Section 13-581. Convertible instalments

a. (1) At the time and in the manner
  prescribed by subdivision e of this section:
    (i) a retired member who retired on or after September first, nineteen
  hundred   sixty-seven,   and   before  August  first,  nineteen  hundred
  sixty-eight; or
    (ii) any other member; or
    (iii) the designated beneficiary of a member who dies on or after June
  twenty-second, nineteen hundred sixty-eight; or
    (iv) a retired  member  who  retired  on  or  after  September  first,
  nineteen  hundred  sixty-seven  and who continues to hold retired member
  status on or after July first, nineteen hundred seventy-five; may elect,
  in accordance with this  section,  to  convert  a  portion,  hereinafter
  referred to as the "convertible amount", of his or her fixed instalments
  to  a variable basis over a period of months, hereinafter referred to as
  the "conversion period".
    (2) In the event such election is made, each instalment  payable  with
  respect to such convertible amount after the beginning of the conversion
  period shall be referred to as a "convertible instalment".
    (3)  (i)  During each month of such conversion period each convertible
  instalment shall be the sum of a fixed portion and a variable portion.
    (ii) The amount of such fixed portion payable in the  first  month  of
  the  conversion  period  shall  be the convertible amount reduced by the
  amount to be converted each month, which is determined by  dividing  the
  convertible amount by the number of months in the conversion period.
    (iii)  Subject to the provisions of subparagraphs (iv) and (v) of this
  paragraph three, the amount of such fixed portion payable  in  any  such
  month  after  the  first  shall  be the previous month's amount thereof,
  reduced by the amount converted each month. The amount, in units, of the
  variable portion in any such month will be equal to the number of  units
  in the previous month's variable portion, if any, plus the quotient of
    (A)  the  amount of the fixed instalments converted each month and (B)
  the current month's unit value.
    (iv) In any case where,  pursuant  to  any  provision  of  law  and/or
  resolution  of  the  retirement  board  adopted  thereunder, the rate of
  regular interest and/or mortality tables, which were required to be used
  in the actuarial determination of such fixed  benefit  being  converted,
  are  different from the rate of regular interest and/or mortality tables
  which would have been required to be used to determine a  like  variable
  benefit as of the same date (hereinafter referred to as the "calculation
  date")  as  of which such fixed benefit was required to be determined as
  an actuarial equivalent, the composition of the variable portion of each
  convertible instalment for each month of the conversion period shall  be
  determined  in  the  manner  prescribed  in  subparagraph  (v)  of  this
  paragraph.
    (v) The amount, in  units,  of  the  variable  portion  for  any  such
  conversion  month  to  which subparagraph (iv) of this paragraph applies
  will be equal to the number of units in the  previous  month's  variable
  portion,  if  any,  plus  a  number  of  units  which  is  the actuarial
  equivalent, as of the calculation date, of the fixed  portion  converted
  each month. Such actuarial equivalent units for each such month shall be
  determined  on the basis of the unit value for such month, in accordance
  with a scientific formula which recognizes the difference in  the  rates
  of  regular interest and/or mortality tables referred to in subparagraph
  (iv) of this paragraph.
    (4) After the  conversion  period,  the  amount  of  each  convertible
  instalment,  in  units,  will  be  equal to the number at the end of the
  conversion period.

    b. (1) At the time and in the manner prescribed by  subdivision  e  of
  this section:
    (i) a contributor; or
    (ii)  the  designated  beneficiary  of  a  member  who dies after June
  twenty-second, nineteen hundred sixty-eight; or
    (iii) a retired member  who  retired  on  or  after  September  first,
  nineteen  hundred  sixty-seven  and who continues to hold retired member
  status on or after July first, nineteen hundred seventy-five; may elect,
  in accordance with this  section,  to  convert  a  portion,  hereinafter
  referred  to  as  the  "convertible  amount",  of  his  or  her variable
  instalments to a fixed  basis  over  a  period  of  months,  hereinafter
  referred to as the "conversion period".
    (2)  In  the  event  of  such  election,  each instalment payable with
  respect to such convertible amount after the beginning of the conversion
  period shall be referred to as a "convertible instalment".
    (3) (i) During each month of such conversion period  each  convertible
  instalment shall be the sum of a variable portion and a fixed portion.
    (ii) The amount in units of such variable portion payable in the first
  month  of  the  conversion  period  shall  be the number of units in the
  convertible amount reduced by the number of units to be  converted  each
  month,  which  is  determined  by  dividing  the  number of units in the
  convertible amount by the number of months in the conversion period. The
  amount, in units, of such variable portion payable  in  any  such  month
  after the first shall be the previous month's amount thereof, reduced by
  the number of units converted each month.
    (iii)  Subject to the provisions of subparagraphs (iv) and (v) of this
  paragraph three, the amount of the fixed portion in any such month  will
  be equal to the previous month's fixed portion, if any, plus the product
  of  (A)  the  number  of  units converted each month and (B) the current
  month's unit value.
    (iv) In any case where, pursuant to any provision of  law  and/or  any
  resolution  of  the  retirement  board  adopted  thereunder, the rate of
  regular interest and/or mortality tables, which were required to be used
  in the actuarial determination of such variable benefit being converted,
  are different from the rate of regular interest and/or mortality  tables
  which  would  have  been  required  to be used to determine a like fixed
  benefit as of the same date (hereinafter referred to as the "calculation
  date") as of which such variable benefit was required to  be  determined
  as an actuarial equivalent, the composition of the fixed portion of each
  convertible  instalment for each month of the conversion period shall be
  determined  in  the  manner  prescribed  in  subparagraph  (v)  of  this
  paragraph.
    (v)  The  amount of the fixed portion for any such conversion month to
  which subparagraph (iv) of this paragraph applies will be equal  to  the
  previous month's fixed portion, if any, plus a fixed amount which is the
  actuarial equivalent, as of the calculation date, of the number of units
  converted  each  month.  Such actuarial equivalent fixed amount for each
  month shall be determined on the basis of the unit value for such month,
  in accordance with scientific formula which recognizes the difference in
  the rates of regular interest and/or mortality  tables  referred  to  in
  subparagraph (iv) of this paragraph.
    (4) After the conversion period, the dollar amount of each convertible
  instalment  will  be  equal  to  the amount at the end of the conversion
  period.
    c. The total dollar amount of the convertible instalment for any month
  shall be the fixed portion, if any, plus the product of (1)  the  number
  of units in the variable portion, if any, and (2) the unit value for the
  same month.

    d.  For each conversion made as set forth in subdivision a or b above,
  the actuarial equivalent value of the  instalments  converted  shall  be
  transferred  between  the appropriate reserve funds for the variable and
  fixed instalments.
    e.  (1)  An  election of convertible instalments shall not take effect
  unless written notice thereof is duly filed with  the  retirement  board
  before  the  applicable  date  or within the applicable period set forth
  below: (i) In the case of instalments payable to a  retired  member  who
  retired  on  or  after September first, nineteen hundred sixty-seven and
  before August first, nineteen hundred sixty-eight: the  applicable  date
  shall be September first, nineteen hundred sixty-eight; and
    (ii)  In  the case of instalments payable to any other member electing
  to convert under subdivision a or b of this section, other than a member
  described in subparagraph (iii) of this paragraph  one:  the  applicable
  period  shall  begin  on  the  date of the filing of the application for
  retirement and shall end on the date next preceding the  date  on  which
  the retirement allowance begins; and
    (iii)  In  the  case  of  an  applicant for retirement with a deferred
  payability date (as defined in subdivision thirty-nine of section 13-501
  of this chapter): the applicable period shall begin on the date  of  the
  filing of his or her application for retirement and end on the date next
  preceding  the  date  on  which  his or her retirement allowance begins;
  provided, however, that any such applicant may, at any time after he  or
  she  files  such  notice  of  election  and before his or her retirement
  allowance begins, change such election pursuant to rules and regulations
  established by the retirement board; and
    (iv) In the case of instalments payable to the designated  beneficiary
  of  a  member  who  dies  after  June  twenty-second,  nineteen  hundred
  sixty-eight: the applicable date shall be that on which the  first  such
  instalment is paid; and
    (v)  In the case of a retired member who retired on or after September
  first, nineteen hundred sixty-seven, the applicable date shall  be  such
  date  as  determined  by  rules  and  regulations  duly  adopted  by the
  retirement board.
    (2) In each case the applicable conversion period  shall  commence  on
  the  first  day of the month coinciding with or otherwise next following
  (i) the applicable date or (ii) the date next following the end  of  the
  applicable period.
    f.  (1)  An  election  to  convert a portion of fixed instalments to a
  variable basis made by a member or retired member pursuant to  paragraph
  one  of subdivision a of this section shall be subject to the applicable
  terms and conditions set forth in paragraphs two,  three,  and  four  of
  this subdivision f.
    (2)  If  such  member  is  not  a  participant in the variable annuity
  program on the date when he or she makes  such  election,  the  election
  shall  provide  that  such  portion  as the retirement board may by duly
  adopted rules and regulations permit of both his or her annuity and  his
  or   her   pension-providing-for-increased-take-home-pay   shall   be  a
  convertible amount, to be converted to a variable basis. The convertible
  instalments pursuant to such election shall be paid from the A funds  or
  the  B  funds,  or  from  such additional variable annuity fund or funds
  which may be established pursuant to subdivision c of section 13-567  of
  this chapter.
    (3) If such member is a participant in the variable annuity program on
  the date when he or she makes such election:
    (i)  the  election,  subject to the provisions of subparagraph (ii) of
  this paragraph three, shall provide that such portion as the  retirement
  board  may  by  duly  adopted  rules and regulations permit of the fixed

  instalments  of   both   his   or   her   annuity   and   his   or   her
  pension-providing-for-increased-take-home-pay  shall  be  a  convertible
  amount, to be converted to a variable basis; or
    (ii)  if a transfer of his or her accumulated deductions and of his or
  her reserve-for-increased-take-home-pay from a fixed basis to a variable
  basis pursuant to subdivision b of section 13-568 of this chapter is  in
  process  on the date when such member makes his or her election, then in
  lieu of electing the convertible amount specified in subparagraph (i) of
  this paragraph three, he or she may elect that the part of  his  or  her
  fixed  instalments  provided  by  such portion of his or her accumulated
  deductions and of his or her  reserve-for-increased-take-home-pay  whose
  transfer  has  not  yet  been  completed  be a convertible amount, to be
  converted to a variable basis.
    The convertible instalments pursuant to such election  shall  be  paid
  from  the  A  funds  or  the  B  funds, or from such additional variable
  annuity fund or funds which may be established pursuant to subdivision c
  of section 13-567 of this chapter. If he or she chooses funds other than
  those in which he or she is a participant, the units credited to him  or
  her  in  such  other  funds  shall  be  cancelled.  Such member shall be
  credited in the corresponding funds of his  or  her  choice  with  units
  equal  in  value to the value of the cancelled units and an amount equal
  to the value of such units shall be transferred accordingly.
    (4) For the purposes of this subdivision,  the  election  referred  to
  herein  shall  be  deemed  to  mean,  in  the  case  of an applicant for
  retirement with a deferred payability date (as  defined  in  subdivision
  thirty-nine  of section 13-501 of this chapter), the election to convert
  accumulated deductions  previously  transferred  to  the  reserve  funds
  pursuant  to  sections 13-574 and 13-575 of this chapter. Such elections
  shall permit transfers between the annuity reserve fund and the variable
  annuity reserve fund and  between  the  pension  reserve  fund  and  the
  variable  pension  reserve  fund in such a manner as prescribed by rules
  and  regulations  to  be  established  by  the  retirement  board.  Such
  elections  shall be during such applicable period of time as provided by
  subparagraph (iii) of paragraph 1  of  subdivision  e  of  this  section
  13-581.
    g.  A contributor may elect that, if a transfer of funds to a variable
  basis pursuant to subdivision b of section 13-568 of this chapter is  in
  process  on  the  date of his or her death, (1) the amount of such funds
  then not yet transferred should be applied to provide fixed  instalments
  for a designated beneficiary pursuant to subdivision c of section 13-543
  of this chapter, and (2) such fixed instalments be a convertible amount,
  to  be  converted  to  a  variable  basis.  The  convertible instalments
  pursuant to such election shall be paid from the A funds or the B funds,
  or from such additional variable annuity fund  or  funds  which  may  be
  established pursuant to subdivision c of section 13-567 of this chapter,
  according to the election pursuant to subdivision b of section 13-568 of
  this chapter.
    In  the  event  of  the  death of a contributor for whom a transfer of
  funds to a variable basis pursuant to subdivision b of section 13-568 of
  this chapter was in process on the date of his or  her  death,  and  who
  made  no  election  under  the  provisions  of this subdivision, but who
  either elected instalments for  a  designated  beneficiary  pursuant  to
  subdivision  c of section 13-543 of this chapter, or did not prevent the
  election by his or her designated beneficiary of instalments pursuant to
  subdivision d of section 13-543 of this chapter,  then  such  designated
  beneficiary  may  elect  to receive the amount payable upon the death of
  the contributor paid in the same manner as if the contributor  had  made
  the election under the provisions of this section.

    h.  If  a conversion of fixed instalments to a variable basis pursuant
  to subdivision f of this section is in process for a retired  member  on
  the  date  he  or  she dies, and if such member or his or her designated
  beneficiary has elected that the death benefit provided with respect  to
  the   instalments   not  yet  converted  be  applied  to  provide  fixed
  instalments for such designated beneficiary pursuant to  section  13-558
  of  this chapter, then such member or designated beneficiary making such
  election may also elect that such fixed instalments  provided  for  such
  designated beneficiary be a new convertible amount, to be converted to a
  variable basis.
    i.  The  length  of  the  conversion  period  for  conversion of fixed
  instalments to a variable basis shall be determined  pursuant  to  rules
  and regulations adopted by the retirement board.
    j.  If  a  member  or  a  retired  member  or a designated beneficiary
  commences to receive variable instalments pursuant to subdivision  a  of
  section 13-574, subdivision a of section 13-575, item 2 of subdivision a
  of  section  13-576,  item 2 of subdivision d of section 13-576, or this
  section 13-581  of  this  chapter,  the  member  or  retired  member  or
  designated  beneficiary to whom the variable instalments are payable may
  elect, at the time  such  instalments  become  payable,  or  before  the
  applicable date or within the applicable period set forth in subdivision
  e  of this section 13-581 of this chapter that such variable instalments
  be a convertible amount, to be converted to a fixed basis. The length of
  the conversion period for conversion of such variable instalments  to  a
  fixed  basis  shall  be  determined  pursuant  to  rules and regulations
  adopted by the retirement board.
    k. Any option elected pursuant to subdivision c or d of section 13-543
  of this chapter or pursuant to section  13-558  of  this  chapter  shall
  apply to the convertible instalments arising from the convertible amount
  affected  by  the option. If Option I or Ib has been elected pursuant to
  section 13-558 of this chapter, or if Option B has been elected pursuant
  to section 13-543 of this chapter, the death benefit applicable  thereto
  in  any  month  shall  be the same multiple of the instalment payable in
  such month as would have been applicable if no  convertible  instalments
  had been elected.
    l.  If  a  member  or  a  retired  member  or a designated beneficiary
  commences to receive variable instalments pursuant to subdivision  a  of
  section  13-574,  subdivision  a  of  section  13-575,  paragraph two of
  subdivision a of section 13-576,  paragraph  two  of  subdivision  d  of
  section  13-576  of this chapter, or this section, the member or retired
  member or designated beneficiary to whom the  variable  instalments  are
  payable  may  elect,  at  the  time  such instalments become payable, or
  before the applicable date or within the applicable period set forth  in
  subdivision  e  of  this  section  that  such  variable instalments be a
  convertible amount, to be  converted  to  a  variable  basis,  with  the
  variable  instalments payable from the funds other than those from which
  the converted variable instalments  were  payable.  The  length  of  the
  conversion  period  for  such conversion shall be determined pursuant to
  rules and regulations adopted by the retirement board.