Representative Kay L. McIff proposes the following substitute bill:


1     
DOMESTIC RELATIONS RETIREMENT SHARES

2     
2015 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Kay L. McIff

5     
Senate Sponsor: Todd Weiler

6     

7     LONG TITLE
8     General Description:
9          This bill modifies the Utah State Retirement and Insurance Benefit Act by amending
10     certain death benefits.
11     Highlighted Provisions:
12          This bill:
13          ▸     provides that a former spouse of a member who dies before retiring may receive a
14     death benefit in certain circumstances; and
15          ▸     makes technical changes.
16     Money Appropriated in this Bill:
17          None
18     Other Special Clauses:
19          None
20     Utah Code Sections Affected:
21     AMENDS:
22          49-12-405, as last amended by Laws of Utah 2011, Chapter 439
23          49-13-405, as last amended by Laws of Utah 2011, Chapter 439
24          49-22-502, as last amended by Laws of Utah 2011, Chapter 439
25          49-23-502, as last amended by Laws of Utah 2011, Chapter 439
26          49-23-503, as last amended by Laws of Utah 2014, Chapter 15
27     ENACTS:
28          49-14-507, Utah Code Annotated 1953
29          49-15-507, Utah Code Annotated 1953
30          49-16-508, Utah Code Annotated 1953
31          49-17-503, Utah Code Annotated 1953
32          49-18-503, Utah Code Annotated 1953
33          49-19-502, Utah Code Annotated 1953
34     

35     Be it enacted by the Legislature of the state of Utah:
36          Section 1. Section 49-12-405 is amended to read:
37          49-12-405. Death of married member -- Service retirement benefits to surviving
38     spouse.
39          (1) As used in this section, "surviving spouse" means:
40          (a) the lawful spouse who has been married to the member for at least six months
41     immediately prior to the death date of the member; or
42          (b) a former spouse of a member with a valid domestic relations order benefits on file
43     with the office prior to the member's death date in accordance with Section 49-11-612.
44          [(1)] (2) Upon the request of a deceased member's [lawful] surviving spouse [at the
45     time of the member's death], the deceased member is considered to have retired under Option
46     Three on the first day of the month following the month in which the member died if the
47     following requirements are met:
48          (a) the member has:
49          (i) 25 or more years of service credit;
50          (ii) attained age 60 with 20 or more years of service credit;
51          (iii) attained age 62 with 10 or more years of service credit; or
52          (iv) attained age 65 with four or more years of service credit; and
53          (b) the member dies leaving a surviving spouse [to whom the member has been
54     married at least six months immediately prior to the death date].
55          (2) The surviving spouse who requests a benefit under this section shall apply in
56     writing to the office. The allowance shall begin on the first day of the month:
57          (a) following the month in which the member died, if the application is received by the
58     office within 90 days of the member's death; or
59          (b) following the month in which the application is received by the office, if the
60     application is received by the office more than 90 days after the [spouse's] member's death.
61          (3) The Option Three benefit calculation, when there are 25 or more years of service
62     credit, shall be calculated without a reduction in allowance under Section 49-12-402.
63          (4) The benefit calculation for a surviving spouse with a valid domestic relations order
64     benefits on file with the office prior to the member's death date in accordance with Section
65     49-11-612 is calculated according to the manner in which the court order specified benefits to
66     be partitioned, whether as a fixed amount or as a percentage of the benefit.
67          [(4)] (5) Except for a return of member contributions, benefits payable under this
68     section are retirement benefits and shall be paid in addition to any payments made under
69     Section 49-12-501 and constitute a full and final settlement of the claim of the surviving
70     spouse or any other beneficiary filing claim for benefits under Section 49-12-501.
71          (6) If the death benefits under this section are proportioned among more than one
72     surviving spouse due to domestic relations order benefits on file with the office prior to the
73     member's death date in accordance with Section 49-11-612, the total amount received by the
74     surviving spouses may not exceed the death benefits normally provided to one surviving
75     spouse under this section.
76          Section 2. Section 49-13-405 is amended to read:
77          49-13-405. Death of married members -- Service retirement benefits to surviving
78     spouse.
79          (1) As used in this section[, "member's]:
80          (a) "Member's full allowance" means an Option Three allowance calculated under
81     Section 49-13-402 without an actuarial reduction.
82          (b) "Surviving spouse" means:
83          (i) the lawful spouse who has been married to the member for at least six months
84     immediately prior to the death date of the member; or
85          (ii) a former spouse of a member with a valid domestic relations order benefits on file
86     with the office prior to the member's death date in accordance with Section 49-11-612.
87          (2) Upon the request of a deceased member's [lawful] surviving spouse [at the time of
88     the member's death], the deceased member is considered to have retired under Option Three on
89     the first day of the month following the month in which the member died if the following
90     requirements are met:
91          (a) the member has:
92          (i) 15 or more years of service credit;
93          (ii) attained age 62 with 10 or more years of service credit; or
94          (iii) attained age 65 with four or more years of service credit; and
95          (b) the member dies leaving a surviving spouse [to whom the member has been
96     married at least six months immediately prior to the death date].
97          (3) The surviving spouse who requests a benefit under this section shall apply in
98     writing to the office. The allowance shall begin on the first day of the month:
99          (a) following the month in which the member died, if the application is received by the
100     office within 90 days of the member's death; or
101          (b) following the month in which the application is received by the office, if the
102     application is received by the office more than 90 days after the [spouse's] member's death.
103          (4) The allowance payable to a surviving spouse under Subsection (2) is:
104          (a) if the member has 25 or more years of service credit at the time of death, the
105     surviving spouse shall receive the member's full allowance;
106          (b) if the member has between 20-24 years of service credit and is not age 60 or older
107     at the time of death, the surviving spouse shall receive two-thirds of the member's full
108     allowance;
109          (c) if the member has between 15-19 years of service credit and is not age 62 or older
110     at the time of death, the surviving spouse shall receive one-third of the member's full
111     allowance; or
112          (d) if the member is age 60 or older with 20 or more years of service credit, age 62 or
113     older with 10 or more years of service credit, or age 65 or older with four or more years of
114     service credit at the time of death, the surviving spouse shall receive an Option Three benefit
115     with actuarial reductions.
116          (5) The benefit calculation for a surviving spouse with a valid domestic relations order
117     benefits on file with the office prior to the member's death date in accordance with Section
118     49-11-612 is calculated according to the manner in which the court order specified benefits to
119     be partitioned, whether as a fixed amount or as a percentage of the benefit.
120          [(5)] (6) Except for a return of member contributions, benefits payable under this
121     section are retirement benefits and shall be paid in addition to any other payments made under
122     Section 49-13-501 and shall constitute a full and final settlement of the claim of the spouse or
123     any other beneficiary filing a claim for benefits under Section 49-13-501.
124          (7) If the death benefits under this section are proportioned among more than one
125     surviving spouse due to domestic relations order benefits on file with the office prior to the
126     member's death date in accordance with Section 49-11-612, the total amount received by the
127     surviving spouses may not exceed the death benefits normally provided to one surviving
128     spouse under this section.
129          Section 3. Section 49-14-507 is enacted to read:
130          49-14-507. Spouse at the time of death includes certain former spouses -- Benefit
131     calculation for former spouse.
132          (1) As used in this part, "spouse at the time of death" includes a former spouse of a
133     member who is under a domestic relations order benefits on file with the office prior to the
134     member's death date in accordance with Section 49-11-612.
135          (2) The benefit calculation for a surviving spouse with a valid domestic relations order
136     benefits on file with the office prior to the member's death date in accordance with Section
137     49-11-612 is calculated according to the manner in which the court order specified benefits to
138     be partitioned, whether as a fixed amount or as a percentage of the benefit.
139          (3) If the death benefits under this section are proportioned among more than one
140     surviving spouse due to domestic relations order benefits on file with the office prior to the
141     member's death date in accordance with Section 49-11-612, the total amount received by the
142     surviving spouses may not exceed the death benefits normally provided to one surviving
143     spouse under this section.
144          Section 4. Section 49-15-507 is enacted to read:
145          49-15-507. Spouse at the time of death includes certain former spouses -- Benefit
146     calculation for former spouse.
147          (1) As used in this part, "spouse at the time of death" includes a former spouse of a
148     member who is under a domestic relations order benefits on file with the office prior to the
149     member's death date in accordance with Section 49-11-612.
150          (2) The benefit calculation for a surviving spouse with a valid domestic relations order
151     benefits on file with the office prior to the member's death date in accordance with Section
152     49-11-612 is calculated according to the manner in which the court order specified benefits to
153     be partitioned, whether as a fixed amount or as a percentage of the benefit.
154          (3) If the death benefits under this section are proportioned among more than one
155     surviving spouse due to domestic relations order benefits on file with the office prior to the
156     member's death date in accordance with Section 49-11-612, the total amount received by the
157     surviving spouses may not exceed the death benefits normally provided to one surviving
158     spouse under this section.
159          Section 5. Section 49-16-508 is enacted to read:
160          49-16-508. Spouse at the time of death includes certain former spouses -- Benefit
161     calculation for former spouse.
162          (1) As used in this part, "spouse at the time of death" includes a former spouse of a
163     member who is under a domestic relations order benefits on file with the office prior to the
164     member's death date in accordance with Section 49-11-612.
165          (2) The benefit calculation for a surviving spouse with a valid domestic relations order
166     benefits on file with the office prior to the member's death date in accordance with Section
167     49-11-612 is calculated according to the manner in which the court order specified benefits to
168     be partitioned, whether as a fixed amount or as a percentage of the benefit.
169          (3) If the death benefits under this section are proportioned among more than one
170     surviving spouse due to domestic relations order benefits on file with the office prior to the
171     member's death date in accordance with Section 49-11-612, the total amount received by the
172     surviving spouses may not exceed the death benefits normally provided to one surviving
173     spouse under this section.
174          Section 6. Section 49-17-503 is enacted to read:
175          49-17-503. Spouse at the time of death includes certain former spouses -- Benefit
176     calculation for former spouse.
177          (1) As used in this part, "spouse at the time of death" includes a former spouse of a
178     member who is under a domestic relations order benefits on file with the office prior to the
179     member's death date in accordance with Section 49-11-612.
180          (2) The benefit calculation for a surviving spouse with a valid domestic relations order
181     benefits on file with the office prior to the member's death date in accordance with Section
182     49-11-612 is calculated according to the manner in which the court order specified benefits to
183     be partitioned, whether as a fixed amount or as a percentage of the benefit.
184          (3) If the death benefits under this section are proportioned among more than one
185     surviving spouse due to domestic relations order benefits on file with the office prior to the
186     member's death date in accordance with Section 49-11-612, the total amount received by the
187     surviving spouses may not exceed the death benefits normally provided to one surviving
188     spouse under this section.
189          Section 7. Section 49-18-503 is enacted to read:
190          49-18-503. Spouse at the time of death includes certain former spouses -- Benefit
191     calculation for former spouse.
192          (1) As used in this part, "spouse at the time of death" includes a former spouse of a
193     member who is under a domestic relations order benefits on file with the office prior to the
194     member's death date in accordance with Section 49-11-612.
195          (2) The benefit calculation for a surviving spouse with a valid domestic relations order
196     benefits on file with the office prior to the member's death date in accordance with Section
197     49-11-612 is calculated according to the manner in which the court order specified benefits to
198     be partitioned, whether as a fixed amount or as a percentage of the benefit.
199          (3) If the death benefits under this section are proportioned among more than one
200     surviving spouse due to domestic relations order benefits on file with the office prior to the
201     member's death date in accordance with Section 49-11-612, the total amount received by the
202     surviving spouses may not exceed the death benefits normally provided to one surviving
203     spouse under this section.
204          Section 8. Section 49-19-502 is enacted to read:
205          49-19-502. Spouse at the time of death includes certain former spouses -- Benefit
206     calculation for former spouse.
207          (1) As used in this part, "spouse at the time of death" includes a former spouse of a
208     member who is under a domestic relations order benefits on file with the office prior to the
209     member's death date in accordance with Section 49-11-612.
210          (2) The benefit calculation for a surviving spouse with a valid domestic relations order
211     benefits on file with the office prior to the member's death date in accordance with Section
212     49-11-612 is calculated according to the manner in which the court order specified benefits to
213     be partitioned, whether as a fixed amount or as a percentage of the benefit.
214          (3) If the death benefits under this section are proportioned among more than one
215     surviving spouse due to domestic relations order benefits on file with the office prior to the
216     member's death date in accordance with Section 49-11-612, the total amount received by the
217     surviving spouses may not exceed the death benefits normally provided to one surviving
218     spouse under this section.
219          Section 9. Section 49-22-502 is amended to read:
220          49-22-502. Death of married members -- Service retirement benefits to surviving
221     spouse.
222          (1) As used in this section[, "member's]:
223          (a) "Member's full allowance" means an Option Three allowance calculated under
224     Section 49-22-305 without an actuarial reduction.
225          (b) "Surviving spouse" means:
226          (i) the lawful spouse who has been married to the member for at least six months
227     immediately prior to the death date of the member; or
228          (ii) a former spouse of a member with a valid domestic relations order benefits on file
229     with the office prior to the member's death date in accordance with Section 49-11-612.
230          (2) Upon the request of a deceased member's [lawful] surviving spouse [at the time of
231     the member's death], the deceased member is considered to have retired under Option Three on
232     the first day of the month following the month in which the member died if the following
233     requirements are met:
234          (a) the member has:
235          (i) 15 or more years of service credit;
236          (ii) attained age 62 with 10 or more years of service credit; or
237          (iii) attained age 65 with four or more years of service credit; and
238          (b) the member dies leaving a surviving spouse [to whom the member has been
239     married at least six months immediately prior to the death date].
240          (3) The surviving spouse who requests a benefit under this section shall apply in
241     writing to the office. The allowance shall begin on the first day of the month:
242          (a) following the month in which the member died, if the application is received by the
243     office within 90 days of the member's death; or
244          (b) following the month in which the application is received by the office, if the
245     application is received by the office more than 90 days after the [spouse's] member's death.
246          (4) The allowance payable to a surviving spouse under Subsection (2) is as follows:
247          (a) if the member has 25 or more years of service credit at the time of death, the
248     surviving spouse shall receive the member's full allowance;
249          (b) if the member has between 20-24 years of service credit and is not age 60 or older
250     at the time of death, the surviving spouse shall receive 2/3 of the member's full allowance;
251          (c) if the member has between 15-19 years of service credit and is not age 62 or older
252     at the time of death, the surviving spouse shall receive 1/3 of the member's full allowance; or
253          (d) if the member is age 60 or older with 20 or more years of service credit, age 62 or
254     older with 10 or more years of service credit, or age 65 or older with four or more years of
255     service credit at the time of death, the surviving spouse shall receive an Option Three benefit
256     with actuarial reductions.
257          (5) The benefit calculation for a surviving spouse with a valid domestic relations order
258     benefits on file with the office prior to the member's death date in accordance with Section
259     49-11-612 is calculated according to the manner in which the court order specified benefits to
260     be partitioned, whether as a fixed amount or as a percentage of the benefit.
261          [(5)] (6) Except for a return of member contributions, benefits payable under this
262     section are retirement benefits and shall be paid in addition to any other payments made under
263     Section 49-22-501 and shall constitute a full and final settlement of the claim of the surviving
264     spouse or any other beneficiary filing a claim for benefits under Section 49-22-501.
265          (7) If the death benefits under this section are proportioned among more than one
266     surviving spouse due to domestic relations order benefits on file with the office prior to the
267     member's death date in accordance with Section 49-11-612, the total amount received by the
268     surviving spouses may not exceed the death benefits normally provided to one surviving
269     spouse under this section.
270          Section 10. Section 49-23-502 is amended to read:
271          49-23-502. Death of married members -- Service retirement benefits to surviving
272     spouse.
273          (1) As used in this section[, "member's] and Section 49-23-503:
274          (a) "Member's full allowance" means an Option Three allowance calculated under
275     Section 49-23-304 without an actuarial reduction.
276          (b) "Surviving spouse" means:
277          (i) the lawful spouse who has been married to the member for at least six months
278     immediately prior to the death date of the member; or
279          (ii) a former spouse of a member with a valid domestic relations order benefits on file
280     with the office prior to the member's death date in accordance with Section 49-11-612.
281          (2) Upon the request of a deceased member's [lawful] surviving spouse at the time of
282     the member's death, the deceased member is considered to have retired under Option Three on
283     the first day of the month following the month in which the member died if the following
284     requirements are met:
285          (a) the member has:
286          (i) 15 or more years of service credit;
287          (ii) attained age 62 with 10 or more years of service credit; or
288          (iii) attained age 65 with four or more years of service credit; and
289          (b) the member dies leaving a surviving spouse [to whom the member has been
290     married at least six months immediately prior to the death date].
291          (3) The spouse who requests a benefit under this section shall apply in writing to the
292     office. The allowance shall begin on the first day of the month:
293          (a) following the month in which the member died, if the application is received by the
294     office within 90 days of the member's death; or
295          (b) following the month in which the application is received by the office, if the
296     application is received by the office more than 90 days after the [spouse's] member's death.
297          (4) The allowance payable to a surviving spouse under Subsection (2) is:
298          (a) if the member has 25 or more years of service credit at the time of death, the
299     surviving spouse shall receive the member's full allowance;
300          (b) if the member has between 20-24 years of service credit and is not age 60 or older
301     at the time of death, the surviving spouse shall receive two-thirds of the member's full
302     allowance;
303          (c) if the member has between 15-19 years of service credit and is not age 62 or older
304     at the time of death, the surviving spouse shall receive one-third of the member's full
305     allowance; or
306          (d) if the member is age 60 or older with 20 or more years of service credit, age 62 or
307     older with 10 or more years of service credit, or age 65 or older with four or more years of
308     service credit at the time of death, the surviving spouse shall receive an Option Three benefit
309     with actuarial reductions.
310          (5) The benefit calculation for a surviving spouse with a valid domestic relations order
311     benefits on file with the office prior to the member's death date in accordance with Section
312     49-11-612 is calculated according to the manner in which the court order specified benefits to
313     be partitioned, whether as a fixed amount or as a percentage of the benefit.
314          [(5)] (6) Except for a return of member contributions, benefits payable under this
315     section are retirement benefits and shall be paid in addition to any other payments made under
316     Section 49-23-501 and shall constitute a full and final settlement of the claim of the surviving
317     spouse or any other beneficiary filing a claim for benefits under Section 49-23-501.
318          (7) If the death benefits under this section or Section 49-23-503 are proportioned
319     among more than one surviving spouse due to domestic relations order benefits on file with the
320     office prior to the member's death date in accordance with Section 49-11-612, the total amount
321     received by the surviving spouses may not exceed the death benefits normally provided to one
322     surviving spouse under this section.
323          Section 11. Section 49-23-503 is amended to read:
324          49-23-503. Death of active member in line of duty -- Payment of benefits.
325          If an active member of this system dies, benefits are payable as follows:
326          (1) If the death is classified by the office as a line-of-duty death, benefits are payable as
327     follows:
328          (a) If the member has accrued less than 20 years of public safety service or firefighter
329     service credit, the surviving spouse [at the time of death] shall receive a lump sum of $1,000
330     and an allowance equal to 30% of the member's final average monthly salary.
331          (b) If the member has accrued 20 or more years of public safety service or firefighter
332     service credit, the member shall be considered to have retired with an Option One allowance
333     calculated without an actuarial reduction under Section 49-23-304 and the surviving spouse [at
334     the time of death] shall receive the allowance that would have been payable to the member.
335          (2) (a) A volunteer firefighter is eligible for a line-of-duty death benefit under this
336     section if the death results from external force, violence, or disease directly resulting from
337     firefighter service.
338          (b) The lowest monthly compensation of firefighters of a city of the first class in this
339     state at the time of death shall be considered to be the final average monthly salary of a
340     volunteer firefighter for purposes of computing these benefits.
341          (c) Each volunteer fire department shall maintain a current roll of all volunteer
342     firefighters which meet the requirements of Subsection 49-23-102(12) to determine the
343     eligibility for this benefit.
344          (3) (a) If the death is classified as a line-of-duty death by the office, death benefits are
345     payable under this section and the surviving spouse [at the time of death] is not eligible for
346     benefits under Section 49-23-502.
347          (b) If the death is not classified as a line-of-duty death by the office, benefits are
348     payable in accordance with Section 49-23-502.
349          (4) (a) A surviving spouse who qualifies for a monthly benefit under this section shall
350     apply in writing to the office.
351          (b) The allowance shall begin on the first day of the month following the month in
352     which the:
353          (i) member or participant died, if the application is received by the office within 90
354     days of the date of death of the member or participant; or
355          (ii) application is received by the office, if the application is received by the office
356     more than 90 days after the date of death of the member or participant.