Texas Government Code 854.105 – Selection of Optional Service Retirement Annuity
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(a) A vested member may, while continuing to perform service for a participating municipality or after terminating all service, file with the board of trustees, on a form prescribed by the board, a selection of an optional service retirement annuity available under Section 854.104 and a designation of beneficiary or a designation of beneficiary without selecting a retirement option. An annuity selected as provided by this section is payable on the member’s death before retirement.
(b) A member may change a selection of an optional annuity or a designation of beneficiary at any time before the member’s retirement or death in the same manner that the original selection or designation was made.
Terms Used In Texas Government Code 854.105
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Executor: A male person named in a will to carry out the decedent
- Month: means a calendar month. See Texas Government Code 312.011
- Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005
(c) If a member eligible under this section to select an optional service retirement annuity dies before retirement without having made a selection, the beneficiary designated under Subsection (a) may select an optional annuity in the same manner as if the member had made the selection, subject only to the requirements of the Internal Revenue Code of 1986, and its subsequent amendments, as to the length of time over which the payments can be made.
(d) If a beneficiary has not been designated under Subsection (a), the member’s surviving spouse may elect to receive a refund of the member’s accumulated contributions or an optional annuity in the same manner as if the member had made the selection.
(e) If a beneficiary has not been designated under Subsection (a) and no surviving spouse exists, the member’s surviving children jointly may elect to receive:
(1) a refund of the member’s accumulated contributions; or
(2) an optional annuity in the same manner as if the member had made the selection, subject only to the requirements of the Internal Revenue Code of 1986, and its subsequent amendments, as to the length of time over which the payments can be made.
(f) If there is no surviving spouse or surviving child and no beneficiary designated under Subsection (a) exists, the last person designated by the member as a beneficiary on a form filed with the retirement system may elect to receive:
(1) a refund of the member’s accumulated contributions; or
(2) an optional annuity in the same manner as if the member had made the selection, subject only to the requirements of the Internal Revenue Code of 1986, and its subsequent amendments, as to the length of time over which the payments can be made.
(g) If there is not a person who is eligible to make a selection under Subsections (c)-(f), the executor or administrator of the member’s estate may elect:
(1) for an estate beneficiary to receive the optional annuity under Section 854.104(c)(4), in which case the member will be considered to have retired on the last day of the month immediately preceding the month in which death occurred; or
(2) for the estate to receive a refund of the member’s accumulated contributions under Section 854.501, in which case the member will be considered to have been a contributing member at the time of death.