(a) Prior to January 2, 2001, in the event of death of an employee prior to the receipt by such employee of any of the benefits under the provisions of this article, then the total amount of contributions by said employee to the fund, up to the time of his death, shall be paid to the beneficiary of the deceased employee, together with interest thereon at the rate of three per cent (3%) per annum to January 1, 1977, and five per cent (5%) thereafter, computed in the manner provided in section 18-117, unless the employee has reached normal retirement age and the retirement annuity option provided in section 18-118 has been elected by the employee, in which case pension payments will be made as though the employee had retired on the date before he died.
(b) On or after January 2, 2001, in the event of the death of an employee prior to the receipt by such employee of any of the benefits under the provisions of this article, then the beneficiary of the deceased employee who was not vested, may receive the total amount of contributions by said employee to the fund, up to the time of his or her death, together with the interest thereon at the rate of five percent (5%) per annum thereafter, computed in the manner provided in section 18-117. The beneficiary of an employee who became vested prior to their death may receive the pension benefit earned by the employee as though the employee had retired on the date before (s)he died, payable either as an immediate lump sum payment or as a monthly survivor benefit for the remainder of the survivor's life.
(1) The immediate lump sum payment is equal to the greater of the employee's contributions, together with the interest thereon at the rate of five percent (5%) per annum, or the lump sum value of the actuarial calculation of the employees' accrued pension payable at the earliest date the employee could have retired.
(2) The monthly survivor benefit would be the actuarial calculation of the employee's accrued pension starting at the earliest date the member could have retired. If the beneficiary's age is more than fifteen (15) years less than the employee's age at the time of death, then the monthly benefit will be reduced as though the beneficiary was fifteen (15) years younger than the employee. The monthly survivor benefit is payable at the earliest date the employee could have retired.
(3) If the earliest date that the employee could have retired is before the normal retirement date, then the accrued death benefit will be subject to the early retirement penalty of three percent (3%) for each year prior to what would have been the employee's normal retirement date.
(4) If the beneficiary selects to receive the monthly survivor benefit but predeceases the date such payments commence, the employee's estate shall receive a refund of the employee's estate shall receive a refund of the employee's contributions, together with the interest thereon at the rate of five percent (5%) per annum.
