1. (a) Each optional form of allowance shall be the actuarial equivalent of the basic allowance under the State system of a member.

2. (b)

   1. (1) Subject to paragraph (2) of this subsection, for an optional form of allowance providing for payment to a designated beneficiary for life, the designated beneficiary must be an individual.
   2. (2) If the designated beneficiary is a minor or an individual with a disability, the allowance may be paid into a trust for the benefit of the individual.
   3. (3) A member who elects to receive a reduced optional allowance under § 21-403 of this subtitle may designate an individual other than the member's child as the member's designated beneficiary.

3. (c)

   1. (1) This subsection applies to a member who selects an optional form of allowance as provided in § 21-403(b) or (e) of this subtitle.
   2. (2) If a member designates a beneficiary other than the member's spouse or disabled child as defined under § 72(m)(7) of the Internal Revenue Code, a member may not designate a beneficiary who is more than 10 years younger than the member.

Added by Acts 1994, c. 6, § 2, eff. Oct. 1, 1994. Amended by Acts 2001, c. 723, § 1, eff. July 1, 2001; Acts 2005, c. 493, § 1, eff. July 1, 2005; Acts 2005, c. 500, § 1, eff. July 1, 2005; Acts 2006, c. 44, § 1, eff. April 8, 2006.

Formerly Art. 73B, §§ 2-407, 3-407, 4-409, 5-409, 6-406, 7-407, 8-404, 9-104, 10-220.