It is enacted by the General Assembly as follows:

SECTION 1. Section 36-10-18 of the General Laws in Chapter 36-10 entitled "Retirement System -- Contributions and Benefits" is hereby amended to read as follows:

{ADD 36-10-18. Optional benefits. -- ADD} {ADD (1) ADD} A beneficiary, or, if the beneficiary be an incompetent, then the beneficiary's spouse or if there is no spouse, a guardian of the beneficiary's estate, may elect to receive the benefit in a retirement allowance, payable throughout life, or the beneficiary may then elect to receive the actuarial equivalent, at that time, of the beneficiary's retirement allowance in a lesser retirement allowance as determined by actuarial calculation, which shall be payable throughout life with the provision that:

(a) Option 1. Upon the beneficiary's death, the beneficiary's lesser retirement allowance shall be continued throughout the life of and paid to such person having an insurable interest in the beneficiary's life, as the beneficiary, the beneficiary's spouse, or the beneficiary's guardian so electing, shall nominate by written designation duly acknowledged and filed with the retirement board at the time of his or her retirement.

(b) Option 2. Upon the beneficiary's death, one-half of the beneficiary's lesser retirement allowance shall be continued throughout the life of and paid to such person, having an insurable interest in the beneficiary's life, as the beneficiary, the beneficiary's spouse, or the beneficiary's guardian so electing, shall nominate by written designation duly acknowledged and filed with the retirement board at the time of the beneficiary's retirement.

{ADD For purposes of any election under this section or section 36-10-19.1, the member, member's spouse or guardian, as the case may be, may designate more than one (1) person to receive benefits after the member's death, provided that the designation shall specify the portion of the actuarial equivalent of the member's retirement allowance to be paid to each such person, and provided further that the aggregate actuarial value of such portions shall not exceed the actuarial equivalent of the member's retirement benefit determined (in the case of an election under this section) as of the date of the member's retirement or (in the case of an election under section 36-10-19.1) as of the member's date of death. ADD}

SECTION 2. This act shall take effect upon passage.