Sec. 102-143. Form of benefit.
(a) Normal form of benefit for married participant. If a participant is married on the date benefits commence, the participant's pension shall be paid as an actuarially equivalent qualified joint and survivor annuity unless the participant makes a timely election pursuant to subsection (c) of this section to receive the pension in one of the optional forms of benefit described below.
(b) Normal form of benefit for single participant. If a participant who is not married on the date benefits commence does not make a timely election to receive the pension in one of the optional forms of benefits pursuant to subsection (e) of this section, the participant's pension shall be payable as a monthly benefit for the participant's life, with the final payment being the payment for the month the participant dies.
(c) Waiver of qualified joint and survivor annuity. A married participant may waive the qualified joint and survivor annuity and elect another form of payment, provided the waiver is in writing and is consented to in writing by the participant's spouse. The spouse's consent to the waiver must be witnessed by a notary public. Any consent by a participant's spouse shall be void if the participant remarries.
(d) Notice of rights of participant and spouse. The plan administrator shall provide the participant within a reasonable period prior to the commencement of benefits, a written explanation of: (i) The terms and conditions of a qualified joint and survivor annuity; (ii) the participant's right to make and the effect of an election to waive the qualified joint and survivor annuity; (iii) the rights of a participant's spouse; and (iv) the right to make, and the effect of, a revocation of a previous election to waive the qualified joint and survivor annuity.
(e) Optional pension benefits. A participant who waives the qualified joint and survivor annuity pursuant to subsection (c) of this section or who has no spouse may, by filing an application with the board not less than 60 days prior to the date the pension commences, designate a beneficiary and elect to receive a pension payable in accordance with one of the following options that is the actuarial equivalent of the pension to which the participant would otherwise become entitled upon retirement:
(1) Option 1. One-hundred percent joint and survivor option. The retired participant shall receive an adjusted pension payable for life, and payments of the pension amount shall, after the retired participant's death, be continued to the beneficiary during the beneficiary's lifetime. Upon the death of the beneficiary prior to the death of the retired participant, a straight life benefit, calculated as of the date of retirement plus or minus any cost-of-living adjustments, shall become payable to the retired participant. This option shall not become effective on or before the normal retirement date unless both the participant and the beneficiary are surviving on the date the pension commences.
(2) Option 2. Seventy-five percent joint and survivor option. The retired participant shall receive an adjusted pension payable for life, and payments of 75 percent of such adjusted pension shall, after the retired participant's death, be continued to the beneficiary during the beneficiary's lifetime. Upon the death of the beneficiary prior to the death of the retired participant, a straight life benefit, calculated as of the date of retirement plus or minus any cost-of-living adjustments, shall become payable to the retired participant. This option shall not become effective on or before the normal retirement date unless both the participant and the beneficiary are surviving on the date the pension commences.
(3) Option 3. Fifty percent joint and survivor option. The retired participant shall receive an adjusted pension payable for life, and payments of 50 percent of such adjusted pension shall, after the retired participant's death, be continued to the beneficiary during the beneficiary's lifetime. Upon the death of the beneficiary prior to the death of the retired participant, a straight life benefit, calculated as of the date of retirement plus or minus any cost-of-living adjustments, shall become payable to the retired participant. This option shall not become effective on or before the normal retirement date unless both the participant and the beneficiary are surviving on the date the pension commences.
(4) Option 4. Ten-year certain and lifetime option. The retired participant shall receive an adjusted pension payable for life and if the retired participant dies prior to receiving at least 120 payments, the same amount shall be continued to the beneficiary until a total of 120 monthly payments has been made to the retired participant and the beneficiary combined.
(5) Option 5. Fifteen-year certain and lifetime option. The retired participant shall receive an adjusted pension payable for life and if the participant dies prior to receiving at least 180 payments, the same amount shall be continued to the beneficiary until a total of 180 monthly payments has been made to the retired participant and the beneficiary combined.
(6) Option 6. Straight life benefit. The retired participant shall receive a pension payable for life, with no benefits other than those benefits described in section 102-144(f) payable after the death of the participant.
(7) Option 7. Partial lump sum payment. The retired participant may elect to receive up to 20 percent of the actuarial equivalent of his or her accrued benefit valued on a single life basis in the form of a lump sum payment. The remaining accrued benefit shall be paid in the form selected by the participant from options 1 through 6. The monthly benefit will be reduced on an actuarially equivalent basis to reflect the lump sum payment. The lump sum is payable upon pension commencement.
However, an optional form of income under this section may not be elected unless the value of the payments expected to be paid to the participant exceeds 50 percent of the value of the total benefits to be paid under such optional form.
If the actuarial equivalent present value of the participant's vested accrued benefit is not greater than $3,500.00, the participant will receive the actuarial equivalent present value in a lump-sum payment.
A participant may elect, change or revoke an option if the election, change or revocation is filed in writing with the board at least 60 days prior to the date the pension commences. If the participant is married, any change or revocation must be consented to by the participant's spouse in writing. The spouse's consent must be witnessed by a notary public.
The participant shall furnish satisfactory evidence to the board of the age of the beneficiary for option 1, option 2 or option 3.
(f) Effect of option election. An option elected under subsection (e) of this section shall cancel and supersede any benefit that would otherwise have become payable under this plan. After a pension commences, no change may be made in the mode of payment and no change of beneficiary or surviving spouse shall be permitted. However, the participant may change the beneficiary designated under an option 4 or option 5 election. Under any option selected, corrections based upon misstatement of age of any participant or beneficiary may be made by a participant only with the permission of the board. (Code 1979, § 15-49; Ord. No. 2001-81, § 3, 1-7-2002; Ord. No. 99-82, § 3, 11-29-1999; Ord. No. 97-77, § 7, 1-5-1998)