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Member's options - 24 Pa. Cons. Stat. § 8345

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     § 8345.  Member's options.
        (a)  General rule.--Any vestee with five or more eligibility
     points or any other eligible member upon termination of school
     service who has not withdrawn his accumulated deductions as
     provided in section 8341 (relating to return of accumulated
     deductions) may apply for and elect to receive either a maximum
     single life annuity, as calculated in accordance with the
     provisions of section 8342 (relating to maximum single life
     annuity), or a reduced annuity certified by the actuary to be
     actuarially equivalent to the maximum single life annuity and in
     accordance with one of the following options, except that no
     member shall elect an annuity payable to one or more survivor
     annuitants other than his spouse or alternate payee of such a
     magnitude that the present value of the annuity payable to him
     for life plus any lump sum payment he may have elected to
     receive is less than 50% of the present value of his maximum
     single life annuity.
            (1)  Option 1.--A life annuity to the member with a
        guaranteed total payment equal to the present value of the
        maximum single life annuity on the effective date of
        retirement with the provision that, if, at his death, he has
        received less than such present value, the unpaid balance
        shall be payable to his beneficiary.
            (2)  Option 2.--A joint and survivor annuity payable
        during the lifetime of the member with the full amount of
        such annuity payable thereafter to his survivor annuitant, if
        living at his death.
            (3)  Option 3.--A joint and fifty percent (50%) survivor
        annuity payable during the lifetime of the member with one-
        half of such annuity payable thereafter to his survivor
        annuitant, if living at his death.
            (4)  Option 4.--Some other benefit which shall be
        certified by the actuary to be actuarially equivalent to the
        maximum single life annuity, subject to the following
        restrictions:
                (i)  Any annuity shall be payable without reduction
            during the lifetime of the member.
                (ii)  The sum of all annuities payable to the
            designated survivor annuitants shall not be greater than
            one and one-half times the annuity payable to the member.
                (iii)  A portion of the benefit may be payable as a
            lump sum, except that such lump sum payment shall not
            exceed an amount equal to the accumulated deductions
            standing to the credit of the member. The balance of the
            present value of the maximum single life annuity adjusted
            in accordance with section 8342(b) shall be paid in the
            form of an annuity with a guaranteed total payment, a
            single life annuity, or a joint and survivor annuity or
            any combination thereof but subject to the restrictions
            of subparagraphs (i) and (ii) of this paragraph.
        (b)  Present value of joint coverage annuity.--The present
     value of an annuity payable to a member of the joint coverage
     group shall be determined by taking into account prospectively
     the reduction applicable upon the attainment of the age at which
     full social security benefits are payable.
     (June 13, 1985, P.L.40, No.19, eff. imd.; Apr. 29, 1994,
     P.L.159, No.29, eff. Jan. 1, 1995; May 17, 2001, P.L.26, No.9,
     eff. July 1, 2001)

        2001 Amendment.  Act 9 amended subsec. (a). See section 36.1
     of Act 9 in the appendix to this title for special provisions
     relating to applicability of amendment to Public School
     Employees' Retirement System members.
        Cross References.  Section 8345 is referred to in sections
     8306, 8324, 8346, 8349, 8502, 8505, 8505.1 of this title.

Last modified: November 27, 2007