§ 18-85. Optional methods of retirement payments.

Each member shall have the right at any time prior to his actual retirement date to elect to have his retirement benefits payable under any one (1) of the options hereinafter set forth in lieu of the benefits otherwise provided, and to revoke any such elections and make a new election at any time prior to said actual retirement date. A member does not have an absolute right to receive lump sum benefits. Benefits in excess of five thousand dollars ($5,000.00) may not be paid in a lump sum. Lump sum benefits that do not exceed five thousand dollars ($5,000.00) are to be granted in the discretion of the board. For purposes of establishing the actuarial present value or any form of payment, all future payments shall be discounted for interest and mortality by using seven and eight hundredths (7.08) percent interest and RP-2000 Combined Healthy Participant Mortality Table, projected to 2015 with projection scale AA, using a blend of 50% male mortality rates and 50% female mortality rates, and set forward five years in the case of disability retirees The member shall make such an election by written request to the board and such an election shall be subject to the approval of the board.

(1)

Last survivor option. A member may elect to receive a decreased retirement benefit during his lifetime and have such decreased retirement benefit (or designated fraction amounting to one hundred (100) percent, seventy-five (75) percent, sixty-six and two-thirds (66⅔) percent or fifty (50) percent of it) continued after his death to and during the lifetime of another person, designated a beneficiary. Provided, however, that in no event shall the present value of payments to the retiring member be less than fifty (50) percent of the total present value of payments to the retiring member and his beneficiary.

(2)

Five or ten years certain basis. A member may elect to take a reduced benefit on a basis providing that such benefits shall be payable for a period of life and five (5) or ten (10) years certain in any event.

(3)

Social Security option (level income option). If a member retires under the normal retirement provisions prior to the date on which he is eligible for Social Security benefits, he may elect to receive an increased benefit from the system until such time as Social Security benefits commence and a reduced benefit thereafter in order to provide, to as great extent as possible, a more level retirement allowance throughout the period of his retirement.

(4)

Lump sum or other option. A member may elect to receive his benefits in a lump sum if approved by the board, or in such other manner as may be approved by the board provided that in all such cases the benefits payable are on an actuarial equivalent basis. A member does not have an absolute right to receive lump sum benefits. Benefits in excess of five thousand dollars ($5,000.00) may not be paid in a lump sum. Lump sum benefits that do not exceed five thousand dollars ($5,000.00) are to be granted in the discretion of the board.

(5)

Prior death of beneficiary. The election by a member of option (1), above, shall be null and void if the designated beneficiary dies before the member's retirement and the normal form of retirement benefit will be payable upon the member's retirement.

(6)

Change of beneficiary. If a member has elected an option with a beneficiary, the member shall be permitted to request a change of the designated beneficiary, but such change shall be deemed a new election and shall be subject to approval by the board of trustees. A request for such a change shall be made to the board of trustees on the form provided by the board of trustees. If a member has elected an option with a beneficiary and his or her retirement income benefits have commenced, he or she may thereafter change the designated beneficiary but only if the board of trustees consents to such change and if the beneficiary last previously designated by the member is alive when he or she files with the board of trustees a request for such change. The consent of a member's beneficiary to any such change shall not be required.

(7)

Life option. A retirement income in an amount greater than the normal retirement benefit payable to the member for his or her lifetime.

(Code 1964, § 9A-25; Ord. No. 1539, §§ 1, 2, 3-2-88; Ord. No. 1582, §§ 1, 2, 9-28-88; Ord. No. 2207, § 7, 12-15-99; Ord. No. 2462, § 3, 7-27-2011; Ord. No. 2542, § 2, 3-9-2016 )