N.Y. Comp. Codes R. & Regs. tit. 21, § 5014.6 – Compliance with IRC section 401(a)(9).

(a) The system shall comply with IRC section 401(a)(9). Notwithstanding any other provision of law to the contrary, the system shall comply with section 401(a)(9) of the Internal Revenue Code, including the minimum distribution incidental benefits rule of section 401(a)(9)(G) of the Internal Revenue Code, pursuant to a reasonable and good faith interpretation of section 401(a)(9) of the Internal Revenue Code in accordance with Treasury Regulation section 1.401(a)(9)-1.
(b) The entire interest of a member shall be distributed:
1. (1) to the member not later than the required beginning date; or
2. (2) in accordance with IRC section 401(a)(9), over the life of the member or over the lives of the member and a designated beneficiary (or over a period not extending beyond the life expectancy of the member or the life expectancy of the member and a designated beneficiary).
(c) Where distributions have begun under paragraph (b)(2) of this section and the member dies before his or her entire interest is distributed to such member, the remaining portion of such interest shall be distributed at least as rapidly as under the method of distribution being used under paragraph (b)(2) of this section as of the date of death.
(d) If the member dies before the distribution of the member's interest has begun, the entire interest of the member, if any, shall be distributed within five years after the member's death, except that, if any portion of the member's interest is payable to or for the benefit of a designated beneficiary(ies) and such portion will be distributed (in accordance with such regulations) over the life of such designated beneficiary(ies) (or over a period not extending beyond the life expectancy of such beneficiary[ies]) and such distributions begin not later than one year after the date of the member's death (or such later date as may be permitted by the United States Secretary of the Treasury), such portion shall be treated as distributed on the date such distributions began.
(e) For the purposes of this section:
1. (1) the term required beginning date means April 1st of the calendar year following the later of the calendar year in which the member attains age 70½ or the calendar year in which the member retires;
2. (2) the term designated beneficiary mean any individual designated as a beneficiary by the member;
3. (3) the term entire interest of the member does not include ancillary benefits (such as lump sum death benefits) which are in no event available to the member; and
4. (4) the term IRC section 401(a)(9) means section 401(a)(9) of the Internal Revenue Code of 1986, as amended and as hereafter may be amended, and any regulations promulgated thereunder, if and to the extent applicable to the system.
(f) Any distribution required under the incidental death benefit requirements of IRC section 401(a) shall be treated as a distribution subject to IRC section 401(a)(9).
(g) No option shall be permitted whereby a member would receive in retirement less than 50 percent of the actuarial equivalent of the member's retirement allowance without optional modification during the member's life expectancy, provided, however, that the foregoing shall not apply if the surviving beneficiary is the retiree's spouse.
(h) Nothing in this section shall be construed to require the system to provide any benefit not permitted under the laws governing the system.
(i) In cases where the sole beneficiary of the option designated at retirement is the member's spouse, a member will not be permitted to elect an option otherwise permitted under this Part which provides for a guaranteed payment for a period of years that exceeds the greater of:
1. (1) the joint and last survivor life expectancy of the member and the member's spouse; or
2. (2) the distribution period for required minimum distributions permitted under regulations of the United States Department of Treasury implementing IRC section 401(a)(9). In cases where the sole beneficiary of the option designated at retirement is not the member's spouse, a member will not be permitted to elect an option otherwise permitted under this Part which provides for a guaranteed payment for a period of years that exceeds the distribution period for required minimum distributions permitted under regulations of the United States Department of Treasury implementing IRC section 401(a)(9).