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This entry was published on 2014-09-22
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SECTION 1100
Lump sum option at retirement
Retirement & Social Security (RSS) CHAPTER 51-A, ARTICLE 21
§ 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.