PERAC Memo #34 - 2000: Elimination of the remarriage penalty and increased benefit under G.L. c. 32, § 12(2)(d)
Elimination of the remarriage penalty and increased benefit under G.L. c. 32, § 12(2)(d)
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PERAC Memo #34/2000 explains FY2001 budget amendments to G.L. c. 32 that (1) eliminate the "remarriage penalty," so surviving spouses under §§ 9, 12(2)(d), 100, and 101 no longer lose or have reduced benefits upon remarriage, effective July 1, 2000, and (2) increase the §12(2)(d) death benefit to the full Option C allowance the member would have received had they retired on their date of death, applicable to applications filed after February 1, 2000.
Boards must reinstate or recalculate any allowances terminated/reduced due to remarriage on or after July 1, 2000, and recalculate any §12(2)(d) applications filed on or after February 1, 2000 to reflect the enhanced Option C benefit; no action is required for benefits terminated or reduced before those dates.
Full Text
PERAC MEMO #34/2000 M E M O R A N D U M TO: All Retirement Boards FROM: Joseph E. Connarton, Executive Director RE: Elimination of the remarriage penalty and increased benefit under G.L. c. 32, § 12(2)(d) DATE: August 15, 2000 ELIMINATION OF THE REMARRIAGE PENALTY Sections 87, 88, 97, 98, 99 and 100 of Chapter 159 of the Acts of 2000 (the FY 2001 state budget) make changes to G.L. c. 32, §§ 9, 12(2)(d), 100 and 101 to eliminate provisions which change or eliminate benefits to spouses of deceased members who remarry. These provisions are effective as of July 1, 2000 and any allowances which have been terminated or reduced due to remarriage from that date forward must be reinstated and/or recalculated. This does not apply to any benefits which were terminated or reduced prior to July 1, 2000. The relevant sections of G.L. c. 32 are effected as provided below: In G.L. c. 32, § 9, an eligible surviving spouse now receives benefits under this section until his or her death, regardless of whether he or she remarries. In G.L. c. 32, § 12(2)(d), a spouse receiving a benefit under this section who remarries now does not lose the $250 per month minimum benefit. In G.L. c. 32, § 100, a surviving spouse who remarries now continues to receive a benefit under this section. Also, the guardian of a child of a deceased firefighter receives a benefit only upon the death and not the remarriage of the surviving spouse. In G.L. c. 32, § 101, a widow of a disabled public employee who could not provide a benefit for his or her spouse now continues to receive an allowance under this section when he or she remarries. M E M O R A N D U M - Page Two TO: All Retirement Boards FROM: Joseph E. Connarton, Executive Director RE: Elimination of the remarriage penalty and increased benefit under G.L. c. 32, § 12(2)(d) DATE: August 15, 2000 INCREASED BENEFIT UNDER G.L. c. 32, § 12(2)(d) Sections 89, 90 and 486 of Chapter 159 of the Acts of 2000 (the FY 2001 state budget) make changes to G.L. c. 32, § 12(2)(d), increasing the benefit for eligible beneficiaries of a member in service who dies. The eligible beneficiary will now receive the full Option C amount that the member would have received had the member retired on the date he or she died. This increase will only be effective for applications for § 12(2)(d) filed subsequent to February 1, 2000. Any application filed on or after February 1, 2000 must be recalculated. We trust the foregoing is of assistance. Additional memoranda on other aspects of the state budget will be forthcoming. If you have further questions or concerns, please contact this office.