51.1-165 - Optional benefits.
§ 51.1-165. Optional benefits.
A. Any member not taking 50/10 retirement as provided in § 51.1-153 or51.1-216, in accordance with the retirement plan covering such member, mayelect to have his retirement allowance payable under one of the options setforth in this subsection and receive the actuarial equivalent of theretirement allowance otherwise payable to him. The election of an optionalbenefit shall be subject to the approval of the Board.
1. Straight life option. - A member may elect to receive an increasedretirement allowance in lieu of any death benefits.
2. Joint and last-survivor option. - A member may elect to receive adecreased retirement allowance during his lifetime in order that a fractionof such retirement allowance be continued to a contingent annuitant at thedeath of the member. The amount to be received by the contingent annuitant,in accordance with such election by the member, shall not exceed 100 percentof the amount to be received by the member during his lifetime nor shall itbe less than 10 percent of such amount. In case of such an election, deathbenefits that might otherwise be provided shall not be payable upon the deathof the member unless death of the member occurs prior to the effective dateof retirement as set forth in subsection C of this section. This option maybe elected if the contingent annuitant is the spouse of the member. If thecontingent annuitant is not the spouse of the member, this option may beelected only if the actuarial present value of the payments expected to bemade to the member is greater than one-half of the actuarial present value ofthe total payments expected to be made to the member and contingent annuitant.
3. Level income option. - If a member retires from service prior to hisretirement age, as such term is defined under the Social Security Act (42U.S.C. § 416 et seq., as now or hereafter amended), he may elect to receivean increased retirement allowance beginning on the member's effective date ofretirement and continuing until the member reaches age 62 or any whole age upto his normal retirement age, as such term is defined under the SocialSecurity Act (42 U.S.C. § 416 et seq., as now or hereafter amended) and adecreased retirement allowance thereafter, thereby providing a more nearlylevel retirement allowance when such decreased retirement allowance is addedto his anticipated primary benefits under the federal Social Security Act. Indetermining the amount of such retirement allowance under this option beforethe electing retiree reaches his retirement age, as such term is definedunder the Social Security Act (42 U.S.C. § 416 et seq., as now or hereafteramended), the Board may use an estimate of the member's anticipated socialsecurity benefit for computing the amount of such retirement allowance. Anymember electing to receive such an allowance shall not be entitled to a jointand last survivor benefit. The amount of the increased retirement allowanceshall be determined actuarially, but the election of this option shall notresult in more than a 50 percent reduction in the member's benefit asprovided in § 51.1-155, 51.1-206, 51.1-217, or 51.1-306.
B. Any member taking 50/10 retirement as provided in § 51.1-153 or 51.1-216,in accordance with the retirement plan covering such member, may elect tohave his retirement allowance payable under the option set forth in thissubsection and receive the actuarial equivalent of the retirement allowanceotherwise payable to him. The election of this optional benefit shall besubject to the approval of the Board.
50/10 retirement joint and last-survivor option. - A member may elect toreceive a decreased retirement allowance during his lifetime and have theretirement allowance continued after his death to a contingent annuitantduring the lifetime of such person. The retirement allowance pursuant to thisoption shall be determined as provided in subdivision A 5 of § 51.1-155 orsubdivision A 3 of § 51.1-217, in accordance with the retirement plancovering such member, except (i) the present value of future retirementbenefits shall be calculated based on the life expectancies of both themember and the contingent annuitant and (ii) the actuarially computed presentvalue of the payments expected to be made under this option shall beactuarially equivalent to the actuarially computed present value of thepayments expected to be made to the member as determined pursuant tosubdivision A 5 of § 51.1-155 or subdivision A 3 of § 51.1-217, in accordancewith the retirement plan covering such member.
C. 1. The election of any one of the options stated in this section shall benull and void if the member dies prior to the Board receiving writtennotification of the member's effective date of retirement. The election of ajoint and last-survivor option shall be null and void if the contingentannuitant dies before the member's retirement. Except as provided insubdivision 2 of this subsection, in all cases where the death of the memberoccurs prior to the effective date of retirement but after the Board hasreceived written notification of the member's effective date of retirement,benefits shall be paid in accordance with the provisions of § 51.1-163 andthe requirement that the member be in service shall not apply. For purposesof this subdivision, retirement shall be deemed to commence on the effectivedate of a member's service retirement or disability.
2. If (i) the death of the member occurs prior to the effective date ofretirement but after the Board has received written notification of themember's effective date of retirement; (ii) the member died while in service;(iii) at the time of the member's death the election for payment of themember's retirement allowance was a joint and last-survivor optionalretirement benefit; and (iv) the member named his spouse, minor child, orparent as the contingent annuitant under the joint and last-survivor optionalbenefit, then benefits shall be paid in accordance with the provisions of §51.1-163. However, if such contingent annuitant or annuitants are the sameperson or persons who would receive a monthly benefit under subsection B of §51.1-162 and the monthly benefit under such subsection would be greater thanthe benefit provided in accordance with the provisions of § 51.1-163, thenretirement benefits shall be paid in accordance with the provisions ofsubsection B of § 51.1-162.
For purposes of this subdivision, retirement shall be deemed to commence onthe effective date of a member's service retirement or disability.
D. A member who has elected any of the options stated in this section mayrevoke such an election by written notification to the Board any time priorto the later of the effective date of retirement or the date of writtennotification to the Board of retirement of the member.
E. A retired member who has elected a joint and last-survivor option may, ina manner prescribed by the Board, revoke such election and elect to receivefrom time of notification either the retirement allowance to which he wouldhave been entitled had no option been elected initially or an allowanceactuarially equivalent thereto under a joint and last-survivor option with adifferent contingent annuitant, if (i) the original contingent annuitant hasdied, (ii) a final decree of divorce of the retired member from the originalcontingent annuitant has been entered, or (iii) the written consent of theoriginal contingent annuitant, together with evidence satisfactory to theBoard of the good health of the original contingent annuitant, is submittedwith the notification. If the provisions of this subsection are invoked by aretired member on the basis of the member's having been divorced from hiscontingent annuitant and the marriage had been of a duration of 20 years ormore, the provisions of this subsection shall not be applicable until thedeath or remarriage of the former spouse unless such spouse consents inwriting to the revocation of the option prior to death or remarriage.
If such an election is made as a result of the death or divorce of thecontingent annuitant, the benefit payable to the retired member may beadjusted retroactively for a period of not more than 60 days from the datethe Board first receives notification of the desire of the retired member tomake such a change.
F. Subject to the provisions of subsection E of this section, any member whoretires on or after July 1, 1986, and returns to covered employment shall notbe entitled to select a different optional benefit upon making applicationfor retirement a second or subsequent time.
(1952, c. 157, § 51-111.60; 1956, c. 560; 1966, c. 174; 1970, c. 476; 1974,c. 353; 1975, c. 597; 1976, cc. 511, 542; 1978, c. 841; 1980, cc. 85, 642,646; 1982, c. 581; 1986, c. 474; 1990, c. 832; 1992, cc. 518, 548, 811; 1993,c. 548; 1995, cc. 152, 307, 692, 811; 1998, c. 676; 1999, c. 111; 2001, cc.679, 699; 2003, c. 263; 2005, cc. 146, 162.)