Your Retirement PlanLegislative andExecutive PlanFor Tier 1 and 2 Members(Section 80-a)

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Printed 4/04Content Last Revised 8/11

© 2011, New York State and Local Employees’ Retirement System

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This publication provides a general summary of membership benefits, rights and responsibilities, and is not a substitute for any New York State or federal law.

For specific information about your benefits, please contact us.

New York State Office of the State ComptrollerThomas P. DiNapoli

New York State and Local Employees’ Retirement System

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A Message from Comptroller Thomas P. DiNapoli

As a member of the Retire-ment System, you are covered by a plan that provides impor-tant benefits. This booklet explains some of those benefits and the services available to you as a member of our system, including:

Benefits you will receive at retirement if �you meet the service and age requirements (service retirement benefits);

Benefits you may receive if you become �permanently disabled (disability retirement benefits);

Benefits your beneficiary may receive if you �die while working for a public employer or after you retire (death benefits);

Benefits you may receive at a later date, �even if you leave public service before you become eligible to retire.

I am joined by a staff of dedicated professionals in my commitment to helping you make informed decisions about your future. I encourage you to contact us with any questions or suggestions you might have.

Sincerely,

Thomas P. DiNapoli State Comptroller

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Table of Contents

Many Ways to Keep Informed About YourBenefits ......................................................... 3

About Your Membership ................................... 5

Final Average Salary ......................................... 9

Your Service Retirement Benefits ................... 11

Items That May Affect Your Pension .............. 14

Receiving Your Benefits .................................. 16

How We Credit Your Service ........................... 18

Getting Credit for Previous Public Service ..... 20

Establishing Benefit Eligibility (Vesting) ....... 22

Benefit Payment Options ................................ 24

Ordinary Disability Retirement Benefit .......... 28

Accidental Disability Retirement Benefit ....... 30

Ordinary Death Benefit ................................... 32

Accidental Death Benefit ................................ 35

This summary plan booklet describes thebenefits available to Tier 1 and 2 members whoelected coverage under the Legislative and Ex-ecutive Retirement Plan provided by Section80-a of the New York State Retirement and So-cial Security Law.

Throughout this booklet, you will find refer-ences to “sections” and “articles” that refer tothe New York State Retirement and Social Secu-rity Law (RSSL), as enacted by the New YorkState Legislature. The New York State and LocalRetirement System, headed by the Comptrollerof the State of New York, administers theseplans. Our main office is in Albany, New York.

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Many Ways to Keep InformedAbout Your Benefits

You are participating in a program designedto help you and your dependents achieve finan-cial stability after your retirement or in theevent of disability or death. It is vital that youhave the most current information on your Re-tirement System to understand everything aboutthe benefits we offer. There are several ways todo this:� Read this booklet carefully. Many of your

questions can be answered within thesepages. Keep it handy as a quick reference forfuture questions concerning your benefits.

� You will receive newsletters containing cur-rent information about your plan and its ben-efits, as well as general information aboutretirement and the Retirement Law.

� Each year, you will receive a comprehensivestatement detailing your personal status as amember of the Retirement System. When itarrives, review the information carefully soany errors can be corrected quickly.

� At your employer’s request, we offer presen-tations for members, especially those withinfive years of retirement eligibility. The pre-retirement presentation will guide youthrough the retirement process, explainingthe benefits you can expect and discussingpost-retirement issues.

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� Visit our website at www.osc.state.ny.us/retire. You will find sections developedspecifically for members, retirees and em-ployers. You can download forms, read infor-mation booklets, brochures and newsletters.View recent legislation that could affect yourbenefits. Get tips on preparing for retirement.

� You can also get copies of any of the formsor publications mentioned in this booklet byprinting them from our website, by contactingour Call Center or by asking your employer.

� You can visit any of our consultation sitesthroughout the State where you can meetwith an Information Representative to dis-cuss your own retirement benefits. We espe-cially recommend a consultation if you arenearing retirement and looking for specificinformation before filing your applicationfor retirement.

� Please advise us, in writing, whenever yourmailing address changes. This is especiallyimportant if you leave public employmentbefore becoming eligible for retirement.Having your correct address in our files willhelp us keep you up-to-date about benefits.

� Any questions?

• Contact our Call Center toll-free at1-866-805-0990, or at 474-7736 if you livein the Albany area;

• E-mail us via our website atwww.osc.state.ny.us/retire;

• Fax us at (518) 402-4433; or

• Write to us at:New York State and Local Retirement

System110 State StreetAlbany, NY 12244-0001

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About Your Membership

ParticipationIf you are working in a permanent, full-time

position for an employer that participates in theNew York State and Local Employees’ Retire-ment System, you must become a member ofthe Retirement System. To join, you must com-plete and file a membership application with theOffice of the State Comptroller.

Tier StatusWhen you join the Retirement System, you

are assigned to a tier depending on your date ofmembership. You are a Tier 1 member if youjoined the Employees’ Retirement System be-fore July 1, 1973. If you joined the Employees’Retirement System on or after July 1, 1973, butprior to July 27, 1976, you are a Tier 2 member

Special Plan EligibilityThe Legislative and Executive Retirement

Plan authorized by Section 80-a (RSSL) appliesonly to legislative and executive employees inlegislative service before July 1, 1973 and whoelected Section 80-a on or before December 31,1976.

You are also covered by this plan if you:� Were previously enrolled in Section 80-a but

your coverage was terminated because youwere employed by a joint legislative em-ployer; and

� Were a legislative employee from February28, 1997 through September 7, 1999; and

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� Re-elected Section 80-a coverage by June30, 1999.

Since this plan was closed to new memberson July 1, 1973, it is not available to new legis-lative members of the Retirement System.

“Legislative service” means paid service asLieutenant Governor, Comptroller, AttorneyGeneral, State Senator, Member of the Assem-bly, or an annual or session employee of theLegislature.

“Executive member” means you served asLieutenant Governor, Comptroller, AttorneyGeneral, State Senator, or Member of the As-sembly.

“Legislative member” means an officer oremployee of the Senate, Assembly or a jointlegislative employer.

“Joint legislative employer” means joint leg-islative commissions, councils, or similar bodiesregardless of duration.

Contributing Towards Your RetirementWhile you are not required to contribute to-

wards your retirement benefits, you may elect tomake voluntary contributions to the RetirementSystem. These contributions, plus the interestthey earn, will provide you with an annuitywhen you retire.

Borrowing Against Your ContributionsIf you have contributions on deposit, are in

active service and have at least one year ofmember service credit, you may take a loanfrom the Retirement System. To apply, you mustfile a Tier 1/Tier 2 Loan Application (RS 5025)with us. If you already have an outstanding Re-tirement System loan and want to take a newloan, please contact our Call Center to connectwith our Loan Interactive Voice Response Lineto determine if refinancing your loan or carryingmultiple loans would be better for you.

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The following conditions apply when bor-rowing against your contributions:� Each loan must be for a minimum of $25,

but not more than 75% of your member con-tribution balance, less any outstanding loanbalances.

� You repay each outstanding loan throughpayroll deductions in an amount sufficient torepay the loan and interest within five years.

� You may borrow only once in any 90-dayperiod.

� Prior to retirement, and 30 days after issu-ance, loans are fully insured in case you diebefore repaying them.

� Loans may be subject to Federal income tax.

� If you retire or withdraw from the Retire-ment System and have one or more outstand-ing loan balance(s), part or all of the loanbalance(s) may be considered taxable in-come and subject to Federal income tax inthe year that you retire or withdraw yourmembership.

� At retirement, any outstanding loans will becanceled and your annuity will be perma-nently reduced by an actuarially determinedamount.

Ending Your MembershipOnce you join, there are only four ways your

membership can end:� When seven years have elapsed since you

last worked for a public employer, providedyou do not have at least five years of cred-ited service; or

� If you leave public employment before age60 and voluntarily withdraw your member-ship; or

� When you retire; or

� If you die.

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“Public employment” means paid service asan officer or employee with an employer thatparticipates in the New York State and LocalRetirement System.

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Final Average Salary

Your retirement benefit calculation is basedon your years of credited service and your finalaverage salary (FAS). Under Section 80-a, yourFAS calculation is the average of the wages youearned during any three consecutive calendaryears of creditable service when earnings werehighest. This is usually the last three years ofemployment.

Payment for unused sick leave at retirementis not included in the FAS calculation, but thefollowing are:� Overtime if earned in the period used in the

FAS

� Holiday Pay

� Non-compensatory overtime earned for eachyear in the FAS period

� Longevity bonus (maximum of three) if paidin the years used in the FAS

Tier 1If your date of membership is June 17, 1971

or later, the wages in any 12-month period usedin the FAS calculation cannot exceed the earn-ings in the preceding 12-month period by morethan 20%.

Also, payment for up to 30 days of accumu-lated unused vacation will be included in yourFAS calculation if your date of membership isbefore April 1, 1972 and if your FAS is based onthe 36 months of earnings immediately preced-ing your date of retirement.

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Tier 2If the earnings in any year included in the

period exceed the average of the previous twoyears by more than 20%, the amount in excessof 20% is excluded from the computation ofyour FAS. Payment for accumulated vacation isnot included in the calculation of your FAS.

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Your Service RetirementBenefits

Eligibility for Service Retirement

Tier 1You are eligible for a service retirement

benefit at age 55 with at least five years of legis-lative service and five years of additional credit-able service, or after 20 years of service as aSenator or Member of the Assembly, regardlessof your age.

Tier 2You are eligible for a service retirement ben-

efit at age 55 with at least 10 years of legislativeservice, or after 20 years of service as a Senatoror Member of the Assembly, regardless of yourage.

The Service Retirement BenefitIf you elected this plan before July 1, 1972,

you will receive a pension equal to 1/40th

(2.5%) of your FAS for each year of servicecredit. If you elected this plan on or after July 1,1972, you will receive a pension equal to 1/40th

(2.5%) of your FAS for each year of legislativeservice credit.

If your service began before April 1, 1960,your benefit will include an annuity purchasedby required contributions, plus interest. If youmade any voluntary contributions to the Retire-ment System, your benefit will also include anannuity purchased by the contributions and theinterest they earned.

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Under this plan, the pension portion of yourretirement benefit cannot exceed 75% of yourFAS. This limitation is raised to 80% of yourFAS if you are eligible to receive the additionalservice credit provided by Article 19 (RSSL).

Other Retirement Benefits

Career Plan (Section 75-f)With 40 or more years of service, you could

be eligible for a better benefit under the CareerPlan if you were employed by New York Stateon March 31, 1970. This plan provides a benefitof one-half (50%)of your FAS for 25 years ofservice credit, plus 1/60th (1.66%) for each addi-tional year of service credit, with no benefit cap.

Section 80-a(g)At age 55, you are eligible for the retirement

benefit provided by Section 80-a(g) if you:� Are no longer employed by the Legislature;

and

� Have at least 10 years of legislative or execu-tive service credit;

� Elected to continue as a member of the Ex-ecutive and Legislative Plan under Section80-a(g); and

� Work for another participating employer.

The benefit calculation under Section 80-a(g) depends on the regular retirement plan yourcurrent employer provides. For example, if youremployer offers the New Career Plan (Section75-h or 75-i), and you have at least 20 years oftotal service credit, your benefit under Section80-a(g) will equal:� 1/40th (2.5%) of your FAS for each year of

creditable legislative or executive service;plus

� 1/50th (2%) of your FAS for the remainingyears of service credit.

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Your total benefit cannot exceed 75% ofyour FAS but this limitation is raised to 79% ofyour FAS if you are eligible to receive the addi-tional service credit provided by Article 19.

With less than 20 years of total servicecredit, your benefit under Section 80-a(g) willequal:� 1/40th (2.5%) of your FAS for each year of

creditable legislative or executive service;plus

� 1/60th (1.66%) of your FAS for the remain-ing years of service credit.

If you made voluntary contributions to theRetirement System, your benefit will also in-clude an annuity purchased by your contribu-tions, and the interest they earned.

Filing for the Service RetirementBenefit

The Application for Service Retirement(RS6037) must be on file with the Office of theState Comptroller at least days but not morethan 90 days before the date on which your re-tirement will occur.

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Items That May Affect YourPension

IRS Pension LimitationThe Internal Revenue Code limits the amount

of salary that qualified pension plans, includingthe New York State and Local Retirement Sys-tem, may use in the calculation of benefits. Sec-tion 401(a)(17) affects members who first joinon or after April 1, 1996 and currently earn$205,000 or more in the State’s fiscal year(April 1- March 31). This amount is set by Fed-eral law and is periodically adjusted for inflation.

Cost-of-Living Adjustments (COLA)Once you meet the eligibility requirements,

including age and number of years retired, yourretirement benefit will permanently increaseeach year. This adjustment, subject to pensioncaps and limitations, is 50% of the previousyear’s annual rate of inflation, but never lessthan 1% or more than 3% of your benefit. Theadjustment percentage is applied only to thefirst $18,000 of your Single Life Allowance,even if you selected a different option at retire-ment.

You will begin receiving COLA when youare:� Age 62 or older and retired for five or more

years, or

� Age 55 or older and retired for 10 years; or

� Receiving a disability pension for five ormore years.

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When you die, if you selected an option atretirement that pays a lifetime benefit to yourbeneficiary, and the beneficiary is your spouse,he or she will be eligible to receive half of theCOLA amount you would have been entitled to.

DivorceIf you are in the process of a divorce, you

should know the New York State Court of Ap-peals has determined that retirement benefits areconsidered marital property and are subject tothe equitable distribution provisions of the Do-mestic Relations Law. Equitable distribution isthe fair division of marital assets between hus-band and wife after the marriage has ended. Atthe time of your divorce, you and your ex-spouse can agree on how your pension benefitsshould be divided, or you can have the decisionmade by the court. Either way, any division ofyour pension benefits must be stated in the formof a Domestic Relations Order (DRO) if we areto pay a portion of your pension to your ex-spouse.

A DRO is the legal document issued by acourt that provides us with specific direction onhow your pension benefits should be divided be-tween you and your ex-spouse. However, it doesnot allow for a distribution of your pension untilyou actually retire.

For more information on how your pensionbenefits can be affected when divorcing, consultyour attorney and read our publication, Divorce,Equitable Distribution and the RetirementSystem.

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Receiving Your Benefits

Applying for BenefitsTo apply for all Retirement System benefits,

you must file the appropriate application formwith the Office of the State Comptroller in atimely manner. Forms are available from ourwebsite, our Call Center or your employer. Spe-cific filing instructions are detailed in each ben-efit description. Also, you can get help bycalling or writing to us and from our Informa-tion Representatives at our consultation sitesthroughout New York State.

Filing with the State Comptroller’s OfficeMany retirement benefit applications and

other documents are required, by law, to be filedwith the Office of the State Comptroller withinspecific time limits. For a form to be consideredas “filed with the Comptroller,” it must be re-ceived by our Albany office, one of our consul-tation sites, or at another office of the StateComptroller. Giving your employer the formdoes not mean that you have “filed with theComptroller.”

As an alternative to visiting our offices topersonally file these time-sensitive documents,you can fulfill the filing requirements by mail-ing the document to us. We will consider it filedwhen it is delivered to us by the Post Office. Ifyou are concerned about meeting a filing dead-line, you can mail the document via “CertifiedMail - Return Receipt Requested.” When we re-ceive the document, it will be considered ashaving been filed on the same date it wasmailed.

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To meet a filing deadline (such as an applica-tion for retirement benefits or an option electionform), you can also send the document to us viafax. Although we will consider the form as filedon the date the transmission is received, youmust still mail us the original document to con-tinue the process and properly complete the fil-ing requirement.

Filing Multiple ApplicationsShould you become ill or disabled and un-

able to perform your duties, depending on thecircumstances, you may be eligible to simulta-neously file applications “without prejudice” fordisability and regular service retirement ben-efits. “Filed without prejudice” means we willprocess all filed applications and if more thanone benefit is approved, you will be given theopportunity to choose your pension from the ap-proved benefits.

Challenging a Retirement SystemDetermination

We can pay only those benefits authorized bylaw, and cannot pay you any benefits if you donot meet all the eligibility requirements estab-lished by law. If you believe that your benefithas been incorrectly denied or improperly cal-culated, you may request a hearing and redeter-mination.

Your request must be in writing and receivedby us within four months of the date of the ben-efit denial or determination that you feel is in-correct. At this hearing, you will need to presentevidence to support your contention before anorder modifying your benefits can be subse-quently issued.

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How We Credit Your Service

Full-Time EmploymentA State Senator, Member of the Assembly or

a session employee who serves during an entireregular legislative session, or an annual em-ployee who serves at least 26 weeks during thecalendar year, receives full-time service creditfor the entire year.

Part-Time EmploymentService credit is prorated for session em-

ployees who do not work the entire legislativesession or annual employees who do not serveat least 26 weeks during the calendar year.

Leaves of AbsenceTier 1 members are given full credit for sick

leave at half pay; Tier 2 members receive halfcredit for sick leave at half pay. Since service isusually not credited for any period of time youdo not receive a salary, credit is not given for:� Leaves of absence without pay;

� Authorized, unpaid medical leaves of ab-sence; or

� Unpaid leave under the Federal Family andMedical Leave Act.

You will usually receive up to one year ofservice credit while on Workers’ Compensationleave.

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Additional Service Credit UnderArticle 19

If eligible, you will receive one month of ad-ditional service credit for each year of servicecredit you have at your date of retirement ordeath, up to 24 months. This service can be usedto qualify you for a service retirement benefit,the vesting requirement, the 10-year service re-quirement for the out of service death benefit oran ordinary disability retirement benefit.

You are eligible for additional service creditprovided by Article 19 if:� Your date of membership is before July 27,

1976, and� You were in active service on April 1, 1999,

and continued in active service up to and in-cluding October 1, 2000.

Active service for this benefit means:� You are paid on the payroll;

� You are on a leave of absence with pay;

� You are on an approved leave of absencewithout pay; or

� For teachers and other school district em-ployees, any period of time between schoolterms and between September 1 and October1, 2000.

Under this plan, the pension portion of yourretirement benefit cannot exceed 75% of yourFAS. This limitation is raised to 80% of yourFAS if you are eligible to receive the additionalservice credit provided by Article 19.

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Getting Credit for PreviousPublic Service

Creditable ServiceIf you elected this plan before July 1, 1972,

you may receive credit, under Section 80-a, forother public employment prior to your legisla-tive service. Certain military service can also becredited. If you elected this plan on or after July1, 1972, only legislative and certain military ser-vice can be credited under Section 80-a.

If you are able to obtain credit for your pre-vious public employment, it is very importantthat you claim all that service, as early as pos-sible, because records documenting your previ-ous service may be lost or destroyed with thepassage of time. The types of service that youmay be eligible to claim are described below.

Prior ServiceThis is any period of time you received sal-

ary from a participating employer before thatemployer elected to participate in the Retire-ment System. There is no cost to receive creditfor prior service.

Service Before Your Date ofMembership

You may receive credit for working for aparticipating employer in New York State beforeyou joined the Retirement System.

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Military ServiceYou may be able to receive credit for some

or all of your military service. To determineyour eligibility, please send us a copy of yourReport of Transfer or Discharge Record(DD-214).

Service from a Previous MembershipIf you previously were a member of this Sys-

tem, or another public retirement system in NewYork State, your retirement service may berecredited and your date of membershipchanged. For reinstatement to an earlier datewithin Tier 1, send us a completed Applicationto Reinstate a Former Tier 1 or 2 Membership(RS5506).

Applying for Previous Service CreditTo receive credit for any type of previous

service, send a written request (which must bereceived before your effective date of retire-ment) to our Member & Employer Services Bu-reau. Please include as much information as youcan about the period of employment that you areseeking to receive credit for. We will determineyour eligibility to receive the credit and any costinvolved.

By requesting credit for your previous publicemployment as early in your career as possible:� If there is a cost, it will be less expensive

than if you wait to purchase it at a later date.

� Your retirement benefit will be processedmore quickly if your service credit is in order.

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Establishing Benefit Eligibility(Vesting)

Executive MembersYou are eligible for a vested retirement ben-

efit if you have at least 10 years of executiveservice credit and separate from the Legislatureor another participating employer. You are en-titled to receive a vested retirement benefit assoon as the sum of your service as a State Sena-tor or Member of the Assembly, plus the timewhich has elapsed since you left the Legislature,equals 20 years.

If you reach age 55 before the 20-year periodhas accumulated, you are eligible for a vestedretirement benefit on the first of the month fol-lowing your 55th birthday.

Legislative MembersYou are eligible for a vested retirement ben-

efit if you separate from the Legislature or an-other participating employer before age 55 andyou have at least 10 years of legislative servicecredit. When you reach age 55, this will entitleyou to a retirement benefit based on your ser-vice and salary earned when you were an activemember.

You are eligible for a vested benefit on thefirst of the month following your 55th birthday.

Your Vested BenefitThe provisions of the retirement plan that

you were covered by in your last public employ-ment determine the vested benefit. For an expla-

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nation of your benefit, please refer to the “YourService Retirement Benefit” section of thisbooklet.

The retirement benefit is payable for yourlifetime and you must elect one of several op-tions to provide for possible payment to a desig-nated beneficiary of your choosing.

Filing for the Vested BenefitTo receive your pension at the earliest pos-

sible date, you should file a retirement applica-tion within 90 days before the first of the monthfollowing your 55th birthday. If we receive yourretirement application after the first of themonth following your 55th birthday, your vestedretirement is effective on the date the applica-tion is filed with or received by us.

If you were a State Senator or Member of theAssembly and become eligible for a vested re-tirement benefit prior to age 55, to receive yourbenefit at the earliest possible date, file a retire-ment application 30 to 90 days before you be-come eligible.

Remember, it is up to you to file a retirementapplication when you become eligible and wishto receive your benefit. Any delay in filing for avested benefit will not increase your pensionsince the amount of your benefit is frozen whenyou leave public employment.

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Benefit Payment Options

How You Receive Your BenefitAt retirement, you must decide how you

want your retirement benefit paid. While thereare several options from which to choose, all ofthem provide you with a monthly benefit forlife. For example, you may elect to have yourretirement benefit paid to you as a Single LifeAllowance (Option 0) providing you the maxi-mum amount payable during your lifetime, withnothing payable to a beneficiary upon yourdeath. Or, you may elect to receive a reducedmonthly benefit to provide for possible paymentto a designated beneficiary after your death.

Filing Your OptionYou must file your Option Election form

(unless notified otherwise, as in the case of dis-ability retirement) before the first day of themonth following your retirement date. Youwould not be expected to select your paymentoption until you receive an estimate of theamounts payable under each option available toyou. If election is not timely, by law, we mustprocess your retirement as if you had selectedCash Refund – Contributions (Option ½) withyour estate named as beneficiary. Please notethat you cannot change your option selection af-ter the last day of the month in which you retire.

The following choices are available to you:

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Single Life Allowance (Option 0)This basic retirement benefit provides for

maximum payment to you. But remember, un-der this selection, all payments cease at yourdeath. When you die (even if it is only one year,or sooner, after retiring), nothing will be paid toany beneficiary.

Cash Refund – Contributions (Option ½)(Available only to members withcontributions on deposit)

This provides a reduced monthly benefit foryour lifetime. At your death, any unpaid balanceof your accumulated contributions will be paidto your beneficiary or your estate. If all your ac-cumulated contributions have been expended,all payments will cease at your death.

Cash Refund – Initial Value (Option 1)(Available to Tier 1 members only)

This reduced benefit guarantees that if youdie before receiving retirement benefit pay-ments that equal the initial value of your ben-efit, the balance of the initial value will be paidto your beneficiary or estate in a lump sum. Ini-tial value is an actuarial term for the value ofyour retirement benefit at the time of retirement.

If you live long enough, you will receiveyour initial value amount and more in yourmonthly retirement payments. However, if youdie after the full initial value amount has beenpaid out to you, no benefit is payable to yourbeneficiary.

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Joint Allowance – Full*This reduced benefit is based on your and

your beneficiary’s birth dates. When you die,your beneficiary will receive the same monthlyamount (without COLA) as you did, for life. Ifyour beneficiary dies before you, all benefitpayments cease at your death.

Joint Allowance – Half*This reduced benefit guarantees you retire-

ment income for your lifetime. After your death,your beneficiary will receive monthly paymentsequal to one-half of the amount you were re-ceiving (without COLA) for life. If your benefi-ciary dies before you, all benefit payments willcease at your death.

Pop-Up/Joint Allowance – Full or Half*These options will provide you with a re-

duced benefit for life. If you die before yourbeneficiary, we will continue paying the sameamount, or one-half that amount (withoutCOLA), depending on which option you elect,to your beneficiary for life. If your beneficiarydies first, your benefit will be increased to theamount you would have received if you had se-lected the Single Life Allowance at retirementand all payments will stop at your death.

*If you elect this option, you must submit proof of yourbeneficiary’s birth date. You can only designate one ben-eficiary and you cannot change your designation afteryour retirement. If your beneficiary is your spouse at thetime of your death, he or she will be eligible for 50% ofyour COLA.

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Five Year Certain and Ten Year CertainThese options provide a reduced benefit for

you with the additional guarantee that if youlive for less than five years or ten years after re-tirement, depending upon which option youelect, payments in the same amount you werereceiving (without COLA) will be made to yourbeneficiary for the balance of the five or ten-year period. You may change your beneficiarywithin the five or ten-year period.

Alternative OptionsIf the options described here do not meet your

needs, we will consider written requests for othermethods of payment. Such requests must be out-lined in detail by you and then must be approvedby us for legal and actuarial soundness.

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Ordinary Disability RetirementBenefit

Eligibility for the Ordinary DisabilityBenefit

If you are unable to perform your duties be-cause of permanent physical or mental incapac-ity, and have 10 or more years of service credit,you may be eligible for an ordinary disabilityretirement benefit.

The Ordinary Disability BenefitIf approved, this is a benefit equal to the

greater of:� 1/60th (1.66%) of your FAS for each year of

credited service; or

� 1/60th (1.66%) of your FAS for each year ofcredited service plus 1/60th of your FAS foreach year of service you might have earnedbefore attaining age 60, but not more thanone-third of your FAS.

In addition to your pension, if you made vol-untary contributions, you will receive an annuitybased on your contributions and the interestearned.

If you are 60 or older at the effective date ofyour disability retirement, your ordinary disabil-ity benefit will equal the benefit that would havebeen payable to you as a service retirement.

You must select an option for the payment ofyour disability benefit. For more information,refer to the “Benefit Payment Options” sectionof this booklet

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Filing for the Ordinary DisabilityBenefit

Your application for ordinary disability re-tirement may be filed by you, the head of thedepartment in which you are employed, orsomeone authorized with your power of attor-ney. You may submit application simultaneouslyfor ordinary disability, accidental disability andregular service retirement benefits (if eligible).However, your application for ordinary disabil-ity retirement must be submitted while you arein service or within 90 days from the date you:� Are last paid on the payroll; or

� Are last on an authorized medical leave forup to two years, but may be extended for anadditional two years; or

� Last receive Workers’ Compensation or othersimilar employer-funded benefits for up totwo years, but may be extended for an addi-tional two years; or

� Are terminated from employment.

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Accidental Disability RetirementBenefit

Eligibility for the Accidental DisabilityBenefit

Regardless of the amount of service credityou may have, if you become permanently inca-pacitated (physically or mentally) and unable toperform your job as the natural and proximateresult of an on-the-job accident not due to yourown willful negligence, you may be eligible forthe benefit.

Notice of AccidentTo be eligible for this benefit, you must file

an application for an accidental disability retire-ment benefit within one year following the al-leged accident. Otherwise, you must have filed awritten notice of the accident with:� The Retirement System within 90 days of

the accident; or

� Your employer within 30 days of the date ofthe accident, if your employer is covered bythe Workers’ Compensation Law or if the acci-dent occurred on or after September 1, 1980.

The written notice must detail the time andplace of the accident, the particulars thereof, thenature and extent of your injuries, and the al-leged incapacity.

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The Accidental Disability BenefitIf approved, the accidental disability retire-

ment benefit is a lifetime pension of three-quar-ters (75%) of your FAS, and an annuityprovided by any contributions you may havemade while in service.

You must apply for Workers’ Compensationbenefits if you are eligible. Regardless of tier,the accidental disability benefit will be reducedby the total amount of Workers’ Compensationbenefits that you are eligible to receive.

You must select an option for the payment ofyour disability benefits. For more information,refer to the “Benefit Payment Options” sectionin this booklet.

Filing for the Accidental DisabilityBenefit

You, your employer or someone authorizedwith your power of attorney, may file your ap-plication for accidental disability retirement.The application must be filed while you are stillin service or within two years of your discon-tinuance from service. When filing for this ben-efit, “in service” is defined as while you are:� Being paid on the payroll; or

� On an authorized medical leave of absencefor up to two years, but may be extended foran additional two years; or

� Receiving Workers’ Compensation or othersimilar employer-funded benefits for up totwo years (may be extended for an additionaltwo years) since last being paid on the pay-roll, as long as you are not terminated fromemployment while receiving those benefits.

You may submit applications simultaneouslyfor ordinary disability, accidental disability, andregular service retirement benefits (if eligible).

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Ordinary Death Benefit

If you have at least one year of credited ser-vice in the Retirement System, your beneficiarymay be entitled to an ordinary death benefit ifyour death is not attributable to an on-the-jobaccident. The first $50,000 of this benefit is paidin the form of group term life insurance that,under present rules, is exempt from Federal in-come tax. Your accumulated contributions arealso payable to your beneficiary.

Eligibility for the Ordinary DeathBenefit

An ordinary death benefit may be payable toyour designated beneficiary if you have com-pleted at least one year of service since lastjoining the Retirement System and your deathoccurs:� While in public service; or

� On an authorized medical leave without pay;or

� While receiving Workers’ Compensation orother employer-funded benefits, for up totwo years following the last date you werepaid on the payroll, provided your employ-ment has not been terminated by resignation,employer action or any other means; or

� Within 12 months of the last date you werereceiving salary, provided you were not other-wise gainfully employed during that period.

The Ordinary Death Benefit—Tier 1This benefit is equal to 1/12th (8.33%) of

your last year’s earnings, multiplied by youryears of service credit up to 36 years.

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The Ordinary Death Benefit—Tier 2Members who joined before January 1, 2001

were given a choice between two death benefits.If you chose death benefit one and you die whilein active service, your beneficiary will be paidthe greater of the two death benefits; if you dieafter retirement, and meet the eligibility criteria,your beneficiary will receive the post-retirementdeath benefit.

Members who join on or after January 1,2001 will automatically be covered by deathbenefit two, the greater benefit in almost allcases. Death benefit two is equal to your salarymultiplied by your years of service, not to ex-ceed three years of salary.

For example, if you die after one year of ser-vice, your beneficiary would receive a benefitequal to one year of your salary; if you die aftertwo years, your beneficiary would receive abenefit equal to tw o years of your salary . But,if you die after three or more years of service,your beneficiary would receive a benefit equalto three years of your salary.

If you are in service at age 61, your deathbenefit will be reduced by 4% and will be fur-ther reduced by 4% each year you continue tobe in service. It will not be reduced below 60%of the original benefit payable.

Death benefit two provides a post-retirementdeath benefit if you:� Retire directly from service; or

� Are a vested member and file for retirementwithin one year of leaving coveredemployment.

The post-retirement death benefit is calcu-lated at retirement. During your first year of re-tirement, the benefit is 50% of the ordinarydeath benefit payable at retirement; during yoursecond year of retirement, the benefit is 25%.During your third year and thereafter, the ben-efit will be 10% of the ordinary death benefitthat would have been payable at age 60, or at re-tirement, whichever was earlier.

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Example:Retirement at age 62 with a salary of $60,000

$60,000 × 3 = $180,000(reduction for working after age 60) - 14,400(ordinary death benefit at retirement) $165,6001st year of retirement

(50% of ordinary death benefit): $ 82,8002nd year of retirement

(25% of ordinary death benefit): $ 41,400After 2nd year of retirement

(10% of benefit at age 60): $ 16,560

The Alternative Death BenefitIf you die while in service after becoming

eligible to retire, your death benefit may be sub-stantially increased. This benefit would be equalto the initial value of your pension under theprovisions of the Non-contributory RetirementPlan (Section 75-c) as of your date of death.

Out of Service Death BenefitIf you are a vested member with at least 10

years of credited service and you die more thanone year after leaving public employment, 50%of the death benefit may still be payable. Thisbenefit is also payable if you die within oneyear of leaving covered service but were gain-fully employed during that time.

Filing for the Ordinary Death BenefitYour family or employer should notify us of

your death as soon as possible so we can sendthe appropriate forms to your beneficiary.

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Accidental Death Benefit

Eligibility for the Accidental BenefitRegardless of your years of service credit, if

you die as the direct result of an on-the-job acci-dent not due to your own willful negligence, anaccidental death benefit may be payable on yourbehalf.

The Accidental Death BenefitThe accidental death benefit is equal to one-

half (50%) of your FAS (less any Workers’Compensation benefit paid or payable becauseof your death). The benefit can only be paid tothe following family beneficiaries, in this order:� first, to your widow or widower until his or

her death or remarriage;

� second, where there is no widow or widoweror in the event of his or her death or remar-riage, to each minor child until he or shereaches age 18;

� finally, where there is no widow, widower orminor children, to a dependent parent forlife.

If all the beneficiaries listed become ineli-gible for benefit payments, and the paymentsmade to that time do not equal or exceed theamount of the ordinary death benefit that wouldhave been payable at the time of death, we willpay the difference to your designated benefi-ciary or to your estate. If you have no beneficia-ries as listed above, we will not pay theaccidental death benefit but will pay the appli-cable ordinary death benefit to your last desig-nated beneficiary or your estate.

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Filing for the Accidental DeathBenefit

Your family or employer should notify us ofyour death as soon as possible so we can sendthe appropriate forms to your beneficiary. Theapplication for accidental death benefit must befiled within two years of the date of your death.

Your Retirement PlanLegislative andExecutive PlanFor Tier 1 and 2 Members(Section 80-a)

VO1861

Printed 4/04Content Last Revised 8/11

© 2011, New York State and Local Employees’ Retirement System

Printed on recycled paper

This publication provides a general summary of membership benefits, rights and responsibilities, and is not a substitute for any New York State or federal law.

For specific information about your benefits, please contact us.

New York State Office of the State ComptrollerThomas P. DiNapoli

New York State and Local Employees’ Retirement System