§ 24-6-408 — Benefit provisions - Election of annuity options

Arkansas § 24-6-408

• Jurisdiction: Arkansas
• Title: 24

Text

(a) A member may elect to receive his or her annuity as a straight life annuity or elect to have that annuity reduced and designate a beneficiary in writing and file the elections with the State Police Retirement System before that annuity starting date under one (1) of the following options: (1) Option A60 - Sixty (60) Months Certain and Life Annuity. (A) Under Option A60, the retirant shall be paid a reduced annuity for life with the provisions that if the retirant's death occurs before sixty (60) monthly payments have been made, then the full reduced annuity shall continue to be paid for the remainder of the sixty (60) months to such persons and in such shares as the retirant has designated. (B) If there is no beneficiary surviving, the lump-sum actuarial equivalent of the remaining monthly payments shall be paid to the estate of the last survivor among the retirant and the designated beneficiary. (C) The reduced annuity shall be ninety-six percent (96%) of the straight life annuity; (2) Option A120 - One Hundred Twenty (120) Monthly Certain and Life Annuity. (A) Under Option A120, the retirant shall be paid a reduced annuity for life with the provision that if the retirant's death occurs before one hundred twenty (120) monthly payments have been made, the full reduced annuity shall continue to be paid for the remainder of the one hundred twenty (120) months to such persons and in such shares as the retirant has designated. (B) If there is no beneficiary surviving, the lump-sum actuarial equivalent of the remaining monthly payment shall be paid to the estate of the last survivor among the retirant and the designated beneficiary. (C) The reduced annuity shall be ninety percent (90%) of the straight life annuity; (3) Option B50 - Fifty Percent (50%) Survivor Beneficiary Annuity. (A) (i) Under Option B50, the retirant shall be paid a reduced annuity for life, and upon the retirant's death, one-half (½) of the reduced annuity shall continue throughout the future lifetime of and paid to such person as the retirant has designated. (ii) The member may elect either: (a) His or her spouse, to whom the member has been married for not less than six (6) months immediately preceding the first payment due date; or (b) A dependent child forty (40) years of age or older who is claimed as a dependent upon the member's federal tax return for not less than one (1) year immediately preceding the first payment due date. (B) The reduced annuity to the retirant shall be eighty-three percent (83%) if the retirant's age and his or her beneficiary's age are the same on the first payment due date, which shall be decreased by one-half percent (0.5%) for each year that the beneficiary's age is less than the retirant's age, or which shall be increased by one-half percent (0.5%), up to a maximum of ninety-five percent (95%), for each year that the beneficiary's age is more than the retirant's age. (C) If the named beneficiary under Option B50 predeceases the retirant, the original unreduced benefit shall be paid to the retirant prospectively; or (4) Option B75 - Seventy-Five Percent (75%) Survivor Beneficiary Annuity. (A) (i) Under Option B75, the retirant shall be paid a reduced annuity for life, and upon the retirant's death, three-fourths (¾) of the reduced annuity shall be continued throughout the future lifetime of and paid to such person as the retirant has designated in writing and filed with the system before his or her annuity starting date. (ii) The member may elect either: (a) His or her spouse to whom the member has been married for not less than six (6) months immediately preceding the first payment due date; or (b) A dependent child forty (40) years of age or older who is claimed as a dependent upon the retirant's federal tax return for not less than one (1) year immediately preceding the first payment due date. (B) The reduced annuity to the retirant shall be seventy-five percent (75%) if the retirant's age and his or her beneficiary's age are the same on the first payment due date, which shall be decreased by three-quarters percent (0.75%) for each year that the beneficiary's age is less than the retirant's age, or which shall be increased by three-quarters percent (0.75%) up to a maximum of ninety percent (90%) for each year that the beneficiary's age is more than the retirant's age. (C) If the named beneficiary under Option B75 predeceases the retirant, the original unreduced benefit shall be paid to the retirant prospectively. (b) (1) (A) The member may elect to cancel the designation of a beneficiary under Option B50 or Option B75 in writing and file the election with the system upon the: (i) Death of a spouse; (ii) Divorce or other marriage dissolution from the member's spouse; or (iii) Death of the member's dependent child who is forty (40) years of age or older and is designated as a beneficiary under subsection (a) of this section. (B) The member's election under this subsection shall return the retirant to his or her straight life annuity, or the member may elect Option A60 or Option A120 annuity, to be effective the month following receipt by the system of his or her election. (2) A retirant who is receiving a straight life or Option A60 or Option A120 annuity and who marries after retirement or within six (6) months immediately preceding retirement may elect to cancel his or her straight life, Option A60, or Option A120 annuity and may elect Option B50 or Option B75 to provide continuing lifetime benefits to his or her spouse, if the election is: (A) Submitted on a form approved by the system; and (B) Received by the system no earlier than six (6) months after the date of the marriage and no later than one (1) year after that date. (3) The election shall be effective the first day of the month following its receipt. (c) If a member fails to elect an option, his or her annuity shall be paid to him or her as a straight life annuity.

Legislative History

Amended by Act 2023, No. 250,§ 2, eff. 7/1/2023. Acts 1997, No. 1071, § 1.