19-2-908. Time of commencement of benefit -- rulemaking. (1) (a) The board shall grant a benefit to any member, or the member's statutory or designated beneficiary, who has fulfilled all eligibility requirements, terminated covered service, and filed the appropriate written application. However, the board may on its own accord and without a written application begin benefit payments to a member or beneficiary in order to comply with section 401(a)(9) of the Internal Revenue Code.
     (b) A member may apply for retirement benefits before terminating covered service, but commencement of the benefits must be as provided in this section.
     (2) (a) Except as provided in subsection (2)(b), the service retirement benefit may commence on the first day of the month following the eligible member's last day of membership service or, if requested by the inactive member in writing, on the first day of a later month following receipt of the written application.
     (b) If an elected official's term of office expires before the 15th day of the month, the official may elect that service retirement benefits from a defined benefit plan commence on the first day of the month following the official's last full month in office. An official electing this option may not earn membership service, service credit, or compensation for purposes of calculating final average salary under the retirement system in the partial month ending the official's term, and compensation earned in that partial month is not subject to employer or employee contributions.
     (3) The disability retirement benefit payable to a member must commence on the day following the member's termination from service.
     (4) Monthly survivorship benefits from a defined benefit plan must commence on the day following the death of the member.
     (5) Estimated and finalized benefit payments must be issued as provided in rules adopted by the board.
     (6) With respect to the defined contribution plan, the board shall adopt rules regarding the commencement of benefits that are consistent with applicable provisions of the Internal Revenue Code and its implementing regulations.

     History: En. Sec. 3, Ch. 370, L. 1997; amd. Sec. 13, Ch. 58, L. 1999; amd. Sec. 21, Ch. 471, L. 1999.