A participant may elect to receive the participant's distribution in any of the following forms: (1) A lump sum; (2) Equal monthly installments over a fixed period; or (3) Any other form offered by the third-party administrator. The election must be made prior to the time any amounts become payable. A participant or a beneficiary who has chosen a payment form other than an annuity has the ability to change the payment option, subject to any administrative restrictions and charges established by the board. If the distribution begins prior to the participant's death, the entire interest must be distributed over the life expectancy of the participant or the life expectancies of the participant and a designated beneficiary. Any amount not distributed during the participant's life must be distributed after the participant's death, at least as rapidly as under the distribution method being used on the date of the participant's death. If the distribution begins after the participant's death, the entire amount payable to the participant must be paid during a period of no more than five years, unless the distribution commences within one year and the participant's spouse is the named beneficiary, then during the life expectancy of the surviving spouse.
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