2012 New York Consolidated Laws
RSS - Retirement & Social Security
Article 21 - (1100) LUMP SUM OPTION AT RETIREMENT
1100 - Lump sum option at retirement.

 
    § 1100. Lump sum option at retirement. Certain eligible members of the
  New  York state and local police and fire retirement system may elect an
  optional form of retirement pursuant to the terms of this  article  that
  provides  for  a  partial  lump sum at retirement with a reduced service
  retirement allowance as hereinafter provided:
    1. To be eligible, a member must  retire  with  a  service  retirement
  benefit  under  a  plan  that allows retirement at twenty or twenty-five
  years of service, regardless of age. In addition, the member  must  have
  been  eligible  to retire with a service retirement benefit for at least
  one year prior to the actual date of retirement.
    2. An eligible member may elect to receive a lump sum  and  a  smaller
  annual retirement allowance. Such lump sum shall not be eligible for any
  cost-of-living  adjustments  paid  pursuant  to  section  three  hundred
  seventy-eight-a of this chapter.
    a. Any member who files for retirement after being eligible to  retire
  for one year may elect to receive a five percent lump sum payment of the
  actuarial  equivalent  of his or her retirement allowance at the time of
  retirement.
    b. Any member who files for retirement after being eligible to  retire
  for two years may elect to receive a ten percent lump sum payment of the
  actuarial  equivalent  of his or her retirement allowance at the time of
  retirement.
    c. Any member who files for retirement after being eligible to  retire
  for  three years may elect to receive a fifteen percent lump sum payment
  of the actuarial equivalent of his or her retirement  allowance  at  the
  time of retirement.
    3.  The smaller annual retirement allowance remaining after receipt of
  the lump sum shall be determined by the actuary using  mortality  tables
  and interest rates determined for this purpose and in effect on the date
  of retirement.
    4.  Any  lump  sum  paid  pursuant  to  this  article  is  subject  to
  withholding as required by the internal revenue service  and  such  lump
  sum  may  be  rolled over as otherwise permitted by the internal revenue
  code.
    5. The comptroller shall promulgate rules and regulations to implement
  the provisions of this article.