Texas § GV.824.2045 - PARTIAL LUMP-SUM OPTION

§ GV.824.2045. PARTIAL LUMP-SUM OPTION

PARTIAL LUMP-SUM OPTION. (a) A member may select a standard service retirement annuity or an optional service retirement annuity described by Section 824.204 , reduced for early age as applicable under Section 824.202 , together with a partial lump-sum distribution, if: (1) the member is eligible for a service retirement annuity; (2) the sum of the member's age and amount of service credit in the retirement system equals the number 90; and (3) the member is not participating in the deferred retirement option plan under Subchapter I. (b) The amount of the lump-sum distribution under this section may not exceed the sum of 36 months of a standard service retirement annuity reduced for early age as applicable under Section 824.202 computed without regard to this section. (c) The service retirement annuity selected by the member shall be actuarially reduced to reflect the lump-sum option selected by the member and shall be actuarially equivalent to a standard or optional service retirement annuity, as applicable, reduced for early age as applicable under Section 824.202 , without the partial lump-sum distribution. The annuity and lump sum shall be computed to result in no actuarial loss to the retirement system. (d) The retiring member may choose a lump sum equal to 12 months of a standard service retirement annuity and payable at the same time that the first monthly payment of the annuity is paid, a lump sum equal to 24 months of a standard annuity and payable in one or two annual payments, or a lump sum equal to 36 months of a standard annuity and payable in one, two, or three annual payments. At the option of the member, a payment under this subsection may be made as provided by Section 825.509 . The amount of the lump sum shall be computed based on a standard service retirement annuity reduced for early age as applicable under Section 824.202 . (e) The amount of the lump-sum distribution will be deducted from any amounts otherwise payable under Section 824.503 . (f) The partial lump-sum option under this section may be elected only once by a member and may not be elected by a retiree. A member retiring under the proportionate retirement program under Chapter 803 is not eligible for the partial lump-sum option. (g) Before a retiring member selects a partial lump-sum distribution under this section, the retirement system shall provide a written notice to the member of the amount by which the member's annuity will be reduced because of the selection. The member shall be asked to sign a copy of or receipt for the notice, and the retirement system shall maintain the signed copy or receipt. (h) The board of trustees may adopt rules for the implementation of this section. Added by Acts 1999, 76th Leg., ch. 1540, Sec. 11, eff. Sept. 1, 1999. Amended by: Acts 2005, 79th Leg., Ch. 1359 (S.B. 1691 ), Sec. 13, eff. September 1, 2005.