a. Upon the application of the head of the department in which a contributor is employed, or upon the application of such contributor or of one acting in his or her behalf, such board shall retire such contributor for disability, provided the medical board, after a medical examination of such contributor, shall certify to such board that such contributor is physically or mentally incapacitated for the performance of duty and that such contributor ought to be retired, and, provided, further, that such contributor has had ten or more years of city-service.
b. Notwithstanding any law to the contrary, a member who satisfies the requirements of subdivision a of this section and is otherwise eligible (disregarding any service requirement) to retire for disability pursuant to this section or section five hundred six or six hundred five of the retirement and social security law, as applicable, may elect to receive a benefit equal to the death benefit which would have been paid, had such member died on the member's last day on the payroll in full pay status pursuant to section 13-542, 13-543 or 13-545 of this chapter, section four hundred forty-eight, five hundred eight or six hundred six of the retirement and social security law, as applicable.
c. To be eligible for the benefit provided in subdivision b of this section, a member must have been determined in accordance with subdivision a of this section to have (i) a terminal illness resulting in a life expectancy of no more than twelve months, or (ii) a medical condition of a long continued and indefinite duration requiring extraordinary care or treatment regardless of life expectancy.
d. The benefit provided in subdivision b of this section shall be in lieu of any disability benefit to which the member may otherwise be entitled. A member who is otherwise eligible to retire for disability must elect the benefit provided in subdivision b of this section no later than the thirtieth day following the day on which (i) the system notifies the member that the member has been retired for disability, or (ii) the member is first eligible to commence receiving a disability retirement benefit, whichever is later. Such election when made shall be irrevocable.
e. Except as provided in this subdivision, a member electing the benefit provided in subdivision b of this section shall for all purposes be deemed to have been retired for disability. Notwithstanding the foregoing, should a member who has elected the benefit provided in subdivision b of this section thereafter be restored to active service and again become a member of the system, (i) no death benefit shall be payable pursuant to section 13-542 of this chapter, section four hundred forty-eight, five hundred eight or six hundred six of the retirement and social security law, as applicable in the event of the member's subsequent death, and (ii) unless such member shall have rendered five years of credited service since last becoming a member of the system, any retirement benefit to which such member may thereafter become entitled shall be reduced by the actuarial value of the benefit paid pursuant to subdivision b of this section (less the actuarial value of any applicable post-retirement death benefit which would have been available but for this subdivision).
f. The retirement board is authorized to adopt such rules and regulations as it may deem necessary to implement the provisions of this section.