(a) Optional Retirement Allowance Election. At any time before the first payment of a service or disability retirement allowance, a member or former member who is retiring may elect to receive the actuarial equivalent of such retirement allowance as:
(1) One Hundred Percent (100%) Continuance. An optional retirement allowance payable throughout the balance of the retiree’s life, with the provision that upon his or her death one hundred percent (100%) of such optional retirement allowance shall be continued through the life of and paid to: (i) the retired member’s surviving spouse or domestic partner; or (ii) his or her minor children, in the event there be no surviving spouse or domestic partner; or (iii) his or her dependent parents, in the event there be no surviving spouse or domestic partner or minor children; provided that, in the case of a minor child, the same shall terminate with the monthly payment next preceding the date on which said child attains the age of eighteen (18) years; or
(2) Lesser Percent (%) Continuance. Any other optional allowance which the retiree may elect to receive and which shall be authorized by the Board, payable throughout the balance of his or her life, with the provision that, upon his or her death, a specified percentage of such optional allowance selected by the retiree shall be continued through the life of and paid to: (i) the retired member’s surviving spouse or domestic partner; or (ii) his or her minor children, in the event there be no surviving spouse; or (iii) his or her dependent parents, in the event there be no surviving spouse or minor children; provided that, in the case of a minor child, the same shall terminate with the monthly payment next preceding the date on which said child attains the age of eighteen (18) years.
In order for the person who is the retiree’s spouse or domestic partner at the time of retirement to be eligible to receive the continuance provided in this section, this person must be the surviving spouse or surviving domestic partner of the retiree at the time of his or her death.
(b) Calculation of Optional Retirement Allowances. The amount of any optional retirement allowance granted pursuant to this section shall be so calculated that the liability of the system at the date of retirement under the optional retirement allowance shall be equal to the liability of the system at the same date under the retirement allowance provided in Sections 4.1007 or 4.1008, including in each case the liability for continuance to an eligible survivor provided in Section 4.1012, if applicable. Any retiree selecting one of the options available under this section who has an eligible survivor as defined in Section 4.1012 shall have the annuity portion of such retiree’s retirement allowance calculated on the basis of the member’s total accumulated contributions, including both normal and survivor contributions. For the purpose of this section, the liability of the system is defined as the present value, in accordance with tables adopted by the Board, of the retirement allowance or optional retirement allowance calculated by approved actuarial methods, giving due weight to the average probabilities of survivorship of all parties involved in the allowance, or optional allowance, to the limitation of payments to age eighteen (18) in the case of a minor child, and to the requirement for refund of unused contributions after the death of the retiree or beneficiary as provided for in Section 4.1010(c)(2).
(c) Options for Members Who Retired Prior to July 1, 1965, with an Optional Allowance. Any retired member of the Retirement System who retired prior to July 1, 1965, and who selected one of the optional retirement allowances authorized in the predecessor to this section, upon written application filed with the Board of Administrators shall be entitled to receive the allowance he or she would have been eligible to receive under the then applicable service retirement or disability retirement provisions had he or she not elected an optional retirement allowance at that time. Any adjustment made pursuant to this provision shall be effected by modifying the pension portion of the allowance. For benefits that are increased, the ratio between the base amount and the cost of living amount shall be maintained by increasing the cost of living proportionately. All adjustment to the cost of living amount made pursuant to this section shall be subject to future adjustments as provided in Section 4.1022.
Any surviving spouse receiving a continuance of a retired member’s allowance based upon the member having made an election as provided in the predecessor to this section, which election was made when the member was not eligible to participate in the continuance to eligible survivor benefit currently provided in Section 4.1012, may elect to receive in lieu of such allowance the continuance to eligible survivor benefits provided by Section 4.1013(a)(1).
Any election or written application made pursuant to this subsection shall be irrevocable and not subject to the provisions of waiver of benefits as provided in Section 4.1024.
(d) Federal Law Limitations May Not Be Exceeded. No optional allowance shall be granted under the provisions of this section that exceed any limitations imposed by federal law.
SECTION HISTORY
Added by Ord. No. 182,629, Eff. 7-25-13.