1. (a) A member entitled to service retirement may elect to receive, in lieu of the standard service retirement benefit, one of the optional benefits described in the Texas Government Code, §854.104, which optional benefits shall be designated as Options 1, 2, 3, 4A, and 4B, respectively, or the optional benefit described in subsection (c) of this section.
2. (b) A member entitled to disability retirement may elect to receive, in lieu of the standard disability retirement benefit, one of the optional benefits described in the Texas Government Code, §854.305, which optional benefits shall be designated as Options 1, 2, 3, and 4A, respectively, or the optional benefit described in subsection (c) of this section.
3. (c) Option 5A is a reduced monthly allowance that is the actuarial equivalent of the standard annuity to which the member otherwise would be entitled, payable during the lifetime of the member, but after the member's death, two-thirds of the reduced annuity is payable throughout the life of a person designated by the member.

Source Note:The provisions of this §123.3 adopted to be effective July 23, 1976, 1 TexReg 1894; amended to be effective January 10, 1990, 15 TexReg 38.