§ 5-1-231. OPTIONAL ALLOWANCES.

(a)

In lieu of the disability or service allowances payable under the provisions of this subtitle, any member may, prior to the first retirement allowance payment normally due, elect a retirement allowance of equivalent actuarial value in one (1) of the optional forms set out below. The election of the option shall be made on a form provided for that purpose and shall be filed with the Board of Trustees. The options provide either a lump sum payment or continued payments to a beneficiary nominated by written designation duly acknowledged and filed with the Board of Trustees. Should a member die prior to the expiration of thirty (30) days after the date of filing such election or prior to thirty (30) days after retirement, the Board of Trustees shall determine whether or not such election shall be void and of no effect, and the benefits payable on the member's account shall be the same as though the member's election had not been filed and the member had died in active service. A member who has elected an optional benefit may not change such election after the first payment of the member's allowance becomes normally due, except as provided below.

(1)

Option 1. If the retired member dies before receiving in annuity payments the present value of the annuity as it was at the time of retirement, the balance shall be paid to the designated beneficiary or the retired member's estate.

(2)

Option 2. Upon the death of the retired member, one hundred (100) percent of the reduced retirement allowance shall be continued throughout the life of and paid to the designated beneficiary.

(3)

Option 3. Upon the death of the retired member, fifty (50) percent of the reduced retirement allowance shall be continued throughout the life of and paid to the designated beneficiary.

(4)

Option 4. Some other benefit or benefits shall be paid either to the retired member or a designated beneficiary, provided such other benefit, together with the reduced retirement allowance, shall be certified by the actuary to be of equivalent actuarial value to the retired member's retirement allowance and shall be approved by the Board of Trustees.

(5)

Option 5. Upon the death of the retired member, one hundred (100) percent of the reduced retirement allowance shall be continued throughout the life of and paid to the designated beneficiary, with the further provision that should the retired member become divorced from the designated beneficiary or should the designated beneficiary predecease the retired member, upon notice to the Board of Trustees, the retired member's reduced retirement allowance shall thereafter increase to the amount that would be payable had no option been chosen.

(6)

Option 6. Upon the death of the retired member, fifty (50) percent of the reduced retirement allowance shall be continued throughout the life of and paid to the designated beneficiary, with the further provision that should the retired member become divorced from the designated beneficiary or should the designated beneficiary predecease the retired member, upon notice to the Board of Trustees, the retired member's reduced retirement allowance shall thereafter increase to the amount that would be payable had no option been chosen.

(7)

Option 7. Subject to subsection (d) of this section, an employee who has completed at least twenty-five (25) years of actual service as a sworn Baltimore County police officer, at least twenty-five (25) years of actual service as a sworn Baltimore County firefighter, or any combination of actual service as a sworn Baltimore County police officer and Baltimore County firefighter equaling twenty-five (25) years of actual service may retire with the option of having fifty (50) percent of the retired member's retirement allowance continued throughout the life of and paid to the original beneficiary upon the retired member's death. This option shall be provided at no cost to the employee.

(b)

Any retired member who retired before October 24, 1985, and who has selected either option 2 or option 3 and who is divorced or who becomes divorced from the designated beneficiary or whose designated beneficiary is deceased or becomes deceased shall be entitled to notify the Board of Trustees of such death or divorce, in which event the retired member's reduced retirement allowance shall thereafter increase to the amount that would be payable had no option been chosen.

(c)

All retired members who have selected option 5 or 6 or who come within the provisions of subsection (b) of this section and whose retirement allowance has increased under such provision shall be entitled to designate a new beneficiary and select any of the options 2, 3, 4, 5, and 6, in which event the retired member's retirement allowance shall be recomputed as required. However, any retired member whose retirement allowance has been increased under the provisions of this section and more especially under the provisions of subsection (b) of this section and who designates a new beneficiary and chooses option 2 or option 3 shall not be entitled to have the retirement allowance increased in the event of divorce from the designated beneficiary or in the event of the death of the designated beneficiary.

(d)

(1)

The requirements of this subsection apply to option 7.

(2)

(i)

In this subsection the following words have the meanings indicated.

(ii)

"Actual service as a sworn Baltimore County Firefighter" does not include:

1.

Transfer service.

2.

Creditable military service; or

3.

Unused sick leave.

(iii)

"Actual service as a sworn Baltimore County Police Officer" does not include:

1.

Service as a police cadet;

2.

Transfer service;

3.

Creditable military service; or

4.

Unused sick leave.

(iv)

"Employee" means a:

1.

Sworn Baltimore County Police Officer in active service on pay schedule IV or VII who has completed at least twenty-five (25) years of actual service as a sworn member of the Baltimore County Police Department;

2.

Sworn Baltimore County Firefighter in active service on pay schedule V or VIII who has completed at least twenty-five(25) years of actual service as a sworn member of the Baltimore County Fire Department; or

3.

Any combination of items 1 and 2 of this subparagraph equaling twenty-five (25) years of actual service.

(v)

"Original beneficiary" means the employee's spouse who is designated at the time of the employee's retirement.

(vi)

1. "Substitute beneficiary" means a new beneficiary designated following the death of or divorce from the original beneficiary.

2.

"Substitute beneficiary" is not required to be the spouse of the retired member.

(vii)

"Transfer service" means creditable service:

1.

In a political subdivision other than Baltimore County; and

2.

In Baltimore County but not as a sworn Baltimore County Police Officer or sworn Baltimore County Firefighter.

(3)

(i)

Subject to the limitations in subparagraph (iii) of this paragraph and after notifying the Board of Trustees of a divorce or death, a retired member who has selected option 7 in subsection (a) of this section may designate a substitute beneficiary if the:

1.

Retired member is divorced or becomes divorced from the original beneficiary; or

2.

Retired member's original beneficiary is deceased or becomes deceased.

(ii)

If the retired member designates a substitute beneficiary, the retired member may select any of the options 2, 3, 4, 5, and 6 in subsection (a) of this section.

(iii)

If the retired member designates a substitute beneficiary, the retired member's retirement allowance shall be recomputed at the time the substitute beneficiary is designated to provide a retirement allowance that, combined with the selected allowance for the substitute beneficiary, is of equivalent actuarial value without subsidy.

(1988 Code, § 23-61) (Bill No. 108-01, § 1, 12-3-2001; Bill No. 32-03, § 1, 6-30-2002, 7-1-2004; Bill No. 118-03, § 2, 12-19-2003; Bill No. 30-10, § 4, 7-1-2010)

Editor's note:
  Section 8 of Bill No. 30-10 provides that the changes made to this section shall take effect retroactive to January 1, 2010.