§ 24.0603 — Optional Settlement 1

§24.0603 Optional Settlement 1

(a) If a Member selects Optional Settlement 1, the System will pay the Member a reduced retirement allowance until his or her death. If the Member dies before receiving in annuity payments the amount of his or her Accumulated Contributions at retirement, the System will pay the balance to the Member’s Beneficiary or estate. (b) At the time of his or her retirement, a Member who selects Optional Settlement 1 must direct the System, in writing, to pay the Accumulated Contributions remaining at his or her death to his or her Beneficiary or estate in one of the following three ways: (1) in lump sum; (2) in equal monthly installments for the life of the Beneficiary, for no more than 120 months; or (3) in monthly installments, fixed in number or amount and without a continuance to a Beneficiary, subject to the rules adopted by the Board. The Board will credit regular interest on the balance remaining on account with the System. (c) If the Member elects to have his or her Accumulated Contributions paid in installments, the System will pay the first installment on the first day of the month after the balance becomes due. The subsequent installments will be paid on the first day of each month thereafter. The total of the installments will be the actuarial equivalent of the Accumulated Contributions remaining when the Member dies.

(“Optional Settlement 1” repealed; “Optional Settlement 1” added 4-2-2002 by O-19043 N.S.)