59-1351. CONVERSION OF SERVICE RETIREMENT OR EARLY RETIREMENT ALLOWANCES INTO OPTIONAL RETIREMENT ALLOWANCES — FORM OF OPTIONAL RETIREMENT. (1) The service retirement allowance, or the early retirement allowance of a member who, at time of retirement, so elects shall be converted into an optional retirement allowance which is the actuarial equivalent of such other allowance. The optional retirement allowance may take one (1) of the forms listed below and shall be in lieu of all other benefits under this chapter except that the provisions of section 59-1361(2), Idaho Code, shall be applicable:

(a) Option 1 provides a reduced retirement allowance payable during the lifetime of the retired member, and a continuation thereafter of such reduced retirement allowance during the lifetime of the member’s named contingent annuitant.

(b) Option 2 provides a reduced retirement allowance payable during the lifetime of the retired member, and a continuation thereafter of one-half (1/2) of such reduced retirement allowance during the lifetime of the member’s named contingent annuitant.

(c) Option 3, which is available only if the member retires before the date of the social security normal retirement age for that member, provides an increased retirement allowance until such date and a reduced retirement allowance thereafter, the difference between the two (2) amounts approximately equaling the governmental old-age benefit becoming payable at such date as estimated by the board.

(d) Option 4, which is available only if the member retires before the date of the social security normal retirement age for that member, provides either an adjusted option 1 (option 4A) or option 2 (option 4B) retirement allowance until such date and a reduced retirement allowance thereafter, the difference between the two (2) amounts approximately equaling the governmental old-age benefit becoming payable at such date as estimated by the board. The adjusted retirement allowance shall be paid to the retired member during the member’s lifetime and the appropriate continuation amount of the adjusted allowance to the member’s named contingent annuitant for life thereafter.

(2) Should the named contingent annuitant under option 1 or option 2 either predecease a member retiring on or after October 1, 1992, or waive all survivor benefits pursuant to a domestic retirement order approved under section 59-1320, Idaho Code, upon notification to the board, the member’s benefit on the first day of the month following the death of the contingent annuitant or approval of the domestic retirement order, as applicable, will thereafter become an allowance calculated pursuant to section 59-1342 or 59-1346, Idaho Code, whichever was applicable on the date of retirement, in addition to any postretirement allowance adjustments which may have accrued from that time. Should the named contingent annuitant under option 4 either predecease the member, or waive all survivor benefits pursuant to a domestic retirement order approved under section 59-1320, Idaho Code, upon notification to the board, the member’s benefit on the first day of the month following the contingent annuitant’s death or approval of the domestic retirement order, as applicable will thereafter become the option 3 allowance to which the member would have been entitled as of the date of the annuitant’s death, or approval of the domestic retirement order, as applicable. The benefit changes under this subsection shall be available only to members whose last contribution was made after June 30, 1992.

(3) Option 1 or 2 may not be chosen if initial monthly payments would be less than that amount set forth in, or pursuant to, section 59-1343, Idaho Code.

(4) Application for any optional retirement allowance shall be in writing, duly executed and filed with the board. Such application shall contain all information required by the board, including such proofs of age as are deemed necessary by the board.

(5) A retirement option elected at the time of retirement as provided for in this section may not be changed except by written notice to the retirement board no later than five (5) business days after the receipt of the first retirement allowance.

(6) Not later than one (1) year after the marriage of a retired member, the member may elect option 1, 2 or 4 to become effective ninety (90) days after the date of such election, provided the member’s spouse is named as a contingent annuitant, and either:

(a) The member was not married at the time of the member’s retirement; or

(b) The member earlier elected option 1, 2, 4A or 4B, having named the member’s spouse as contingent annuitant, and said spouse has died or has waived all survivor benefits as provided in subsection (2) of this section.

Should a member make an election under this subsection (6), upon notification to the board, the member’s benefit on the first day of the month following the effective date of the election will thereafter become the optional retirement allowance elected, calculated as of the date of retirement pursuant to subsection (1) of this section, in addition to any postretirement allowance adjustments that may have accrued from that time.

History:

[(59-1351) 1963, ch. 349, Art. 5, sec. 7, p. 988; am. 1967, ch. 398, sec. 6, p. 1184; am. 1969, ch. 283, sec. 6, p. 856; am. 1974, ch. 57, sec. 8, p. 1118; am. 1976, ch. 97, sec. 7, p. 411; am. 1981, ch. 10, sec. 6, p. 18; am. and redesig. 1990, ch. 231, sec. 39, p. 636; am. 1990, ch. 249, sec. 3, p. 707; am. 1991, ch. 61, sec. 5, p. 148; am. 1992, ch. 220, sec. 9, p. 668; am. 1992, ch. 342, sec. 4, p. 1045; am. 1994, ch. 209, sec. 4, p. 663; am. 1999, ch. 160, sec. 2, p. 439; am. 1999, ch. 199, sec. 5, p. 525; am. 2004, ch. 328, sec. 3, p. 983; am. 2009, ch. 144, sec. 1, p. 433.]