(1) A retiree who converts to an option 1 retirement benefit pursuant to 19-3-1501 (5) (a) (i) , 19-5-701 (7) (a) (i) , 19-7-1001 (7) (a) (i) , or 19-8-801 (7) (a) (i) , MCA (PERS, JRS, SRS, and GWPORS, respectively) will receive a retirement benefit in the same dollar amount the retiree was receiving when the contingent annuitant died, effective the first day of the month following the contingent annuitant's death.

(2) A retiree who converts to an option 1 retirement benefit pursuant to 19-3-1501 (5) (a) (ii) , 19-5-701 (7) (a) (ii) , 19-7-1001 (7) (a) (ii) , or 19-8-801 (7) (a) (ii) , MCA, (PERS, JRS, SRS, and GWPORS, respectively) after dissolution of marriage to the contingent annuitant, will receive an option 1 retirement benefit the same as the option 1 retirement benefit calculated when the member retired, plus any postretirement adjustments granted after the date of retirement. The change to option 1 will be effective on the first day of the month following the month the MPERA receives the properly completed application forms.

(3) A retiree who converts to an option 1 retirement as described in (1) or (2) may subsequently designate a new contingent annuitant and elect an option 2, 3, or 4 retirement benefit. The new benefit amount will be calculated by applying the current actuarial reduction factors to the option 1 benefit as described in (1) or (2) , but based upon the age of the new contingent annuitant and the retiree on the effective date of the conversion. The subsequent change to an option 2, 3, or 4 retirement and the amount of the retirement benefit will become effective on the earliest date the retiree could have designated the new contingent annuitant. If the new contingent annuitant is the retiree's new spouse, the effective date will be the date the retiree married the new contingent annuitant.