- (a) This section applies to a participant who retires after June 30, 2026.
- (b) A participant may elect a joint and survivor option for the payment of the participant's retirement allowance instead of the annual retirement allowance provided under section 10 of this chapter. The amount of the optional payments shall be determined under rules of the board and shall be the actuarial equivalent of the benefit payable under section 10 of this chapter.
(c) The following apply to the joint and survivor option under subsection (b):
- (1) The participant receives a decreased retirement benefit during the participant's lifetime, and there is a benefit payable after the participant's death to a designated beneficiary during the lifetime of the beneficiary, which benefit equals, at the option of the participant, either the full decreased retirement benefit or two-thirds (2/3) or one-half (1/2) of that benefit.
- (2) If the participant dies before retirement, the designated beneficiary may receive survivors' benefits if the individual is entitled to survivors' benefits under section 16.3 of this chapter.
- (3) If the designated beneficiary dies before the participant retires, the election is automatically canceled and the participant may make a new beneficiary election. A participant described by this subdivision may elect the joint and survivor option after making a new beneficiary election.
As added by P.L.79-2026, SEC.2.