N.Y. Retirement & Social Security Law § 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