1. (a) A member entitled to retirement may elect to receive, in lieu of a standard retirement benefit, one of the following optional benefits, each of which is a reduced monthly annuity that is the actuarial equivalent of the standard retirement benefit, payable during the lifetime of the retiree, but with the provision that:

   1. (1) Option 1: after the retiree's death, the reduced annuity is payable throughout the life of a person designated by the retiree;
   2. (2) Option 2: after the retiree's death, one-half of the reduced annuity is payable throughout the life of a person designated by the retiree;
   3. (3) Option 3: if the retiree dies before 60 monthly annuity payments have been made, the remainder of the 60 payments are payable to the retiree's beneficiary or, if one does not exist, to the retiree's estate;
   4. (4) Option 4: if the retiree dies before 120 monthly annuity payments have been made, the remainder of the 120 payments are payable to the retiree's beneficiary or, if one does not exist, to the retiree's estate;
   5. (5) Option 5: after the retiree's death, the reduced annuity is payable throughout the life of a person designated by the retiree, except that if the designated person predeceases the retiree, the annuity payable throughout the remaining life of the retiree is the annuity that would be payable if the retiree had chosen a standard retirement annuity;
   6. (6) Option 6: after the retiree's death, three-fourths of the reduced annuity is payable throughout the life of a person designated by the retiree;
   7. (7) Option 7: if the retiree dies before 180 monthly annuity payments have been made, the remainder of the 180 payments are payable to the retiree's beneficiary or, if one does not exist, to the retiree's estate.
2. (b) If payments under a standard or optional retirement benefit cease before the sum of all such payments equals or exceeds the amount of accumulated contributions in the individual account in the employees saving fund at the time of retirement of the member on whose service the annuity was based, a lump-sum benefit equal to the amount by which the accumulated contributions exceed the sum of all such payments made under the annuity is payable in the manner described in Government Code §844.402.

Source Note:The provisions of this §103.2 adopted to be effective July 27, 1976, 1 TexReg 1929; amended to be effective August 28, 1989, 14 TexReg 3352; amended to be effective May 1, 1993, 18 TexReg 2415; amended to be effective July 27, 2005, 30 TexReg 4213.