38-764

38-764. Commencement of retirement; payment of
retirement benefits; lump sum payments

A. Retirement is deemed to commence on a date elected by the member. That date
shall not be earlier than the day following the date of termination of employment, the
date ASRS receives the member's completed retirement application or the date specified by
the member pursuant to subsection I of this section.

B. Except as provided in subsection C of this section, all retirement benefits:

1. Are normally payable in monthly installments beginning on the commencement of
retirement as prescribed in subsection A of this section.

2. Continue to and include the first day of the month in which death occurs or
continue until the date of their cessation in accordance with any optional method of
payment that may have been elected.

C. In the case of incapacity of a retired member or contingent annuitant, or in the
case of any other emergency, as determined by the board, the board may make the payment
to or on behalf of the retired member or contingent annuitant or to another person or
persons the board determines to be lawfully entitled to receive payment. The payment is
payment for the account of the retired member or contingent annuitant and all persons
entitled to payment and, to the extent of the payment, is a full and complete discharge
of all liability of the board or ASRS, or both, under or in connection with ASRS.

D. Except as provided in subsection E of this section, at the request of a retired
member, a retired member's guardian or a court appointed conservator, the board may pay
any increase in retirement benefits or the entire retirement benefit in a lump sum
payment based on the actuarial present value of the benefit or the increase in the
benefit if the payment of the benefits would result in ineligibility, reduction or
elimination of social service programs provided to the member by this state, its
political subdivisions or the federal government.

E. The board may pay the entire retirement benefit in a lump sum pursuant to
subsection D of this section only if continued membership in ASRS will result in
additional requests for lump sum payments based on cost of living adjustments or the
establishment of minimum benefit awards.

F. If any benefit that is payable as a series of periodic payments amounts to less
than twenty dollars per month, the board, in its sole discretion and based on uniform
rules it establishes, may order the amount to be paid quarterly, semiannually, annually
or in a lump sum. A member who receives a lump sum payment pursuant to this subsection
remains a member of ASRS.

G. All distributions of retirement benefits to a member shall be distributed within
the required distribution provisions of section 401(a)(9) of the internal revenue code
and the regulations that are issued under that section by the United States secretary of
the treasury as prescribed in section 38-775.

H. A member may elect to cancel the effective date of retirement within thirty days
of retirement or before the member's receipt of retirement benefits, whichever is later.

I. A member who attains a normal retirement date may retire at any time without
terminating employment if the member is employed for less than the hours required for
active membership pursuant to section 38-711, paragraph 23, subdivision (b).