(a) Generally. A participant may elect one of the following pension options: option 1, five year certain and continuous option; option 2, joint and survivor with five year certain and continuous option; or, option 3, joint and survivor pop-up option. The benefits under option 2 shall be actuarially equivalent to the benefits provided under option 1.
(b) Five year certain and continuous option. The five year certain and continuous option is the normal form of pension. Under this option:
(1) pension benefits shall be paid to the participant during the participant's lifetime; and
(2) if a participant dies before receiving 60 monthly payments, benefits shall be paid until a total of 60 monthly payments have been made to the beneficiary or, if there is no living beneficiary, the participant's estate.
(c) Joint and survivor option.
(1) Under the joint and survivor option, the participant may designate one joint annuitant, either a spouse or a child. The benefit shall be determined as follows:
(i) pension benefits in an amount determined to be actuarially equivalent to the five year continuous and certain option, 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, pension benefits in the amount 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) At the cessation of benefit payments under this subsection, if a total of 60 payments has not been made, benefit payments in the amount payable shall be continued and paid, until a total of 60 payments has been made to the beneficiary or, if there is no living beneficiary, the participant's estate.
(d) 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 actuarily 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 benefit 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) If a total of 60 payments has not been made at the cessation of benefit payments under this subsection, benefit payments in the amount payable shall be continued and paid until a total of 60 payments has been made to the beneficiary or, if there is no living beneficiary, to the participant's estate.
(e) Lump sum payment. After any payments made under subsection (c)(2) or (d)(3), 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, § 6-206) (Bill No. 90-01; Bill No. 41-10)