Missouri Revised Statutes
Chapter 86
Police Relief and Pension Systems
←86.1570
Section 86.1580.1
86.1590→
August 28, 2015
Optional distribution under partial lump-sum option plan, when--death before retirement, effect of.
86.1580. 1. Any member in active service entitled to commence a
pension under section 86.1540 may elect an optional distribution under the
partial lump sum option plan provided in this section if the member:
(1) Notifies the retirement system in writing of the member's
retirement date at least ninety days in advance thereof and requests an
explanation of the member's rights under this section; and
(2) Notifies the retirement system of the member's election hereunder
at least thirty days in advance of the retirement date.
Following receipt of an initial notice of a member's retirement date and
request for an explanation, the retirement system shall, at least sixty
days in advance of such retirement date, provide the member a written
explanation of such member's rights under this section and an estimate of
the amount by which the member's regular monthly base pension would be
reduced in the event of the member's election of any of the options
available to the member under this section.
2. (1) A member entitled to make an election under this section may
elect to receive a lump sum distribution with the member's initial monthly
pension payment under section 86.1540, subject to all the terms of this
section. The member may elect the amount of the member's lump sum
distribution from one, but not more than one, of the following options for
which the member qualifies:
(a) A member having one or more years of creditable service after the
member's eligible retirement date may elect a lump sum amount equal to
twelve times the initial monthly base pension the member would receive if
no election were made under this section;
(b) A member having two or more years of creditable service after the
member's eligible retirement date may elect a lump sum amount equal to
twenty-four times the initial monthly base pension the member would receive
if no election were made under this section; or
(c) A member having three or more years of creditable service after
the member's eligible retirement date may elect a lump sum amount equal to
thirty-six times the initial monthly base pension the member would receive
if no election were made under this section.
For purposes of this section, "eligible retirement date" for a member shall
mean the earliest date on which the member could elect to retire and be
entitled to receive a pension under section 86.1540.
(2) When a member makes an election to receive a lump sum
distribution under this section, the base pension that the member would
have received in the absence of an election shall be reduced on an
actuarially equivalent basis to reflect the payment of the lump sum
distribution, and the reduced base pension shall be the member's base
pension thereafter for all purposes relating to base pension amounts under
sections 86.1310 to 86.1640, unless the member has also elected an optional
benefit permitted under subsection 4 of section 86.1540.
(3) If a member electing a lump sum distribution under this section
has elected the optional benefit permitted under subsection 4 of section
86.1540, the calculation of the member's pension shall be made in the
following order:
(a) The amount of the member's normal pension under subdivision (1)
of subsection 1 of section 86.1540 shall be reduced if applicable by any
reductions required under subsection* 2 or 3 of section 86.1540;
(b) The amount of the pension as determined under paragraph (a) of
this subdivision shall be reduced to the actuarially equivalent amount to
produce the optional form of benefit described in subdivision (1) of
subsection 4 of section 86.1540;
(c) The amount of reduced pension as determined under paragraph (b)
of this subdivision shall be further reduced as required to produce an
actuarially equivalent benefit in the form of the lump sum distribution
option elected under this section and a remaining monthly annuity which
shall be paid on the basis that the initial annuity for the member's
spouse, if such spouse survives the member, shall be the same as the amount
being paid the member on this annuity at the member's death, and, subject
to cost-of-living adjustments thereafter declared on the spouse's base
pension under section 86.1590, shall be paid to such surviving spouse for
the lifetime of such spouse without regard to remarriage.
3. An election under this section to receive a lump sum distribution
and reduced monthly base pension shall be void if the member dies before
retirement, in which case amounts due a surviving spouse or other
beneficiary of the member shall be determined without regard to such
election.
(L. 2005 H.B. 323, A.L. 2013 H.B. 116 merged with H.B. 418)
*Word "subsections" appears in original rolls.
2005
2005
86.1580. 1. Any member in active service entitled to commence a pension
under section 86.1540 may elect an optional distribution under the partial
lump sum option plan provided in this section if the member:
(1) Notifies the retirement system in writing of the member's retirement
date at least ninety days in advance thereof and requests an explanation of
the member's rights under this section; and
(2) Notifies the retirement system of the member's election hereunder at
least thirty days in advance of the retirement date.
Following receipt of an initial notice of a member's retirement date and
request for an explanation, the retirement system shall, at least sixty days
in advance of such retirement date, provide the member a written explanation
of such member's rights under this section and an estimate of the amount by
which the member's regular monthly base pension would be reduced in the event
of the member's election of any of the options available to the member under
this section.
2. (1) A member entitled to make an election under this section may
elect to receive a lump sum distribution with the member's initial monthly
pension payment under section 86.1540, subject to all the terms of this
section. The member may elect the amount of the member's lump sum
distribution from one, but not more than one, of the following options for
which the member qualifies:
(a) A member having one or more years of creditable service after the
member's eligible retirement date may elect a lump sum amount equal to twelve
times the initial monthly base pension the member would receive if no
election were made under this section;
(b) A member having two or more years of creditable service after the
member's eligible retirement date may elect a lump sum amount equal to
twenty-four times the initial monthly base pension the member would receive
if no election were made under this section; or
(c) A member having three or more years of creditable service after the
member's eligible retirement date may elect a lump sum amount equal to
thirty-six times the initial monthly base pension the member would receive if
no election were made under this section.
For purposes of this section, "eligible retirement date" for a member shall
mean the earliest date on which the member could elect to retire and be
entitled to receive a pension under section 86.1540.
(2) When a member makes an election to receive a lump sum distribution
under this section, the base pension that the member would have received in
the absence of an election shall be reduced on an actuarially equivalent
basis to reflect the payment of the lump sum distribution, and the reduced
base pension shall be the member's base pension thereafter for all purposes
relating to base pension amounts under sections 86.1310 to 86.1640, unless
the member has also elected an optional benefit permitted under subsection 3
of section 86.1540.
(3) If a member electing a lump sum distribution under this section has
elected the optional benefit permitted under subsection 3 of section 86.1540,
the calculation of the member's pension shall be made in the following order:
(a) The amount of the member's normal pension under subdivision (1) of
subsection 1 of section 86.1540 shall be reduced if applicable by any
reductions required under subsection 2 of section 86.1540;
(b) The amount of the pension as determined under paragraph (a) of this
subdivision shall be reduced to the actuarially equivalent amount to produce
the optional form of benefit described in subdivision (1) of subsection 3 of
section 86.1540;
(c) The amount of reduced pension as determined under paragraph (b) of
this subdivision shall be further reduced as required to produce an
actuarially equivalent benefit in the form of the lump sum distribution
option elected under this section and a remaining monthly annuity which shall
be paid on the basis that the initial annuity for the member's spouse, if such
spouse survives the member, shall be the same as the amount being paid the
member on this annuity at the member's death, and, subject to cost-of-living
adjustments thereafter declared on the spouse's base pension under section
86.1590, shall be paid to such surviving spouse for the lifetime of such
spouse without regard to remarriage.
3. An election under this section to receive a lump sum distribution and
reduced monthly base pension shall be void if the member dies before
retirement, in which case amounts due a surviving spouse or other beneficiary
of the member shall be determined without regard to such election.
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