2006 New York Code - Options; Variable Designated Beneficiary\'s Annuity; Variable Joint Annuity Or Pension.

 
    §  13-576 Options; variable designated beneficiary's annuity; variable
  joint annuity or pension. a. An option elected pursuant to subdivision c
  or d of section 13-543 of this chapter with respect  to  the  manner  of
  payment  of  the  accumulated  deductions or death benefit shall, in the
  case of a participant in the variable annuity program, apply also to the
  units credited to him or her in the variable  annuity  savings  fund  or
  variable  pension  accumulation  fund,  respectively. The contributor or
  beneficiary electing the option shall have  the  choice  of  having  the
  designated  beneficiary's annuity deriving from such units paid in fixed
  or variable instalments. If the choice is for:
    1. Fixed instalments, the beneficiary shall be credited in the pension
  reserve fund  number  one,  to  be  applied  toward  the  payment  of  a
  designated  beneficiary's  annuity,  with  the  amount otherwise payable
  pursuant to section 13-573 of this chapter. An  equal  amount  shall  be
  transferred  from  the  variable  annuity fund holding the contributor's
  account with respect to which  the  election  is  made  to  the  pension
  reserve fund number one.
    2.  Variable  instalments,  the  beneficiary  shall be credited in the
  variable pension reserve fund with units equal in value  to  the  amount
  otherwise  payable  pursuant to section 13-573 of this chapter and shall
  be paid a variable designated beneficiary's annuity from such  fund.  If
  Option  C  is  elected  in a form prescribing the payment of a specified
  lump sum amount on the death of the beneficiary, the amount provided for
  by the contributor's account in the variable annuity savings fund  shall
  be  limited  to  the  extent  that  the  total amount elected can not be
  provided for by his or her accumulated deductions. The lump  sum  amount
  as  herein determined shall be paid from the pension reserve fund number
  one, and the units credited to the beneficiary in the  variable  pension
  reserve  fund  shall be reduced by the number actuarially computed to be
  necessary to provide such amount. There shall be  transferred  from  the
  variable  annuity  savings fund (i) to the variable pension reserve fund
  an amount equal to the value of the units with which the beneficiary  is
  credited  in  such fund and (ii), if Option C is elected, to the pension
  reserve fund number one an amount  equal  to  the  value  of  the  units
  deducted from the beneficiary's account as required by such election.
  The value of a unit, for the purpose of this subdivision, shall be as of
  the date of death of the contributor.
    b.  An  option elected pursuant to section 13-558 of this chapter with
  respect to the manner of payment of an annuity, pension,  or  retirement
  allowance  shall,  in  the case of a participant in the variable annuity
  program, apply also to the  payment  of  a  variable  annuity,  variable
  pension,or both, respectively. If the option elected is:
    1. Option I, the balance payable on the death of the contributor shall
  be an amount equal to the value, as of the date of death, of the excess,
  if  any,  of  the  units  credited to him or her in the variable annuity
  reserve fund or variable pension reserve fund at the time of his or  her
  retirement  over  the units paid to him or her. The amount shall be paid
  from the variable annuity fund holding the account with respect to which
  the election is made.
    2. Option II, III, or a joint and survivor form of IV, the account  of
  the contributor in the variable annuity reserve fund or variable pension
  reserve fund shall be kept as a joint account of the contributor and his
  or her designee.
    3. Option IV in a form prescribing the payment:
    (i)  of  a  specified lump sum amount on the death of the contributor,
  the amount provided for by his or her account in  the  variable  annuity
  reserve  fund  shall  be  limited  to  the  extent that the total amount
  elected cannot be provided for by his or her annuity reserve. The  units


  credited  to  the contributor in the variable annuity reserve fund shall
  be reduced by the number actuarially computed to be necessary to provide
  the lump sum amount as herein determined.  There  shall  be  transferred
  from  the  variable  annuity reserve fund to the annuity reserve fund an
  amount equal  to  the  value,  as  of  the  date  of  the  contributor's
  retirement, of the units deducted from his or her account as required by
  such  election,  and  the  amount shall be paid from the annuity reserve
  fund; provided, however, that in the case of a twenty-year pension  plan
  retiree  having  a  deferred  payability date (as defined in subdivision
  forty of section 13-501 of this chapter), such transferred amount  shall
  be equal to the value of such deducted units as of the date on which his
  or her retirement allowance begins.
    (ii)  of  a  number  of  units  equal  in value, as of the date of the
  contributor's retirement, to a specified lump sum  and  payable  on  the
  death  of the contributor, the amount provided for by his or her account
  in the annuity reserve fund be limited to  the  extent  that  the  total
  amount  elected  cannot  be  provided for by his or her variable annuity
  reserve. The amount credited to the contributor in the  annuity  reserve
  fund shall be reduced to the extent actuarially computed to be necessary
  to  provide  the  number  of  units as herein determined and such amount
  shall be transferred from the  annuity  reserve  fund  to  the  variable
  annuity  reserve  fund,  and  the  units shall be paid from the variable
  annuity  reserve  fund;  provided,  however,  that  in  the  case  of  a
  twenty-year  pension  plan  retiree having a deferred payability date as
  defined in subdivision forty of section 13-501  of  this  chapter,  such
  transferred  amount  shall be based upon the value of units at such time
  as his or her retirement allowance begins.
    c. If the total amount payable pursuant  to  section  13-573  of  this
  chapter  or paragraph one or three (ii) of subdivision b of this section
  is at least five thousand dollars, the designated beneficiary may elect,
  by written notice duly filed with the retirement board within sixty days
  after the death of the contributor, to be paid an amount equal to twenty
  per cent of the total amount due, to have credited to  his  or  her  own
  account  in  the  variable annuity fund from which the amount is payable
  units equal in value, as of the date of death, to the portion not  paid,
  and  to  be paid in each of four successive annual instalments an amount
  equal to the then value of one-fourth of the original  number  of  units
  credited.  If  the  beneficiary  dies  before the expiration of the five
  years, an amount equal to the then value of the  units  in  his  or  her
  account shall be paid to his or her beneficiary. Upon the payment of any
  amount  pursuant to this subdivision, the number of units represented in
  such payment shall be cancelled.
    d. If an election is made to  have  the  amount  payable  pursuant  to
  paragraph  one or three (ii) of subdivision b of this section paid as an
  annuity, the contributor or beneficiary making the election  shall  have
  the  choice of having the designated beneficiary's annuity deriving from
  such amount paid in fixed or variable instalments. If the choice is for:
    1. Fixed instalments, the beneficiary shall be credited in the pension
  reserve fund  number  one,  to  be  applied  toward  the  payment  of  a
  designated  beneficiary's  annuity,  with  such  amount. An equal amount
  shall  be  transferred  from  the  variable  annuity  fund  holding  the
  contributor's  account with respect to which the election is made to the
  pension reserve fund number one.
    2. Variable instalments, the beneficiary  shall  be  credited  in  the
  variable  annuity fund from which the amount is payable with units equal
  in value, as of the date of death of the contributor, to such amount and
  shall be paid a variable  designated  beneficiary's  annuity  from  such
  fund.


    e.  The variable designated beneficiary's annuity shall be computed in
  terms of units actuarially equivalent  to  the  units  credited  to  the
  beneficiary. For the first month established by the retirement board for
  this purpose and for any subsequent months, any such variable designated
  beneficiary's annuity shall be paid in dollars according to the value of
  a  unit  for  the month payment is due, and for any month preceding such
  first month the variable designated beneficiary's annuity shall be  paid
  in  dollars  according to the value of a unit in effect during the month
  preceding the month payment is due.
    f. In the case of a variable designated beneficiary's annuity paid  in
  accordance  with  the  terms  of  Option B, the balance payable upon the
  death of the designated beneficiary shall be  an  amount  equal  to  the
  value,  as  of the date of death, of the excess, if any, of the units on
  the basis of which the annuity was computed over the units paid  to  the
  beneficiary. The balance, if any, shall be paid from the fund from which
  the  variable  designated  beneficiary's  annuity  is  payable  and  the
  beneficiary's account in such fund shall thereupon be cancelled.
    g. A participant who is an applicant for retirement  with  a  deferred
  payability date (as defined in subdivision thirty-nine of section 13-501
  of  this  chapter) may make the choice referred to in paragraph three of
  subdivision b of this section by an election filed with  the  retirement
  board  prior  to  the  date  next preceding the date on which his or her
  retirement allowance begins in accordance  with  rules  and  regulations
  established  by  the  retirement  board;  provided,  however,  that such
  participant may at any time after such election is filed and before  his
  or  her  retirement  allowance  begins, change such election by filing a
  superseding election with the retirement board in accordance with  rules
  and regulations established by the retirement board.
    h.  Except  as  provided  for  in  section  13-581  of this chapter, a
  transfer pursuant to this section between variable annuity  funds  shall
  be  from  an  A fund to an A fund or from a B fund to a B fund or within
  such additional variable annuity fund or funds which may be  established
  pursuant to subdivision c of section 13-567 of this chapter.