Committee approves bill allowing assignment of state retiree life benefits to funeral homes

Representative Taylor presented House Bill 1234 to the Retirement Committee, saying the measure would allow beneficiaries of the state retiree life insurance program to assign payment of funeral expenses directly to a funeral home. "This bill will allow the plan to accept that assignment, and it specifically states it can only be used for funeral expenses," Taylor said, adding that COVID-era payment problems left funeral homes unpaid and retirees at risk of not receiving dignified services.

Taylor explained the bill limits assignment to actual funeral expenses and that any remainder of the death benefit would be paid to the listed beneficiaries on the policy. "If the funeral costs less than the death benefit, all of the remaining benefits will be paid directly to those been listed beneficiaries on the policy," Taylor said.

A committee member moved to pass the bill and a second was recorded. The committee approved HB 1234 by voice vote; the transcript records an "Aye" and multiple acknowledgments but does not include a full roll-call tally. After the vote the committee expressed appreciation to the sponsor and those who testified.

Because the committee approved the measure by voice vote at the hearing, HB 1234 will move forward in the legislative process for further consideration in subsequent steps.