PRIOR PRINTER'S NO. 918 PRINTER'S NO. 1266
No. 759 Session of 2005
INTRODUCED BY ARMSTRONG, MUSTO, M. WHITE, O'PAKE, LEMMOND,
STACK, PIPPY AND THOMPSON, JUNE 13, 2005
SENATOR GREENLEAF, JUDICIARY, AS AMENDED, OCTOBER 25, 2005
AN ACT
1 Amending Title 23 (Domestic Relations) of the Pennsylvania
2 Consolidated Statutes, further providing for decree of court. <--
3 and for defined benefit retirement plans. <--
4 The General Assembly of the Commonwealth of Pennsylvania
5 hereby enacts as follows:
6 Section 1. Sections 3323(d.1) and 3501(c) of Title 23 of the <--
7 Pennsylvania Consolidated Statutes, added November 29, 2004
8 (P.L.1357, No.175), are amended to read:
9 SECTION 1. SECTION 3323(D.1) OF TITLE 23 OF THE PENNSYLVANIA <--
10 CONSOLIDATED STATUTES IS AMENDED TO READ:
11 § 3323. Decree of court.
12 * * *
13 (d.1) Death of a party.--[In]
14 (1) Subject to paragraph (2), in the event one party
15 dies during the course of divorce proceedings, no decree of
16 divorce has been entered and grounds have been established as
17 provided in subsection (g), the parties' economic rights and
18 obligations arising under the marriage shall be determined
1 under this part rather than under 20 Pa.C.S. (relating to
2 decedents, estates and fiduciaries).
3 (2) The State Employees' Retirement System, the Public
4 School Employees' Retirement System or the Pennsylvania
5 Municipal Retirement System shall not be obligated to issue
6 duplicate death benefit or retirement payments if the
7 original payments were made prior to receipt of an
8 appropriate court order directed to the affected retirement
9 system. Any person who receives a death benefit or retirement
10 payment to which he or she is not entitled by operation of
11 such order shall be solely liable to any person otherwise so
12 entitled, who shall have the right to seek further redress in
13 a court of competent jurisdiction. This paragraph shall apply
14 to all equitable distributions which are subject to the
15 provisions of this subsection.
16 * * *
17 § 3501. Definitions. <--
18 * * *
19 (c) Defined benefit retirement plans.--
20 (1) Notwithstanding subsections (a), (a.1) and (b):
21 [(1)] (i) In the case of the marital portion of a
22 defined benefit retirement plan being distributed by means of
23 a deferred distribution, the defined benefit plan shall be
24 allocated between its marital and nonmarital portions solely
25 by use of a coverture fraction. The denominator of the
26 coverture fraction shall be the number of months the employee
27 spouse worked to earn the total benefit and the numerator
28 shall be the number of such months during which the parties
29 were married and not finally separated. The benefit to which
30 the coverture fraction is applied shall include all
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1 postseparation enhancements except for enhancements arising
2 from postseparation monetary contributions made by the
3 employee spouse, including the gain or loss on such
4 contributions.
5 [(2)] (ii) In the case of the marital portion of a
6 defined benefit retirement plan being distributed by means of
7 an immediate offset, the defined benefit plan shall be
8 allocated between its marital and nonmarital portions solely
9 by use of a coverture fraction. The denominator of the
10 coverture fraction shall be the number of months the employee
11 spouse worked to earn the accrued benefit as of a date as
12 close to the time of trial as reasonably possible and the
13 numerator shall be the number of such months during which the
14 parties were married and not finally separated. The benefit
15 to which the coverture fraction is applied shall include all
16 postseparation enhancements up to a date as close to the time
17 of trial as reasonably possible except for enhancements
18 arising from postseparation monetary contributions made by
19 the employee spouse, including the gain or loss on such
20 contributions.
21 (2) This subsection shall apply to all equitable
22 distribution proceedings pending on or after January 28,
23 2005.
24 Section 2. The addition of 23 Pa.C.S. § 3323(d.1)(2) shall
25 apply retroactively to January 28, 2005.
26 Section 3. This act shall take effect immediately.
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