. Death of active or inactive member in Division A having no spouse or
5     minor children as beneficiary -- Benefits payable on death of inactive member.
6        (1) The death settlement payable on behalf of an active or inactive member who dies
7    without spouse or minor children is 100% of the employee's contributions or $500, whichever is
8    larger.
9        (2) The death benefit payable monthly on behalf of an inactive member who dies and is
10    survived by a spouse to whom the member was married at the time of death is 50% of the amount
11    the member would have received had the member retired on the first day of the month following
12    the month death occurred, the computation being based upon years of service and final average
13    salary, reduced actuarially from age 50 to age at death, if the member was not 50 years of age
14    when death occurred.
15        (3) No monthly pension may be paid under this section unless the member had 20 years
16    of service credit at the time of death.
17        (4) This section only applies to active or inactive members enrolled in Division A under
18    Section 49-5-301.
19        Section 14. Section 49-5-704 is amended to read:
20         49-5-704. Death of retired member in Division A -- Benefits.
21        (1) (a) Except as provided in Subsection [(3)] (2), the death benefit payable to a dependent
22    spouse after death of the retirant in Division A is a monthly amount equal to 75% of the allowance
23    being paid to the retirant at the time of death.
24        (b) The effective date of accrual of this pension is the first day of the month following the
25    month the retirant died.
26        (c) Except as provided in Subsection [(3)] (2), payment of the full pension for this latter
27    month shall be made to the dependent beneficiary instead of the deceased member.
28        [(2) If the member retires under Division B and dies leaving dependent children, they
29    qualify for benefits prescribed for children under Section 49-5-701 or 49-5-702.]
30        [(3)] (2) (a) In the event of a court order complying with Section 49-1-609, a former
31    spouse of a retired member is entitled to the court designated share of the retirant's monthly

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1    retirement benefit and the same percentage share of the spouse's death benefit.
2        (b) This Subsection (2) supersedes conflicting subsections of this section.
3        Section 15. Section 49-5-705 is enacted to read:
4         49-5-705. Death of retired member in Division B -- Benefits.
5        (1) As used in this section, "former spouse" means a retired member's former spouse:
6        (a) to whom the member was married ten or more years; and
7        (b) with a court order complying with Section 49-1-609.
8        (2) (a) The total death benefit payable to dependent or former spouses, or both, after the
9    death of a retired member in Division B is a monthly amount not to exceed 65% of the allowance
10    that was being paid to the retired member at the time of death.
11        (b) Payment of the full pension for the month in which the retired member died shall be
12    made to the dependent beneficiary instead of the deceased member.
13        (c) The effective date of accrual of the benefit as provided under this section for a
14    dependent spouse is the first day of the month following the month in which the member died.
15        (d) The effective date of accrual of the benefit as provided under this section for a former
16    spouse is the first day of the month following the month in which the former spouse is age 62.
17        (3) (a) If the retired member does not have a former spouse or at any time no longer has
18    a living former spouse, the dependent spouse is entitled to the total death benefit under Subsection
19    (2)(a).
20        (b) If the retired member does not have a dependent spouse at the time of death or the
21    member has a total of more than one dependent and former spouses, each spouse's share of the
22    retired member's death benefit shall be calculated as provided under Subsection (4).
23        (4) (a) If the member has a dependent spouse at the time of death, the dependent spouse
24    shall be entitled to the first 25% of the member's death benefit or the remainder of the death benefit
25    after the amount provided for any former spouse under Subsections (4)(b) and (4)(c), whichever
26    is greater.
27        (b) Except as provided under Subsection (4)(a), a former spouse's share of a member's
28    death benefit shall be calculated by dividing the member's years of service in which the member
29    was married to the spouse by the member's total years of service used to calculate the member's
30    monthly retirement benefit and multiplying this fraction by the member's death benefit.
31        (c) If a member has more than one former spouse, the death benefit for each former spouse

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1    shall be apportioned using the calculation under Subsection (4)(b), subject to the dependent
2    spouse's share as provided under Subsection (4)(a).
3        (5) If the retired member under Division B dies leaving dependent children, they qualify
4    for benefits as provided for children under Section 49-5-701 or 49-5-702.
5        Section 16. Section 49-5-706 is enacted to read:
6         49-5-706. Death of active or inactive member in Division B having no spouse or minor
7     children as beneficiary -- Benefits payable on death of inactive member.
8        (1) As used in this section, "former spouse" means a member's former spouse:
9        (a) to whom the member was married ten or more years; and
10        (b) with a court order complying with Section 49-1-609.
11        (2) This section only applies to active or inactive members enrolled in Division B under
12    Section 49-5-301.
13        (3) The death benefit payable on behalf of an active or an inactive member who dies and
14    has no dependent spouse, former spouse, or minor children as a beneficiary is 100% of the
15    deceased member's contributions or $500, whichever amount is larger.
16        (4) (a) The death benefit payable monthly on behalf of an inactive member who dies and
17    is survived by a dependent or former spouse, or both, is an amount not to exceed 50% of the
18    amount the member would have received had the member retired on the first day of the month
19    following the month in which death occurred, the computation being based upon years of service
20    and final average salary, reduced actuarially from age 50 to the age at death if the member is under
21    age 50 at the time of death.
22        (b) A monthly pension may not be paid under this section unless the member had 20 or
23    more years of service credit at the time of death.
24        (5) (a) The effective date of accrual of the benefit as provided under this section for a
25    dependent spouse is the first day of the month following the month in which the member died.
26        (b) The effective date of accrual of the benefit as provided under this section for a former
27    spouse is the first day of the month following the month in which the former spouse is age 62.
28        (6) (a) If the member does not have a former spouse or at any time no longer has a living
29    former spouse, the dependent spouse is entitled to the total death benefit under this section.
30        (b) (i) If the member does not have a dependent spouse at the time of death or the member
31    has a total of more than one dependent and former spouses, each spouse's share of the member's

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1    death benefit under this section shall be calculated as provided under this Subsection (6)(b).
2        (ii) If the member has a dependent spouse at the time of death, the dependent spouse shall
3    be entitled to the first 25% of the member's death benefit or the remainder of the death benefit after
4    the amount provided for any former spouse under Subsections (6)(b)(iii) and (6)(b)(iv), whichever
5    is greater.
6        (iii) Except as provided under Subsection (6)(b)(ii), a former spouse's share of a member's
7    death benefit shall be calculated by dividing the member's years of service in which the member
8    was married to the spouse by the member's total years of service and multiplying this fraction by
9    the member's death benefit.
10        (iv) If a member has more than one former spouse, the death benefit for each former
11    spouse shall be apportioned using the calculation under Subsection (6)(b)(iii), subject to the
12    dependent spouse's share as provided under Subsection (6)(b)(ii).
13        Section 17. Effective date.
14        This act takes effect on July 1, 1998.




Legislative Review Note
    as of 12-2-97 3:20 PM


A limited legal review of this bill raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel


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