Optional retirement benefits.

El Paso City Code § 2.64.240

in effect

2.64.240 - Optional retirement benefits. A. Until the first payment of a retirement allowance is made, an employee or retired employee, in lieu of the normal retirement allowance, may elect to have the actuarial equivalent of his retirement applied to a different retirement allowance, payable throughout life in accordance with one of the optional settlements specified in this section. 1. In lieu of the normal retirement allowance, an employee may elect to have the actuarial equivalent of his retirement applied to a different retirement allowance, payable throughout life in accordance with one of the optional settlements specified in this section. This election shall be made at the time the employee applies for retirement. B. Option settlement 1 consists of the right to have a retirement allowance paid him until his death and, if he dies before he receives the amount of his contributions at retirement, to have the balance at death paid to his estate or to such person, having an insurable interest in his life, as he nominates by written designation duly executed and filed with the board. This settlement option is called a "modified cash refund option" and is available only to an employee without a spouse or an employee who has elected to retire under optional settlement 4 as set out in subsection E of this section. C. Optional settlement 2 consists of the right to have a monthly retirement allowance paid to him until his death, and thereafter to have the same monthly retirement allowance paid to his spouse until the spouse's death or remarriage. D. Optional settlement 3 consists of the right to have a monthly retirement allowance paid to him until his death, and thereafter to have one-half of his monthly retirement allowance paid to his spouse until the spouse's death or remarriage. E. Optional settlement 4 consists of the right to have a monthly retirement allowance paid him until his death. If the employee is married, this option is available only with prior written consent of the spouse. F. The city council may from time to time adopt by resolution the above optional tables when the council finds that such tables are actuarially equivalent to the retirement benefit available to the employee and the death benefit available to the spouse, set forth in Sections 2.64.200 and 2.64.230. G. If the employee wishes to receive benefits in accordance with one of the above optional tables applicable to his case, he shall exercise his option at the time he applies for his pension. The employee may not change his election after his application for pension has been approved by the board. H. If a retired employee who has selected an optional settlement dies and leaves a surviving spouse and an unmarried minor child or children under nineteen years of age the surviving spouse shall receive a pension in accordance with the optional settlement as though there were no unmarried minor children under nineteen and the unmarried minor child or children under nineteen shall receive one-third of the pension that would have been paid to the retired employee had he not selected an optional settlement. If after the death of both the retired employee and the spouse there is a minor child or children entitled to benefits under this section, such child or children shall, so long as qualified, be entitled to receive two-thirds of the amount that would have been received by the employee at the time of retirement if he made no optional selection. I. Employees who have elected to receive early or deferred pension benefits shall be permitted joint or survivor options on same. J. In accordance with procedures determined by the board of trustees, the spouse of a participant who applies for retirement shall be informed, in writing, whenever a participant elects an optional retirement benefit in lieu of the normal retirement allowance and shall provide to said spouse a description of options available to the participant. (Ord. 12427, 1995; Ord. 11654, 1993; prior code § 17-11.1) (Ord. No. 18782, § o, 4-17-2018)

Source: City of El Paso, City Code and City Charter (Municode Library, library.municode.com)URL: https://library.municode.com/tx/el_paso/codes/code_of_ordinances?nodeId=TIT2ADPE_CH2.64CIEMPEFU_2.64.240OPREBEFetched: 10/28/2026