(a) A member may, upon application for retirement, elect an option pursuant to this part that would provide an actuarially modified retirement allowance payable throughout the life of the member and the memberâs option beneficiary or beneficiaries, as follows: (1) One hundred percent beneficiary option. The modified retirement allowance shall be paid to the retired member and upon the memberâs death, 100 percent of the modified allowance shall continue to be paid to the option beneficiary. (2) Seventy-five percent beneficiary option. The modified retirement allowance shall be paid to the retired member and upon the memberâs death, 75 percent of the modified allowance shall continue to be paid to the option beneficiary. Pursuant to Section 401(a)(9) of the Internal Revenue Code, unless the option beneficiary is the memberâs spouse or former spouse who has been awarded a community property interest in the benefits of the member under this part, the member may not designate an option beneficiary under this option who is more than exactly 19 years younger than the member. (3) Fifty percent beneficiary option. The modified retirement allowance shall be paid to the retired member and upon the memberâs death, 50 percent of the modified allowance shall continue to be paid to the option beneficiary. (4) Compound option. The member may designate multiple option beneficiaries or one or multiple option beneficiaries with a designated percentage to remain unmodified. The member shall elect an option as described in paragraph (1), (2), or (3) for each designated option beneficiary that would provide an actuarially modified retirement allowance payable throughout the lives of the retired member and the memberâs option beneficiary or beneficiaries upon the memberâs death. (A) The modified retirement allowance shall be paid to the member as long as the member and at least one option beneficiary is living. Upon the memberâs death, an allowance shall be paid to each surviving option beneficiary in accordance with the option elected respective to that option beneficiary. (B) The member shall specify the percent of the unmodified allowance that will be modified by the election of each option described in paragraph (1), (2), or (3) of this subdivision. The percent of the unmodified allowance that is not modified by an option, if any, shall be payable to the member. The sum of the percentages specified for the option beneficiary or beneficiaries and the memberâs remaining unmodified allowance, if any, shall equal 100 percent. (C) The memberâs election of the compound option is subject to all of the following: (i) Pursuant to Section 401(a)(9) of the Internal Revenue Code, unless the option beneficiary is the memberâs spouse or former spouse who has been awarded a community property interest in the memberâs benefits under this part, the member may not designate an option beneficiary under the 100 percent beneficiary option within this compound option who is more than exactly 10 years younger than the member. (ii) Pursuant to Section 401(a)(9) of the Internal Revenue Code, unless the option beneficiary is the memberâs spouse or former spouse who has been awarded a community property interest in the memberâs benefits under this part, the member may not designate an option beneficiary under the 75 percent beneficiary option within this compound option who is more than exactly 19 years younger than the member. (b) For purposes of this section, the member shall designate an option beneficiary on a properly executed retirement application. Except as otherwise provided by this chapter, the option shall become effective on the memberâs benefit effective date. (c) Except as provided in subdivision (d), a member may revoke or change an election of an option no later than 30 days from the date the memberâs initial benefit payment for the memberâs most recent retirement under the Defined Benefit Program is paid by the system. A
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