Summary:

 House Bill 251 relates to educational retirement by providing additional options to change the beneficiary for retired members who have designated a spouse as a beneficiary. 

Legislation Overview:

 SECTION 1 amends Public Schools in Retirement Benefit Options in Subsection A to insert a reference to Subsection F, which is inserted in this section. Subsection C is amended to insert “Subsection A of this section”  to provide an adjustment of Option B or C.
Subsection F is inserted as follows:
F. A retired member who is being paid an annuity under Option B or C of Subsection A of this section with the member's spouse as the designated beneficiary may exercise a one-time irrevocable option to deselect the designated beneficiary and elect to: 
(1) designate another beneficiary; provided that certain conditions are met as specified in this paragraph.
(2) have the future annuity payments made without a reduction as a result of Option B or C of Subsection A of this section; 
(3) upon becoming divorced from the named spouse and subject to an order of a court as provided for in Subsection B of Section 22-11-42 NMSA 1978, elect to have future annuity payments made under retirement benefit Option A of Subsection A of this section; 
(4) upon becoming divorced from the named spouse, exercise a one-time irrevocable option to designate another beneficiary; provided that certain conditions are met as specified in this paragraph.
(5) have the future annuity payments made without a reduction as a result of Option B or C of Subsection A of this section.
The Section is relettered. 

Current Law:

 House Bill 251 Section 22-11-29 NMSA 1978 (being Laws 1967, Chapter 16, Section 152, as amended) relates to educational retirement currently does not provide the options provided in the proposed bill.