| (a) A member who is eligible for an unreduced cash
balance annuity may select a standard cash balance annuity or an optional
cash balance annuity under §76.6 of this chapter, together with
a partial lump-sum distribution.
(b) The amount of the lump-sum distribution under this
section may not exceed the sum of 36 months of a standard cash balance
annuity computed without regard to this section.
(c) The cash balance annuity selected by the member
shall be actuarially reduced to reflect the lump-sum option selected
by the member and shall be actuarially equivalent to a standard or
optional cash balance annuity, as applicable, without the partial
lump-sum distribution. The annuity and lump sum shall be computed
to result in no actuarial loss to the system.
(d) The lump-sum distribution shall be made as a single
payment payable at the time that the first monthly annuity payment
is paid.
(e) The amount of the lump-sum distribution shall be
deducted from any amount otherwise payable under §76.11 of this
chapter.
(f) The partial lump-sum option under this section
may be elected only once by a member and may not be elected by a retiree.
A member retiring under the proportionate retirement program under
Tex. Gov't Code Chapter 803 is not eligible for the partial lump-sum
option.
(g) Before a retiring member receives a partial lump-sum
distribution under this section, the system shall provide written
notice to the member of the amount by which the member's annuity will
be reduced because of the selection, and the member must acknowledge
receipt of the notice in writing.
(h) This section does not apply to a disability retirement
annuity.
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