(a) Before retirement, a member or inactive member is eligible for the death benefits described in this section.
(b) Refund of contributions.
(1) If a member who is not eligible to retire by both age and years of credited service dies with less than two years of credited service, a refund of the member's contributions will be paid to one or more designees or, if no designee exists, to the member's estate.
(2) If an inactive member who terminated city employment without having at least five years of credited service dies before receiving a refund of contributions, a refund of the contributions will be paid to one or more designees or, if no designee exists, to the inactive member's estate, except that if more than three years have passed between the date of termination of city employment and the date of death, then the contributions are forfeited under Section 40A-30 and are not refundable.
(c) Death benefit options.
(1) 10 year certain option. Under this option, the designated beneficiary or beneficiaries will receive an unreduced pension for 120 months. Only qualified recipients of the member or inactive member are eligible to be beneficiaries. If all beneficiaries die or cease to be eligible before 120 monthly payments have been made, then a lump sum payment equal to the commuted value of the balance of the 120 monthly payments will be paid in the following order of priority:
(A) to one or more designees; or
(B) if no designee exists, to the estate of the member or inactive member.
(2) One-half survivor option. Under this option, one designated beneficiary will receive one-half of an unreduced pension for life. Only a qualified recipient of the member or inactive member other than one described in Section 40A-1(38)(C) is eligible to be the beneficiary. If the designated beneficiary dies or ceases to be eligible before 120 monthly payments have been made, then a lump sum payment equal to the commuted value of the balance of the 120 monthly payments will be paid in the following order of priority:
(A) to one or more designees;
(B) if no designee exists and if an eligible beneficiary survived the member or inactive member, to the estate of the beneficiary; or
(C) if no designee exists and if no eligible beneficiary survived the member or inactive member, to the estate of the member or inactive member.
(3) Full survivor option. Under this option, one designated beneficiary will receive a reduced pension for life based upon the relative ages of the member or inactive member and the beneficiary on the day before the member or inactive member's death in an amount actuarially equivalent to an unreduced pension payable to the member or inactive member. Only a qualified recipient of the member or inactive member other than one described in Section 40A-1(38)(C) is eligible to be the beneficiary. If the designated beneficiary dies or ceases to be eligible before 120 monthly payments have been made, then a lump sum payment equal to the commuted value of the balance of the 120 monthly payments will be paid in the following order of priority:
(A) to one or more designees;
(B) if no designee exists and if an eligible beneficiary survived the member or inactive member, to the estate of the beneficiary; or
(C) if no designee exists and if no eligible beneficiary survived the member or inactive member, to the estate of the member or inactive member.
(d) If an inactive member dies with at least five years, but less than 15 years, of credited service, a death benefit is payable in accordance with this subsection. The pension will not be reduced because of the age of the inactive member. The pension will be based upon the inactive member's actual credited service or 10 years credited service, whichever is greater, and the benefit formulas in effect at the time of termination of city employment. The death benefit will be paid as either:
(1) a 10 year certain option; or
(2) a one-half survivor option.
(e) If a member who is not described in Subsection (f) dies with at least two years, but less than 15 years, of credited service, a death benefit is payable in accordance with this subsection. The pension will not be reduced because of the age of the member. The pension will be based upon the member's actual credited service or 10 years credited service, whichever is greater. The death benefit will be paid as either:
(1) a 10 year certain option; or
(2) a one-half survivor option.
(f) If a member who is eligible to retire by both age and years of credited service or a member or inactive member who has at least 15 years of credited service dies, a death benefit is payable in accordance with this subsection. The pension will not be reduced because of the age of the member or inactive member. The pension will be based upon the member or inactive member's actual credited service or 10 years credited service, whichever is greater. The death benefit will be paid as either:
(1) a 10 year certain option; or
(2) a full survivor option.
(g) Death benefits for any service death will be determined as follows:
(1) The benefits will be computed using the greater of:
(A) the decedent's actual credited service; or
(B) 10 times the percentage multiplier used in computing benefits of the decedent on the date of death multiplied by the decedent's average monthly earnings.
(2) The benefits may never be less than $1,000 per month, regardless of the date of death, or the amount computed under Paragraph (1) of this subsection, whichever is greater.
(h) If two or more beneficiaries are entitled to pension payments from the account of a deceased member or inactive member and one of the beneficiaries dies or becomes ineligible, then that beneficiary's share of the pension will be divided equally among any remaining beneficiaries. (Ord. Nos. 15414; 16886; 17713; 18181; 19470; 20443; 20960; 21582; 22345; 25695; 30162)