P.R. Laws tit. 3, § 803
At the time of the death of a pensioner, the provisions of the system to which he belonged shall govern. On the date of separation of an employee due to death, resignation or otherwise, the benefits for insurance, death, or other benefits, including disability retirement annuities, shall be governed by the provisions of the system to which he belongs at the time of separation which entitles said employee or his heirs or beneficiaries to the payment prescribed by said system.
Designations and naming of beneficiaries that may have been made by an employee under a retirement system shall be rendered invalid and without any effect from the time in which the employee leaves said retirement system and enrolls in another. Such designation or naming of beneficiaries shall have no validity even if the employee is later reinstated to the retirement system in which he had made said designation or naming. If the employee, after withdrawing from a retirement system to become member of another, does not designate or name beneficiaries in the latter, the benefits that by reason of his death may be provided in the retirement system in which he is a member shall be paid to his heirs.
If an employee becomes a member of a retirement system, having an outstanding debt in the retirement system from which he withdrew, the Secretary of the Treasury of Puerto Rico and the officials and employees of the University of Puerto Rico and the Puerto Rico Electric Power Authority who have the duty of certifying the payrolls of its personnel are hereby authorized to deduct from the salary of such employee and remit to the retirement system with which he contracted the debt, the corresponding payments to amortize the debt until its full settlement.
If said employee is pensioned in the other retirement plan without having settled his debt, this debt shall continue to be amortized by deducting from the pension the employee is receiving, an amount proportional to the amount the pensioner would be entitled to receive. In case the employee dies before the debt is settled, the debt will be discharged and satisfied from any benefits that the beneficiaries or heirs of the deceased person are entitled to.
History —June 10, 1953, No. 59, p. 154, § 7; May 18, 1959, No. 9, p. 42, § 4; June 20, 1962, No. 64, p. 137; June 26, 1965, No. 96, p. 234; renumbered as § 5 and amended on May 30, 1969, No. 17, p. 28, § 1; June 12, 1978, No. 36, p. 133.