Prior to the effective date of retirement, but not thereafter, any member may elect to receive his or her retirement allowance payable throughout his or her life as a regular retirement allowance, or he or she may elect to receive the actuarial equivalent, as of the effective date of his or her retirement, of his or her regular retirement allowance in a reduced retirement allowance payable throughout his or her life, and nominate a beneficiary in accordance with one of the following options:
(a) Option 1: Cash Refund Annuity. If a retiree dies before he or she has received in payment of the annuity portions of his or her reduced retirement allowance an aggregate amount equal to his or her accumulated contributions standing to his or her credit in the Annuity Savings Fund at the time of his or her retirement, the difference between such accumulated contributions and the aggregate amount of annuity payments received by him or her shall be paid to such person or persons as he or she shall have nominated by written designation, duly executed and filed with the Retirement Commission. If there is no such designated person or persons surviving the retiree, such difference, if any, shall be paid to his or her estate.
(b) Option 2: Joint and Survivor Allowance. Upon the death of a retiree, his or her reduced retirement allowance shall be continued throughout the life of and paid to such qualified beneficiary as he or she shall have nominated by written designation, duly executed and filed with the Commission prior to the effective date of his or her retirement. Such qualified beneficiary shall be either the spouse or child of such deceased retiree.
(c) Option 3: Modified Joint and Survivor Allowance. Upon the death of a retiree, one-half of his or her reduced retirement allowance shall be continued throughout the life and paid to such qualified beneficiary as he or she shall have nominated by written designation, duly executed and filed with the Commission prior to the effective date of his or her retirement. Such qualified beneficiary shall be either the spouse or child of such deceased retiree.
If a member elects Option 2 or Option 3, and his or her beneficiary predeceases the retiree, then the retiree's benefits shall "pop-up" to the original straight life benefit.
(Res. 88-388. Passed 5-23-88.)