Staff says IRS unlikely to allow post‑retirement benefit increases; retiree appeals for relief

Aaron Gutierrez (committee staff) explained survivor (joint‑and‑survivor) election options and the limited circumstances under which a retiree can change that election after retirement: a 90‑day window after retirement, a post‑retirement marriage window (typically one year), and the "pop up" provision if a survivor predeceases the retiree. Gutierrez described how actuarial reductions operate and how an election to provide a survivor payment reduces the member’s monthly benefit in exchange for continuing payments to a survivor.

Gutierrez summarized the retiree letter under discussion: a retiree who chose a joint‑and‑50% survivor option said a change in federal law (the Social Security Fairness Act repeal of the windfall elimination provision) increased the retiree’s spouse’s Social Security benefit and the retiree asked to change the state survivor election accordingly. Gutierrez relayed outside legal advice from Ice Miller LLP: "the IRS is unlikely to approve any additional survivor option change that would increase a member's benefit amount after the member starts receiving benefits." He said the IRS might allow changes that further reduce benefits but was skeptical of changes that would increase them and warned about plan qualification and tax penalty risk.

During public comment, Rebecca Souders Palm — who identified herself as the widow of Deputy Sheriff Martin Stewart Souders — described the personal impact of benefit rules and asked the committee to examine why law changes did not restore benefits to families in her situation. She said she provided materials and asked for careful, thoughtful consideration of the issue.