Each member entitled to an early, normal, or disability retirement or a deferred vested retirement benefit, shall have the right at any time prior to his actual retirement to elect to have his benefit payable under any one of the options hereinafter set forth in lieu of the retirement benefits otherwise provided herein, and to revoke any such elections and make a new election at any time prior to actual retirement. The value of optional retirement benefits shall be actuarially equivalent to the value of benefits otherwise payable. The member shall make an election by written request to the Board of Pension Trustees and such an election shall be subject to the approval of the Board.
   (A)   Option 1. Joint and last survivor option. A retiring member may elect to receive a decreased retirement benefit during his lifetime and have the decreased retirement benefit, or a designated fraction thereof, continued after his death to and during the lifetime of his designated beneficiary. The election of option l shall be null and void if the designated beneficiary dies before the member's retirement. The present value of the payments to the retired member must initially be at least 50% of the total combined present value of payments to both the member and the designated beneficiary.
   (B)   Option 2. Ten years certain and life thereafter. A retiring member may elect to receive a decreased retirement benefit with 120 monthly payments guaranteed. If, after retiring, the member should die before the 120 monthly payments are made, payments are then continued to his designated beneficiary until 120 payments in all have been made, at which time benefits cease. After expiration of the certain period, should the retired member be then alive, payments shall be continued during his remaining lifetime. The retired member shall have the absolute privilege of changing his designated beneficiary at any time.
   (C)   Option 3. Other. In lieu of the other optional forms enumerated in this section, retirement benefits may be paid in any form approved by the Board so long as actuarial equivalence with the benefits otherwise payable is maintained.
   (D)   Required Distribution of Benefits. The entire interest of a member shall be required to be distributed pursuant to § 34.0261. The actuarial assumption which shall be used for calculation purposes under this plan shall be: 1971 Group Annuity Mortality Tables for Males at 7% interest.
   (E)   A Deferred Retirement Option Plan (DROP) is hereby established. The DROP is to be administered by the Board of Trustees subject to the terms and conditions set forth in § 34.0623. In no event shall the Board administer a plan in a way which results in the disqualification of the system under the Internal Revenue Code.
(‘58Code, § 11.17) (Ord.73-3, passed 11-8-72; Am. Ord. 75-81, passed 9-16-75; Am. Ord. 85-50, passed 4-23-85; Am. Ord. 88-60, passed 5-24-88; Am. Ord. 91-16, passed 12-4-90; Am. Ord. 2004-55, passed 7-27-04; Am. Ord. 2010-35, passed 6-22-10)