- (a) A member who is eligible for a cash balance annuity may select a standard cash balance annuity under Section 840A.053 or an optional cash balance annuity under Section 840A.054, together with a partial lump-sum distribution.
- (b) The amount of the lump-sum distribution under this section may not exceed the sum of 36 months of a standard cash balance annuity computed without regard to this section.
- (c) The cash balance annuity selected by the member shall be actuarially reduced to reflect the lump-sum option selected by the member and shall be actuarially equivalent to a standard or optional cash balance annuity, as applicable, without the partial lump-sum distribution. The annuity and lump sum shall be computed to result in no actuarial loss to the retirement system.
- (d) The lump-sum distribution shall be made as a single payment payable at the time that the first monthly annuity payment is paid.
- (e) The amount of the lump-sum distribution shall be deducted from any amount otherwise payable under this chapter.
- (f) The partial lump-sum option under this section may be elected only once by a member and may not be elected by a retiree. A member retiring under the proportionate retirement program under Chapter 803 is not eligible for the partial lump-sum option.
(g) Before a retiring member selects a partial lump-sum distribution under this section:
- (1) the retirement system shall provide written notice to the member of the amount by which the member's annuity will be reduced because of the selection; and
- (2) the member must acknowledge receipt of the notice in writing.
- (h) The board of trustees may adopt rules for the implementation of this section and may authorize the option to be used for a death benefit annuity. This section does not apply to a disability retirement annuity.
Added by Acts 2023, 88th Leg., R.S., Ch. 1092 (S.B. 1245), Sec. 16, eff. June 18, 2023.