§ 390. Options. a. A member; or if he is an incompetent, his spouse or
the committee of his property; or if he is a conservatee, his spouse or
the conservator of his property, may elect to receive a Single Life
Allowance (a retirement allowance without optional modification) or to
receive the actuarial equivalent of his retirement allowance at the time
of his retirement, in the form of a smaller retirement allowance payable
to him for life and one of the following optional settlements.

Cash Refund-Contributions (Option One-half). If he dies before he has
received annuity payments equal to the present value of his annuity, as
it was at the time of his retirement, the balance thereof shall be paid
to his estate or to a beneficiary designated as provided in this
section. In the event a designated beneficiary does not survive him, any
balance shall be payable to the estate of the deceased retired member or
as provided in section one thousand three hundred ten of the surrogate's
court procedure act.

The beneficiary so designated may elect by written designation, duly
executed and filed with the comptroller, to receive the balance payable
in the form of an annuity, the amount of which shall be determined as
the actuarial equivalent of such balance on the basis of regular
interest and the age of such beneficiary at the time of the retiree's
death, or in the alternative, to receive the actuarial equivalent of
such balance in the form of a reduced annuity payable for life, with the
further proviso that if he should die before the annuity payments
received by him are equal to such actuarial equivalent, the balance
thereof shall be paid in a lump sum to his estate or to such person as
he shall have designated to receive same. In either case the election
shall be within ninety days after the death of the retiree. The
designation of the individual who is to receive such lump sum on the
death of the beneficiary, may be changed by the beneficiary at any time.
Such election, designation or change shall be made by a writing, duly
executed and filed with the comptroller. In the event a designated
beneficiary has elected to receive a balance payable in the form of a
reduced annuity, and the person designated by him to receive a lump sum
payment does not survive him, such lump sum, if any, shall be payable to
the estate of the designated beneficiary or as provided in section one
thousand three hundred ten of the surrogate's court procedure act.

Cash Refund-Initial Value (Option One). If he dies before he has
received retirement allowance payments equal to the present value of his
retirement allowance, as it was at the time of his retirement, the
balance thereof shall be paid to his estate or to the beneficiary so
designated. In the event a designated beneficiary does not survive him,
any balance shall be payable to the estate of the deceased retired
member or as provided in section one thousand three hundred ten of the
surrogate's court procedure act. The beneficiary so designated may elect
by written designation, duly executed and filed with the comptroller, to
receive the balance payable in the form of an annuity, the amount of
which shall be determined as the actuarial equivalent of such balance on
the basis of regular interest and the age of such beneficiary at the
time of the retiree's death, or in the alternative, to receive the
actuarial equivalent of such balance in the form of a reduced annuity
payable for life, with the further proviso that if he should die before
the annuity payments received by him are equal to such actuarial
equivalent, the balance thereof shall be paid in a lump sum to his
estate or to such person as he shall have designated to receive same. In
either case the election shall be within ninety days after the death of
the retiree. The designation of the individual who is to receive such
lump sum on the death of the beneficiary, may be changed by the
beneficiary at any time. Such election, designation or change shall be
made by a writing, duly executed and filed with the comptroller. In the
event a designated beneficiary has elected to receive a balance payable
in the form of a reduced annuity, and the person designated by him to
receive a lump sum payment does not survive him, such lump sum, if any,
shall be payable to the estate of the designated beneficiary or as
provided in section one thousand three hundred ten of the surrogate's
court procedure act.

Joint Allowance-Full (Option Two). Upon his death, a retirement
allowance in an amount equal to that paid to him, shall be paid for life
to the beneficiary so designated.

Joint Allowance-Half (Option Three). Upon his death, a retirement
allowance of one-half the amount paid to him shall be paid for life to
the beneficiary so designated.

Actuarial Equivalent Allowance (Option Four). Such other optional
benefit or benefits as the comptroller shall approve and which shall be
the actuarial equivalent of his retirement allowance at the time of his
retirement.

aa. In the event that the monthly retirement allowance payable to a
member or a beneficiary shall amount to less than twenty-five dollars,
then and in such event, the member or beneficiary may elect, in lieu of
such monthly retirement allowance, to receive the actuarial equivalent
thereof in a lump sum.

b. All elections under this section shall be made on blanks prepared
by the comptroller for that purpose. Any such election may be made at
any time before the first payment on account of any benefit becomes
normally due, except that in the case of retirement on account of
disability, such an election may be made within thirty days after
mailing by the comptroller of notification of approval of retirement on
account of disability.

An optional election shall not become effective if the member dies
before the effective date of his retirement. Provided, however, if a
member who is otherwise eligible for disability retirement pursuant to
this chapter dies after the filing in the office of the comptroller of
the application for disability retirement and a valid option election
form pursuant to this chapter and it is established that the physical or
mental impairment or incapacitation of the applicant specified in such
application was directly related to the cause of the applicant's death,
such application shall be approved by the comptroller effective one day
before the date of the applicant's death. An election of an option may
be withdrawn or a new option may be chosen within the period provided in
this subdivision b for the making of such an election. Except as
provided in subdivision b of section three hundred seventy of this
article, where an optional election does not become effective,
retirement shall be without option.

bb. 1. Notwithstanding any other provision of this section or of
section three hundred seventy of this article, the comptroller, for
reasonable cause, shall have power, to extend the time for the election
of an option, for a period or periods which shall expire not later than
sixty days immediately after the effective date of a member's
retirement.

2. Notwithstanding any other provision of this section, but except
where payment of accumulated contributions, an ordinary death benefit,
or both, is or are required pursuant to subdivision dd of section three
hundred fifty-one of this article or subdivision aa of section three
hundred sixty of this article, retirement shall be on the basis of
"Option One-half" unless the member files an effective election pursuant
to this section to retire on a different basis. The provisions of this
paragraph two shall apply to cases where retirement shall become
effective on or after April first, nineteen hundred sixty-seven.

c. A member, or person authorized by this section to make an election
in his behalf, may designate his beneficiary under any of the options
herein provided. Each such designation shall be:

1. Made in writing on a blank provided by the comptroller for such
purposes, and

2. Ineffective until it is filed in the comptroller's office, and

3. Revocable to the extent that:

(a) A new beneficiary under a "Cash Refund-Contributions" option
(Option One-half), or a "Cash Refund-Initial Value" option (Option One)
may be designated at any time during the member's life.

(b) A new beneficiary under any other option may be designated at any
time within the period provided for the making of an election pursuant
to this section.

d. In the event of the death of a retired member, the installment of
his retirement allowance, which would have become due and payable next
following his death, shall be pro-rated as of the date of his death. The
amount of such installment, as so pro-rated, shall be paid as follows:

1. If the member shall have:

(a) Elected to receive an optional benefit pursuant to this section,
and

(b) Designated a beneficiary pursuant to this section, such amount
shall be paid to such beneficiary, if such beneficiary survives him. In
any other case such amount shall be paid to the retired member's estate
or pursuant to section one thousand three hundred ten of the surrogate's
court procedure act.

2. If the member shall not have elected to receive an optional
benefit, such amount shall be paid to the beneficiary designated by him
pursuant to subdivision d of section three hundred fifty-one of this
article. In the event the appropriately designated beneficiary does not
survive such member, or if he shall not have so designated a
beneficiary, such amount shall be payable to the retired member's estate
or pursuant to section one thousand three hundred ten of the surrogate's
court procedure act.

e. Notwithstanding any other provision of this article, an option
selection previously filed by a member or retired member subject to the
provisions of this section may be changed no later than thirty days
following the date of payability of his or her retirement allowance. A
retired member who has been retired for disability may change an option
selection previously filed no later than (1) thirty days following the
date on which such member's application for disability retirement was
approved by the retirement board or (2) thirty days following the date
on which such retiree was retired for disability, whichever is later.