§ 22-264. Optional benefits.

(a)

Generally. Each member shall have the right, at any time, not after the later of the effective date of the member's retirement or the date of the written notification to the Board of the retirement of the member, to elect to have such member's retirement allowance payable under one of the options set forth in Subsections (b), (c), (d) and (e) of this section, in lieu of the retirement allowance otherwise payable upon retirement. The amount of any such optional retirement allowance shall be the actuarial equivalent of the amount of such retirement allowance otherwise payable to the member, provided that if a member retires after the member's normal retirement date, the actuarial equivalent shall be determined as of the member's normal retirement date rather than at the member's actual retirement date. The member shall make such an election by written notice to the Board and such an election shall be subject to the approval of the Board.

(b)

Joint and survivor option. A member may elect to receive a decreased retirement allowance during the member's lifetime and have such retirement allowance, or a designated fraction thereof, continued after the member's death to one other person, called a contingent beneficiary, during the lifetime of such contingent beneficiary, provided that in the case of a member who retires for disability under the provisions of Section 22-238 or 22-240, the election of this option need not be made and shall not become effective until the member attains the date that would have been the member's normal retirement date had the member remained in service until then.

(c)

Pop-up joint and survivor option. A member may elect to receive a decreased retirement allowance during the member's lifetime and have such retirement allowance or a designated fraction thereof continued after the member's death to one other person called a contingent beneficiary during the lifetime of such contingent beneficiary. If the contingent beneficiary should predecease the member, then the member's retirement allowance shall increase to the amount of the single life annuity described in Section 22-263 the date following the contingent beneficiary's death. In the case of a member who retires for disability under the provisions of Section 22-238 or 22-240, the election of this option need not be made and shall not become effective until the member attains the date that would have been the member's normal retirement date had the member remained in service until then.

(d)

Level payment option. A member may elect to receive a reduced retirement allowance that will remain level for the lifetime of the member.

(e)

Smooth-out option.

(1)

A member who retires for early service retirement under the provisions of Section 22-198 may elect to receive an increased retirement allowance up to the first day of the month following the member's 65th birthday, and a decreased retirement allowance thereafter.

(2)

For the purpose of determining the payments under this optional form of payment, the amount of any member's primary Social Security benefit shall be established by the Board on the basis of a table, to be updated annually in accordance with changes in the Federal Social Security Act. The Board may in its discretion establish the amount of any member's primary Social Security benefit on the basis of the member's actual Social Security award in lieu of using the procedure described in the preceding sentence of this section. If the retired member does not qualify for or loses primary Social Security benefits to which such member is entitled under the Federal Social Security Act because of failure to make application therefor, entering into covered employment, or otherwise, such primary Social Security benefits shall nevertheless be considered as being received by such member for purposes of this article. If in the determination of the amount of any retirement allowance payable under any of the provisions of this article it is necessary that the amount of an actual Social Security benefit be known, it shall be the responsibility of the member to supply such information to the Board on request. If such information is not supplied when requested, the Board shall make any reasonable assumption it may deem proper as to the amount of such benefit.

(f)

Election of deceased member deemed null and void. The election by a member of any one of the options provided in Subsections (b), (c), (d) and (e) of this section shall be null and void if the member dies prior to retirement, or prior to the date the option becomes effective, and the election by a member of the option provided in Subsections (b) and (c) of this section shall be null and void if the designated contingent beneficiary dies before the member's retirement or before the date the option becomes effective.

(g)

Revocation of election. A member who has elected any one of the options provided in Subsections (b), (c), (d) and (e) of this section may, at any time prior to the later of the effective date of the member's retirement or the date the option becomes effective, revoke such an election by written notification to the Board. The election of any one of such options shall automatically revoke any previous election then in effect.

(h)

Board option to decline election. The Board may, in its discretion, decline to permit election of such option if the amount of any retirement allowance which would be payable on an option basis elected pursuant to this section is less than $20.00 per month.

(i)

Election of payment option and DROP participation by member. Notwithstanding the foregoing, the election under this section of an optional form of payment by a member who has elected to participate in the Deferred Retirement Option Program (DROP) established pursuant to Section 22-204 must be made at the same time as he elects to participate in the DROP established pursuant to Section 22-204. Any changes or adjustments to such election may be made only in accordance with Subsections (f) and (g) of this section.

(j)

DROP member allowance credited to separate account. The allowance of a DROP member shall be credited to a separate account within the system, subject to the terms and conditions of the guidelines established pursuant to Section 22-204 (in lieu of payment to such member) and, upon such member's ceasing to be an employee, the separate account shall be distributed in accordance with the guidelines established pursuant to Section 22-204.

(Code 1993, § 23.1-55; Code 2004, § 78-282; Ord. No. 2003-254-226, § 1, 7-28-2003)

(Code 1993, § 23.1-55; Code 2004, § 78-282; Ord. No. 2003-254-226, § 1, 7-28-2003)