§ 4-32-15 — Optional form of benefit payment

Sec. 4-32-15. - Optional form of benefit payment.

A. Determination of optional benefit. The amount of any benefit payable in accordance with options provided in this article shall be determined as of the date payment thereof is made or commenced as the actuarial equivalent of the normal form of payment. Under any option elected which provides for payments to a beneficiary after the death of a participant, except under option 1 if the participant's spouse is the beneficiary, the actuarial present value of all payments to the participant must be more than 50 percent of the actuarial present value of payments to the participant and his or her beneficiary. B. Description of options. 1. Option 1—Optional joint and survivor annuity. This form of benefit is payable monthly to the participant for life and a percentage (50 percent, 75 percent or 100 percent) of such amount, as elected by the participant, shall continue after his or her death to his or her surviving beneficiary for life. 2. Option 2—Single life annuity. This form of benefit is payable monthly to the participant for life. 3. Option 3—Life annuity with payments guaranteed. This form of benefit is payable monthly to the participant for life with the first 60, 120 or 180 monthly payments guaranteed, as elected by the participant. Any guaranteed payments due after the death of the participant shall be payable to his or her designated beneficiary, if any, who survives the participant, or if there is no surviving designated beneficiary, the commuted value of any remaining guaranteed payments shall be payable in a lump sum to the participant's estate. If the surviving designated beneficiary should die before all guaranteed payments have been paid, the commuted value of any remaining guaranteed payments shall be payable in a lump sum to the estate of the beneficiary. C. Cancellation of election. The election by a participant of any option under this article involving survivor payments shall be null and void if the participant's designated beneficiary shall die before benefit payments commence, and benefits shall be payable pursuant to the normal form of settlement.

(Code 1985, § 18-54; Ord. No. 4173, § 1, 4-16-1993)