§ 24-6-408 - Benefit provisions -- Election of annuity options.
24-6-408. Benefit provisions -- Election of annuity options.
(a) Before the date the first payment of his annuity becomes due, but not thereafter, a member may elect to receive his annuity as a straight life annuity or he may elect to have his annuity reduced and nominate a beneficiary in accordance with the provisions of one (1) of the following options:
(1) Option A60 -- Sixty (60) Months Certain and Life Annuity. (A) Under Option A60, the retirant shall be paid a reduced annuity for life with the provisions that if the retirant's death occurs before sixty (60) monthly payments have been made, then the full reduced annuity shall continue to be paid for the remainder of the sixty (60) months to such persons and in such shares as the retirant shall have designated in writing and filed with the plan.
(B) If there is no payee surviving, the lump sum actuarial equivalent of the remaining monthly payments shall be paid to the estate of the last survivor among the retirant and the designated persons.
(C) The reduced annuity shall be ninety-six percent (96%) of the straight life annuity;
(2) Option A120 -- One Hundred Twenty (120) Monthly Certain and Life Annuity. (A) Under Option A120, the retirant shall be paid a reduced annuity for life with the provision that if the retirant's death occurs before one hundred twenty (120) monthly payments have been made, the full reduced annuity shall continue to be paid for the remainder of the one hundred twenty (120) months to such persons and in such shares as the retirant shall have designated in writing and filed with the plan.
(B) If there is no payee surviving, the lump sum actuarial equivalent of the remaining monthly payment shall be paid to the estate of the last survivor among the retirant and the designated persons.
(C) The reduced annuity shall be ninety percent (90%) of the straight life annuity;
(3) Option B50 -- Fifty Percent (50%) Survivor Beneficiary Annuity. (A) (i) Under Option B50, the retirant shall be paid a reduced annuity for life with the provision that, upon his death, one-half (1/2) of the reduced annuity shall be continued throughout the future lifetime of and paid to such person as the retirant shall have designated in writing and filed with the plan before his annuity starting date.
(ii) However, that person must be either his spouse for not less than one (1) year immediately preceding the first payment due date or another person aged forty (40) or older receiving more than one-half (1/2) support from the retirant for not less than one (1) year immediately preceding the first payment due date.
(B) The reduced annuity to the retirant shall be eighty-three percent (83%) if the retirant's age and his beneficiary's age are the same on the first payment due date, which shall be decreased by one-half percent (0.5%) for each year that the beneficiary's age is less than the retirant's age, or which shall be increased by one-half percent (0.5%), up to a maximum of ninety-five percent (95%), for each year that the beneficiary's age is more than the retirant's age;
(4) Option B75 -- Seventy-Five Percent (75%) Survivor Beneficiary Annuity. (A) Under Option B75, the retirant shall be paid a reduced annuity for life with the provision that, upon his death, three-quarters (3/4) of the reduced annuity shall be continued throughout the future lifetime of and paid to such person as the retirant shall have designated in writing and filed with the plan before his annuity starting date; however, that person must be either his spouse for not less than one (1) year immediately preceding the first payment due date or another person aged forty (40) or older receiving more than one-half (1/2) support from the retirant for not less than one (1) year immediately preceding the first payment due date.
(B) The reduced annuity to the retirant shall be seventy-five percent (75%) if the retirant's age and his beneficiary's age are the same on the first payment due date, which shall be decreased by three-quarters percent (0.75%) for each year that the beneficiary's age is less than the retirant's age, or which shall be increased by three-quarters percent (0.75%), up to a maximum of ninety percent (90%), for each year that the beneficiary's age is more than the retirant's age.
(b) (1) A death of a spouse or divorce or other marriage dissolution or the death of a person forty (40) years of age or older who is the designated beneficiary under Option B50 or Option B75 following retirement shall cancel, at the written election of the retirant, Option B50 or Option B75 elected at retirement to provide continuing lifetime benefits to the designated person and return the retirant to this straight life or Option A60 or Option A120 annuity, to be effective the month following receipt of his election by the State Police Retirement System.
(2) A retirant who is receiving a straight life or Option A60 or Option A120 annuity and who marries after retirement or within one (1) year immediately preceding retirement may elect to cancel his straight life or Option A60 or Option A120 annuity and may elect Option B50 or Option B75 providing continuing lifetime benefits to his spouse, but only if the election is on a form approved by the system and is received by the system not earlier than one (1) year after the date of the marriage and not later than eighteen (18) months after that date.
(3) The election shall be effective the first day of the month following its receipt.
(c) If a member fails to elect an option, his annuity shall be paid him as a straight life annuity.