Plan 2 board asks staff to submit comments to DRS rulemaking on catastrophic‑disability survivor benefits

Board staff presented a study of inconsistencies in how survivor benefits are administered for catastrophic‑disability retirees and survivors of line‑of‑duty deaths. Staff noted two principal issues: (1) survivors of active‑duty line‑of‑duty deaths receive a fully subsidized survivor benefit while survivors of post‑retirement line‑of‑duty deaths may not, and (2) DRS has in some cases calculated survivor benefits for catastrophic‑disability retirees using duty‑disability benefit calculations rather than the 70% final‑average‑salary (FAS) minimum that a retiree may receive.

Staff said DRS had changed administrative practice in 2014 and planned a rulemaking process that would allow public comment. The board considered several provisions and chose option 2: direct staff to prepare written comment to DRS identifying the board's concerns as the agency proceeds through rulemaking. A motion to direct staff to submit written comments was made, seconded and approved by voice vote.

Staff told the board DRS would proceed with rulemaking and that the board could later consider legislative action if rulemaking did not resolve the matters. The actuary provided pricing showing a modest employee‑rate impact (provision 1 estimated at 1 basis point; provision 2 no net rate change), and staff said the rulemaking and any legislative approach would include public comment and fiscal‑note work.