A. Straight life pension is form of payment A. The retired member is paid the pension for life under form of payment A. All payments stop upon the death of the retired member, except as provided by Subsection E of this section. The amount of pension is determined in accordance with the coverage plan applicable to the retired member.
B. Life payments with full continuation to one survivor beneficiary is form of payment B. The retired member is paid a reduced pension for life under form of payment B. When the retired member dies, the designated survivor beneficiary is paid the full amount of the reduced pension until death. Upon the association’s receipt of proof of death of the designated survivor beneficiary, the amount of pension shall be changed to the amount that would have been payable had the retired member elected form of payment A.
C. Life payment with one-half continuation to one survivor beneficiary is form of payment C. The retired member is paid a reduced pension for life under form of payment C. When the retired member dies, the designated survivor beneficiary is paid one-half the amount of the reduced pension until death. If the designated survivor beneficiary predeceases the retired member, the amount of pension shall be changed to the amount that would have been payable had the retired member elected form of payment A.
D. Life payments with temporary survivor benefits for children is form of payment D. The retired member is paid a reduced pension for life under form of payment D. When the retired member dies, each declared eligible child is paid a share of the reduced pension until death or age twenty-five years, whichever occurs first. The share is the share specified in writing and filed with the association by the retired member. If shares are not specified in writing and filed with the association, each declared eligible child is paid an equal share of the reduced pension. A redetermination of shares shall be made when the pension of any child terminates. An eligible child is a natural or adopted child of the retired member who is under age twenty-five years. A declared eligible child is an eligible child whose name has been declared in writing and filed with the association by the retired member at the time of election of form of payment D. The amount of pension shall be changed to the amount of pension that would have been payable had the retired member elected form of payment A upon there ceasing to be a declared eligible child during the lifetime of the retired member.
E. If all pension payments permanently terminate before there is paid an aggregate amount equal to the retired member’s accumulated member contributions at the time of retirement, the difference between the amount of accumulated member contributions and the aggregate amount of pension paid shall be paid to the retired member’s refund beneficiary. If no refund beneficiary survives the retired member, the difference shall be paid to the estate of the retired member.
HISTORY:
Laws 1987, ch. 253, § 117; 1992, ch. 116, § 7; 1997, ch. 189, § 7.
OPINIONS OF ATTORNEY GENERAL
Analysis
Generally.
A retiree could not change his retirement option, under former 10-11-26 NMSA 1978, from option two, which provides for a refund of member contributions where a retiree dies before receiving annuity payments that equal his contributions, to option three, which provides for a survivor annuity in the same amount as the retiree’s annuity, where there was no evidence that he was suffering from “psychosis” when he selected his option or that his use of alcohol rendered him “incompetent” to select an option; his selection of option two, instead of a survivor annuity option, was not necessarily unreasonable, since he was young when he retired; PERA determined initially whether the annuitant could do the same work that he was doing when he was injured and upon reexamination, PERA often suspends disability benefits, so that disability benefits, therefore, were not assured for any period beyond one year, and his choice of the maximum benefit was reasonable; and finally, by operation of law, he would have retired under option two had he been incompetent to make a choice. 1988 N.M. Op. Att'y Gen. No. 88-27, 1988 N.M. AG LEXIS 25.
Applicability.
A highway department employee who severed his employment relationship on or about March 27, 1987, and who, on or about October 8, 1987, in a workmen’s compensation suit, was adjudged 60% permanently partially disabled beginning March 27, 1987, arising out of an injury that occurred on September 21, 1984, did not qualify for the 21/2% benefit formula under state general member coverage plan 2, which became applicable to state general members after September 30, 1987. His benefits were based on state general member coverage plan 1, the 2% benefit formula. 1988 N.M. Op. Att'y Gen. No. 88-15, 1988 N.M. AG LEXIS 18.
Research References and Practice Aids
Cross references.
Definitions, 10-11-2 NMSA 1978.
Election of form of payment of a pension, 10-11-116 NMSA 1978.