86.1210. Retirement after twenty-six years--partial lump sum option plan distribution authorized.
Retirement after twenty-six years--partial lump sum optionplan distribution authorized.
86.1210. 1. Any member entitled to commence a pension under section86.1150 with twenty-six years or more of creditable service may elect anoptional distribution under the partial lump sum option plan provided inthis section if the member:
(1) Notifies the retirement system in writing of the member'sretirement date at least ninety days in advance thereof and requests anexplanation of the member's rights under this section; and
(2) Notifies the retirement system of the member's election hereunderat least thirty days in advance of the member's retirement date.
Following receipt of an initial notice of a member's retirement date andrequest for an explanation under this section, the retirement system shall,at least sixty days in advance of such retirement date, provide the membera written explanation of the member's rights under this section and anestimate of the amount by which the member's regular monthly base pensionwould be reduced in the event of the member's election of any of theoptions available to the member under this section.
2. (1) A member entitled to make an election under this section mayelect to receive a lump sum distribution with the member's initial monthlypension payment under section 86.1150, subject to all the terms of thissection. The member may elect the amount of the member's lump sumdistribution from one, but not more than one, of the following options forwhich the member qualifies:
(a) A member having twenty-six or more years of creditable servicemay elect a lump sum amount equal to twelve times the initial monthly basepension the member would receive if no election were made under thissection;
(b) A member having twenty-seven or more years of creditable servicemay elect a lump sum amount equal to twenty-four times the initial monthlybase pension the member would receive if no election were made under thissection; or
(c) A member having twenty-eight or more years of creditable servicemay elect a lump sum amount equal to thirty-six times the initial monthlybase pension the member would receive if no election were made under thissection.
(2) When a member makes an election to receive a lump sumdistribution under this section, the base pension which the member wouldhave received in the absence of the election shall be reduced on anactuarially equivalent basis to reflect the payment of the lump sumdistribution, and the reduced base pension shall be the member's basepension thereafter for all purposes relating to base pension amounts undersections 86.900 to 86.1280.
3. An election under this section to receive a lump sum distributionand reduced monthly base pension shall be void if the member dies beforeretirement, and in such case amounts due a surviving spouse or otherbeneficiary of the member shall be determined without regard to suchelection.
(L. 2005 H.B. 323)