§ 19-31. Forms and optional forms of payment.
(a)
Form of benefit.
(1)
Married member. Except as limited by subparagraph (b)(2), the normal, early or deferred retirement allowance of a married member will be paid in one hundred (100) percent joint and survivor's annuity form unless the married member elects lump sum payment with retirement board consent. The annuity for the married member is an immediate life annuity payable monthly to the married member for his life which is equal to the life annuity he would have received were he not married, with a survivor's annuity payable monthly after his death to his spouse for her remaining life which is one hundred (100) percent of the annuity payable to the married member during his life.
(2)
Unmarried member. Except as limited by subparagraph (b)(2), the normal, early or deferred retirement allowance of an unmarried member may be paid in one (1) of the following forms, each of which, except for the joint and fifty (50) percent survivor annuity described in subsection d. below, shall be the actuarial equivalent of a the benefit payable to such member in the form of a straight life annuity:
a.
Immediate straight life annuity form;
b.
Lump sum payment with retirement board consent as described in subparagraph (b)(1);
c.
An unmarried member may elect to receive his normal or early retirement allowance in joint and one hundred (100) percent survivor annuity form. The joint and one hundred (100) percent survivor annuity for an unmarried member is an immediate joint life annuity payable monthly to the unmarried member for his life, with a survivor's annuity payable monthly after his death to his designated beneficiary for the beneficiary's remaining life which is one hundred (100) percent of the annuity payable during the unmarried member's life; or
d.
An unmarried member may elect to receive his normal or early retirement allowance in an unreduced joint and fifty (50) percent survivor annuity form. The unreduced joint and fifty (50) percent survivor annuity for an unmarried member is an immediate joint life annuity payable monthly to the unmarried member for his life, with a survivor's annuity payable monthly after his death to his designated beneficiary for the beneficiary's remaining life which is fifty (50) percent of the annuity payable during the unmarried member's life. This joint and fifty (50) percent survivor annuity payable to the unmarried member during his lifetime will be in the same amount as the member's immediate straight life annuity.
(3)
Disabled member. Except as limited by subparagraph (b)(2), the disability retirement allowance of a member will be paid in immediate straight life annuity form.
(4)
Notwithstanding the provisions of subparagraphs (a)(1) and (a)(2), and except as limited by subparagraph (b)(2), the normal, early or deferred retirement allowance for any member who has not satisfied the eligibility requirements for a normal retirement allowance on or before December 31, 2012, will be paid in one (1) of the following forms, each of which, shall be the actuarial equivalent of a benefit payable the form of a life annuity:
a.
Immediate straight life annuity form;
b.
Lump sum payment with retirement board consent as described in subparagraph (b)(1);
c.
Fifty (50) percent joint and survivor annuity form; or
d.
One hundred (100) percent joint and survivor annuity form.
(b)
Lump sum.
(1)
More than $5,000.00. A member may request in writing that the retirement board make payment of twenty-five (25) percent, fifty (50) percent, seventy-five (75) percent or one hundred (100) percent of his normal, early or deferred retirement allowance in lump sum form if this lump sum amount is in excess of five thousand dollars ($5,000.00) and the balance, if any, subject of subparagraph (b)(2) in annuity form as described in subsection (a) above. If the retirement board (in its sole discretion) determines that payment of all or the applicable portion of the member's retirement allowance in lump sum form will not harm the soundness of the system, all or the applicable portion of the member's retirement allowance will be paid to him in lump sum form and the balance in annuity form. This alternative lump sum form of payment will be the actuarial equivalent of all or the applicable portion of the member's straight life annuity retirement allowance described in section 19-30.
(2)
$5,000.00 or less. If the member's normal, early disability or deferred retirement allowance determined in lump sum form is five thousand dollars ($5,000.00) or less, the member's retirement allowance will be paid to him in lump sum form and may not be paid in annuity form.
(3)
For distributions on or after March 28, 2005, if the present value of the member's retirement allowance determined in a lump sum is greater than one thousand dollars ($1,000), distribution may not be made prior to age sixty-five (65) without the member's consent.
(c)
Early payment actuarial adjustment. Each form of benefit paid under this section 19-31 before the member's applicable retirement date with retirement board consent (see section 19-30, subparagraphs (b)(3) and (d)(3), will be the actuarial equivalent of the member's straight life annuity retirement allowance as described in section 19-30 (computed by disregarding the effect of a subsidized survivor annuity under section 19-31, subparagraph (a)(1)).
(d)
Direct rollover of eligible rollover distributions. A distributee may elect, at the time and in the manner prescribed by the Plan Administrator, to have any portion of an eligible rollover distribution paid directly to an eligible retirement plan specified by the distributee in a direct rollover. An eligible rollover distribution is any distribution of all or any portion of the balance to the credit of the distributee, except that an eligible rollover distribution does not include any distribution that is one (1) of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or life expectancy) of the distributee or the joint lives (or joint life expectancies) of the distributee and the distributee's designated beneficiary, or for a specified period of ten (10) years or more; any distribution to the extent such distribution is required under Section 401(a)(9) of the Code; and any hardship distribution. An eligible retirement plan is an individual retirement account described in Section 408(a) of the Code, an individual retirement annuity described in Section 408(b) of the Code, an annuity plan described in Section 403(a) of the Code, a qualified trust described in Section 401(a) of the Code, an annuity contract described in section 403(b) of the Code and an eligible plan under Section 457(b) of the Code which is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state that accepts the distributee's eligible rollover distribution and that agrees to separately account for amounts transferred into such plan from this plan. A distributee includes an employee or former employee. In addition, the employee's or former employee's surviving spouse and the employee's or former employee's spouse or former spouse who is the alternate payee under a qualified domestic relations order, as defined in Section 414(p) of the Code, are distributees with regard to the interest of the spouse or former spouse. A direct rollover is a payment by the plan to the eligible retirement plan specified by the distributee. For purposes of the direct rollover provisions above, a portion of a distribution shall not fail to be an eligible rollover distribution merely because the portion consists of after-tax employee contributions which are not includible in gross income. However, such portion may be transferred only to (i) an individual retirement account or annuity described in Section 408(a) or (b) of the Code, or (ii) to a qualified defined contribution plan described in Section 401(a), 403(a) or 403(b) of the Code that agrees to separately account for amounts so transferred, including separately accounting for the portion of such distribution which is includible in gross income and the portion of such distribution which is not so includible. The system will allow a direct trustee-to-trustee transfer from this plan as a qualified rollover contribution to a Roth IRA described in Code § 408A.
(Ord. No. 5551, § 6, 7-19-93; Ord. No. 5632, § 3, 11-20-95; Ord. No. 5633, §§ 7, 8, 12-4-95; Ord. No. 6114, § 1, 10-4-04; Ord. No. 6123, § 1, 12-20-04; Ord. No. 6253, § 6, 8-4-08; Ord. No. 6340, § 2, 12-20-10; Ord. No. 6418, § 3, 12-3-12)