2006 New York Code - Modified Option 1 Pension Computation Formula.

 
    * §  13-559.1  Modified  Option  1 pension computation formula. a. The
  retirement board may by resolution direct that under such  circumstances
  as  are  designated  in  such  resolution, benefits under Option 1 which
  consist of or are derived from the pension  component  of  a  retirement
  allowance and which are payable to or on account of Tier 1 members who:
    (1)  became  members  prior  to  the  date  of enactment (as certified
  pursuant to section forty-one of the legislative law) of  this  section;
  and
    (2)  retired  or  retire,  on  or after August first, nineteen hundred
  eighty-three, for service or superannuation or for ordinary or  accident
  disability,   or   on  or  after  such  August  first,  discontinued  or
  discontinue service so as  to  become  discontinued  members;  shall  be
  determined  under  the modified Option 1 pension computation formula (as
  defined in subdivision fifty-nine of section 13-501 of the code).
    b. If  the  retirement  board  makes  a  direction,  pursuant  to  the
  provisions of subdivision a of this section, for use of such formula, it
  may also direct by resolution:
    (1)  that  any  member who is subject to the modified Option 1 pension
  computation formula may elect, at such time and in accordance with  such
  procedures as are prescribed in such resolution, that such formula shall
  not apply to such member and that the initial reserve determined for the
  purpose  of  providing  the  benefits  payable  by  reason of his or her
  selection of Option 1 and the pension component of his or her  Option  1
  retirement  allowance shall be determined on the basis of gender-neutral
  mortality tables and regular interest of seven  per  centum  per  annum,
  compounded annually; and
    (2)  that the benefit payable upon the death of the member making such
  election, to his or her beneficiary or estate shall  be  the  difference
  between  such  Option 1 initial reserve and the total of the payments of
  such pension component received by or payable to  such  member  for  the
  period prior to his or her death; and
    (3) that if such Option 1 beneficiary's benefit is payable pursuant to
  Option  1a or Option 1b, the benefits payable to a beneficiary or estate
  by reason of selection of such Option 1a  or  Option  1b  shall  be  the
  greatest  of  the three benefits computed for such beneficiary or estate
  in  accordance  with  the  methods  of  computation  set  forth  in  the
  applicable  provisions  of  subparagraph  (ii)  or subparagraph (iii) of
  paragraph (e) of subdivision fifty-nine of section 13-501 of  the  code;
  and
    (4)  that  where  any  member subject to the modified Option 1 pension
  computation formula retired before the effective date  of  a  retirement
  board  resolution adopted pursuant to subdivision a of this section, and
  where the retirement allowance of a discontinued member who  is  subject
  to such formula began before the effective date of such resolution, such
  retiree  or  discontinued  member, within such period of time after such
  effective date and in accordance with such procedures as are  prescribed
  in   such   resolution,  may  elect  the  method  of  Option  1  benefit
  determination set forth in the preceding paragraphs of this  subdivision
  b.
    c.  In  any  case  where,  pursuant  to retirement board resolution, a
  benefit is required to be determined under the modified Option 1 pension
  computation formula and  the  determination  of  such  benefit  is  also
  required  by  a retirement board resolution adopted pursuant to sub-item
  three of item (A) of subparagraph (ii) of paragraph (g)  of  subdivision
  twenty-two   of   section  13-501  of  the  code  to  reflect  different
  computations of separate  portions  of  such  benefit,  the  methods  of
  computation  under  the  modified  Option  1 pension computation formula


  shall be appropriately adjusted so as to give effect to  the  provisions
  of such resolution adopted pursuant to such sub-item three.
    * NB Added Ch. 910/85 § 16, language juxtaposed per Ch. 907/85 § 14
    * NB Number supplied by the Legislative Bill Drafting Commission