19-20-702. Optional allowances -- joint and survivor annuity -- period certain. (1) (a) Until the first payment on account of any benefit becomes normally due, any member may elect to receive one of the allowances described in subsection (2) or (3) in lieu of the normal form retirement allowance.

(b) Upon the retirement system's processing of a retired member's first monthly benefit payment, the member's benefit election and designation of a joint annuitant if the member elected a joint and survivor annuity allowance is irrevocable, except as provided in subsections (4) and (5).

(2) (a) A joint and survivor annuity optional allowance is the actuarial equivalent of the member's service retirement or disability retirement allowance at the time of the member's retirement effective date and provides an allowance payable to the member throughout the member's lifetime and, upon the member's death, an allowance payable to the joint annuitant in accordance with the option selected under subsection (2)(b).

(b) A member electing to receive a joint and survivor annuity optional allowance may select one of the following options:

(i) Option A--The optional allowance will be paid to the member throughout the member's lifetime and, upon the member's death, continue throughout the lifetime of the member's joint annuitant.

(ii) Option B--The optional allowance will be paid to the member throughout the member's lifetime, and upon the member's death, one-half of the optional allowance will continue throughout the lifetime of the member's joint annuitant.

(iii) Option C--The optional allowance will be paid to the member throughout the member's lifetime, and upon the member's death, two-thirds of the optional allowance will continue throughout the lifetime of the member's joint annuitant.

(c) The designation of a joint annuitant must be made in the form and manner prescribed by the retirement system and provide all requested information. The joint annuitant will receive both the continuing retirement allowance and the one-time death benefit provided in 19-20-1002(1)(a). The two benefits may not be allocated separately.

(d) Upon election of a joint and survivor optional allowance and designation of a joint annuitant, any prior or subsequent designation of a beneficiary by the retired member is void.

(3) (a) In lieu of any other option available in this section, a member may elect to receive one of the following period certain allowances that must be paid for the member's lifetime and then to the member's beneficiary as provided in 19-20-1002(3) for the remainder of the period certain if the member dies before receiving monthly benefit payments for the period certain:

(i) a 10-year period certain may be elected if the member is 75 years of age or younger at the time of retirement; or

(ii) a 10-year or 20-year period certain may be elected if the member is 65 years of age or younger at the time of retirement.

(b) Each month for which a benefit is paid is counted as part of the period certain.

(4) (a) Subject to subsection (7), upon written application to the retirement system, a retired member whose effective date of retirement is before October 1, 1993, and who is receiving a joint and survivor annuity optional retirement allowance may select a different actuarially equivalent optional allowance and designate a different joint annuitant if:

(i) the original joint annuitant has died. The benefit must convert to the normal form retirement allowance effective the first of the month following the death of the joint annuitant.

(ii) the member has been divorced from the original joint annuitant and the original joint annuitant has not been granted the right to receive any ongoing or future distribution of any portion of the retiree's benefits as part of the divorce settlement. The benefit must convert to the normal form retirement allowance effective the first of the month following receipt of a written application and verification that the original joint annuitant has not been granted the right to receive the optional retirement allowance as part of the divorce settlement.

(b) Upon receipt of the written application, the retirement system shall actuarially adjust the member's monthly retirement or disability allowance to reflect the change.

(5) Subject to subsection (7), upon written application to the retirement system, a retired member receiving a joint and survivor annuity optional retirement allowance pursuant to subsection (2)(b) that is effective on or after October 1, 1993, may select a different actuarially equivalent optional allowance and designate a different joint annuitant or to revert the optional retirement allowance to the normal form retirement allowance available at the time of retirement if:

(a) the original joint annuitant has died. The benefit must revert to the normal form retirement allowance effective the first of the month following the death of the original joint annuitant.

(b) the member has been divorced from the original joint annuitant and the original joint annuitant has not been granted the right to receive any ongoing or future distribution of any portion of the retiree's benefits as part of the divorce settlement. The benefit must revert to the normal form retirement allowance effective the first of the month following receipt of a written application and verification that the original joint annuitant has not been granted the right to receive the optional retirement allowance as part of the divorce settlement.

(6) The normal form retirement allowance available must be increased by the value of any postretirement adjustments received by the member since the effective date of retirement.

(7) A retired member filing an application to make a selection under subsection (4) or (5) shall file the application and all required supporting documentation to be received by the retirement system no later than the date that is 18 months after the date of the death of or divorce from the joint annuitant.