§ 537. Lump sum payment of de minimis service retirement benefit.
Notwithstanding any other law to the contrary, a member of the
retirement system who is entitled to receive a retirement allowance,
other than for disability, pursuant to this article or pursuant to
article eleven or fifteen of the retirement and social security law,
which retirement allowance prior to optional modification is twenty-four
hundred dollars per annum or less, may elect at retirement to receive,
in lieu of such retirement allowance, a lump sum payment which has been
certified by the actuary to be of actuarial equivalent value to such
retirement allowance and approved by the retirement board. Such lump sum
shall be calculated using the interest rate on thirty year United States
treasury bonds as of January first of the calendar year in which the
retirement becomes effective. Upon payment of such lump sum, any and all
obligations of the retirement system to such member shall be totally
discharged. Commencing January first, two thousand four, the interest
rate on ten year United States treasury obligations as of January first
of the calendar year in which the retirement becomes effective shall be
used. Commencing January first, two thousand sixteen, the average annual
interest rate on ten year United States treasury obligations for the
days during the calendar year that precedes the calendar year in which
the retirement becomes effective shall be used.