Section 10-11-116 - Election of form of payment of a pension. - New Mexico Statutes

10-11-116. Election of form of payment of a pension.

A.     Except as otherwise provided in Section  10-11-136 NMSA 1978, a member may elect to have pension payments made under any one of the forms of payment provided in Section 10-11-117 NMSA 1978.  The election of form of payment and naming of survivor pension beneficiary shall be made on a form furnished by and filed with the association prior to the date the first pension payment is made.  An election of form of payment may not be changed after the date the first pension payment is made.  If the member is married, the association shall obtain the consent of the member's spouse to the election of the form of payment and any designation of survivor pension beneficiary before the election or designation is effective.  Except as provided in Subsection C or D of this section, a named survivor pension beneficiary may not be changed after the date the first pension payment is made if form of payment B or C is elected.  Except as otherwise provided in Section 10-11-136 NMSA 1978, payment shall be made: 

(1)     under form of payment A if the member is not married at the time of retirement and if there is not a timely election of another form of payment; or 

(2)     under form of payment C with the member's spouse as survivor pension beneficiary if the member is married at the time of retirement and there is not a timely election of another form of payment. 

B.     The amount of pension under forms of payment B, C and D shall have the same actuarial present value, computed as of the effective date of the pension, as the amount of pension under form of payment A. 

C.     A retired member who is being paid a pension under form of payment B or C with the member's spouse as the designated survivor pension beneficiary may, upon becoming divorced from the named spouse and subject to an order of a court as provided for in Section 10-11-136 NMSA 1978, elect to have future payments made under form of payment A. 

D.     A retired member who is being paid a pension under form of payment B or C with a living designated survivor pension beneficiary other than the retired member's spouse or former spouse may exercise a one-time irrevocable option to deselect the designated beneficiary and elect to: 

(1)     designate another survivor pension beneficiary, provided that: 

(a)     the retired member shall not have an option to change from the current form of payment; and 

(b)     the amount of the pension under the form of payment shall be recalculated and shall have the same actuarial present value, computed as of the effective date of the designation, as the amount of pension under form of payment A; or 

(2)     have future payments made under form of payment A.