§88-333  Election of retirement allowanceoption.  (a)  Upon retirement:

(1)  Any class H member may elect to receive themaximum retirement allowance to which the member is entitled, computed inaccordance with the provisions described under section 88-332, 88-335, or88-337, and if the member elects to receive the maximum retirement allowance,in the event of the retirant's death, there shall be paid to the retirant'sdesignated beneficiary, or otherwise to the the retirant's estate, thedifference between:

(A)  The balance of the member's accumulatedcontributions at the time of the member's retirement; and

(B)  The retirement allowance and the postretirement allowances paid or payable to the retirant prior to death; or

(2)  In lieu of the maximum allowance to which themember is entitled, computed in accordance with the provisions described undersection 88-332, 88-335, or 88-337, the member may elect to receive the member'sretirement allowance under any one of the options described in section 88-83,which shall be actuarially equivalent to the maximum allowance.

To receive benefits, the beneficiary shall havebeen designated by the member in the form and manner prescribed by the board.

(b)  If a class H member dies after the date ofthe filing 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 beneficiary,or otherwise the personal representative of the member's estate, may elect toreceive either the death benefit under section 88-338 or the allowance underthe option selected by the member that would have been payable had the memberretired.  The effective date of the member's retirement shall be the first dayof a month, except for the month of December when the effective date ofretirement may be on the first or last day of the month, and shall be noearlier than the later of thirty days from the date the member's retirementapplication was filed or the day following the member's date of death.  Theelection may not be made if, at the time of the member's death, there areindividuals who are eligible to receive death benefits under section 88-339 whohave made a claim for the benefits; provided that, if the designatedbeneficiary is an individual eligible to receive benefits under section 88-339,the designated beneficiary may receive benefits pursuant to an election madeunder this section pending disposition of the claim for benefits under section88-339.  If death benefits are payable under section 88-339, the death benefitsshall be in lieu of any benefits payable pursuant to this section.

(c)  If a retirant dies within one year afterthe date of retirement, the retirant's designated beneficiary may elect toreceive either the death benefit under the retirement allowance option selectedby the retirant or the benefits that would have been paid under section 88-338had the retirant died immediately prior to retirement, less any paymentsreceived by the retirant; provided that the designated beneficiary may notelect to receive benefits under option 2 of section 88-83 if the retirant wouldnot have been permitted by applicable law or by the rules of the board to namethe designated beneficiary as beneficiary under option 2.

(d)  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 is:

(A)  Option 2 or 3 described in section 88-83;

(B)  An option that includes option 2 or 3 incombination with some other form of benefit payment; or

(C)  Any other option for which the actuarialequivalent of the option to the maximum retirement allowance is determined atthe time of the member's retirement based in whole or in part on the age of themember's designated beneficiary.

(e)  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 2 or option 3 undersection 88-83 and designates the spouse or reciprocal beneficiary as thebeneficiary; 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.

(f)  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 (e) 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.

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

(h)  The increase in the retirant's benefitunder options 2, 3, and, if applicable, 4, described in section 88-83, upon thedeath of the retirant's designated beneficiary shall be effective the first dayof the month following the date of death of the designated beneficiary.  Theretirant shall notify the system in writing and provide a certified copy of thebeneficiary's death certificate.  The system shall make retroactive benefitpayments to the retirant, not to exceed six months from the date the writtennotification and the certified copy of the death certificate are received bythe system.  The retroactive payments shall be 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 2004, c 179, pt of §1; am L 2005, c 58, §27; am L 2006, c169, §36; am L 2007, c 215, §23]