(a) Before the date the first payment of a member's annuity becomes due, but not thereafter, a member may elect in a manner prescribed by the Arkansas Local Police and Fire Retirement System to receive his or her annuity as an Option A60 annuity under this section, or the member may elect to have his or her life annuity reduced, excepting any temporary annuity that may be payable. The member may nominate a beneficiary in accordance with the provisions of one (1) of the following options:
(1) Option A60 — Sixty (60) Months Certain and Life Annuity.
(A)
(i) Under Option A60, the retirant shall be paid an annuity for life with the provision that if the retirant's death occurs before sixty (60) monthly payments have been made, the full annuity shall continue to be paid for the remainder of the sixty (60) months to such persons and in such shares as the retirant shall have designated in a manner prescribed by the system and filed with the Board of Trustees of the Arkansas Local Police and Fire Retirement System.
(ii) If there is no payee surviving, the lump-sum actuarial equivalent of the remaining monthly payments shall be paid to the estate of the last survivor among the retirant and the designated persons.
(B) The reduced annuity shall be ninety-six percent (96%) of the life annuity if the first payment due date is before July 1, 2001, ninety-seven percent (97%) of the life annuity if the first payment due date is on or after July 1, 2001, or one hundred percent (100%) of the life annuity if the first payment due date is on or after July 1, 2003.
(2) Option A120 — One Hundred Twenty (120) Months Certain and Life Annuity.
(A)
(i) Under Option A120, the retirant shall be paid a reduced annuity for life with the provision that if the retirant's death occurs before one hundred twenty (120) monthly payments have been made, the full reduced annuity shall continue to be paid for the remainder of the one hundred twenty (120) months to such persons and in such shares as the retirant shall have designated in a manner prescribed by the system and filed with the board.
(ii) If there is no payee surviving, the lump-sum actuarial equivalent of the remaining monthly payments shall be paid to the estate of the last survivor among the retirant and the designated persons.
(B) The reduced annuity shall be ninety percent (90%) of the life annuity if the first payment due date is before July 1, 2001, ninety-five percent (95%) of the life annuity if the first payment due date is on or after July 1, 2001, or ninety-eight percent (98%) of the life annuity if the first payment due date is on or after July 1, 2003.
(3) Option B50 — Fifty Percent (50%) Survivor Beneficiary Annuity.
(A)
(i) Under Option B50, the retirant shall be paid a reduced annuity for life with the provision that upon the retirant's death, one-half (½) of the reduced annuity shall be continued throughout the future lifetime of and paid to such person the retirant has designated in a manner prescribed by the system and filed with the board before his or her annuity starting date.
(ii) However, the person must be either:
(a) The retirant's spouse for not less than one (1) year immediately preceding the first payment due date;
(b) Another person receiving more than one-half (½) support from the retirant for not less than one (1) year immediately preceding the first payment due date; or
(c) A dependent child as defined under § 24-10-102(13).
(B) If the first payment due date is before July 1, 2001, the reduced annuity to the retirant shall be eighty-five percent (85%) if the retirant's age and his or her beneficiary's age are the same on the first payment due date, which shall be decreased by one-half of one percent (0.5%) for each year that the beneficiary's age is less than the retirant's age or which shall be increased by one-half of one percent (0.5%) up to a maximum of ninety-five percent (95%) for each year that the beneficiary's age is more than the retirant's age.
(C) If the first payment due date is on or after July 1, 2001, the reduced annuity to the retirant shall be ninety-one percent (91%) if the retirant's age and his or her beneficiary's age are the same on the first payment due date, which shall be decreased by one-half of one percent (0.5%) for each year that the beneficiary's age is less than the retirant's age or which shall be increased by one-half of one percent (0.5%) up to a maximum of ninety-five percent (95%) for each year that the beneficiary's age is more than the retirant's age.
(D) If the first payment due date is on or after July 1, 2003, the reduced annuity to the retirant shall be ninety-four percent (94%) if the retirant's age and retirant's beneficiary's age are the same on the first payment due date, which shall be decreased by one-half of one percent (0.5%) for each year that the beneficiary's age is less than the retirant's age or which shall be increased by one-half of one percent (0.5%) up to a maximum of ninety-eight percent (98%) for each year that the beneficiary's age is more than the retirant's age.
(4) Option B75 — Seventy-Five Percent (75%) Survivor Beneficiary Annuity.
(A)
(i) Under Option B75, the retirant shall be paid a reduced annuity for life with the provision that upon the retirant's death, three-quarters (¾) of the reduced annuity shall be continued throughout the future lifetime of and paid to such person as the retirant shall have designated in a manner prescribed by the system and filed with the board before the retirant's annuity starting date.
(ii) However, the person must be either:
(a) The retirant's spouse for not less than one (1) year immediately preceding the first payment due date;
(b) Another person receiving more than one-half (1/2) support from the retirant for not less than one (1) year immediately preceding the first payment due date; or
(c) A dependent child as defined under § 24-10-102(13).
(B) If the first payment due date is before July 1, 2001, the reduced annuity to the retirant shall be eighty percent (80%) if the retirant's age and his or her beneficiary's age are the same on the first due date, which shall be decreased by three-fourths of one percent (0.75%) for each year that the beneficiary's age is less than the retirant's age or which shall be increased by three-fourths of one percent (0.75%) up to a maximum of ninety percent (90%) for each year that the beneficiary's age is more than the retirant's age.
(C) If the first payment due date is on or after July 1, 2001, the reduced annuity to the retirant shall be eighty-six percent (86%) if the retirant's age and his or her beneficiary's age are the same on the first payment due date, which shall be decreased by three-fourths of one percent (0.75%) for each year that the beneficiary's age is less than the retirant's age or which shall be increased by three-fourths of one percent (0.75%) up to a maximum of ninety percent (90%) for each year that the beneficiary's age is more than the retirant's age.
(D) If the first payment due date is on or after July 1, 2003, the reduced annuity to the retirant shall be eighty-nine percent (89%) if the retirant's age and the retirant's beneficiary's age are the same on the first payment due date, which shall be decreased by three-fourths of one percent (0.75%) for each year that the beneficiary's age is less than the retirant's age or which shall be increased by three-fourths of one percent (0.75%) up to a maximum of ninety-four percent (94%) for each year that the beneficiary's age is more than the retirant's age.
(b)
(1)
(A) At the election of the retirant, a death of the beneficiary or the divorce or other marriage dissolution after retirement from a spouse designated as beneficiary shall cancel any optional plan elected at retirement to provide continuing lifetime benefits to the beneficiary and shall return the retirant to his or her single lifetime benefit equivalent, to be effective the month following receipt of the retirant's election by the plan.
(B) The election shall be in a manner prescribed by the system.
(2) A retirant who is receiving a single lifetime benefit and who marries after retirement or within the one (1) year immediately preceding retirement may elect to cancel his or her single lifetime benefit and to elect an optional plan providing continuing lifetime benefits to his or her spouse, but only if the election is in a manner approved by the board and is received by the board not earlier than one (1) year after the date of the marriage and not later than eighteen (18) months thereafter.
(3) The election shall be effective the first day of the month following its receipt.
(c) If a member does not elect an option, his or her annuity shall be paid to him or her as an Option A60 annuity provided for under subdivision (a)(1) of this section.