38-760

38-760. Optional forms of retirement
benefits

A. On retirement, members may elect an optional form of retirement benefit as
provided in this section.

B. The optional retirement benefits available under this section include the
following:

1. Joint and survivor annuity in a reduced amount payable to the retiring member
during life, with the provisions that after the member's death all, two-thirds or
one-half of the retirement income, as the member elects, shall be continued during the
lifetime of the contingent annuitant designated by the retiring member subject to the
restrictions prescribed in section 38-764. The amount of retirement income shall be the
actuarial equivalent of the retirement income to which the member would be entitled under
normal or early retirement. The election in a manner prescribed by the board shall name
the contingent annuitant. The election may be revoked at any time before the member's
effective date of retirement. At any time after benefits have commenced, the member may
name a different contingent annuitant or rescind the election by written notice to the
board as follows:

(a) If a different contingent annuitant is named, the annuity of the member under
the same joint and survivor annuity option previously elected shall be adjusted to the
actuarial equivalent of the original annuity, based on the age of the new contingent
annuitant. The adjustment shall include all postretirement increases in retirement
income that are authorized by law after the member's date of retirement. Payment of this
adjusted annuity shall continue under the provisions of the option previously elected by
the member.

(b) If the member rescinds the election, the member shall thereafter receive a
straight life annuity equal to what the member would otherwise be entitled to receive if
the member had not elected the joint and survivor annuity option, including all
postretirement increases in retirement income that are authorized by law after the date
of retirement. The increased payment shall continue during the remainder of the member's
lifetime.

(c) If a member whose original date of retirement is before the effective date of
this amendment to this section rescinds the joint and survivor annuity option previously
elected and receives the straight life annuity pursuant to subdivision (b) of this
paragraph, the member may again elect the same joint and survivor annuity option
previously elected subject to the same restrictions prescribed in subdivision (a) of this
paragraph.

(d) A member whose original date of retirement is on or after the effective date of
this amendment to this section may exercise a one-time election to rescind the joint and
survivor annuity option elected by the member if the contingent annuitant dies or ceases
to be a contingent annuitant pursuant to the terms of a qualified domestic relations
order.

(e) If the member's contingent annuitant is the member's current spouse, the member
shall notify the contingent annuitant before the member names a new contingent annuitant
or before the member rescinds the election.

2. A period certain and life annuity actuarially reduced with payments for five,
ten or fifteen years that are not dependent on the continued lifetime of the member but
whose payments continue for the member's lifetime beyond the five, ten or fifteen year
period. At the time of electing this option the member shall name a period certain
beneficiary or beneficiaries who are entitled to receive the payments for any portion of
the period certain beyond the lifetime of the member. The member may name a different
beneficiary at any time. If no beneficiary survives the member, any remaining payments
are the property of the member's estate. A member who retires after August 9, 2001 and
before the effective date of this amendment to this section may rescind the election of a
period certain and life annuity. If the member rescinds the election of a period certain
and life annuity, the member shall thereafter receive a straight life annuity equal to
what the member would otherwise be entitled to receive if the member had not elected the
period certain and life annuity option, including all postretirement increases in
retirement income that are authorized by law after the date of retirement. The increased
payment shall continue during the remainder of the member's lifetime. If the member
reverts to a straight life annuity pursuant to this paragraph, the member may again elect
a period certain and life annuity subject to the same provisions of the period certain
and life annuity previously elected by the member. A member whose original date of
retirement is on or after the effective date of this amendment to this section may
exercise a one-time election to rescind the period certain and life annuity option
elected by the member if the beneficiary dies or ceases to be a beneficiary pursuant to
the terms of a qualified domestic relations order or at the expiration of the member's
period certain term. If the member's contingent annuitant is the member's current
spouse, the member shall notify the contingent annuitant before the member rescinds the
election of a period certain and life annuity or again elects a period certain and life
annuity pursuant to this paragraph.

3. Beginning on July 1, 2002, a lump sum payment equal to not more than thirty-six
months of the member's retirement benefits under the benefit option elected by the
member. The member's benefit shall be actuarially reduced to provide for the lump sum
payment. The lump sum payment shall be made at the time of retirement. Any benefit
increase granted to a member who elects a lump sum payment pursuant to this paragraph is
subject to the following conditions:

(a) If the benefit increase is a percentage increase of the member's retirement
benefit, the increase shall be based on the actuarially reduced retirement benefit of the
member.

(b) If the benefit increase is pursuant to section 38-767, the amount of the
member's benefit increase shall be calculated without regard to the lump sum payment
pursuant to this paragraph.

4. Other forms of actuarially reduced optional benefits prescribed by the board.