§ 13-576 Options; variable designated beneficiary's annuity; variable
joint annuity or pension. a. An option elected pursuant to subdivision c
or d of section 13-543 of this chapter with respect to the manner of
payment of the accumulated deductions or death benefit shall, in the
case of a participant in the variable annuity program, apply also to the
units credited to him or her in the variable annuity savings fund or
variable pension accumulation fund, respectively. The contributor or
beneficiary electing the option shall have the choice of having the
designated beneficiary's annuity deriving from such units paid in fixed
or variable instalments. If the choice is for:
1. Fixed instalments, the beneficiary shall be credited in the pension
reserve fund number one, to be applied toward the payment of a
designated beneficiary's annuity, with the amount otherwise payable
pursuant to section 13-573 of this chapter. An equal amount shall be
transferred from the variable annuity fund holding the contributor's
account with respect to which the election is made to the pension
reserve fund number one.
2. Variable instalments, the beneficiary shall be credited in the
variable pension reserve fund with units equal in value to the amount
otherwise payable pursuant to section 13-573 of this chapter and shall
be paid a variable designated beneficiary's annuity from such fund. If
Option C is elected in a form prescribing the payment of a specified
lump sum amount on the death of the beneficiary, the amount provided for
by the contributor's account in the variable annuity savings fund shall
be limited to the extent that the total amount elected can not be
provided for by his or her accumulated deductions. The lump sum amount
as herein determined shall be paid from the pension reserve fund number
one, and the units credited to the beneficiary in the variable pension
reserve fund shall be reduced by the number actuarially computed to be
necessary to provide such amount. There shall be transferred from the
variable annuity savings fund (i) to the variable pension reserve fund
an amount equal to the value of the units with which the beneficiary is
credited in such fund and (ii), if Option C is elected, to the pension
reserve fund number one an amount equal to the value of the units
deducted from the beneficiary's account as required by such election.
The value of a unit, for the purpose of this subdivision, shall be as of
the date of death of the contributor.
b. An option elected pursuant to section 13-558 of this chapter with
respect to the manner of payment of an annuity, pension, or retirement
allowance shall, in the case of a participant in the variable annuity
program, apply also to the payment of a variable annuity, variable
pension,or both, respectively. If the option elected is:
1. Option I, the balance payable on the death of the contributor shall
be an amount equal to the value, as of the date of death, of the excess,
if any, of the units credited to him or her in the variable annuity
reserve fund or variable pension reserve fund at the time of his or her
retirement over the units paid to him or her. The amount shall be paid
from the variable annuity fund holding the account with respect to which
the election is made.
2. Option II, III, or a joint and survivor form of IV, the account of
the contributor in the variable annuity reserve fund or variable pension
reserve fund shall be kept as a joint account of the contributor and his
or her designee.
3. Option IV in a form prescribing the payment:
(i) of a specified lump sum amount on the death of the contributor,
the amount provided for by his or her account in the variable annuity
reserve fund shall be limited to the extent that the total amount
elected cannot be provided for by his or her annuity reserve. The units
credited to the contributor in the variable annuity reserve fund shall
be reduced by the number actuarially computed to be necessary to provide
the lump sum amount as herein determined. There shall be transferred
from the variable annuity reserve fund to the annuity reserve fund an
amount equal to the value, as of the date of the contributor's
retirement, of the units deducted from his or her account as required by
such election, and the amount shall be paid from the annuity reserve
fund; provided, however, that in the case of a twenty-year pension plan
retiree having a deferred payability date (as defined in subdivision
forty of section 13-501 of this chapter), such transferred amount shall
be equal to the value of such deducted units as of the date on which his
or her retirement allowance begins.
(ii) of a number of units equal in value, as of the date of the
contributor's retirement, to a specified lump sum and payable on the
death of the contributor, the amount provided for by his or her account
in the annuity reserve fund be limited to the extent that the total
amount elected cannot be provided for by his or her variable annuity
reserve. The amount credited to the contributor in the annuity reserve
fund shall be reduced to the extent actuarially computed to be necessary
to provide the number of units as herein determined and such amount
shall be transferred from the annuity reserve fund to the variable
annuity reserve fund, and the units shall be paid from the variable
annuity reserve fund; provided, however, that in the case of a
twenty-year pension plan retiree having a deferred payability date as
defined in subdivision forty of section 13-501 of this chapter, such
transferred amount shall be based upon the value of units at such time
as his or her retirement allowance begins.
c. If the total amount payable pursuant to section 13-573 of this
chapter or paragraph one or three (ii) of subdivision b of this section
is at least five thousand dollars, the designated beneficiary may elect,
by written notice duly filed with the retirement board within sixty days
after the death of the contributor, to be paid an amount equal to twenty
per cent of the total amount due, to have credited to his or her own
account in the variable annuity fund from which the amount is payable
units equal in value, as of the date of death, to the portion not paid,
and to be paid in each of four successive annual instalments an amount
equal to the then value of one-fourth of the original number of units
credited. If the beneficiary dies before the expiration of the five
years, an amount equal to the then value of the units in his or her
account shall be paid to his or her beneficiary. Upon the payment of any
amount pursuant to this subdivision, the number of units represented in
such payment shall be cancelled.
d. If an election is made to have the amount payable pursuant to
paragraph one or three (ii) of subdivision b of this section paid as an
annuity, the contributor or beneficiary making the election shall have
the choice of having the designated beneficiary's annuity deriving from
such amount paid in fixed or variable instalments. If the choice is for:
1. Fixed instalments, the beneficiary shall be credited in the pension
reserve fund number one, to be applied toward the payment of a
designated beneficiary's annuity, with such amount. An equal amount
shall be transferred from the variable annuity fund holding the
contributor's account with respect to which the election is made to the
pension reserve fund number one.
2. Variable instalments, the beneficiary shall be credited in the
variable annuity fund from which the amount is payable with units equal
in value, as of the date of death of the contributor, to such amount and
shall be paid a variable designated beneficiary's annuity from such
fund.
e. The variable designated beneficiary's annuity shall be computed in
terms of units actuarially equivalent to the units credited to the
beneficiary. For the first month established by the retirement board for
this purpose and for any subsequent months, any such variable designated
beneficiary's annuity shall be paid in dollars according to the value of
a unit for the month payment is due, and for any month preceding such
first month the variable designated beneficiary's annuity shall be paid
in dollars according to the value of a unit in effect during the month
preceding the month payment is due.
f. In the case of a variable designated beneficiary's annuity paid in
accordance with the terms of Option B, the balance payable upon the
death of the designated beneficiary shall be an amount equal to the
value, as of the date of death, of the excess, if any, of the units on
the basis of which the annuity was computed over the units paid to the
beneficiary. The balance, if any, shall be paid from the fund from which
the variable designated beneficiary's annuity is payable and the
beneficiary's account in such fund shall thereupon be cancelled.
g. A participant who is an applicant for retirement with a deferred
payability date (as defined in subdivision thirty-nine of section 13-501
of this chapter) may make the choice referred to in paragraph three of
subdivision b of this section by an election filed with the retirement
board prior to the date next preceding the date on which his or her
retirement allowance begins in accordance with rules and regulations
established by the retirement board; provided, however, that such
participant may at any time after such election is filed and before his
or her retirement allowance begins, change such election by filing a
superseding election with the retirement board in accordance with rules
and regulations established by the retirement board.
h. Except as provided for in section 13-581 of this chapter, a
transfer pursuant to this section between variable annuity funds shall
be from an A fund to an A fund or from a B fund to a B fund or within
such additional variable annuity fund or funds which may be established
pursuant to subdivision c of section 13-567 of this chapter.
