(a) Until the first payment on account of a retirement allowance becomes normally due, any member may elect to convert the retirement allowance otherwise payable to the member after retirement into a retirement allowance that is its actuarial equivalent, in accordance with one of the optional forms described below.

Option 1. A reduced retirement allowance payable during the member's life, with the provision that it shall continue after the member's death for the life of the beneficiary nominated by the member by written designation duly acknowledged and filed with the Retirement Board at the time of retirement should such beneficiary survive the member; or

Option 2. A reduced retirement allowance payable during the member's life, with the provision that it shall continue after the member's death at one-half the rate paid to the member and be paid for the life of the beneficiary nominated by the member by written designation duly acknowledged and filed with the Retirement Board at the time of retirement should such beneficiary survive the member.

(b) Any member who elects to receive a retirement allowance under the provisions of option 1 or 2 may elect to receive a benefit further reduced actuarially as prescribed by the Board with the added provision that on the basis of stipulations contained in a plan-approved domestic relations order or if the retired member survives the member's nominated beneficiary, the retirement allowance which would have been payable during the member's life computed pursuant to section 5055 or 5056 of this title, whichever is applicable, shall be paid to the retired member during the remainder of the member's lifetime. If a member does not make an election as to the form of his or her retirement allowance, the member shall receive his or her retirement allowance computed pursuant to section 5055 or 5056 of this title, whichever is applicable. (Added 1973, No. 251 (Adj. Sess.), § 3; 1999, No. 53, § 11.)