§ 24-51-802 — Change in option or cobeneficiary

(1) Except as otherwise
provided in this part 8, the election of an option and the designation of a
cobeneficiary for options 2 and 3 shall not be changed after sixty days have
elapsed from issuance of the initial benefit payment.

(2) The election of an option or the designation of a cobeneficiary may be
changed if the retiree returns to membership and thereafter earns one year of
service credit; however, a member whose retirement or reduced service retirement
benefits are in separate benefit segments pursuant to section 24-51-1103 (1.5) shall
elect the same option and designate the same cobeneficiary for all of his or her
separate benefit segments.

(3) A retiree who was not married on the effective date of retirement may
elect option 2 or 3 upon marriage and designate the spouse as cobeneficiary. If a
retiree is married on the effective date of retirement and the spouse on said date
subsequently dies, the retiree may elect option 2 or 3 upon remarriage and
designate the spouse as cobeneficiary.

(3.5) In any dissolution of marriage action in any district court of the state,
the court shall have the jurisdiction to order or allow a retiree who is a petitioner or
respondent in such action to change the cobeneficiary that was named by such
retiree at retirement.

(3.8) In any dissolution of marriage action in any district court of the state
that becomes final on or after July 1, 2003, in which the retiree retired on or after
July 1, 1988, and elected to receive an option 2 or 3 benefit and designated his or
her spouse as cobeneficiary, the court shall have the jurisdiction to order or allow a
retiree who is a petitioner or respondent in such action to remove the spouse that
was named cobeneficiary by the retiree at retirement, in which case an option 1
benefit shall become payable. The retiree may elect option 2 or 3 upon remarriage
and designate the spouse as cobeneficiary.

(4) Designation by a member of a cobeneficiary to receive an option 3 benefit
pursuant to the provisions of part 9 of this article may be changed or omitted by
said member at any time prior to the date of death.

(5) Notwithstanding any provision to the contrary, a retiree may change the
cobeneficiary that was named by such retiree and designate a supplemental needs
trust as a cobeneficiary in place of the previously named cobeneficiary if:

(a) The beneficiary of the supplemental needs trust is the same person as
the previously named cobeneficiary; and

(b) The retiree files an application and any required documents in a form as
designated by the association.

Legislative History

Source: L. 87: Entire article R&RE, p. 1066, � 1, effective July 1. L. 88: (1) amended, (3) R&RE, and (4) added, p. 960, �� 8, 9, effective July 1. L. 90: (1) amended, p. 1249, � 8, effective April 5. L. 92: (3.5) added, p. 1140, � 16, effective May 1. L. 2003: (3.8) added, p. 2610, � 8, effective July 1. L. 2010: (2) amended, (SB 10-001), ch. 2, p. 17, � 17, effective January 1, 2011. L. 2015: (5) added, (SB 15-097), ch. 111, p. 326, � 4, effective April 16.