Sec. 7. (a) Benefits provided under this section are subject to IC 5-10.2-2-1.5.

     (b) A member who retires is entitled to receive monthly retirement benefits, which are guaranteed for five (5) years or until the member’s death, whichever is later. A member may select in writing any of the following nonconflicting options for the payment of the member’s retirement benefits instead of the five (5) year guaranteed retirement benefit payments. The amount of the optional payments shall be determined under rules of the board and shall be the actuarial equivalent of the benefit payable under sections 4, 5, and 6 of this chapter. A member who has elected to withdraw the entire amount in the member’s annuity savings account under IC 5-10.2-3-6.5 may not select the cash refund annuity option.

(1) Joint and Survivor Option.

(A) The member receives a decreased retirement benefit during the member’s lifetime, and there is a benefit payable after the member’s death to a designated beneficiary during the lifetime of the beneficiary, which benefit equals, at the option of the member, either the full decreased retirement benefit or two-thirds (2/3) or one-half (1/2) of that benefit.

(B) If the member dies before retirement, the designated beneficiary may receive only the amount credited to the member in the annuity savings account unless the designated beneficiary is entitled to survivor benefits under IC 5-10.2-3.

(C) If the designated beneficiary dies before the member retires, the selection is automatically canceled and the member may make a new beneficiary election and may elect a different form of benefit under this subsection.

(2) Benefit with No Guarantee. The member receives an increased lifetime retirement benefit without the five (5) year guarantee specified in this subsection.

(3) Integration with Social Security. If the member retires before the age of eligibility for Social Security benefits, in order to provide a level benefit during the member’s retirement the member receives an increased retirement benefit until the age of Social Security eligibility and decreased retirement benefits after that age.

(4) Cash Refund Annuity. The member receives a lifetime annuity purchasable by all or part of the amount credited to the member in the annuity savings account, and the member’s designated beneficiary receives a refund payment equal to:

(A) the total amount used in computing the annuity; minus

(B) the total annuity payments paid and due to the member before the member’s death.

     (c) This subsection does not apply to a member of the Indiana state teachers’ retirement fund after June 30, 2007, or to a member of the public employees’ retirement fund after June 30, 2008. If:

(1) the designated beneficiary dies while the member is receiving benefits; or

(2) the member is receiving benefits, the member marries, either for the first time or following the death of the member’s spouse, after the member’s first benefit payment is made, and the member’s designated beneficiary is not the member’s current spouse or the member has not designated a beneficiary;

the member may elect to change the member’s designated beneficiary or form of benefit under subsection (b) and to receive an actuarially adjusted and recalculated benefit for the remainder of the member’s life or for the remainder of the member’s life and the life of the newly designated beneficiary. The member may not elect to change to a five (5) year guaranteed form of benefit. If the member’s new election is the joint and survivor option, the member shall indicate whether the designated beneficiary’s benefit shall equal, at the option of the member, either the member’s full recalculated retirement benefit or two-thirds (2/3) or one-half (1/2) of this benefit. The cost of recalculating the benefit shall be borne by the member and shall be included in the actuarial adjustment.

     (d) Except as provided in subsection (c) or section 7.2 of this chapter, a member who files for regular or disability retirement may not change:

(1) the member’s retirement option under subsection (b);

(2) the selection of a lump sum payment under section 2 of this chapter; or

(3) the beneficiary designated on the member’s application for benefits if the member selects the joint and survivor option under subsection (b)(1);

after the first day of the month in which benefit payments are scheduled to begin. For purposes of this subsection, it is immaterial whether a benefit check has been sent, received, or negotiated.

     (e) A member may direct that the member’s retirement benefits be paid to a revocable trust that permits the member unrestricted access to the amounts held in the revocable trust. The member’s direction is not an assignment or transfer of benefits under IC 5-10.3-8-10 or IC 5-10.4-5-14.5.

     (f) The board may adopt a policy to permit annual payment of a member’s retirement benefit whenever the amount of the monthly retirement benefit to be paid to the member is not more than five dollars ($5).

     (g) The board may provide an alternative option for the payment of the member’s retirement benefits that does not include the minimum benefit option under IC 5-10.2-3-9.

As added by Acts 1977, P.L.53, SEC.2. Amended by Acts 1980, P.L.28, SEC.7; P.L.35-1985, SEC.16; P.L.59-1989, SEC.2; P.L.55-1989, SEC.19; P.L.59-1989, SEC.3; P.L.4-1990, SEC.9; P.L.195-1999, SEC.17; P.L.246-2001, SEC.5; P.L.190-2003, SEC.2; P.L.2-2006, SEC.25; P.L.149-2007, SEC.1; P.L.93-2008, SEC.1; P.L.115-2008, SEC.13; P.L.115-2009, SEC.7; P.L.35-2012, SEC.44; P.L.15-2013, SEC.1; P.L.40-2017, SEC.12; P.L.51-2020, SEC.4.