Section 13-575. Variable pension reserve fund; variable pension

a. A
  participant in  the  variable  annuity  program  to  whom  a  retirement
  allowance  becomes  payable  shall,  as  provided  in  paragraph  one of
  subdivision b of this section or in paragraph one of  subdivision  c  of
  this  section, as the case may be, have the choice of having the portion
  deriving from the units credited to him or her in the  variable  pension
  accumulation fund paid in fixed or variable instalments.
    b.  (1)  A  participant  who is not an applicant for retirement with a
  deferred payability date  (as  defined  in  subdivision  thirty-nine  of
  section  13-501  of  this  chapter), shall make such choice prior to the
  effective date of his or her retirement and if the choice  is  for:  (i)
  Fixed  instalments,  he  or she shall be credited in the pension reserve
  fund number one, to be applied toward the payment of a pension, with  an
  amount  equal  to  the  value  of  such  units. An equal amount shall be
  transferred from the variable pension accumulation fund to  the  pension
  reserve  fund  number one and his or her account in the variable pension
  accumulation fund shall thereupon be cancelled.
    (ii) Variable instalments, he or she shall be credited in the variable
  pension reserve fund with the same number of units credited  to  him  or
  her  in  the  variable  pension  accumulation  fund  and shall be paid a
  variable pension from the variable pension reserve fund. An amount equal
  to the value of such  units  shall  be  transferred  from  the  variable
  pension  accumulation  fund to the variable pension reserve fund and his
  or her account in the variable pension accumulation fund shall thereupon
  be cancelled.
    (2) The value of a unit, for the purpose of this subdivision b,  shall
  be as of the effective date of the contributor's retirement.
    (3) Any such variable pension provided for in this subdivision b shall
  be  computed  in  terms  of  units  actuarially  equivalent to the units
  credited to the contributor in the variable pension reserve fund.
    c. (1) A participant  who  is  an  applicant  for  retirement  with  a
  deferred  payability  date  (as  defined  in  subdivision thirty-nine of
  section 13-501 of this chapter) may  make  the  choice  referred  to  in
  subdivision  a  of this section by an election filed with the retirement
  board prior to the date next preceding the date  on  which  his  or  her
  retirement  allowance  begins  in  accordance with rules and regulations
  established by  the  retirement  board;  provided,  however,  that  such
  participant may, at any time after such election is filed and before his
  or  her  retirement  allowance  begins, change such election by filing a
  superseding election with the retirement board in accordance with  rules
  and regulations established by the retirement board.
    (2)  On the effective date of the retirement of a partcipant who is an
  applicant for retirement with a deferred payability date (as defined  in
  subdivison  thirty-nine  of  section  13-501 of this chapter), he or she
  shall be credited in the variable pension reserve fund with a number  of
  units  equal  to  the  number of units credited to him or her as of such
  date in the variable pension accumulation fund. An amount equal  to  the
  value  of  such  units  as  of  such  date shall be transferred from the
  variable pension accumulation fund to the variable pension reserve  fund
  and  his  or her account in the variable pension accumulation fund shall
  thereupon be canceled.
    (3) Except as otherwise provided by paragraph four of subdivision f of
  section 13-581 of this chapter, if the choice of such a  participant  is
  fixed instalments, an amount equal to the value, as of the date on which
  his  or  her  retirement  allowance begins, of the number of units which
  would have been credited to him or her as of such date in  the  variable
  pension  accumulation  fund  if  his or her account therein had not been
  cancelled as provided for in paragraph two of this subdivision c,  shall

  be  transferred  from  the  variable pension reserve fund to the pension
  reserve fund number one and such amount  shall  be  applied  toward  the
  payment of a pension.
    (4) Except as otherwise provided by paragraph four of subdivision f of
  section  13-581  of this chapter, if the choice of such a participant is
  variable instalments, he  or  she  shall  be  paid  a  variable  pension
  computed  in  terms  of  units actuarially equivalent, as of the date on
  which his or her retirement allowance begins, to  the  number  of  units
  which  would  have  been  credited  to him or her as of such date in the
  variable pension accumulation fund if his or her account therein had not
  been cancelled as provided for in paragraph two of this subdivision.
    d. For the first month established by the retirement  board  for  this
  purpose  and  for  any  subsequent  months,  any  such  variable pension
  provided for in subdivision b or c of this  section  shall  be  paid  in
  dollars  according  to the value of a unit for the month payment is due,
  and for any month preceding such first month the variable pension  shall
  be  paid  in  dollars  according  to  the  value of a unit for the month
  preceding the month payment is due.
    e. On the death of a contributor receiving a variable pension, or,  if
  he  or  she  has elected Option II, III, or a joint and survivor form of
  IV, on the death of the last survivor of the contributor and the  person
  designated to receive payments upon his or her death, the account of the
  contributor  or  the  joint  account  of  the contributor and his or her
  designee, as the case may be, in the variable pension reserve fund shall
  be cancelled.
    f.  If  a  retired  contributor  receiving  a  variable   pension   is
  subsequently  restored  to  active  service, his or her variable pension
  shall cease, his or her account in the  variable  pension  reserve  fund
  shall  be  cancelled, an amount equal to the actuarial equivalent of the
  variable pension that was payable to him or  her  shall  be  transferred
  from   the  variable  pension  reserve  fund  to  the  variable  pension
  accumulation fund, and he or she shall be credited  in  such  fund  with
  units  having a value, as of the date of re-entry into service, equal to
  such amount. Deposits and transfers to the variable pension accumulation
  fund shall be resumed in accordance with the election in effect  at  the
  time of his or her retirement.
    g.  If a twenty-year pension plan retiree having a deferred payability
  date (as defined in subdivision forty of section 13-501 of this chapter)
  is restored to active service after the effective date  of  his  or  her
  retirement and before his or her retirement allowance begins:
    (1)  his  or her account in the variable pension reserve fund shall be
  canceled; and
    (2) an amount equal to the value,  as  of  the  date  of  his  or  her
  restoration  to  active  service, of the number of units in the variable
  pension reserve fund shall be  transferred  from  the  variable  pension
  reserve fund to the variable pension accumulation fund.
    h.  The  provisions of subdivision b of section 13-553 of this chapter
  applicable  to  a  pension-providing-for-increased-take-home-pay   shall
  apply also to a variable pension.
    i.  Except  as  provided  for  in  section  13-581  of this chapter, a
  transfer pursuant to this section between variable annuity  funds  shall
  be  from  an  A fund to an A fund or from a B fund to a B fund or within
  such additional variable annuity fund or funds which may be  established
  pursuant to subdivision c of section 13-567 of this chapter.