§88-283  Election of retirement allowanceoption.  (a)  Upon retirement, any member may elect to receive the maximumretirement allowance to which the member is entitled, computed in accordancewith section 88-282, 88-284, or 88-285, and, if the member elects to receivethe maximum retirement allowance, the member's beneficiary shall not beentitled to any benefit upon the member's death, except as provided insubsection (g). In lieu of the maximum retirement allowance, a member may electto receive the member's retirement allowance under one of the options describedbelow, which shall be actuarially equivalent to the maximum retirementallowance:

(1)  Option A:  A reduced allowance payable to themember, then upon the member's death, one-half of the allowance, includingfifty per cent of all cumulative post retirement allowances, to the member'sbeneficiary designated by the member at the time of retirement, for the life ofthe beneficiary.  If the beneficiary dies prior to the retirant, all furtherpayments shall cease upon the death of the retirant; provided that for membersretiring after November 30, 2004, if the retirant's designated beneficiary diesat any time after the retirant retired, but before the death of the retirant,the retirant, upon the death of the retirant's designated beneficiary, shallreceive a retirement allowance, including cumulative post retirementallowances, calculated as if the retirant had selected the maximum retirementallowance to which the retirant is entitled;

(2)  Option B:  A reduced allowance payable to themember, then upon the member's death, the same allowance, including cumulativepost retirement allowances, paid to the member's beneficiary designated by themember at the time of retirement, for the life of the beneficiary.  If thebeneficiary dies prior to the retirant, all further payments shall cease uponthe death of the retirant; provided that for members retiring after November30, 2004, if the retirant's designated beneficiary dies at any time after theretirant retired, but before the death of the retirant, the retirant, upon thedeath of the retirant's designated beneficiary, shall receive a retirementallowance, including cumulative post retirement allowances, calculated as ifthe retirant had selected the maximum retirement allowance to which theretirant is entitled; or

(3)  Option C:  A reduced allowance payable to themember, and upon the death of the retirant within ten years of retirement, thesame allowance, including cumulative post retirement allowances, paid to theretirant's designated beneficiary, or otherwise to the retirant's estate forthe balance of the ten-year period.  If the retirant returns to servicerequiring active membership in the system and the retirant is reenrolled as anactive member, running of the ten-year period will be suspended until themember again retires.

Only one beneficiary shall be designated underoptions A, B, and C.  The beneficiary designated under option A or B shall be anatural person, and benefits under option A or B shall only be paid to anatural person.  To receive benefits, the beneficiary shall have beendesignated by the member in the form and manner prescribed by the board.

(b)  Upon a member's retirement:

(1)  The member's election of a retirement allowanceoption shall be irrevocable; and

(2)  The member's designation of a beneficiary shallbe irrevocable if the retirement allowance option elected by the member isoption A or B.

(c)  No election by a member under this sectionshall take effect unless:

(1)  The spouse or reciprocal beneficiary of themember is furnished written notification that:

(A)  Specifies the retirement date, the benefitoption selected, and the beneficiary designated by the member;

(B)  Provides information indicating the effectof the election; and

(C)  Is determined adequate by rules adopted bythe board in accordance with chapter 91;

(2)  The member selects option A or option B anddesignates the spouse or reciprocal beneficiary as the beneficiary; or

(3)  It is established to the satisfaction of theboard that the notice required under paragraph (1) cannot be provided because:

(A)  There is no spouse or reciprocalbeneficiary;

(B)  The spouse or reciprocal beneficiarycannot be located;

(C)  The member has failed to notify the systemthat the member has a spouse or reciprocal beneficiary, or has failed toprovide the system with the name and address of the member's spouse orreciprocal beneficiary; or

(D)  Of other reasons, as established by boardrules adopted in accordance with chapter 91.

Any notice provided to a spouse or reciprocalbeneficiary, or determination that the notification of a spouse or reciprocalbeneficiary cannot be provided, shall be effective only with respect to thatspouse or reciprocal beneficiary.  The system shall rely upon therepresentations made by a member as to whether the member has a spouse orreciprocal beneficiary and the name and address of the member's spouse orreciprocal beneficiary.

(d)  Each member, within a reasonable period oftime before the member's retirement date, shall be provided a writtenexplanation of:

(1)  The terms and conditions of the various benefitoptions;

(2)  The rights of the member's spouse or reciprocalbeneficiary under subsection (c) to be notified of the member's election of abenefit option; and

(3)  The member's right to make, and the effect of, arevocation of an election of a benefit option.

(e)  The system shall not be liable for anyfalse statements made to the system by the member or by the member's employer.

(f)  If a member dies after the date of thefiling of the member's written application to retire, but prior to theretirement date designated by the member, and, if the member was eligible toretire on the date of the member's death, the member's designated beneficiarymay elect to receive either:

(1)  An allowance that would have been payable if themember had retired and had elected to receive a retirement allowance underoption B; or

(2)  The allowance under the option selected by themember which would have been payable had the member retired.

The effective date of the member's retirement shallbe the first day of a month, except for the month of December when theeffective date of retirement may be on the first or last day of the month, andshall be no earlier than the later of thirty days from the date the member'sretirement application was filed or the day following the member's date ofdeath.  The election may not be made if, at the time of the member's death,there are individuals who are eligible to receive death benefits under section88-286(c) who have made a claim for the benefits; provided that, if thedesignated beneficiary is an individual eligible to receive benefits undersection 88-286(c), the designated beneficiary may receive benefits pursuant toan election made under this section pending disposition of the claim forbenefits under section 88-286(c).  If death benefits are payable under section88-286(c), the death benefits shall be in lieu of any benefits payable pursuantto this section.

(g)  If the retirant dies within one year afterthe date of retirement, the retirant's designated beneficiary may elect toreceive either:

(1)  The death benefit under the retirement allowanceoption selected by the retirant; or

(2)  The death benefit under option B, less thedifference between the benefit that the retirant received and the benefit thatwould have been payable to the retirant had the retirant elected to receive aretirement allowance under option B; provided that if the retirant would nothave been permitted by applicable law or the rules of the board to name thedesignated beneficiary as beneficiary under option B, the designatedbeneficiary may elect to receive the death benefit under option A, less thedifference between the benefit that the retirant received and the benefit thatwould have been payable to the retirant had the retirant elected to receive aretirement allowance under option A.

(h)  The increase in the retirant's benefitunder options A and B upon the death of the retirant's designated beneficiaryshall be effective the first day of the month following the date of death ofthe designated beneficiary.  The retirant shall notify the system in writingand provide a certified copy of the beneficiary's death certificate.  Thesystem shall make retroactive benefit payments to the retirant, not to exceedsix months from the date the written notification and the certified copy of thedeath certificate are received by the system.  The retroactive payments shallbe without interest.

(i)  A claim under this section by a retirant'sor member's beneficiary for benefits upon the death of a retirant or membershall be filed no later than three years from the date of the retirant's ormember's death. [L 1984, c 108, pt of §8; am L 1987, c 117, §6; am L 1988, c 8,§2; am L 1993, c 67, §2; am L 2001, c 101, §3; am L 2003, c 182, §2; am L 2004,c 179, §27; am L 2006, c 169, §29; am L 2007, c 215, §20]