2024 -- S 2428 | |
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LC004997 | |
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STATE OF RHODE ISLAND | |
IN GENERAL ASSEMBLY | |
JANUARY SESSION, A.D. 2024 | |
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A N A C T | |
RELATING TO PUBLIC OFFICERS AND EMPLOYEES -- RETIREMENT SYSTEM -- | |
CONTRIBUTIONS AND BENEFITS | |
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Introduced By: Senators Ciccone, F. Lombardi, Tikoian, LaMountain, and Burke | |
Date Introduced: February 12, 2024 | |
Referred To: Senate Judiciary | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. Chapter 36-10 of the General Laws entitled "Retirement System — |
2 | Contributions and Benefits" is hereby amended by adding thereto the following section: |
3 | 36-10-41. Protection of benefits payable upon death or disability of a state or federal |
4 | employee. |
5 | (a) For purposes of this section the following terms shall have the following meanings: |
6 | (1) “Benefit” means a payment whether a lump sum or a series of payments. A benefit may |
7 | be due as a death benefit, survivor pension, return of contributions, distribution of an account |
8 | balance, or any other payment due to the death or disability of a participant as defined herein. |
9 | (2) “Beneficiary” means a person, estate, trust, or other entity entitled to a benefit as the |
10 | result of the death or disability of a participant as that term is defined herein. |
11 | (3) “Participant” means a person who was or is a state or federal employee eligible to |
12 | participate in one of the following programs: |
13 | (i) The Federal Employees Retirement System (FERS); |
14 | (ii) The Civil Service Retirement System (CSRS); |
15 | (iii) The federal Thrift Savings Program (TSP); |
16 | (iv) Veterans pension; |
17 | (v) A retirement benefit pursuant to 28 U.SC. § 371; |
18 | (vi) A defined benefit plan administered by the Rhode Island retirement board pursuant to |
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1 | titles 16, 36 or 45; |
2 | (vii) A defined contribution plan established pursuant § 36-9-10.3; or |
3 | (viii) A defined benefit plan qualifying under 26 U.S.C. §§ 401(a), 414(d) and 414(k) |
4 | administered by a municipality pursuant to any act of the general assembly or pursuant to title 45. |
5 | (b) Any benefit due to any beneficiary shall be exempt from lien, attachment, or |
6 | garnishment and shall not be transferable or assignable; provided, however, that any governmental |
7 | agency which may have a claim on money due from one of its employees related to their |
8 | employment in the agency shall have the right to the payment at the time any refund of contributions |
9 | is made to the participant or beneficiary and the provisions of this section shall not act to defeat a |
10 | lien or order for spousal or child support. |
11 | (c) A beneficiary may disclaim any right to receive all or part of their benefits as follows: |
12 | (1) If the beneficiary disclaiming all or any part of the benefits is a minor, the parent or |
13 | guardian of the minor shall sign the disclaimer. |
14 | (2) Notwithstanding the provisions of chapter 3 of title 33, in the event of the death or |
15 | incapacity of a beneficiary, the guardian, executor, executrix, administrator, administratrix or |
16 | personal representative of the beneficiary shall be authorized to execute the disclaimer subject only |
17 | to the limitations in this section. |
18 | (3) The disclaimer shall expressly state that the beneficiary is disclaiming their right to |
19 | receive all or a specified percentage of the benefit payable from the account or plan of the named |
20 | participant and shall be: |
21 | (i) Submitted in writing; |
22 | (ii) Signed or acknowledged in the presence of a notary public, by the beneficiary or the |
23 | legal representative of the beneficiary disclaiming the benefit; and |
24 | (iii) Received by the plan administrator before payment of the benefit. |
25 | (4) A disclaimer is invalid if it: |
26 | (i) Is revocable; |
27 | (ii) Directs to whom the disclaimed benefit should be paid; or |
28 | (iii) Specifies which balance or fund, such as traditional, Roth or tax-exempt, is disclaimed. |
29 | (5) The disclaimed benefit or the disclaimed portion thereof will be paid as though the |
30 | beneficiary predeceased the participant. Any part of the benefit which is not disclaimed will be paid |
31 | to the beneficiary. |
32 | (6) Insofar as similar language is used, the provisions of subsection (d) of this section shall |
33 | be interpreted in a similar way as the provisions of 5 C.F.R. § 1651.17 to provide uniformity in |
34 | interpretation among the agencies and courts of the federal government and the several states. |
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1 | (d) The provisions of subsections (b) and (c) of this section shall be applicable to prevent |
2 | any lien from arising or attaching under chapter 8 of title 40 and/or dissolve and prevent the |
3 | reattachment of any lien in the event a valid disclaimer is made. |
4 | (e) The provisions of this sections shall be read to provide additional powers to guardians |
5 | and shall not act to limit the provisions of § 33-15-37.1. |
6 | (f) Any guardianship or estate opened in any probate court to administer the property or |
7 | rights of a decedent that was pending at the time of the passage of this section or that is pending on |
8 | appeal to the superior court or supreme court and qualifies under this section shall be eligible to |
9 | take advantage of the provisions of this section. |
10 | SECTION 2. This act shall take effect upon passage. |
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LC004997 | |
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EXPLANATION | |
BY THE LEGISLATIVE COUNCIL | |
OF | |
A N A C T | |
RELATING TO PUBLIC OFFICERS AND EMPLOYEES -- RETIREMENT SYSTEM -- | |
CONTRIBUTIONS AND BENEFITS | |
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1 | This act would provide that any benefit that a beneficiary is entitled to shall be exempt |
2 | from lien, attachment or garnishment and would not be transferable or assignable and provides |
3 | provisions for disclaiming any such benefit with regard to benefits paid upon the death or disability |
4 | of a state or federal employee. |
5 | This act would take effect upon passage. |
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LC004997 | |
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