A. Except as otherwise provided in Section 10-11-136 N.M. Stat. Ann., a member may elect to have pension payments made under any one of the forms of payment provided in Section 10-11-117 N.M. Stat. Ann.. The election of form of payment and naming of survivor beneficiary shall be made on a form furnished by and filed with the association prior to the date the first pension payment is made. An election of form of payment may not be changed after the date the first pension payment is made. If the member is married, the association shall obtain the consent of the member’s spouse to the election of the form of payment and any designation of survivor beneficiary before the election or designation is effective. Except as provided in Subsection C, D or E of this section, a named survivor beneficiary may not be changed after the date the first pension payment is made if form of payment B or C is elected. Except as otherwise provided in section 10-11-136 N.M. Stat. Ann., payment shall be made:

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(1)     under form of payment A if the member is not married at the time of retirement and if there is not a timely election of another form of payment; or

(2)     under form of payment C with the member’s spouse as survivor beneficiary if the member is married at the time of retirement and there is not a timely election of another form of payment.

B. The amount of pension under forms of payment B, C and D shall have the same actuarial present value, computed as of the effective date of the pension, as the amount of pension under form of payment A.

C. A retired member who is being paid a pension under form of payment B or C with the member’s spouse as the designated survivor beneficiary may:

(1)     exercise a one-time irrevocable option to designate another survivor beneficiary and may select either form of payment B or form of payment C; provided that:

(a) the amount of the pension under the form of payment selected shall be recalculated and have the same actuarial present value, computed on the effective date of the designation, as the amount of pension under form of payment A;

(b) the member’s spouse provides a notarized, written statement expressing the spouse’s consent to relinquish the designation as a survivor beneficiary; and

(c) the retired member shall pay one hundred dollars ($100) to the retirement board to defray the cost of determining the new pension amount;

(2)     upon becoming divorced from the named spouse and subject to an order of a court as provided for in Section 10-11-136 N.M. Stat. Ann., elect to have future payments made under form of payment A; or

(3)     upon becoming divorced from the named spouse, exercise a one-time irrevocable option to designate another survivor beneficiary and may select either form of payment B or form of payment C; provided that:

(a) the amount of the pension under the form of payment selected shall be recalculated and have the same actuarial present value, computed on the effective date of the designation, as the amount of pension under form of payment A;

(b) the designation and the amount of the pension shall be subject to a court order as provided for in Section 10-11-136 N.M. Stat. Ann.; and

(c) the retired member shall pay one hundred dollars ($100) to the retirement board to defray the cost of determining the new pension amount.

D. A retired member who was previously being paid a pension under form of payment B or C but, because of the death of or divorce from the designated survivor beneficiary or in the event that a supplemental needs trust is the designated survivor beneficiary, the termination of that trust or the death of or divorce from the beneficiary of that trust, is currently receiving a pension under form of payment A may exercise a one- time irrevocable option to designate another survivor beneficiary and may select either form of payment B or form of payment C; provided that:

(1)     the amount of the pension under the form of payment selected shall be recalculated and have the same actuarial present value, computed on the effective date of the designation, as the amount of pension under form of payment A;

(2)     the designation and the amount of the pension shall be subject to a court order as provided for in Section 10-11-136 N.M. Stat. Ann.; and

(3)     the retired member shall pay one hundred dollars ($100) to the retirement board to defray the cost of determining the new pension amount.

E. A retired member who is being paid a pension under form of payment B or C with a living or operating designated survivor beneficiary other than the retired member’s spouse or former spouse or the supplemental needs trust of the retired member’s spouse or former spouse may exercise a one-time irrevocable option to deselect the designated beneficiary and elect to:

(1)     designate another survivor beneficiary and may select either form of payment B or form of payment C; provided that:

(a) the amount of the pension under the form of payment shall be recalculated and shall have the same actuarial present value, computed as of the effective date of the designation, as the amount of pension under form of payment A; and

(b) the retired member shall pay one hundred dollars ($100) to the retirement board to defray the cost of determining the new pension amount; or

(2)     have future payments made under form of payment A.