(a) In lieu of the retirement allowance for his life alone, a member, but not a retired member, may elect, to revoke or change a previous election, 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) Such 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 void 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 of the first payment on account of his retirement allowance, substitute a different optional settlement. Such election, revocation, or change of election must be executed in writing and filed with the Board; and any member electing an optional settlement provided herein must be counseled by the System, with respect to his options and status, before and after making his election.
(e) If a deceased member who is eligible for retirement has elected one of the optional settlements specified in this section, whomever the member selected to receive the optional benefit shall receive the same benefits as the beneficiary would have received if the date of the member's 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, he shall be deemed for the purposes of this paragraph to have elected Optional Settlement No. 2 as provided in subsection (f).
(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 the to [sic] service.
(f) A member may designate one or more persons as beneficiaries. If more than one person is designated under an optional settlement involving life contingency of the beneficiary, the member is deemed to have elected the optional settlement on an equal portion of his allowance independently for each beneficiary. The options are:
(1) Optional Settlement 1 - The member has the right to have a retirement allowance paid him until his death 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 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 him until his death, and thereafter one-half of his retirement allowance paid to his beneficiary for life.