§ 513. Optional allowances. 1. With the exception that no election of
an optional benefit shall become effective in case a member dies within
thirty days after the filing of an application for a retirement
allowance, until the first payment on account of any benefit becomes
normally due, any member, at the time of his retirement, may elect to
receive his benefits in a retirement allowance payable throughout life
or he may on retirement elect to receive the actuarial equivalent at
that time of his retirement allowance in a lesser retirement allowance,
payable throughout life with the provision that:

Option 1. If he die before he has received in payments the present
value of his retirement allowance as it was at the time of his
retirement, the balance shall be paid to his legal representatives or to
such person as he shall nominate by written designation duly
acknowledged and filed with the retirement board.

Option 2. Upon his death, his retirement allowance shall be continued
through the life of and paid to such person as he shall nominate by
written designation duly acknowledged and filed with the retirement
board at the time of his retirement.

Option 3. Upon his death, one-half of his retirement allowance shall
be continued throughout the life of and paid to such person as he shall
nominate by written designation duly acknowledged and filed with the
retirement board at the time of his retirement.

Option 4. Some other benefit or benefits shall be paid either to the
member or to such person or persons as he shall nominate, provided such
other benefit or benefits, together with the lesser retirement
allowance, shall be certified by the actuary to be of equivalent
actuarial value to his retirement allowance and shall be approved by the
retirement board.

2. If any retired member who has not elected an optional benefit, or
who has elected a benefit under Option 4 providing for the payment at
death of the amount, if any, by which his accumulated contributions at
the time of his retirement exceed the aggregate amount of his annuity
payments, dies within thirty days after the date his retirement becomes
effective, notwithstanding any other provisions of this law to the
contrary, benefits shall be paid in accordance with subdivision (b) or
(c) of section five hundred twelve, except that the amount of his
accumulated contributions payable under paragraph (1) of said
subdivision (b) shall be reduced by any annuity payments received by him
prior to his death and the benefit payable under paragraph (2) of said
subdivision (b) shall be reduced by any pension payments received by him
prior to his death. The amounts payable shall be paid to the beneficiary
or beneficiaries entitled thereto as provided under section five hundred
twelve, except that if the member has elected Option 4, as provided
above, the beneficiary nominated under such Option 4 shall be
substituted for any beneficiary previously nominated and all amounts
payable shall be paid to the beneficiary nominated under such Option 4.

3. In the case of persons who last became members on or after July
first, nineteen hundred seventy-three, the provisions of subdivision two
of this section shall apply only to deaths occurring after the date on
which said subdivision two becomes operative and prior to July first,
nineteen hundred seventy-four.

4. a. The retirement board may adopt rules and regulations providing
that a trustee of an inter vivos or testamentary trust shall be (1)
eligible to be nominated to receive a lump sum benefit under option one
and (2) eligible to be nominated to receive any benefit under option
four which the retirement board shall deem appropriate.

b. Any proceeds received by a trustee under this section shall not be
subject to the debts of the member or to transfer or estate taxes to any
greater extent than if such proceeds were payable to the beneficiaries
named in the trust and not to the estate of the member.

c. A payment made in good faith under this section to either a
designated trustee of an inter vivos trust, a successor trustee of an
inter vivos trust who provides a copy of his appointment or a trustee or
successor trustee of a testamentary trust who provides a copy of the
letters of trusteeship shall be a complete discharge to the system to
the extent of the payment.

d. If no qualified trustee claims the proceeds within eighteen months
after the death of the retired member, or if satisfactory evidence is
furnished within such period showing that there is or will be no trustee
to receive the proceeds, payment shall be made to the deceased retired
member's estate.