(a) Before the date the first payment of a member's annuity becomes due, but not thereafter, a member may elect to receive his or her annuity as a straight life annuity or may elect to have his or her annuity reduced and nominate a beneficiary in accordance with the provisions of one (1) of the following options:
(1) Option A60 — 60 Months Certain and Life Annuity.
(A) Under Option A60, the retirant shall be paid a reduced annuity for life with the provision that if the retirant's death occurs before sixty (60) monthly payments have been made, the full reduced 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 writing and filed with the plan. 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-eight percent (98%) of the straight life annuity;
(2) Option A120 — 120 Months Certain and Life Annuity.
(A) 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 writing and filed with the plan. 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-four percent (94%) of the straight life annuity;
(3) Option B50 — 50 Percent 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 as the retirant shall have designated in writing and filed with the plan before his or her annuity's starting date.
(ii) However, the person must be either his or her spouse for not less than six (6) months immediately preceding the first payment due date or another person aged forty (40) or older 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.
(B) The reduced annuity to the retirant shall be eighty-eight percent (88%) 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) However, if the named beneficiary under Option B50 predeceases the retirant, the original unreduced benefit shall be paid to the retirant prospectively; or
(4) Option B75 — 75 Percent Survivor Beneficiary Annuity.
(A)
(i) Under Option B75, the retirant shall be paid a reduced annuity for life with the provision that, upon his or her death, three-fourths (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 writing and filed with the plan before his or her annuity's starting date.
(ii) However, the person must be either the retirant's spouse for not less than six (6) months immediately preceding the first payment due date or another person aged forty (40) or older receiving more than one-half (½) support from the retirant for not less than one (1) year immediately preceding the first payment due date.
(B) The reduced annuity to the retirant shall be eighty-three percent (83%) 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 seven-tenths of one percent (0.7%) for each year that the beneficiary's age is less than the retirant's age or which shall be increased by seven-tenths of one percent (0.7%) up to a maximum of ninety percent (90%) for each year that the beneficiary's age is more than the retirant's age.
(C) However, if the named beneficiary under Option B75 predeceases the retirant, the original unreduced benefit shall be paid to the retirant prospectively.
(b)
(1) A death of a spouse or divorce or other marriage dissolution or the death of a person forty (40) years of age or older who is the designated beneficiary under Option B50 or Option B75 shall cancel, at the written election of the retirant, Option B50 or Option B75 at retirement, providing continuing lifetime benefits to the designated person, and shall return the retirant to his or her straight life, Option A60, or Option A120 annuity, to be effective the month following receipt of his or her election by the Arkansas Public Employees' Retirement System.
(2)
(A) A retirant who is receiving a straight life, Option A60, or Option A120 annuity and who marries after retirement or within the one (1) year immediately preceding retirement may elect to cancel his or her straight life, Option A60, or Option A120 annuity and may elect Option B50 or Option B75, providing continuing lifetime benefits to his or her spouse, but only if the election is on a form approved by the system and is received by the system not earlier than one (1) year after the date of the marriage and not later than eighteen (18) months after that date.
(B) The election shall be effective the first day of the month following the receipt of the notice.
(c) If a member fails to elect an option, his or her annuity shall be paid to him or her as a straight life annuity.
(d)
(1) The surviving spouse of a system member who retired prior to July 1, 1967, shall receive a monthly survivor's annuity equal to seventy-five percent (75%) of the retirant's monthly benefit at the time of death, provided that the surviving spouse was married to the retirant on the date of retirement, the surviving spouse is unmarried, and the surviving spouse makes application to the system on or before June 30, 1995.
(2) The monthly survivor's annuity shall be effective the first day of the month following the month of application, and no annuity will be paid the surviving spouse for any period prior to the first of the month following the month of application.
(e) The surviving spouse of a member of the system who retired on or after February 1, 1991, and who elected a straight life annuity shall be entitled to receive a survivor's annuity equal to the amount that would have been received had the member elected Option B75, provided:
(1) The member dies within twelve (12) months of the effective date of retirement; and
(2) The surviving spouse makes application to the system within twelve (12) months of the date of the member's death.