(a) In lieu of a normal, early, proratable or deferred vested benefit, a member may elect either of the options described in subsections (b) and (c) of this section.

(b) A period certain option may be elected in which the member receives an actuarially reduced benefit for a fixed period of time selected by such member and for the remainder of such member's life. Such member may select a fixed period of twenty-five years or such shorter period as the board may offer. If such member dies before receiving the benefit for the selected period, such benefit shall be paid to the member's designated beneficiary for the remainder of such period.

(c) A coparticipant's option may be elected in which the member receives an actuarially reduced benefit as provided in subsection (d) of this section and upon such member's death, one-third, one-half, two-thirds, three-fourths or all of such amount is paid to such member's designated beneficiary for life. With respect to any benefits which become effective on or after January 1, 2001, if twenty-five per cent of the aggregate benefits paid to the member or such member's designated beneficiary are, upon the death of such member or such designated beneficiary, less than such member's accumulated contributions plus credited interest, the estate of such member or such designated beneficiary, as appropriate, shall be paid a lump sum amount equal to the difference between such aggregate benefits paid and such accumulated contributions plus credited interest.

(d) The benefits payable to such member and such coparticipant shall be computed as follows:

(1) The benefit payable to such member at retirement and to such coparticipant upon such member's death shall be the actuarial equivalent of the normal, early or proratable benefit for which such member is eligible and based upon such member's age at retirement and the age of such coparticipant on such retirement date.

(2) The benefit payable to such coparticipant of such member who dies after such option first becomes effective but before retirement shall be the actuarial equivalent of the normal, early or proratable benefit for which such member was eligible based on such member's age at death and the age of such coparticipant on such date of death.

(3) (A) Except as provided in subparagraph (B) of this subdivision, a coparticipant option shall be terminated, for any member whose designated coparticipant dies or is divorced from the member after the member's retirement, on the date of such death or divorce. Such member shall thereupon be paid the normal, early or proratable retirement benefit for which the member is eligible. (B) On and after July 1, 2016, upon the divorce of a member and such member's designated coparticipant subsequent to the member's retirement, the member may retain the coparticipant designation and the coparticipant option elected at the time of retirement by filing a qualified domestic relations order with the board.

(P.A. 78-208, S. 9, 35; P.A. 82-229, S. 1, 2; 82-401, S. 2, 5; P.A. 83-315, S. 1, 2; 83-449, S. 2, 5; P.A. 98-251, S. 3, 7; P.A. 00-187, S. 64, 75; P.A. 16-91, S. 1.)

History: P.A. 82-229 amended Subsec. (d) to provide that in the event of the death of a designated coparticipant or the divorce of a designated coparticipant from the member prior to retirement or death of member, but after effective date of option, no reduction in member's benefit will be made, and to provide that coparticipant's death or divorce from member, after member's retirement, terminates option without penalty to member; P.A. 82-401 amended Subsec. (d) to provide for computation of benefit based on eligibility and age of member and coparticipant at the date of the member's retirement or death and not the date on which the option becomes effective; P.A. 83-315 amended Subsec. (c) to change the effective date of the option from three years to one year after the filing of such election or evidence of good health is submitted; P.A. 83-449 amended Subsec. (a) to repeal provision that in lieu of a “disability” benefit, a member may elect either of options in Subsecs. (b) and (c); P.A. 98-251 amended Subsec. (c) to delete provisions that specifying that only member's spouse, dependent parent, brother or sister may be designated as coparticipant, that option shall not become effective until one year after filing of such election or evidence of good health is submitted, that if member dies or member's application for retirement becomes effective before effective date of option, such option will not become effective and that if member dies after effective date of such election, but before retirement, option will be effective only if member at time of his death fulfilled age and service requirements for normal, early or proratable benefits, effective June 8, 1998; P.A. 00-187 amended Subsec. (c) to add provision concerning lump sum payments, effective July 1, 2000; P.A. 16-91 amended Subsec. (d) by deleting reference to disability benefit in Subdivs. (1) and (3), and by designating existing provisions re coparticipant option as Subpara. (A) and amending same to add reference to exception in Subpara. (B), deleting provision re benefit payable to member whose designated coparticipant dies or is divorced from member and adding provision re member to retain coparticipant designation and coparticipant option after divorce by filing qualified domestic relations order with board in Subdiv. (3), effective July 1, 2016.