2 CRR-NY 363.2NY-CRR
STATE COMPILATION OF CODES, RULES AND REGULATIONS OF THE STATE OF NEW YORK
TITLE 2. DEPARTMENT OF AUDIT AND CONTROL
CHAPTER VI. NEW YORK STATE AND LOCAL EMPLOYEES' RETIREMENT SYSTEM AND NEW YORK STATE AND LOCAL POLICE AND FIRE RETIREMENT SYSTEM
PART 363. ELECTION BY ARTICLE 14 MEMBERS OF EITHER THE ARTICLE 14 OR ARTICLE 15 BENEFIT CALCULATION PURSUANT TO CHAPTER 537 OF THE LAWS OF 1994
2 CRR-NY 363.2
2 CRR-NY 363.2
363.2 Background.
(a) Chapter 537 of the Laws of 1994 amended sections 603 and 612 of the Retirement and Social Security Law with respect to the eligibility of members covered by the provisions of article 15 of such law to retire at age 55, with benefit reduction for early (prior to attainment of age 62) retirement. Chapter 537 also amended sections 603 and 612 so as to permit individuals covered by article 15 to retire at age 55 with no reduction for such early retirement where the individual has at least 30 years of credited service at retirement.
(b) With the exception of certain corrections officers and security hospital treatment assistants who have waived article 15 coverage as a prerequisite to eligibility to participate in special plans provided by article 14, members of the New York State and Local Employees' Retirement System who are covered by article 14 (sometimes hereinafter referred to as "article 14 members") are also covered by article 15 of such law. Therefore, an article 14 member who applies for service or vested retirement benefits is entitled to benefits calculated under the article which will provide the greater benefit (assuming the member meets the eligibility requirements under both articles).
(c) For certain article 14 members, the amount of the service retirement benefit and the vested retirement benefit payable under article 15 will always be greater than the amount that would be payable under article 14, regardless of how long such an individual may live following retirement. The article 14 members for whom the article 15 calculation will always produce a larger monthly benefit are those who, on the effective date of retirement:
(1) have accrued at least 30 years of service credit; or
(2) have attained age 60 and who have accrued less than 20 years of credited service; or
(3) have attained age 60 and have accrued at least 25 years of credited service. In view of the above, the Retirement System will calculate benefits for these three groups of individuals under article 15, as it would serve no valid purpose to require them to elect between the two articles.
(d) By contrast, it cannot be determined at the time of retirement whether benefits will ultimately be greater under article 14 or article 15 for two other groups of article 14 members: those who, on the effective date of retirement,
(1) have not attained age 60 and accrued less than 30 years of credited service; or
(2) have not attained age 62, and have accrued at least 20, but less than 25 years of credited service. For these two groups of individuals, the monthly allowance will be greater under article 14 than under article 15 until attainment of age 62, at which time, article 14 benefits are reduced - to amounts which may be below article 15 levels. (This reduction is a statutory offset by the amount Social Security benefits potentially payable.) Accordingly, whether the benefits payable under article 14 will ultimately be greater over the pensioner's lifetime than those payable under article 15 may depend on how long the individual will live following retirement. Furthermore, an individual may simply prefer to receive benefits calculated under article 14, which produces the larger immediate monthly benefit, even though article 15 might ultimately produce a greater total benefit over the individual's lifetime. Accordingly, it is appropriate to permit such individuals to elect to receive benefits calculated under either article 14 or article 15. This Part will provide the procedure under which such individuals shall elect to retire under either article 14 or article 15.
2 CRR-NY 363.2
Current through February 28, 2022
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