                                 CODE OF VIRGINIA

OPTIONAL BENEFITS (§ 51.1-165)

A. Any member not taking 50/10 retirement as provided in § 51.1-153 or
51.1-216, in accordance with the retirement plan covering such member, may elect
to have his retirement allowance payable under one of the options set forth in
this subsection and receive the actuarial equivalent of the retirement allowance
otherwise payable to him. The election of an optional benefit shall be subject
to the approval of the Board.

   1. Straight life option. &#8212; A member may elect to receive an increased
   retirement allowance in lieu of any death benefits.

   2. Joint and last-survivor option. &#8212; A member may elect to receive a
   decreased retirement allowance during his lifetime in order that a fraction of
   such retirement allowance be continued to a contingent annuitant at the death
   of the member. The amount to be received by the contingent annuitant, in
   accordance with such election by the member, shall not exceed 100 percent of
   the amount to be received by the member during his lifetime nor shall it be
   less than 10 percent of such amount. In case of such an election, death
   benefits that might otherwise be provided shall not be payable upon the death
   of the member unless death of the member occurs prior to the effective date of
   retirement as set forth in subsection C of this section. This option may be
   elected if the contingent annuitant is the spouse of the member. If the
   contingent annuitant is not the spouse of the member, this option may be
   elected only if the actuarial present value of the payments expected to be
   made to the member is greater than one-half of the actuarial present value of
   the total payments expected to be made to the member and contingent annuitant.

   3. Level income option. &#8212; If a member retires from service prior to his
   retirement age, as such term is defined under the Social Security Act (42
   U.S.C. &#xA7; 416 et seq., as now or hereafter amended), he may elect to
   receive an increased retirement allowance beginning on the member&#8217;s
   effective date of retirement and continuing until the member reaches age 62 or
   any whole age up to his normal retirement age, as such term is defined under
   the Social Security Act (42 U.S.C. &#xA7; 416 et seq., as now or hereafter
   amended) and a decreased retirement allowance thereafter, thereby providing a
   more nearly level retirement allowance when such decreased retirement
   allowance is added to his anticipated primary benefits under the federal
   Social Security Act. In determining the amount of such retirement allowance
   under this option before the electing retiree reaches his retirement age, as
   such term is defined under the Social Security Act (42 U.S.C. &#xA7; 416 et
   seq., as now or hereafter amended), the Board may use an estimate of the
   member&#8217;s anticipated social security benefit for computing the amount of
   such retirement allowance. Any member electing to receive such an allowance
   shall not be entitled to a joint and last survivor benefit. The amount of the
   increased retirement allowance shall be determined actuarially, but the
   election of this option shall not result in more than a 50 percent reduction
   in the member&#8217;s benefit as provided in &#xA7; 51.1-155, 51.1-206,
   51.1-217, or 51.1-306.

B. Any member taking 50/10 retirement as provided in &#xA7; 51.1-153 or
51.1-216, in accordance with the retirement plan covering such member, may elect
to have his retirement allowance payable under the option set forth in this
subsection and receive the actuarial equivalent of the retirement allowance
otherwise payable to him. The election of this optional benefit shall be subject
to the approval of the Board.
			50/10 retirement joint and last-survivor option. &#8212; A member may elect
to receive a decreased retirement allowance during his lifetime and have the
retirement allowance continued after his death to a contingent annuitant during
the lifetime of such person. The retirement allowance pursuant to this option
shall be determined as provided in subdivision A 5 of &#xA7; 51.1-155 or
subsection A of &#xA7; 51.1-217, in accordance with the retirement plan covering
such member, except (i) the present value of future retirement benefits shall be
calculated based on the life expectancies of both the member and the contingent
annuitant and (ii) the actuarially computed present value of the payments
expected to be made under this option shall be actuarially equivalent to the
actuarially computed present value of the payments expected to be made to the
member as determined pursuant to subdivision A 5 of &#xA7; 51.1-155 or
subsection A of &#xA7; 51.1-217, in accordance with the retirement plan covering
such member.

C. 1. The election of any one of the options stated in this section shall be
null and void if the member dies prior to the Board receiving written
notification of the member&#8217;s effective date of retirement. The election of
a joint and last-survivor option shall be null and void if the contingent
annuitant dies before the member&#8217;s retirement. Except as provided in
subdivision 2 of this subsection, in all cases where the death of the member
occurs prior to the effective date of retirement but after the Board has
received written notification of the member&#8217;s effective date of
retirement, benefits shall be paid in accordance with the provisions of §
51.1-163 and the requirement that the member be in service shall not apply. For
purposes of this subdivision, retirement shall be deemed to commence on the
effective date of a member&#8217;s service retirement or disability.

   2. If (i) the death of the member occurs prior to the effective date of
   retirement but after the Board has received written notification of the
   member&#8217;s effective date of retirement; (ii) the member died while in
   service; (iii) at the time of the member&#8217;s death the election for
   payment of the member&#8217;s retirement allowance was a joint and
   last-survivor optional retirement benefit; and (iv) the member named his
   spouse, minor child, or parent as the contingent annuitant under the joint and
   last-survivor optional benefit, then benefits shall be paid in accordance with
   the provisions of &#xA7; 51.1-163. However, if such contingent annuitant or
   annuitants are the same person or persons who would receive a monthly benefit
   under subsection B of &#xA7; 51.1-162 and the monthly benefit under such
   subsection would be greater than the benefit provided in accordance with the
   provisions of &#xA7; 51.1-163, then retirement benefits shall be paid in
   accordance with the provisions of subsection B of &#xA7; 51.1-162.
   				For purposes of this subdivision, retirement shall be deemed to commence
   on the effective date of a member&#8217;s service retirement or disability.

D. A member who has elected any of the options stated in this section may revoke
such an election by written notification to the Board any time prior to the
later of the effective date of retirement or the date of written notification to
the Board of retirement of the member.

E. A retired member who has elected a joint and last-survivor option may, in a
manner prescribed by the Board, revoke such election and elect to receive from
time of notification either the retirement allowance to which he would have been
entitled had no option been elected initially or an allowance actuarially
equivalent thereto under a joint and last-survivor option with a different
contingent annuitant, if (i) the original contingent annuitant has died, (ii) a
final decree of divorce of the retired member from the original contingent
annuitant has been entered, or (iii) the written consent of the original
contingent annuitant, together with evidence satisfactory to the Board of the
good health of the original contingent annuitant, is submitted with the
notification. If the provisions of this subsection are invoked by a retired
member on the basis of the member&#8217;s having been divorced from his
contingent annuitant and the marriage had been of a duration of 20 years or
more, the provisions of this subsection shall not be applicable until the death
or remarriage of the former spouse unless such spouse consents in writing to the
revocation of the option prior to death or remarriage.
			If such an election is made as a result of the death or divorce of the
contingent annuitant, the benefit payable to the retired member may be adjusted
retroactively for a period of not more than 60 days from the date the Board
first receives notification of the desire of the retired member to make such a
change.

F. Subject to the provisions of subsection E of this section, any member who
retires on or after July 1, 1986, and returns to covered employment shall not be
entitled to select a different optional benefit upon making application for
retirement a second or subsequent time.

HISTORY: 1952, c. 157, § 51-111.60; 1956, c. 560; 1966, c. 174; 1970, c. 476;
1974, c. 353; 1975, c. 597; 1976, cc. 511, 542; 1978, c. 841; 1980, cc. 85, 642,
646; 1982, c. 581; 1986, c. 474; 1990, c. 832; 1992, cc. 518, 548, 811; 1993, c.
548; 1995, cc. 152, 307, 692, 811; 1998, c. 676; 1999, c. 111; 2001, cc. 679,
699; 2003, c. 263; 2005, cc. 146, 162.