N.Y. Retirement & Social Security Law § 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, and

sheriffs, undersheriffs, deputy sheriffs and correction officers, who

are employed in a county which makes an election pursuant to this

section, 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.

d. Any member who files for retirement after being eligible to retire

for four years may elect to receive a twenty percent lump sum payment of

the actuarial equivalent of his or her retirement allowance at the time

of retirement.

e. Any member who files for retirement after being eligible to retire

for five years may elect to receive a twenty-five 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.