1. In lieu of the retirement compensation provided in section 476.530, a judge employed for the first time on or after January 1, 2011, may elect in the judge’s application for retirement whether or not to have such judge’s annuity reduced, and designate a beneficiary, as provided by the options set forth in this subsection prior to the judge’s annuity starting date:

Option 1.

A judge’s annuity shall be reduced to a certain percent of the annuity otherwise payable. Such percent shall be eighty-eight and one-half percent adjusted as follows: if the judge’s age on the annuity starting date is younger than sixty-seven years, an increase of three-tenths of one percent for each year the judge’s age is younger than age sixty-seven years; and if the beneficiary’s age is younger than the judge’s age on the annuity starting date, a decrease of three-tenths of one percent for each year of age difference; and if the judge’s age is younger than the beneficiary’s age on the annuity starting date, an increase of three-tenths of one percent for each year of age difference; provided, after all adjustments the option 1 percent cannot exceed ninety-four and one-quarter percent. Upon the judge’s death, fifty percent of the judge’s reduced annuity shall be paid to such beneficiary who was the judge’s spouse on the annuity starting date or as otherwise provided by subsection 5 of this section.

Option 2.

A judge’s life annuity shall be reduced to a certain percent of the annuity otherwise payable. Such percent shall be eighty-one percent adjusted as follows: if the judge’s age on the annuity starting date is younger than sixty-seven years, an increase of four-tenths of one percent for each year the judge’s age is younger than sixty-seven years; and if the beneficiary’s age is younger than the judge’s age on the annuity starting date, a decrease of five-tenths of one percent for each year of age difference; and if the judge’s age is younger than the beneficiary’s age on the annuity starting date, an increase of five-tenths of one percent for each year of age difference; provided, after all adjustments the option 2 percent cannot exceed eighty-seven and three-quarter percent. Upon the judge’s death one hundred percent of the judge’s reduced annuity shall be paid to such beneficiary who was the judge’s spouse on the annuity starting date or as otherwise provided by subsection 5 of this section.

Option 3.

A judge’s life annuity shall be reduced to ninety-three percent of the annuity otherwise payable. If the judge dies before having received one hundred twenty monthly payments, the reduced annuity shall be continued for the remainder of the one hundred twenty-month period to the judge’s designated beneficiary provided that if there is no beneficiary surviving the judge, the present value of the remaining annuity payments shall be paid as provided under subsection 4 of section 104.1054 as if the judge was a deceased member under that section. If the beneficiary survives the judge but dies before receiving the remainder of such one hundred twenty monthly payments, the present value of the remaining annuity payments shall be paid as provided under subsection 4 of section 104.1054 for a deceased beneficiary under that section.

Option 4.

A judge’s life annuity shall be reduced to eighty-six percent of the annuity otherwise payable. If the judge dies before having received one hundred eighty monthly payments, the reduced annuity shall be continued for the remainder of the one hundred eighty-month period to the judge’s designated beneficiary provided that if there is no beneficiary surviving the judge, the present value of the remaining annuity payments shall be paid as provided under subsection 4 of section 104.1054 as if the judge was a deceased member under that section. If the beneficiary survives the judge but dies before receiving the remainder of such one hundred eighty monthly payments, the present value of the remaining annuity payments shall be paid as provided under subsection 4 of section 104.1054 for a deceased beneficiary under that section.

2. If a judge is married as of the annuity starting date, the judge’s annuity shall be paid under the provisions of either option 1 or option 2 as set forth in subsection 1 of this section, at the judge’s choice, with the spouse as the judge’s designated beneficiary unless the spouse consents in writing to the judge electing another available form of payment.

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3. If a judge has elected at the annuity starting date option 1 or 2 pursuant to this section and if the judge’s spouse or eligible former spouse dies after the annuity starting date but before the judge dies, then the judge may cancel the judge’s election and return to the unreduced annuity form of payment and annuity amount, effective the first of the month following the date of such spouse’s or eligible former spouse’s death. If a judge dies prior to notifying the system of the spouse’s death, the benefit shall not revert to an unreduced annuity and no retroactive payments shall be made.

4. If a judge designates a spouse as a beneficiary pursuant to this section and subsequently that marriage ends as a result of a dissolution of marriage, such dissolution shall not affect the option election pursuant to this section and the former spouse shall continue to be eligible to receive survivor benefits upon the death of the judge.

5. A judge may make an election under option 1 or 2 after the annuity starting date as described in this section if the judge makes such election within one year from the date of marriage pursuant to any of the following circumstances:

(1) The judge elected to receive a life annuity and was not eligible to elect option 1 or 2 on the annuity starting date; or

(2) The judge’s annuity reverted to a normal or early retirement annuity pursuant to subsection 3 of this section, and the judge remarried.

6. A judge may change a judge’s election made under this section at any time prior to the system mailing or electronically transferring the first annuity payment to such member.