Section 390. Options

a. A member; or if he is an incompetent, his spouse or
  the  committee of his property; or if he is a conservatee, his spouse or
  the conservator of his property, may elect  to  receive  a  Single  Life
  Allowance  (a  retirement allowance without optional modification) or to
  receive the actuarial equivalent of his retirement allowance at the time
  of his retirement, in the form of a smaller retirement allowance payable
  to him for life and one of the following optional settlements.
    Cash Refund-Contributions (Option One-half). If he dies before he  has
  received  annuity payments equal to the present value of his annuity, as
  it was at the time of his retirement, the balance thereof shall be  paid
  to  his  estate  or  to  a  beneficiary  designated  as provided in this
  section. In the event a designated beneficiary does not survive him, any
  balance shall be payable to the estate of the deceased retired member or
  as provided in section one thousand three hundred ten of the surrogate's
  court procedure act.
    The beneficiary so designated may elect by written  designation,  duly
  executed  and filed with the comptroller, to receive the balance payable
  in the form of an annuity, the amount of which shall  be  determined  as
  the  actuarial  equivalent  of  such  balance  on  the  basis of regular
  interest and the age of such beneficiary at the time  of  the  retiree's
  death,  or  in  the  alternative, to receive the actuarial equivalent of
  such balance in the form of a reduced annuity payable for life, with the
  further proviso that if  he  should  die  before  the  annuity  payments
  received  by  him  are  equal  to such actuarial equivalent, the balance
  thereof shall be paid in a lump sum to his estate or to such  person  as
  he  shall  have  designated to receive same. In either case the election
  shall be within  ninety  days  after  the  death  of  the  retiree.  The
  designation  of  the  individual  who is to receive such lump sum on the
  death of the beneficiary, may be changed by the beneficiary at any time.
  Such election, designation or change shall be made by  a  writing,  duly
  executed  and  filed  with  the  comptroller.  In the event a designated
  beneficiary has elected to receive a balance payable in the  form  of  a
  reduced  annuity, and the person designated by him to receive a lump sum
  payment does not survive him, such lump sum, if any, shall be payable to
  the estate of the designated beneficiary or as provided in  section  one
  thousand three hundred ten of the surrogate's court procedure act.
    Cash  Refund-Initial  Value  (Option  One).  If  he dies before he has
  received retirement allowance payments equal to the present value of his
  retirement allowance, as it was at  the  time  of  his  retirement,  the
  balance  thereof  shall  be  paid to his estate or to the beneficiary so
  designated. In the event a designated beneficiary does not survive  him,
  any  balance  shall  be  payable  to  the estate of the deceased retired
  member or as provided in section one thousand three hundred ten  of  the
  surrogate's court procedure act. The beneficiary so designated may elect
  by written designation, duly executed and filed with the comptroller, to
  receive  the  balance  payable  in the form of an annuity, the amount of
  which shall be determined as the actuarial equivalent of such balance on
  the basis of regular interest and the age of  such  beneficiary  at  the
  time  of  the  retiree's  death,  or  in the alternative, to receive the
  actuarial equivalent of such balance in the form of  a  reduced  annuity
  payable  for life, with the further proviso that if he should die before
  the annuity payments  received  by  him  are  equal  to  such  actuarial
  equivalent,  the  balance  thereof  shall  be  paid in a lump sum to his
  estate or to such person as he shall have designated to receive same. In
  either case the election shall be within ninety days after the death  of
  the  retiree.  The  designation of the individual who is to receive such
  lump sum on the  death  of  the  beneficiary,  may  be  changed  by  the
  beneficiary  at  any time. Such election, designation or change shall be

  made by a writing, duly executed and filed with the comptroller. In  the
  event  a designated beneficiary has elected to receive a balance payable
  in the form of a reduced annuity, and the person designated  by  him  to
  receive  a lump sum payment does not survive him, such lump sum, if any,
  shall be payable to the estate  of  the  designated  beneficiary  or  as
  provided  in  section  one thousand three hundred ten of the surrogate's
  court procedure act.
    Joint Allowance-Full  (Option  Two).  Upon  his  death,  a  retirement
  allowance in an amount equal to that paid to him, shall be paid for life
  to the beneficiary so designated.
    Joint  Allowance-Half  (Option  Three).  Upon  his death, a retirement
  allowance of one-half the amount paid to him shall be paid for  life  to
  the beneficiary so designated.
    Actuarial  Equivalent  Allowance  (Option  Four).  Such other optional
  benefit or benefits as the comptroller shall approve and which shall  be
  the  actuarial equivalent of his retirement allowance at the time of his
  retirement.
    aa. In the event that the monthly retirement allowance  payable  to  a
  member  or  a beneficiary shall amount to less than twenty-five dollars,
  then and in such event, the member or beneficiary may elect, in lieu  of
  such  monthly  retirement allowance, to receive the actuarial equivalent
  thereof in a lump sum.
    b. All elections under this section shall be made on  blanks  prepared
  by  the  comptroller  for that purpose. Any such election may be made at
  any time before the first payment on  account  of  any  benefit  becomes
  normally  due,  except  that  in  the  case  of retirement on account of
  disability, such an election  may  be  made  within  thirty  days  after
  mailing  by the comptroller of notification of approval of retirement on
  account of disability.
    An optional election shall not become effective  if  the  member  dies
  before  the  effective  date  of his retirement. Provided, however, if a
  member who is otherwise eligible for disability retirement  pursuant  to
  this  chapter  dies after the filing in the office of the comptroller of
  the application for disability retirement and a  valid  option  election
  form pursuant to this chapter and it is established that the physical or
  mental  impairment  or incapacitation of the applicant specified in such
  application was directly related to the cause of the applicant's  death,
  such  application shall be approved by the comptroller effective one day
  before the date of the applicant's death. An election of an  option  may
  be withdrawn or a new option may be chosen within the period provided in
  this  subdivision  b  for  the  making  of  such  an election. Except as
  provided in subdivision b of  section  three  hundred  seventy  of  this
  article,   where   an  optional  election  does  not  become  effective,
  retirement shall be without option.
    bb. 1. Notwithstanding any other  provision  of  this  section  or  of
  section  three  hundred  seventy  of  this article, the comptroller, for
  reasonable cause, shall have power, to extend the time for the  election
  of  an option, for a period or periods which shall expire not later than
  sixty  days  immediately  after  the  effective  date  of   a   member's
  retirement.
    2.  Notwithstanding  any  other  provision of this section, but except
  where payment of accumulated contributions, an ordinary  death  benefit,
  or  both, is or are required pursuant to subdivision dd of section three
  hundred fifty-one of this article or subdivision  aa  of  section  three
  hundred  sixty  of  this  article,  retirement  shall be on the basis of
  "Option One-half" unless the member files an effective election pursuant
  to this section to retire on a different basis. The provisions  of  this

  paragraph  two  shall  apply  to  cases  where  retirement  shall become
  effective on or after April first, nineteen hundred sixty-seven.
    c.  A member, or person authorized by this section to make an election
  in his behalf, may designate his beneficiary under any  of  the  options
  herein provided. Each such designation shall be:
    1.  Made  in  writing  on a blank provided by the comptroller for such
  purposes, and
    2. Ineffective until it is filed in the comptroller's office, and
    3. Revocable to the extent that:
    (a) A new  beneficiary  under  a  "Cash  Refund-Contributions"  option
  (Option  One-half), or a "Cash Refund-Initial Value" option (Option One)
  may be designated at any time during the member's life.
    (b) A new beneficiary under any other option may be designated at  any
  time  within  the period provided for the making of an election pursuant
  to this section.
    d. In the event of the death of a retired member, the  installment  of
  his  retirement  allowance, which would have become due and payable next
  following his death, shall be pro-rated as of the date of his death. The
  amount of such installment, as so pro-rated, shall be paid as follows:
    1. If the member shall have:
    (a) Elected to receive an optional benefit pursuant to  this  section,
  and
    (b)  Designated  a  beneficiary  pursuant to this section, such amount
  shall be paid to such beneficiary, if such beneficiary survives him.  In
  any  other case such amount shall be paid to the retired member's estate
  or pursuant to section one thousand three hundred ten of the surrogate's
  court procedure act.
    2. If the member  shall  not  have  elected  to  receive  an  optional
  benefit,  such amount shall be paid to the beneficiary designated by him
  pursuant to subdivision d of section three  hundred  fifty-one  of  this
  article.  In the event the appropriately designated beneficiary does not
  survive  such  member,  or  if  he  shall  not  have  so  designated   a
  beneficiary, such amount shall be payable to the retired member's estate
  or pursuant to section one thousand three hundred ten of the surrogate's
  court procedure act.
    e.  Notwithstanding  any  other  provision  of this article, an option
  selection previously filed by a member or retired member subject to  the
  provisions  of  this  section  may  be changed no later than thirty days
  following the date of payability of his or her retirement  allowance.  A
  retired  member who has been retired for disability may change an option
  selection previously filed no later than (1) thirty days  following  the
  date  on  which  such member's application for disability retirement was
  approved by the retirement board or (2) thirty days following  the  date
  on which such retiree was retired for disability, whichever is later.