Section 86.434

Title VII CITIES, TOWNS AND VILLAGES

Chapter 86

Effective - 28 Aug 2003, 2 histories, see footnote   (history) 

  86.434.  Lump-sum option plan distribution of benefits, election procedure — void, when. — 1. Any member entitled to commence a pension under and pursuant to section 86.433 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 of the member's retirement date and requests an explanation of the member's rights under and pursuant to 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 hereunder, 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 and pursuant to 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 and pursuant to this section.

  2. (1) A member entitled to make an election under and pursuant to this section may elect to receive a lump-sum distribution with the member's initial monthly pension payment under and pursuant to section 86.433, 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 and pursuant to 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 and pursuant to 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 and pursuant to this section.

  (2) When a member makes an election to receive a lump-sum distribution under and pursuant to 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 and pursuant to sections 86.370 to 86.497.

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

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(L. 2003 H.B. 152 & 180 merged with S.B. 212 & 220)