N.Y. Comp. Codes R. & Regs. tit. 2, § 155.24 – Optional forms of payment of service awards.

(a) There shall be two forms available for payment of service awards commencing on or after attainment of the entitlement age:
1. (1) a monthly payment straight life annuity (standard form);
2. (2) a 5- or 10-year continuous and certain monthly payment life annuity which is actuarially equivalent to the monthly payment straight life annuity (standard form).
(b) There shall be two forms available for payment to participants who upon application to the administrator have been determined by the administrator to be totally and permanently disabled:
1. (1) monthly payment straight life annuity; or
2. (2) a single lump sum.
  Both forms of payment shall be actuarially equivalent to the monthly straight life annuity (standard) form of payment that would have commenced to the participant on the first day of the month following or coinciding with the participant's birthday on which he or she attains the entitlement age.
  (c) Forms available for payment of service awards to beneficiaries of deceased participants.
3. (1) If the beneficiary is the participant's estate, payment shall be a single lump-sum which shall be actuarially equivalent to the monthly straight life annuity (standard) form of payment that would have commenced to the participant on the first day of the month following or coinciding with the participant's birthday on which he or she attains the entitlement age or actuarially equivalent to any continuing payments to the participant's designated beneficiary had the participant been being paid a service award at the time of his or her death and had the participant designated a person (or persons) to be his or her beneficiary.
4. (2) If the participant died before the effective date of the commencement of payment of his or her service award, the payments to the participant's designated beneficiary, which shall be actuarially equivalent to the monthly straight life annuity (standard) form of payment that would have commenced to the participant on the first day of the month following or coinciding with the later of the participant's birthday on which he or she attains the entitlement age or the participant's date of death, shall be in one of the following forms:
  1. (i) monthly payment straight life annuity; or
  2. (ii) a single, lump-sum.
5. (3) If the participant died after the effective date of the commencement of payment of his or her service award, the participant's designated beneficiary shall have the option to be paid:
  1. (i) the remaining monthly service award payments due to the designated beneficiary under the optional form of payment selected by the participant; or
  2. (ii) a single, lump-sum which is actuarially equivalent to the remaining monthly service award payments due to the designated beneficiary under the optional form of payment selected by the participant.
(d) In all cases where the monthly payments to a participant or a beneficiary under a monthly payment straight life annuity form of payment option shall be less than $50, payment shall be made in an actuarially equivalent single, lump-sum to the participant or the participant's designated beneficiary (applies to subdivisions [a], [b] and [c] of this section).
(e) In any case where a deceased participant's designated beneficiary dies before having received all service award payments that would have been made to such designated beneficiary had he or she survived, the remaining payments shall be made to the estate of such designated beneficiary in an actuarially equivalent lump-sum.