New York Codes, Rules and Regulations
Title 21 - Miscellaneous
Chapter LVIII - New York State Teachers' Retirement System
Part 5014 - Options
Section 5014.2 - Options available to members at retirement-definitions and statutory authorization
Universal Citation: 21 NY Comp Codes Rules and Regs ยง 5014.2
Current through Register Vol. 45, No. 52, December 27, 2023
The options available for election by a member, as applicable in lieu of the maximum benefit, are as follows:
(a) Lump sum option.
(1) Declining reserve--pursuant to Education
Law, section
513(1) (Option 1), a lesser
allowance payable over the life of the tier 1 member with the provision that,
if the member dies before the member shall have received in payments the
present value of the member's retirement allowance at the time of retirement,
the balance of such present value shall be paid to the beneficiary or the
member's legal representative, if no beneficiary had been designated.
(2) Annuity reserve--pursuant to Education
Law, section
513(1) (Option 4), a lesser
retirement allowance payable over the life of the tier 1 or 2 member with the
provision that all pension payments shall cease at the member's death but that,
if the member dies before receiving in annuity payments, the present value of
the member's annuity at the time of retirement, the balance of such present
value shall be paid to the beneficiary or to the member's legal representative,
if no beneficiary has been designated.
(b) Guarantee option.
(1) Five-year--pursuant to Education Law,
section
513(1) (Option 4),
Retirement and Social Security Law, section 447(a)(1), Retirement and Social
Security Law, section 514(a) (Option three) and Retirement and Social Security
Law, section
610(a) (Option three), as
applicable, a lesser allowance payable over the life of the member with the
provision that such allowance shall be guaranteed for a minimum of five years
following retirement and, should such member die prior to the end of the
five-year period, said payments shall continue to the beneficiary for the
unexpired balance of the five-year guarantee period. If such beneficiary shall
predecease the member, the commuted value of any remaining installments due
during the unexpired portion of the five-year period shall be paid in a single
sum to the member's duly designated contingent beneficiary or legal
representative, if none has been designated. If a beneficiary who has commenced
receipt of payments dies prior to the end of the five-year period, the commuted
value of any remaining installments due during the unexpired portion of the
five-year period shall be paid in a single sum to the member's duly designated
contingent beneficiary or, if no contingent beneficiary had been designated, to
the legal representative of the beneficiary. A testamentary or inter-vivos
trust may be designated in accordance with Part 5013 of this Title as either a
primary or contingent beneficiary to receive the commuted value of any such
remaining installments, payable in a single sum.
(2) Ten-year--pursuant to Education Law,
section
513(1) (Option 4),
Retirement and Social Security Law, section 447(a)(2), Retirement and Social
Security Law, section 514(a) (Option four) and Retirement and Social Security
Law, section
610(a) (Option four), as
applicable, a lesser allowance payable over the life of the member with the
provision that such allowance shall be guaranteed for a minimum of 10 years
following retirement and, should the member die before the end of the 10-year
period, said payments shall continue to the beneficiary for the unexpired
balance of the 10-year guarantee period. If such beneficiary shall predecease
the member, the commuted value of any remaining installments due during the
unexpired portion of the 10-year period shall be paid in a single sum to the
member's duly designated contingent beneficiary or legal representative, if
none has been designated. If a beneficiary who has commenced receipt of
payments dies prior to the end of the 10-year period, the commuted value of any
remaining installments due during the unexpired portion of the 10-year period
shall be paid in a single sum to the member's duly designated contingent
beneficiary or, if no contingent beneficiary had been designated, to the legal
representative of the beneficiary. A testamentary or inter-vivos trust may be
designated in accordance with Part 5013 of this Title as either a primary or
contingent beneficiary to receive the commuted value of any such remaining
installments, payable in a single sum.
(c) Alternative option.
(1) For tier 1, 2, 4 and 5 members--pursuant
to Education Law, section
513(1) (Option 4) and
Retirement and Social Security Law, section
610 (a-1), a lesser retirement allowance
payable over the life of the tier 1, 2, 4 or 5 member with the provision that
upon the member's death a lump sum, guaranteed benefit or other survivor
benefit shall be paid to a beneficiary or beneficiaries, provided that such
benefit or benefits, together with such lesser retirement allowance, shall be
certified by the system's actuary to be of equivalent actuarial value to the
maximum benefit and shall be approved by the system's retirement
board.
(2) For tier 3
members--pursuant to Retirement and Social Security Law, section
514(a) (Option 2), a lesser
retirement allowance payable over the life of the tier 3 member with the
provision that upon the member's death one per centum to ninety per centum, as
elected by such member at retirement, of such retirement allowance shall be
continued through the life of and paid to the beneficiary nominated by such
member at the time of retirement.
(d) Survivor option.
(1) 100 percent--pursuant to Education Law,
section
513(1) (Option 2),
Retirement and Social Security Law, section 514(a) (Option one) and Retirement
and Social Security Law, section
610(a) (Option one), as
applicable, a lesser retirement allowance payable over the life of the member
with the provision that upon the member's death such retirement allowance shall
be continued through the life of and paid to the beneficiary nominated by such
member at the time of retirement.
(2) 75 percent--pursuant to Education Law,
section
513(1) (Option 4),
Retirement and Social Security Law, section 514(a) (Option two) and Retirement
and Social Security Law, section
610(a) (Option two), as
applicable, a lesser retirement allowance payable over the life of the member
with the provision that upon the member's death three-quarters of such
retirement allowance shall be continued through the life of and paid to the
beneficiary nominated by such member at the time of retirement.
(3) 50 percent--pursuant to Education Law,
section
513(1) (Option 3),
Retirement and Social Security Law, section 514(a) (Option two) and Retirement
and Social Security Law, section
610(a) (Option two), as
applicable, a lesser retirement allowance payable over the life of the member
with the provision that upon the member's death one-half of such retirement
allowance shall be continued through the life of and paid to the beneficiary
nominated by such member at the time of retirement.
(4) 25 percent--pursuant to Education Law,
section
513(1) (Option 4),
Retirement and Social Security Law, section 514(a) (Option two) and Retirement
and Social Security Law, section
610(a) (Option two), as
applicable, a lesser retirement allowance payable over the life of the member
with the provision that upon the member's death one-quarter of such retirement
allowance shall be continued through the life of and paid to the beneficiary
nominated by such member at the time of retirement.
(e) Pop-up option.
(1) 100 percent--pursuant to Education Law,
section
513(1) (Option 4),
Retirement and Social Security Law, section 514(a) (Option five) and Retirement
and Social Security Law, section
610(a) (Option five), as
applicable, a lesser retirement allowance payable over the life of the member
with the provision that upon the member's death the retirement allowance shall
be continued through the life of and paid to the beneficiary nominated by such
member at the time of retirement and with the further provision that, if such
beneficiary shall predecease such member, the retirement allowance payable
throughout the remaining life of the member after the date of the beneficiary's
death shall be the maximum benefit which would have been paid to the member,
had the member not elected such option.
(2) 75 percent (tier 1, 2, 4 and 5 members
only)--pursuant to Education Law, section
513(1) (Option 4),
Retirement and Social Security Law, Retirement and Social Security Law, section
610 (a-1), a lesser retirement allowance payable over the life of a tier 1, 2,
4 or 5 member with the provision that upon such member's death three-quarters
of such retirement allowance shall be continued through the life of and paid to
the beneficiary nominated by the member at the time of retirement and with the
further provision that, if such beneficiary shall predecease such member, the
retirement allowance payable throughout the remaining life of the member after
the date of the beneficiary's death shall be the maximum benefit which would
have been paid to the member, had the member not elected such option.
(3) 50 percent--pursuant to Education Law,
section
513(1) (Option 4),
Retirement and Social Security Law, section 514(a) (Option five) and Retirement
and Social Security Law, section
610(a) (Option five), as
applicable, a lesser retirement allowance payable over the life of the member
with the provision that upon the member's death one-half of such retirement
allowance shall be continued through the life of and paid to the beneficiary
nominated by the member at the time of retirement and with the further
provision that, if such beneficiary shall predecease such member, the
retirement allowance payable throughout the remaining life of the member after
the date of the beneficiary's death shall be the maximum benefit which would
have been paid to the member, had the member not elected such option.
(4) 25 percent (tier 1, 2, 4 and 5 members
only)--pursuant to Education Law, section
513(1) (Option 4) and
Retirement and Social Security Law, section
610 (a-1), a lesser retirement allowance
payable over the life of a tier 1, 2, 4 or 5 member with the provision that
upon such member's death one-quarter of such retirement allowance shall be
continued through the life of and paid to the beneficiary nominated by the
member at the time of retirement and with the further provision that, if such
beneficiary shall predecease such member, the retirement allowance payable
throughout the remaining life of the member after the date of the beneficiary's
death shall be the maximum benefit which would have been paid to the member,
had the member not elected such option.
Disclaimer: These regulations may not be the most recent version. New York may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google
Privacy Policy and
Terms of Service apply.