BLAIR LEE III,

Acting Governor

533

DUTY, AN AMOUNT EQUAL TO THE MEMBER'S EARNABLE COMPENSATION
AT THE TIME OF DEATH.

(B)  THE BOARD OF TRUSTEES IS AUTHORIZED TO TAKE SUCH
STEPS AS ARE NECESSARY TO PROVIDE THE DEATH BENEFIT UNDER
THIS SUBSECTION IN THE FORM OF GROUP LIFE INSURANCE, IF IN
THE OPINION OF THE BOARD OF TRUSTEES, SUCH PROVISION WOULD
ALLOW A MORE FAVORABLE TAX TREATMENT OF THE BENEFIT TO THE
BENEFICIARIES THERE.

(C)   A RETIRED MEMBER MAY ELECT TO CHANGE HIS OR HER
BENEFICIARY, IN WHICH EVENT, THE ALLOWANCE FOR A SUBSEQUENT
ELECTION SHALL BE COMPUTED ON THE VALUE OF THE BALANCE IN
HIS OR HER RESERVES AT THE TIME THE CHANGE IN BENEFICIARY IS
MADE.

(7)   RETURN OF ACCUMULATED CONTRIBUTIONS. —SHOULD A
MEMBER CEASE TO BE A TEACHER EXCEPT BY DEATH OR RETIREMENT
UNDER THE PROVISIONS OF THIS SUBTITLE HE SHALL BE PAID SUCH
PART OF THE AMOUNT OF THE ACCUMULATED CONTRIBUTIONS STANDING
TO THE CREDIT OF HIS INDIVIDUAL ACCOUNT IN THE ANNUITY
SAVINGS FUND AS HE SHALL DEMAND.

(7A) EFFECT OF WORKMEN'S COMPENSATION BENEFITS. —ANY
PENSION ALLOWANCE SHALL BE REDUCED BY THE AMOUNT OF ANY
WORKMEN'S COMPENSATION BENEFITS PAID OR PAYABLE AFTER THE
EFFECTIVE DATE OF RETIREMENT ON ACCOUNT OF AN ACCIDENTAL
PERSONAL INJURY OR OCCUPATIONAL DISEASE ARISING OUT OF AND
IN THE COURSE OF THE RETIRED MEMBER'S EMPLOYMENT BY THE
STATE IF SUCH WORKMEN'S COMPENSATION BENEFITS ARE PAID OR
PAYABLE FOR A PERIOD DURING WHICH A PENSION ALLOWANCE IS
PAID OR PAYABLE. THIS PROVISION IS APPLICABLE TO BOTH THE
RETIRED MEMBER AND ANY BENEFICIARY DESIGNATED UNDER ANY
OPTION PROVIDED UNDER THIS ARTICLE.

(8)   OPTIONAL ALLOWANCES. —(A) WITH THE PROVISION
THAT NO OPTIONAL SELECTION SHALL BE EFFECTIVE IN CASE A
BENEFICIARY DIES WITHIN 30 DAYS AFTER RETIREMENT, AND THAT
SUCH A BENEFICIARY SHALL BE CONSIDERED AS AN ACTIVE MEMBER
AT THE TIME OF DEATH, UNTIL THE FIRST PAYMENT ON ACCOUNT OF
ANY BENEFIT BECOMES NORMALLY DUE, ANY MEMBER MAY ELECT TO
RECEIVE HIS BENEFIT IN A RETIREMENT ALLOWANCE PAYABLE
THROUGHOUT LIFE, OR HE MAY ELECT TO RECEIVE THE ACTUARIAL
EQUIVALENT, AT THAT TIME, OF HIS RETIREMENT ALLOWANCE IN A
REDUCED RETIREMENT ALLOWANCE PAYABLE THROUGHOUT LIFE WITH
THE PROVISION THAT:

OPTION 1. IF HE DIES BEFORE HE HAS RECEIVED IN
PAYMENTS THE PRESENT VALUE OF HIS RETIREMENT ALLOWANCE AS IT
WAS AT THE TIME OF HIS RETIREMENT, THE BALANCE SHALL BE PAID
TO HIS LEGAL REPRESENTATIVES OR TO SUCH PERSON AS HE SHALL
NOMINATE BY WRITTEN DESIGNATION DULY ACKNOWLEDGED AND FILED
WITH THE BOARD OF TRUSTEES; OR

OPTION 2. UPON HIS DEATH, HIS REDUCED RETIREMENT
ALLOWANCE SHALL BE CONTINUED THROUGHOUT THE LIFE OF AND PAID
TO SUCH PERSON AS HE SHALL NOMINATE BY WRITTEN DESIGNATION
DULY ACKNOWLEDGED AND FILED WITH THE BOARD OF TRUSTEES AT