HARRY HUGHES, Governor

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THE BOARD OF TRUSTEES, THAT PROVISION WOULD ALLOW A MORE
FAVORABLE TAX TREATMENT OF THE BENEFIT TO THE BENEFICIARIES.

(C) IF THE MEMBER AT THE TIME OF HIS DEATH WAS
AT LEAST 55 YEARS OLD AND HAD COMPLETED 15 YEARS OF
ELIGIBILITY SERVICE OR WAS 62 YEARS OLD OR OLDER AND, IN
EITHER EVENT, HAD NOMINATED HIS SURVIVING SPOUSE AS THE SOLE
PRIMARY BENEFICIARY TO WHOM THE DEATH BENEFIT UNDER
PARAGRAPH (A) OF THIS SECTION WOULD BE PAID, THE SURVIVING
SPOUSE MAY ELECT TO RECEIVE, INSTEAD OF A LUMP SUM DEATH
BENEFIT, AN ALLOWANCE EQUAL TO THE ALLOWANCE THAT SHE WOULD
HAVE RECEIVED HAD THE MEMBER:

(I)   BEEN ELIGIBLE TO RETIRE;

(II)  RETIRED 30 DAYS BEFORE HIS DEATH; AND

(III) ELECTED OPTION 2, WITH HIS SPOUSE AS
THE PERSON NOMINATED.

(11)  IF A MEMBER CEASES TO BE A TEACHER EXCEPT BY
DEATH OR BY RETIREMENT UNDER THIS SUBTITLE, HE SHALL BE PAID
THE AMOUNT OF HIS ACCUMULATED CONTRIBUTIONS.

(12)  (A) INSTEAD OF THE DISABILITY OR SERVICE
ALLOWANCES PAYABLE UNDER THE AFORESAID PROVISIONS, ANY
MEMBER BEFORE THE FIRST RETIREMENT ALLOWANCE PAYMENT
NORMALLY BECOMES DUE, MAY ELECT A RETIREMENT ALLOWANCE OF
EQUIVALENT ACTUARIAL VALUE IN ONE OF THE OPTIONAL FORMS SET
OUT IN THIS SUBSECTION. THE ELECTION OF THE OPTION SHALL BE
MADE ON THE FORM PROVIDED FOR THAT PURPOSE AND SHALL BE
FILED WITH THE BOARD OF TRUSTEES. IF A MEMBER DIES PRIOR TO
THE EFFECTIVE DATE OF RETIREMENT, THE ELECTION SHALL BE
VOID, AND THE BENEFITS PAYABLE ON HIS ACCOUNT SHALL BE THE
SAME AS THOUGH HIS ELECTION HAD NOT BEEN FILED AND HE HAD
DIED IN ACTIVE SERVICE. A MEMBER WHO HAS ELECTED AN
OPTIONAL BENEFIT MAY CHANGE THIS ELECTION BY NOTIFYING THE
BOARD OF TRUSTEES, BUT A CHANGE MAY NOT BE MADE AFTER THE
FIRST PAYMENT OF HIS ALLOWANCE NORMALLY BECOMES DUE.

OPTION 1. IF A MEMBER 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 PERSONAL REPRESENTATIVE OR TO THE PERSON HE HAS MOST
RECENTLY NOMINATED BY WRITTEN DESIGNATION, ACKNOWLEDGED AND
FILED WITH THE BOARD OF TRUSTEES.

OPTION 2. ON THE DEATH OF A MEMBER, HIS REDUCED
RETIREMENT ALLOWANCE SHALL BE CONTINUED THROUGHOUT THE LIFE
OF AND PAID TO THE PERSON HE HAS NOMINATED BY WRITTEN
DESIGNATION, ACKNOWLEDGED AND FILED WITH THE BOARD OF
TRUSTEES AT THE TIME OF HIS RETIREMENT.

OPTION 3. ON THE DEATH OF A MEMBER, ONE-HALF OF HIS
REDUCED RETIREMENT ALLOWANCE SHALL BE CONTINUED THROUGHOUT
THE LIFE OF AND PAID TO THE PERSON HE HAS NOMINATED BY
WRITTEN DESIGNATION, ACKNOWLEDGED AND FILED WITH THE BOARD
OF TRUSTEES AT THE TIME OF HIS RETIREMENT; OR