STATE EMPLOYEES' RETIREMENT BOARD [ 4 PA. CODE CH. 247 ] Death Benefits [38 Pa.B. 4396]
[Saturday, August 9, 2008]The State Employees' Retirement Board (Board) proposes to amend 4 Pa. Code, Chapter 247 (relating to benefits) by adding language to § 247.7(a) (relating to death benefits) pertaining to the priority of death benefit payments in the event the payments cannot be made to a designated beneficiary or the member's estate.
A. Effective Date
The proposed amendment will go into effect upon publication in the Pennsylvania Bulletin as a final-form rulemaking.
B. Contact Person
For further information contact Robert Gentzel, Director of Communications and Policy, State Employees' Retirement System, 30 North Third Street, Suite 150, Harrisburg, PA 17101-1716, (717) 787-9657 or Salvatore A. Darigo, Jr., Counsel, State Employees' Retirement System, 30 North Third Street, Suite 150, Harrisburg, PA 17101-1716, (717) 783-7317. Information regarding submitting comments on this proposal appears in Section H of this preamble.
C. Statutory Authority
This proposed amendment is being promulgated under the authority of 71 Pa.C.S. §§ 5902(h) and 5953 (relating to administrative duties of the board; and taxation, attachment and assignment of funds) of the State Employees' Retirement Code (Retirement Code).
D. Background and Purpose
This proposed amendment clarifies the priority for payment of a member's death benefit in the event that payment of the benefits cannot be made to a member's designated beneficiary or estate. The amendment would enable consistent application of the statute and could avoid litigation of priority issues.
E. Benefits, Costs and Compliance
Benefits
The proposed amendment is intended to alleviate confusion and prevent possible disputes with regard to conflicting demands on members' death benefits.
Costs
There are no costs to the Commonwealth, its citizens or State employees associated with this proposal.
Compliance Costs
The proposed amendment is not expected to impose any additional compliance costs on State employees.
F. Sunset Review
A sunset review is not applicable.
G. Regulatory Review
Under section 5(a) of the Regulatory Review Act (act) (71 P. S. § 745.5(a)), on July 25, 2008, the Board submitted a copy of this proposed rulemaking and a copy of a Regulatory Analysis Form to the Independent Regulatory Review Commission (IRRC) and to the Chairpersons of the Senate Finance Committee and the House State Government Committee. A copy of this material is available to the public upon request.
Under section 5(g) of the act, IRRC may convey any comments, recommendations or objections to the proposed rulemaking within 30 days of the close of the public comment period. The comments, recommendations or objections must specify the regulatory review criteria which have not been met. The act specifies detailed procedures for review, prior to final publication of the rulemaking, by the Board, the General Assembly and the Governor of comments, recommendations or objections raised.
H. Public Comments
Written Comments. Interested persons are invited to submit comments regarding the proposed amendment to Robert Gentzel, Director of Communications and Policy, State Employees' Retirement System, 30 North Third Street, Suite 150, Harrisburg, PA 17101-1716. Comments submitted by facsimile will not be accepted. The Board must receive comments, suggestions or objections within 30 days of publication in the Pennsylvania Bulletin.
Electronic Comments. Comments may be submitted electronically to the Board at rgentzel@state.pa.us and must be received by the Board within 30 days of publication in the Pennsylvania Bulletin. A subject heading of the proposal and a return name and address must be included in each transmission. If an acknowledgment of electronic comments is not received by the sender within 2 working days, the comments should be retransmitted to ensure receipt.
NICHOLAS J. MAIALE,
ChairpersonFiscal Note: 31-12. No fiscal impact; (8) recommends adoption.
Annex A TITLE 4. ADMINISTRATION PART X. STATE EMPLOYEES' RETIREMENT BOARD CHAPTER 247. BENEFITS § 247.7. Death benefits.
(a) Manner of payments. In the event [no living] the member does not designate a beneficiary before death or the designation is not valid for any reason or no validly designated beneficiary survives the member by 30 days under 71 Pa.C.S. § 5709(c) (relating to the payment of benefits) to receive any of the death benefits provided in [section 5707 of] the code [(relating to death benefits)], [such] the benefits shall be payable to the estate of the member [or to the next of kin under 20 Pa.C.S. § 3101 (relating to payments to family and funeral directors)].
(1) If the estate of the member is entitled to receive the member's death benefits but does not file a claim for the benefits within 60 days of the date SERS mails notice of the benefits to the estate of the member, the entire amount of the death benefit shall be payable in the following sequential priority:
(i) To the appointed executor or administrator of the deceased member.
(ii) To the surviving spouse of the member.
(iii) To any child of the member.
(iv) To the father or mother of the member.
(v) To any sister or brother of the member.
(2) Payments made under paragraph (i)(iii), (iv) or (v) shall be made to only one person and not divided among members of the classes identified in those subparagraphs. Upon payment of a death benefit under this section, the System shall be discharged from any further liability for the payment of the death benefits to any other person. A person to whom payment is made under this paragraph shall be answerable therefor to anyone prejudiced by the payment.
* * * * * [Pa.B. Doc. No. 08-1462. Filed for public inspection August 8, 2008, 9:00 a.m.]
