(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 irrevocably 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 the retiree’s 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) the retired member’s minor children, in the event there be no surviving spouse or domestic partner; or (iii) the retired member’s 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) Other 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 the retiree’s life, with the provision that, upon the retiree’s 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) the retired member’s minor children, in the event there be no surviving spouse; or (iii) the retired member’s 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 the retiree’s 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 Section 4.1080.7 for service and deferred service retirement allowances, or Section 4.1080.8 for disability retirement allowance, including in each case the liability for continuance to an eligible survivor provided in Section 4.1080.12, if applicable. Any retiree selecting one of the options available under this section who has an eligible survivor as defined in Section 4.1080.12 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 4.1080.10(c)(2).
(c) 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. 184,134, Eff. 1-22-16.