e. Option five. Partial lump sum distribution option. A member who is eligible for an unreduced service retirement annuity under section 15-39.1-10 and who retires after July 31, 2003, may make a one-time election to receive a portion of the retirement annuity paid in a lump sum distribution upon retirement, pursuant to rules adopted by the board.
(1) The eligible member may select a standard service retirement annuity or an optional service retirement annuity described in this subsection, together with a partial lump sum distribution. This option is not available to disabled members or beneficiaries of deceased members. The partial lump sum distribution option may be elected only once by a member and may not be elected by a retiree.(2) The amount of the partial lump sum distribution under this subdivision is twelve months of a standard service retirement annuity computed under section 15-39.1-10 and payable at the same time the first monthly payment of the annuity is paid.(3) The service retirement annuity selected by the member must be actuarially reduced to reflect the partial lump sum distribution option selected by the member.(4) Before a retiring member selects a partial lump sum distribution under this subdivision, the fund shall provide a written notice to the member of the amount by which the member's annuity will be reduced because of the selection.