Amends TCA Title 8, Chapter 34; Title 8, Chapter 35; Title 8, Chapter 36 and Title 8, Chapter 37.

Under present law, a member of the Tennessee consolidated retirement system may elect to convert the retirement allowance otherwise payable on the member's account after retirement into a retirement allowance to a selected designation of beneficiary. If a member who retires under an optional retirement plan divorces a spouse who is the designated beneficiary, then the beneficiary may be cancelled upon the written request of the member and proper documentation. The retirement allowance payable to the retiree after the cancellation of the designated beneficiary is not affected by such cancellation. This bill rewrites the above provisions to instead provide the following: This bill authorizes a retired member to cancel the selected designation beneficiary upon the written request of the member, under additional circumstances as referenced below: (1) The election of a designated beneficiary under an optional retirement plan must not be changed or revoked by the member after the member's retirement date, except as provided in this bill; (2) Subject to item (3), a retired member may cancel the selected designation of beneficiary upon the written request of the member. A retired member cannot change a beneficiary under this provision after retirement if the retiree has previously changed or designated after retirement a beneficiary for optional retirement benefit payments under this provision; (3) If the designated beneficiary is the spouse or former spouse of the member, a retired member may cancel the selected designation of beneficiary upon the written request of the member and proper documentation. The cancellation must not be in conflict with the decree or marital dissolution agreement; (4) A retired member may change the designated beneficiary upon the death of the beneficiary. The newly elected beneficiary will only be entitled to any remaining accumulated contributions upon the death of the member; and (5) The retirement allowance payable to the retired member after the cancellation of the designated beneficiary pursuant to this bill will not be affected by the cancellation. ON MARCH 24, 2022, THE HOUSE ADOPTED AMENDMENT #1 AND PASSED HOUSE BILL 1722, AS AMENDED. AMENDMENT #1 rewrites this bill to authorize a retired member to cancel the member's designated beneficiary for any reason one time, and to name a new beneficiary. If a retired member cancels the member's designated beneficiary who is the member's spouse or former spouse, this amendment requires the retired member to include proper documentation with the written cancellation request, which, for a divorce, must include, but is not limited to, the final decree and marital dissolution agreement of the parties. The cancellation must not be in conflict with the decree or marital dissolution agreement. Upon the death of a retired member, a newly designated beneficiary will only be entitled to the remaining accumulated contributions in the member's account or the member's retirement allowance in the month of death. The retirement allowance payable to the retired member after the cancellation of the designated beneficiary pursuant to this amendment will not be affected by the cancellation of beneficiary designation.