2013 New York Consolidated Laws
RSS - Retirement & Social Security
Article 15 - (600 - 617) COORDINATED RETIREMENT PLAN
610 - Options.

 
    § 610. Options. a. Until the effective date of retirement a member may
  elect to receive the actuarial equivalent of the retirement allowance at
  the  time  of  retirement, in the form of a smaller retirement allowance
  payable to such member for  life  and  one  of  the  following  optional
  settlements;
    Option  one.  Upon  the  member's  death, a retirement allowance in an
  amount equal to that paid to the member shall be paid for life  to  such
  person as he shall nominate by written designation duly acknowledged and
  filed with the retirement system at the time of retirement.
    Option  two.  Upon  the  member's  death,  a  retirement  allowance of
  seventy-five percent or less  (measured  in  increments  of  twenty-five
  percent)  of  the  amount  paid to such member shall be paid for life to
  such  person  as  he  shall  nominate  by   written   designation   duly
  acknowledged  and  filed  with  the  retirement  system  at  the time of
  retirement.
    Option three. A five-year certain option under which payment  is  made
  to  the  member  for  life but is guaranteed for a minimum of five years
  following retirement. Such payments shall continue to  a  person  as  he
  shall  nominate by written designation, duly acknowledged and filed with
  the retirement system,  for  the  unexpired  balance  of  the  five-year
  guaranteed  period.  If  said  beneficiary  should  predecease  him, the
  commuted value of any installments due during the unexpired  balance  of
  the  five-year guaranteed period shall be paid in a single sum to a duly
  designated contingent  beneficiary  or  if  none  exists  to  the  legal
  representative  of  the  member.  Should a beneficiary who has commenced
  receipt of the payments die before the said guaranteed  minimum  period,
  the  commuted value of any installments due during the unexpired balance
  of the five-year guaranteed period shall be paid in a single  sum  to  a
  duly  designated  contingent beneficiary or if none exists, to the legal
  representative of said deceased primary beneficiary.
    Option four. A ten-year certain option under which payment is made  to
  the  member  for  life  but  is  guaranteed  for  a minimum of ten years
  following retirement. Such payments shall continue to  a  person  as  he
  shall  nominate by written designation, duly acknowledged and filed with
  the retirement  system,  for  the  unexpired  balance  of  the  ten-year
  guaranteed  period.  If  said  beneficiary  should  predecease  him, the
  commuted value of any installments due during the unexpired  balance  of
  the  ten-year  guaranteed period shall be paid in a single sum to a duly
  designated contingent  beneficiary  or  if  none  exists  to  the  legal
  representative  of  the  member.  Should a beneficiary who has commenced
  receipt of the payments die before the said guaranteed  minimum  period,
  the  commuted value of any installments due during the unexpired balance
  of the ten-year guaranteed period shall be paid in a  single  sum  to  a
  duly  designated  contingent  beneficiary or if none exists to the legal
  representative of said deceased primary beneficiary.
    Option five. Upon the member's death, a  retirement  allowance  in  an
  amount equal to fifty percent or one hundred percent of that paid to the
  member  shall  be  paid  for life to such person as he shall nominate by
  written designation duly acknowledged  and  filed  with  the  retirement
  system  at the time of retirement. Upon the death, prior to the death of
  the member,  of  said  person  so  nominated,  the  member  shall  begin
  receiving,  in lieu of the allowance then payable, an allowance equal in
  amount to that which would have been payable if no optional modification
  of the retirement allowance were in effect.
    a-1. A member of the New York state teachers' retirement system or the
  New York state  and  local  employees'  retirement  system  who  retires
  pursuant  to  the  provisions of this article, may elect, in lieu of the

  options set forth in  subdivision  a  of  this  section,  the  following
  optional settlement:
    Alternative   Option.   The   actuarial  equivalent  of  the  member's
  retirement allowance at the time of retirement, in the form of a smaller
  retirement allowance payable to such member  for  life  and  some  other
  benefit  or  benefits  paid  either  to  the member or to such person or
  persons as he shall nominate, provided such other benefit  or  benefits,
  together  with such smaller allowance, shall be certified by the actuary
  of the appropriate retirement system to be of equivalent actuarial value
  to his retirement allowance and shall be approved by the  head  of  such
  retirement system and provided further that nothing herein shall require
  such  retirement  system to pay a benefit in violation of paragraph nine
  of subsection a of section four hundred one of the Internal Revenue Code
  of 1986, as amended, 26 U.S.C. §401(a)(9).
    b. No option hereunder shall be permitted  whereby  the  member  would
  receive  less  than  fifty  percent  of  the actuarial equivalent of the
  retirement allowance without optional modification during such  member's
  life  expectancy.  Provided,  however,  the preceding sentence shall not
  apply if the surviving beneficiary is the member's spouse.
    c. The mortality and interest rates used in determining options  under
  this  article  shall be those in effect for the public retirement system
  on the date of retirement.
    d. Notwithstanding any other provision of this section,  with  respect
  to the New York state employees' retirement system:
    1.  The  comptroller, for reasonable cause, shall have power to extend
  the time for the election of an option, for a period  or  periods  which
  shall  expire  not later than sixty days immediately after the effective
  date of a member's retirement; and
    2. If the member is incompetent, his spouse or the  committee  of  his
  property,  or  if  he is a conservatee, his spouse or the conservator of
  his property, may elect on the member's behalf a  retirement  option  as
  provided for in subdivision a of this section.
    e.  Notwithstanding  any  other provision of this section, a member of
  the New York state teachers' retirement system at the time of retirement
  may elect an option until the first payment on account  of  any  benefit
  becomes normally due.
    * f.  Notwithstanding  any  other provision of this article, an option
  selection previously filed by a member or retired member subject to  the
  provisions  of  this  section  may  be changed no later than thirty days
  following the date of payability of his or her retirement  allowance.  A
  retired  member who has been retired for disability may change an option
  selection previously filed no later than (1) thirty days  following  the
  date  on  which  such member's application for disability retirement was
  approved by the retirement board or (2) thirty days following  the  date
  on which such retiree was retired for disability, whichever is later.
    * NB There are 2 sb f's
    * f.  Notwithstanding  any  other provision of this article, an option
  selection previously filed by a member or retired member of the New York
  city teachers' retirement system or the New York city board of education
  retirement system subject to the  provisions  of  this  section  may  be
  changed  no  later  than thirty days following the date of payability of
  his or her retirement allowance. A retired member who has  been  retired
  for  disability may change an option selection previously filed no later
  than  (1)  thirty  days  following  the  date  on  which  such  member's
  application  for  disability  retirement  was approved by the retirement
  board or (2) thirty days following the date on which  such  retiree  was
  retired for disability, whichever date is later.
    * NB There are 2 sb f's