Section 86.1210

Title VII CITIES, TOWNS AND VILLAGES

Chapter 86

Effective - 28 Aug 2005, 2 histories, see footnote   (history) 

  86.1210.  Retirement after twenty-six years — partial lump sum option plan distribution authorized. — 1. Any member entitled to commence a pension under section 86.1150 with twenty-six years or more of creditable service may elect an optional distribution under the partial lump sum option plan provided in this section if the member:

  (1) Notifies the retirement system in writing of the member's retirement date at least ninety days in advance thereof and requests an explanation of the member's rights under this section; and

  (2) Notifies the retirement system of the member's election hereunder at least thirty days in advance of the member's retirement date.

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Following receipt of an initial notice of a member's retirement date and request for an explanation under this section, the retirement system shall, at least sixty days in advance of such retirement date, provide the member a written explanation of the member's rights under this section and an estimate of the amount by which the member's regular monthly base pension would be reduced in the event of the member's election of any of the options available to the member under this section.

  2. (1) A member entitled to make an election under this section may elect to receive a lump sum distribution with the member's initial monthly pension payment under section 86.1150, subject to all the terms of this section. The member may elect the amount of the member's lump sum distribution from one, but not more than one, of the following options for which the member qualifies:

  (a) A member having twenty-six or more years of creditable service may elect a lump sum amount equal to twelve times the initial monthly base pension the member would receive if no election were made under this section;

  (b) A member having twenty-seven or more years of creditable service may elect a lump sum amount equal to twenty-four times the initial monthly base pension the member would receive if no election were made under this section; or

  (c) A member having twenty-eight or more years of creditable service may elect a lump sum amount equal to thirty-six times the initial monthly base pension the member would receive if no election were made under this section.

  (2) When a member makes an election to receive a lump sum distribution under this section, the base pension which the member would have received in the absence of the election shall be reduced on an actuarially equivalent basis to reflect the payment of the lump sum distribution, and the reduced base pension shall be the member's base pension thereafter for all purposes relating to base pension amounts under sections 86.900 to 86.1280.

  3. An election under this section to receive a lump sum distribution and reduced monthly base pension shall be void if the member dies before retirement, and in such case amounts due a surviving spouse or other beneficiary of the member shall be determined without regard to such election.

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(L. 2005 H.B. 323)