§ 9-1. Form and commencement of payment.

(a) In general.

(1) On a distributable event under § 9-2 {"Distributable events – Retirement"}, § 9-3 {"Distributable events – Disability"}, or § 9-5 {"Distributable events – Other termination of employment"} of this subtitle, a member may elect to have his or her vested account distributed under 1 of the options described in subsection (b) of this section.

(2) The election shall be made by written notice filed with the Board.

(3) Subject to § 9-8 {"Minimum distribution rules"}of this subtitle, distribution of a member's vested account balance shall be paid (in the case of a lump-sum cash payment under subsection (b)(1) of this section) or commence (in the case of installment payments or an annuity contract under subsections (b)(2) or (3) of this section) as soon as administratively practicable after receipt of the written notice required by paragraph (2) of this subsection.

(b) Options.

Distributions will be made in any 1 of the following forms, as elected by the member:

(1) a lump-sum cash payment.

(2)(i) Periodic installment payments (monthly, quarterly, or annually) over a fixed period of years, as elected by the member.

(ii) Subject to § 9-8 {"Minimum distribution rules"} of this subtitle, the amount payable each year under this option is:

(A) the balance of the member's vested account at the end of the preceding year, multiplied by

(B) a fraction, the numerator of which is 1 and the denominator of which is the number of years remaining in the installment payment period.

(3) Purchase of a single-premium, nontransferable, immediate or deferred annuity contract that provides one of the following payment options:

(i) a single-life annuity under which:

(A) the member will receive equal monthly payments during his or her lifetime; and

(B) no further benefits will be paid after the member's death;

(ii) a joint and survivor annuity under which:

(A) the member will receive equal monthly payments during his or her lifetime; and

(B) on the member's death, monthly payments will be made to the member's designated beneficiary during the beneficiary's lifetime, if the beneficiary survived the member; or

(iii) a guaranteed annuity under which:

(A) the member will receive equal monthly payments during his or her lifetime; and

(B) on the member's death:

1. if the member dies before receiving monthly payments for a guaranteed period of 5, 10, or 15 years, as elected by the member, the member's designated beneficiary will continue to receive monthly payments for the remainder of the guaranteed period; and

2. if the member dies after receiving monthly payments for at least the guaranteed period, no further benefits will be paid after the member's death.