MAXIMUM RETIREMENT ALLOWANCE
At retirement a member may elect to receive the maximum
retirement allowance, which is the largest monetary benefit allowable. Payments
are made throughout your lifetime and cease upon your death.
OPTIONS
An option is a benefit you may elect to provide to a
beneficiary. In doing so, you agree to accept a reduced retirement allowance
during your lifetime. The option cost is based on the option selected, your age
and, the age of your beneficiary(ies) at the time of your retirement. All
calculations are done by the Chief Actuary of the City of New York.
NOTE: There are three options available to members of Tier
II/ Article IIA. Once an option is finalized it cannot be changed (except for
Option 4, Lump Sum). Options do not apply to the Variable Supplement Fund.
Option 2
100% Joint and Survivor—You receive a reduced monthly
lifetime allowance. This option allows the named beneficiary to receive for
life, upon the death of the retiree, the same pension allowance. You can name
only one beneficiary, and you may not change your beneficiary once designated.
Option 3
50% Joint and Survivor—You receive a reduced monthly
lifetime allowance. This option allows the named beneficiary to receive for
life, upon the death of the retiree, 50% of your reduced pension allowance.
You can name only one beneficiary, and you may not change
your beneficiary once designated.
OPTION 4
Lump Sum — You receive a reduced annual pension allowance
for life with the provision that, upon your death, your beneficiary(ies) will
receive a limited lump sum payment specified by you at the time you chose this
option. You may name more than one beneficiary and you may change your
beneficiary(ies) at any time. The lump sum payment may be subject to Federal
tax.
Annuity — You receive a reduced annual pension allowance for
life with the provision that upon your death, your beneficiary will receive an
annual annuity in a specified amount. You can name only one beneficiary and may
not change your beneficiary once designated.
POPUP
OPTION MODIFICATION
Under this option modification, if the named beneficiary
predeceases the retiree, the retirement allowance reverts back to the maximum
retirement allowance. The PopUp may only be applied to Option Nos. 2, 3, and 4
Annuity.
There is an extra cost for this option.
PARTIAL PAYMENTS
After you have filed for retirement, you will not begin
receiving your full monthly retirement allowance until your retirement
allowance is certified (finalized) by the Chief Actuary of the City of New
York. In the interim, you will receive a partial monthly retirement allowance
of approximately ninety percent (90%) of your final estimated retirement allowance.
Once your retirement allowance is certified (finalized), by
the Chief Actuary of the City of New York you will begin receiving your full
monthly retirement checks. Any retroactive adjustments will be included in your
first full monthly retirement check.
WHERE YOUR CHECKS MAY BE SENT
Your pension check will be sent directly to your home unless
you make arrangements with the Pension Fund to mail your check to your bank, or
arrange to have your pension check deposited automatically with your bank by
way of Electronic Funds Transfer (EFT). Change of address forms and EFT forms
are available at the Police
Pension Fund and on our website (www.nyc.gov/nycppf in the
Forms area).
OPTION SELECTION
Prior to finalization you will be notified of the breakdown
of the cost of the various options, if requested during the retirement process.
Once a election has been made, either for an option or for the maximum pension
benefit, your pension can be finalized.
Example of Option Costs for Service Retiree
Maximum Retirement Allowance: $48,026.00
No Option – Maximum Retirement Allowance
Retiree: Male Age 48
Beneficiary: Female Age 45
OPTIONS
One Half
