38-764 - Commencement of retirement; payment of retirement benefits; lump sum payments

38-764. Commencement of retirement; payment of retirement benefits; lump sum payments

A. Retirement is deemed to commence on a date elected by the member. That date shall not be earlier than the day following the date of termination of employment, the date ASRS receives the member's completed retirement application or the date specified by the member pursuant to subsection I or J of this section.

B. All retirement benefits:

1. Are normally payable in monthly installments beginning on the commencement of retirement as prescribed in subsection A of this section.

2. Continue to and include the first day of the month in which death occurs or continue until the date of their cessation in accordance with any optional method of payment that may have been elected.

C. Except as provided in subsection D of this section, at the request of a retired member, a retired member's guardian or a court appointed conservator, the board may pay any increase in retirement benefits or the entire retirement benefit in a lump sum payment based on the actuarial present value of the benefit or the increase in the benefit if the payment of the benefits would result in ineligibility, reduction or elimination of social service programs provided to the member by this state, its political subdivisions or the federal government.

D. The board may pay the entire retirement benefit in a lump sum pursuant to subsection C of this section only if continued membership in ASRS will result in additional requests for lump sum payments based on cost of living adjustments or the establishment of minimum benefit awards.

E. If any benefit that is payable as a series of periodic payments amounts to less than a threshold amount determined by the board, the board, in its sole discretion and based on uniform rules it establishes, may order the amount to be paid in a lump sum. A member who receives a lump sum payment pursuant to this subsection remains a member of ASRS and is eligible for the coverage provided pursuant to section 38-782 and the payment pursuant to section 38-783 but is not eligible for a benefit increase pursuant to section 38-767.

F. All distributions of retirement benefits to a member shall be distributed within the required distribution provisions of section 401(a)(9) of the internal revenue code and the regulations that are issued under that section by the United States secretary of the treasury as prescribed in section 38-775.

G. Notwithstanding subsection H of this section, a member may elect to cancel the effective date of retirement within thirty days of retirement or before the member's receipt of retirement benefits, whichever is later.

H. A member may elect to make changes to a retirement application before the member's retirement date. A member may exercise a onetime election to make changes to the retirement application within sixty days after the member's retirement date. The member may not change the member's retirement date, and any changes made to the retirement application are retroactive to the member's retirement date.

I. A member who attains a normal retirement date may retire at any time without terminating employment if the member is employed for less than the hours required for active membership pursuant to section 38-711, paragraph 23, subdivision (b). The employer shall pay the alternate contribution rate on behalf of the retired member pursuant to section 38-766.02. On or before the date of retirement under this subsection, a member who retires pursuant to this subsection and the member's employer shall notify ASRS in writing of the member's retirement without terminating employment.

J. Notwithstanding section 38-766, a member who is an elected official and who attains a normal retirement date may retire at any time without terminating the member's position as an elected official. A member who retires pursuant to this subsection is a retired member as of the date of retirement. The period of employment after retirement pursuant to this subsection is not eligible for purchase pursuant to section 38-743 or 38-744. A member who retires pursuant to this subsection is not eligible for long-term disability and does not earn service credit while retired. If the retired member is employed by an employer in a nonelected position for which the retired member is required to contribute under this article and article 2.1 of this chapter, the retired member shall terminate employment for all nonelected positions with an employer or reduce the retired member's hours worked in the nonelected position with all employers to less than the hours required for active membership pursuant to section 38-711, paragraph 23, subdivision (b). The employer of the elected official shall pay the alternate contribution rate on behalf of the retired member pursuant to section 38-766.02. On or before the date of retirement under this subsection, a member who retires pursuant to this subsection and the member's employer shall notify ASRS in writing of the member's retirement without terminating employment.