(

a) Any member who retired for service under Option or Option with an effective date prior to January 1, 1991, whose option beneficiary had died prior to January 1, 1995, shall receive, effective January 1, 1999, the retirement allowance without modification for the option if all of the following conditions are met:

(1) The retired member is living as of January 1, 1999.

(2) The retired member has not elected a new option beneficiary under

Section 24323.

(3) The retirement allowance without modification for the option payable as of January 1, 1999, is greater than the amount payable under the option, plus the amounts from annual benefit improvements, ad hoc benefit increases, and payments from the Supplemental Benefit Maintenance Account.

(4) The retired member does not inform the system in writing, on a form provided by the system, within days of receipt of the notification of the change to the retirement allowance without modification for the option, of his or her election to continue to receive the option allowance. (

b) Any member who retired for service under Option or Option with an effective date prior to January 1, 1991, whose option beneficiary had died prior to January 1, 1999, shall receive effective January 1, 1999, the retirement allowance without modification for the option if all the following conditions are met:

(1) The retired member is living as of January 1, 1999.

(2) The retired member has not elected a new option beneficiary under

Section 24323.

(3) The retirement allowance without modification for the option payable as of January 1, 1999, is greater than the amount payable under the option, plus the amount from annual benefit improvements, ad hoc benefit increases, and payments from the Supplemental Benefit Maintenance Account.

(4) The retired member does not inform the system in writing, on a form provided by the system, within days of receipt of the notification of the change to the retirement allowance without modification for the option, of his or her election to continue to receive the option allowance. (

c) The change to the retirement allowance without modification for the option shall be consistent with

Section 22453. (

d) A member retired for service who receives the retirement allowance without modification for the option provided under this

section shall not elect a new option beneficiary under

Section 24323. (

e) The cost of this

section shall be paid by the transfer for that purpose of the one-time gain accrued to the State Teachers’ Retirement System from the difference between the contributions received pursuant to Sections and in the 1997–98 fiscal year minus the normal cost as displayed in the June 30, 1997, actuarial valuation.