A. Straight life pension is form of payment A. The retired member is paid the pension for life under form of payment A. All payments stop upon the death of the retired member, except as provided by Subsection E of this section. The amount of pension is determined in accordance with the coverage plan applicable to the retired member.
B. Life payments with full continuation to one survivor beneficiary is form of payment B. The retired member is paid a reduced pension for life under form of payment B. When the retired member dies, the designated survivor beneficiary is paid the full amount of the reduced pension until death. Upon the association's receipt of proof of death of the designated survivor beneficiary, the amount of pension shall be changed to the amount that would have been payable had the retired member elected form of payment A.
C. Life payment with one-half continuation to one survivor beneficiary is form of payment C. The retired member is paid a reduced pension for life under form of payment C. When the retired member dies, the designated survivor beneficiary is paid one-half the amount of the reduced pension until death. If the designated survivor beneficiary predeceases the retired member, the amount of pension shall be changed to the amount that would have been payable had the retired member elected form of payment A.
D. Life payments with temporary survivor benefits for children is form of payment D. The retired member is paid a reduced pension for life under form of payment D. When the retired member dies, each declared eligible child is paid a share of the reduced pension until death or age twenty-five years, whichever occurs first. The share is the share specified in writing and filed with the association by the retired member. If shares are not specified in writing and filed with the association, each declared eligible child is paid an equal share of the reduced pension. A redetermination of shares shall be made when the pension of any child terminates. An eligible child is a natural or adopted child of the retired member who is under age twenty-five years. A declared eligible child is an eligible child whose name has been declared in writing and filed with the association by the retired member at the time of election of form of payment D. The amount of pension shall be changed to the amount of pension that would have been payable had the retired member elected form of payment A upon there ceasing to be a declared eligible child during the lifetime of the retired member.
E. If all pension payments permanently terminate before there is paid an aggregate amount equal to the retired member's accumulated member contributions at the time of retirement, the difference between the amount of accumulated member contributions and the aggregate amount of pension paid shall be paid to the retired member's refund beneficiary. If no refund beneficiary survives the retired member, the difference shall be paid to the estate of the retired member.
History: Laws 1987, ch. 253, § 117; 1992, ch. 116, § 7; 1997, ch. 189, § 7.
ANNOTATIONSThe 1997 amendment, effective June 20, 1997, substituted "Upon the association's receipt of proof of death of the designated survivor beneficiary" for "If the designated survivor beneficiary predeceases the retired member" in the fourth sentence of Subsection B.
The 1992 amendment, effective July 1, 1992, substituted "Subsection E" for "Subsection F" in the third sentence of Subsection A; in Subsection B, inserted "one" preceding "survivor" in the first sentence and rewrote the third and fourth sentences; in Subsection C, inserted "one" preceding "survivor" in the first sentence and rewrote the third and fourth sentences; in Subsection D, substituted "When the retired member dies" for "upon the death of the retired member during the lifetime of a declared eligible child of the retired member" in the third sentence; deleted Subsection E, relating to requirements for election made under Subsections B or C; redesignated Subsection F as Subsection E; and substituted "retired member" for "former member" and "member contributions" for "deductions" in Subsection E.
Change of retirement action. — Where there is no evidence that the retiree was suffering from psychosis when he selected his option or that his use of alcohol rendered him incompetent to select an option he may not later change his retirement action. 1988 Op. Att'y Gen. No. 88-27.
Effect of voiding of option. — When a court voids a retirement option selection because of incompetence, it will grant relief as if the retiree did not select an option. 1988 Op. Att'y Gen. No. 88-27.