§ 120-4.26. Benefit payment options.
§ 120‑4.26. Benefitpayment options.
Any member may elect toreceive his benefits in a retirement allowance payable throughout life, or hemay elect to receive the actuarial equivalent of the retirement allowance in areduced allowance payable throughout life under the provisions of one of theoptions set forth below. No election may be made after the first paymentbecomes due, or the first retirement check cashed, nor may an election berevoked or a nomination changed. The election of Option 2 or Option 3 or thenomination of the person thereunder shall be revoked if the person nominateddies prior to the date the first payment becomes normally due or until thefirst retirement check has been cashed. The election may be revoked by themember prior to the date the first payment becomes normally due or until hisfirst retirement check has been cashed. Provided, however, in the event amember has elected Option 2 or Option 3 and nominated his or her spouse toreceive a retirement allowance upon the member's death, and the spousepredeceases the member after the first payment becomes normally due or thefirst retirement check has been cashed, if the member remarries he or she maynominate a new spouse to receive the retirement allowance under the previouslyelected option, within 90 days of the remarriage. The new nomination shall beeffective on the first day of the month in which it is made and shall providefor a retirement allowance computed to be the actuarial equivalent of theretirement allowance in effect immediately prior to the effective date of thenew nomination. Any member having elected Options 2 or 3 and nominated his orher spouse to receive a retirement allowance upon the member's death may, afterdivorce from his or her spouse, revoke the nomination and elect a new option,effective on the first day of the month in which the new option is elected,providing for a retirement allowance computed to be the actuarial equivalent tothe retirement allowance in effect immediately prior to the effective date ofthe new option.
Option 1. For Members RetiringPrior to July 1, 1993. If a member dies within 10 years from his retirementdate, an amount equal to his accumulated contributions at retirement, less one‑onehundred twentieth (1/120) for each month for which he has received a retirementallowance payment, shall be paid to his legal representative or to the personhe nominates by written designation acknowledged and filed with the Board ofTrustees;
Option 2. Upon his death,his reduced retirement allowance shall be continued throughout the life of andpaid to the person he nominates by written designation duly acknowledged andfiled with the Board of Trustees at the time of his retirement. If the personselected is other than his spouse, the reduced retirement allowance payable tothe member shall not be less than one half of the retirement allowance withoutoptional modification which would otherwise be payable to him; or
Option 3. Upon his death,one half of his reduced retirement allowance shall be continued throughout thelife of and paid to the person he nominates by written designation dulyacknowledged and filed with the Board of Trustees at the time of hisretirement. (1983, c. 761, s. 238; 1985, c. 649, s. 9; 1993, c.321, s. 74.1(a); 1998‑212, s. 28.26(a).)