(a) Generally.
(1) A participant may elect one of the following pension options:
(i) option 1, modified cash refund annuity;
(ii) option 2, joint and survivor option;
(iii) option 3, Social Security adjustment option; and
(iv) option 4, for tier one employees only, joint and survivor pop-up option.
(2) The benefits provided under options 2, 3, and 4 shall be actuarially equivalent to the benefits provided under option 1.
(b) Modified cash refund annuity. The modified cash refund annuity is the normal form of pension. Under the modified cash refund annuity, pension benefits shall be paid to the participant during the participant's lifetime.
(c) Joint and survivor option. Under the joint and survivor option, the participant may designate one joint annuitant, either a spouse or a child. Pension benefits shall be paid as follows:
(1) pension benefits in an amount determined to be actuarially equivalent to the modified cash refund annuity, without regard to any guarantee of accumulated contributions, shall be paid to the participant during the participant's lifetime; and
(2) at the participant's death, 100% of pension benefits payable to the participant, or 80%, 66 2/3%, or 50% of that amount, as elected by the participant, shall be paid to the joint annuitant during the joint annuitant's lifetime.
(d) Social Security adjustment option. Under the Social Security adjustment option, a participant may elect a voluntary adjustment of pension benefits before qualifying to receive Social Security benefits, electing to receive a benefit actuarially equivalent to the modified cash refund annuity without regard to any guarantee of accumulated contributions, with larger payments until the participant attains age 62, and smaller payments thereafter.
(e) Joint and survivor pop-up option.
(1) Under the joint and survivor pop-up option, a participant may designate one joint annuitant, either a spouse or a child. Pension benefits shall be paid as follows:
(i) pension benefits in an amount determined to be actuarially equivalent to the modified cash refund annuity, without regard to any guarantee of accumulated contributions, shall be paid to the participant during the participant's lifetime; and
(ii) at the participant's death, 100% of pension benefits payable to the participant, or 80%, 66 2/3%, or 50% of that amount, as elected by the participant, shall be paid to the joint annuitant during the joint annuitant's lifetime.
(2) If the joint annuitant predeceases the participant, the pension benefits payable to the participant shall be adjusted, as of the first day of the month coinciding with or next following the death of the joint annuitant, to the same amount as would have been payable to the participant if the joint and survivor pop-up option had not been elected.
(3) A tier two employee is not eligible for the joint and survivor pop-up option.
(f) Cessation of benefit payments. At the cessation of benefit payments under this section, if benefits in an amount equal to accumulated contributions have not been paid, the difference shall be paid in a lump sum to the beneficiary or, if there is no living beneficiary, the participant's estate.
(1985 Code, Art. 7, § 3-306) (Bill No. 90-01)