(a) In lieu of the retirement allowance for his life alone, a member, but not a retired member, may elect, revoke, or change a previous elections, to have the actuarial equivalent of his retirement allowance as of the date of retirement applied to provide a lesser retirement allowance, in accordance with one of the optional settlements specified in this section.
(b) The election, revocation, or change of election may be made at any time before the effective date of retirement or after the effective date and prior to the making of the first payment on account of any retirement allowance.
(c) If a member designates a spouse as the intended beneficiary, at any time before the making of the first payment on account of the member's retirement allowance, his spouse dies, or his marriage is terminated by a final judgment of divorce or annulment, the election of the member is voided upon notice to the System, and the member may make a new election.
(d) A member who has elected an optional settlement providing for the payment of a benefit to his spouse may, at any time before the making the first payment on account of his retirement allowance, substitute a different optional settlement. The election, revocation, or change of election must be executed in writing and filed with the System. Any member electing an optional settlement must be advised of the options and status before and after making an election.
(e) A deceased member who is eligible for retirement who elected one of the optional settlements specified in this section, the surviving spouse of the member shall receive the same benefits as the surviving spouse would have received if the date of his death had also been the date of his retirement and if retirement had preceded death. In the event benefits are paid to a surviving spouse, no payment shall be made pursuant to this section.
(1) If a member dies without having elected an optional settlement and there is a surviving spouse, the member shall be deemed for the purposes of this paragraph to have elected Optional Settlement No. 2 as provided in subsection (h).
(2) In either case, the benefits payable to the surviving spouse must be in the same amount as if the member had elected to receive credit for service rendered prior to the date he became a member of this system and had paid the full amount of the contributions in respect to the service.
(f) Any election filed under this section prior to the effective date of the amendments to this section enacted by prior law continue to be effective in accordance with the terms of this section as it read prior to the amendments and may thereafter be revoked or changed or voided only in accordance with this section as it read prior to the amendments.
(g) A member may designate one or more person as beneficiary. If more than one beneficiary is designated under an optional settlement involving life contingency of a beneficiary, the member shall be deemed to have elected the optional settlement on an equal portion of his allowance independently for each beneficiary.
(h) The following options are available to members pursuant to this section:
(1) Optional Settlement 1 - The member has the right to have a retirement allowance paid to him until his death, and if he dies before he receives the amount of his accumulated contributions at retirement, to have the balance at death paid to his beneficiary or estate.
(2) Optional Settlement 2 - The member has the right to have a retirement allowance paid to him until his death and thereafter to his beneficiary for life.
(3) Optional Settlement 3 - The member has the right to have a retirement allowance paid to him until his death, and thereafter to have one-half of his retirement allowance paid to his beneficiary for life.