(a) Prior to the effective date of retirement, but not thereafter, a member may elect to receive a retirement allowance as a straight life retirement allowance payable for life, or may elect to receive the actuarial equivalent of the straight life retirement allowance in a reduced retirement allowance, and nominate a beneficiary in accordance with the provisions of option A, B, C, D or E set forth as follows. If a member does not elect an option prior to the effective date of retirement, the retirement allowance shall be paid as a straight life retirement allowance.
(1) Option A; allowance for ten years certain and life thereafter. Under option A, a retirant shall receive a reduced retirement allowance payable for the retirant's life with the provisions that, if deceased before receiving 120 monthly retirement allowance payments, the payments shall be continued for the remainder of the 120 months to the person as the retirant shall have nominated by written designation duly executed and filed with the board. If no designated beneficiary survives to receive the remaining monthly retirement allowance payments, the payments as they become due shall be paid to the estate of the last survivor of the retirant or the survivor's designated beneficiaries.
(2) Option B; joint and survivor allowance. Under option B, a retirant shall receive a reduced retirement allowance payable for life with the provision that upon death the reduced retirement allowance shall be continued throughout the life of and paid to the person, having an insurable interest in the retirant's life, as shall have been nominated by written designation duly executed and filed with the board prior to the effective date of retirement.
(3) Option C; modified joint and survivor allowance. Under option C, a retirant shall receive a reduced retirement allowance payable for life with the provision that upon death one-half of the reduced retirement allowance shall be continued throughout the life of and paid to the person, having an insurable interest in the retirant's life, as shall have been nominated by written designation duly executed and filed with the board prior to the effective date of retirement.
(4) Option D; joint and survivor pop-up allowance. Under option D a retirant shall receive a reduced retirement allowance with the provision that upon death the reduced retirement allowance shall be continued throughout the life of and paid to the person, having an insurable interest in the retirant's life, as shall have been nominated by written designation duly executed and filed with the board prior to the effective date of retirement. If the nominated beneficiary dies first, the retirant shall, upon the death of the nominated beneficiary, begin to receive an allowance equal to the straight life allowance which would have been payable had no option been elected.
(5) Option E; modified joint and survivor pop-up allowance. Under option E, a retirant shall receive a reduced retirement allowance with the provision that upon death one-half of the reduced retirement allowance shall be continued throughout the life of and paid to the person, having an insurable interest in the retirant's life, as shall have been nominated by written designation duly executed and filed with the board prior to the effective date of retirement. If the nominated beneficiary dies first, the retirant shall, upon the death of the nominated beneficiary, begin to receive an allowance equal to the straight life allowance which would have been payable had no options been elected.
(b) If a retirant who elected option B, C, D or E provided in division (a) above and the retirant's beneficiary both die before they have received, in retirement allowances, an aggregate amount equal to the retirant's accumulated contributions account at the time of retirement, the difference between the accumulated contributions and the aggregate amount of retirement allowance payments received by them shall be paid to the person as the retirant shall have nominated by written designation duly executed and filed with the board. If there be no designated persons surviving the retirant, the difference, if any, shall remain in the retirement system.
(c) Notwithstanding any provision to the contrary, the retirement system shall pay all benefits in accordance with a good faith interpretation of the requirements of Internal Revenue Code § 401(a)(9) and regulations pertaining thereto, as applicable to a governmental plan within the meaning of Internal Revenue Code § 414(d).
(1) A member's benefits shall be distributed to him or her not later than April 1 of the calendar year following the later of:
A. The calendar year in which the member attains age 70 and one-half; or
B. The calendar year in which the member retires.
(2) Distributions to a member and his or her beneficiaries shall only be made in accordance with the incidental death benefit requirements of Internal Revenue Code § 401(a)(9)(G) and rulings pertaining thereto.
(1957 Rev. Ords., § 2.519; 1992 Code, § 35-31) (Ord. 2491, passed 8-7-1967; Ord. 96-87, passed 11-16-1987; Ord. 110-90, passed 12-3-1990; Ord. 118-16, passed 12-20-2016)