Section 13-177.1. Modified Option 1 pension computation formula

a. The
  board may by resolution direct that  under  such  circumstances  as  are
  designated  in such resolution, benefits under Option 1 which consist of
  or are derived from the pension component of a retirement allowance  and
  which are payable to or on account of Tier I members who:
    (1)  became  members  prior  to  the  date  of enactment (as certified
  pursuant to section forty-one of the legislative law) of  this  section;
  and
    (2)  retired  or  retire,  on  or after August first, nineteen hundred
  eighty-three, for service or superannuation or for ordinary or  accident
  disability  or  pursuant  to  section 13-150 of the code, or on or after
  such August first, discontinued or discontinue service so as  to  become
  discontinued  members  or  discontinued  sanitation  members;  shall  be
  determined under the modified Option 1 pension computation  formula  (as
  defined in subdivision seventy-seven of section 13-101 of the code).
    b.  If  the  board  makes  a  direction, pursuant to the provisions of
  subdivision a of this section, for use of  such  formula,  it  may  also
  direct by resolution:
    (1)  that  any  member who is subject to the modified Option 1 pension
  computation formula may elect, at such time and in accordance with  such
  procedures as are prescribed in such resolution, that such formula shall
  not apply to such member and that the initial reserve determined for the
  purpose  of  providing  the  benefits  payable  by  reason of his or her
  selection of Option 1 and the pension component of his or her  Option  1
  retirement  allowance shall be determined on the basis of gender-neutral
  mortality tables and regular interest of seven  per  centum  per  annum,
  compounded annually; and
    (2) that the benefit payable, upon the death of the member making such
  election,  to  his  or her beneficiary or estate shall be the difference
  between such Option 1 initial reserve and the total of the  payments  of
  such  pension  component  received  by or payable to such member for the
  period prior to his or her death; and
    (3) that if such Option 1 beneficiary's benefit  is  payable  to  such
  beneficiary  in  the  form  of  an annuity payable in installments, such
  annuity shall be determined  to  be  the  greatest  of  three  annuities
  computed  for  such  beneficiary  in  accordance  with  the  methods  of
  computation  set  forth  in  subparagraph  (ii)  of  paragraph  (e)   of
  subdivision seventy-seven of section 13-101 of the code; and
    (4)  that  where  any  member subject to the modified Option 1 pension
  computation formula  retired  before  the  effective  date  of  a  board
  resolution  adopted pursuant to subdivision a of this section, and where
  first payment on account of the retirement allowance of  a  discontinued
  member  or discontinued sanitation member who is subject to such formula
  was made before the effective date of such resolution, such  retiree  or
  discontinued  member  or  discontinued  sanitation  member,  within such
  period of time after such effective date and  in  accordance  with  such
  procedures as are prescribed in such resolution, may elect the method of
  Option  1 benefit determination set forth in the preceding paragraphs of
  this subdivision b.
    c. In any case where, pursuant  to  board  resolution,  a  benefit  is
  required   to   be  determined  under  the  modified  Option  1  pension
  computation formula and  the  determination  of  such  benefit  is  also
  required  by a board resolution adopted pursuant to sub-item (3) of item
  (A) of subparagraph (ii) of  paragraph  (g)  of  subdivision  twelve  of
  section 13-101 of the code to reflect different computations of separate
  portions  of such benefit, the methods of computation under the modified
  Option 1 pension computation formula shall be appropriately adjusted  so

  as  to give effect to the provisions of such resolution adopted pursuant
  to such sub-item (3).
 
    *  NB  Added Ch. 910/85 § 8, language juxtaposed per Ch. 907/85 § 14 *
      NB Number supplied by the Legislative Bill Drafting Commission