§ 62-195. Retirement allowance options.

(a)

Prior to the date of his retirement, but not thereafter, any member may elect to receive his retirement allowance as a straight life retirement allowance payable throughout his life. Upon death of a retirant who has chosen a straight life retirement allowance, the surviving spouse of the retirant shall receive a pension benefit, for life, equal to 50 percent of the deceased retirant's straight life retirement allowance. Alternatively, the member may elect to receive the actuarial equivalent, computed as of the date of his retirement, of his straight life retirement allowance payable in accordance with the provisions of option A, B, or C set forth in this subsection.

(1)

Option A. Ten years certain and life thereafter. The retirant shall receive a reduced retirement allowance payable throughout his life with the provision that if he dies before he has received 120 monthly retirement allowance payments, the payments shall be continued for the remainder of the period of 120 months to such person or persons as the retirant shall have nominated by written designation duly executed and filed with the board. If no one has been designated who survives the retirant, the board of trustees shall, in its discretion, direct that such remaining monthly retirement allowance payments be continued to the retirant's estate or that the actuarial present value of the remaining monthly retirement allowance payments be paid in a lump sum to the retirant's estate.

(2)

Option B. One hundred percent survivor allowance. Upon the death of the retirant, his reduced retirement allowance shall be continued throughout the life of and paid to such person having an insurable interest in his life, as he shall have nominated by written designation duly executed and filed with the board prior to the date of his retirement.

(3)

Option C. Fifty percent survivor allowance. Upon the death of a retirant, one-half of his reduced retirement allowance shall be continued throughout the life of and paid to such person having an insurable interest in his life, as he shall have nominated by written designation duly executed and filed with the board prior to the date of his retirement.

(b)

Upon the death of a retirant, who has elected option A, B, or C, any payment due him but not received prior to his death shall after his death be paid to the person the retirant shall have nominated by written designation to receive a retirement allowance.

(c)

If a retirant, who elected a straight life retirement allowance or option B or C provided in subsection (a) of this section, and his beneficiary both die before the total of the retirement allowance payments received by them equals the amount of the accumulated contributions standing to the retirant's credit in the employee's contribution reserve at the time of his retirement, the difference between his accumulated contributions and the total amount of retirement allowance payments shall be paid to the retirant's estate.

(d)

For purposes of this section actuarial equivalent shall be determined on the basis of the mortality table prescribed in section 62-202 and an interest rate of eight percent, compounded annually.

(Code 1979, § 2-314.1.20)