Committee advances bill to let state retiree life insurance be assigned to funeral homes

Representative Taylor presented House Bill 1234 (LC520970), which would permit beneficiaries of the state retiree life insurance program to assign benefits directly to a funeral home to pay funeral expenses. Taylor said the change is intended to ensure funeral homes receive payment for services, a problem that arose for some providers during the COVID period.

"This bill will allow the plan to accept that assignment, and it specifically states it can only be used for funeral expenses," Taylor said, and sponsors emphasized that any excess death benefit would still be paid to the beneficiaries named on the policy. Committee members noted prior concerns about third parties or debtors claiming benefits and the bill’s explicit language limiting assignment to actual funeral costs.

After brief questions from the committee, a member moved to pass the bill and another seconded. The committee approved HB 1234 by voice vote ('aye'); no roll-call tally was recorded in the hearing transcript. Committee members who spoke in favor called the bill "common sense" and said it addressed a long-standing problem of unpaid funeral claims for retirees.

The bill was advanced out of the Retirement Committee and will proceed through the legislative process. Committee remarks and the sponsor’s testimony said the change would not alter beneficiaries’ ultimate rights to any remaining death benefit beyond actual funeral costs.