2006 New York Code - Contributions Of Members And Their Use; Annuity Savings Fund.

 
    § 13-125 Contributions of members and their use; annuity savings fund.
  a.  1.  (a)  Subject  to  the  provisions  of  subparagraph  (b) of this
  paragraph, the annuity savings fund shall be the fund in which shall  be
  accumulated  deductions  from the compensation of members to provide for
  their annuities and their withdrawal allowances.
    (b) Nothing contained in subparagraph (a) of this paragraph  shall  be
  construed  to  require  the  making  or  accumulation of deductions from
  compensation with respect to any period  in  relation  to  which  it  is
  provided  or directed, by or pursuant to subdivision l of section 13-161
  of this chapter, that deductions from compensation need not be made.
    (c) Except as otherwise provided in paragraphs two and two-a  of  this
  subdivision  a  or  in  any  other  applicable  portion  of this chapter
  prescribing a different normal rate of contribution, upon the  basis  of
  the  tables herein authorized, and regular interest, the actuary of such
  board shall determine for each member  the  proportion  of  compensation
  which,  when  deducted  from  each  payment  of  his  or her prospective
  earnable compensation prior  to  his  or  her  eligibility  for  service
  retirement  and  accumulated  at  regular  interest  until  his  or  her
  attainment of the minimum age of service  retirement  from  his  or  her
  group,  shall  be computed to provide, at that time, an annuity equal to
  the pension then allowable for service as a member after the  first  day
  of October, nineteen hundred twenty.
    2.  (a)  Upon  the  basis of the tables herein authorized, and regular
  interest, the actuary of such board shall determine for each member  who
  is  appointed  a  member  of  the  uniformed  force of the department of
  sanitation (as defined in  subdivision  a  of  section  13-154  of  this
  chapter)  on  or  after  July  third,  nineteen  hundred sixty-five, the
  proportion of compensation which, when deducted from each payment of his
  or her prospective earnable compensation prior to his or her eligibility
  for service retirement and accumulated at  regular  interest  until  the
  attainment of the minimum period of service retirement applicable to him
  or  her, shall be computed to provide, at that time, an annuity equal to
  twenty-five seventy-fifths of the pension then allowable to him  or  her
  for service as a member of such force.
    (b) (1) Except as otherwise provided in item two of this subparagraph,
  the  rate  of  contribution required to be paid on and after July third,
  nineteen hundred sixty-five by any member who is a member of such  force
  and  was  a  member  of such force prior to such date shall be fifty per
  cent of the rate of contribution required to be paid by such  member  on
  July  second,  nineteen hundred sixty-five, exclusive of any increase in
  rate of contribution pursuant to subdivision  d,  e,  f  or  g  of  this
  section  or pursuant to section 13-108 of this chapter, and exclusive of
  any reduction of contribution pursuant to section 13-152 of this chapter
  or pursuant to subdivision one of section one hundred thirty-eight-b  of
  the retirement and social security law.
    (2)  Notwithstanding  the provisions of item one of this subparagraph,
  no member mentioned in such item one shall be required to  pay,  on  and
  after  July  third,  nineteen hundred sixty-five, a rate of contribution
  fixed pursuant to such item one which, together  with  any  increase  in
  such  rate  of contribution pursuant to subdivision d, e, f or g of this
  section, is in excess of seven and one-half  per  cent  of  his  or  her
  compensation,  unless  such  member  so elects. Where any such member is
  required to pay additional contributions pursuant to section  13-108  of
  this chapter, nothing contained in this item shall affect the obligation
  of any such member to pay such additional contributions pursuant to such
  section,  notwithstanding  that  such  member's rate of contribution may
  thereby exceed seven and one-half per cent of his or her compensation.


    (c) During any period wherein the provisions of section 13-159 of this
  chapter are applicable to a  sanitation  worker  in  the  department  of
  sanitation  who has elected the benefits of such section, the provisions
  of subparagraphs (a) and (b) of this paragraph shall be inapplicable  to
  such  sanitation  worker.  The  normal  rate of contribution of any such
  sanitation worker who has made such election shall be as  prescribed  by
  the  applicable  terms  of  section  13-159  of this chapter, during any
  period wherein the provisions of such section  are  applicable  to  such
  member.
    (d) During any period wherein the provisions of section 13-160 of this
  chapter  are  applicable  to  a  member  of  the  uniformed force of the
  department of sanitation who has elected the benefits of  such  section,
  the  provisions  of subparagraphs (a) and (b) of this paragraph shall be
  inapplicable to such member. The normal rate of contribution of any such
  member who has  made  such  election  shall  be  as  prescribed  by  the
  applicable  terms  of  section 13-160 of this chapter, during any period
  wherein the provisions of such section are applicable to such member.
    (e) (i) Subject to the provisions of subdivision c of  section  13-165
  of   this   chapter,   the   normal   rate   of   contribution  of  each
  fifty-five-year-increased-service-fraction member who, immediately prior
  to becoming such a member, was a member of the retirement system,  shall
  be  that  which  would  have  been  fixed  for  such  member pursuant to
  paragraph one of this subdivision on the  basis  of  the  tables  herein
  authorized  with  respect  to  group three mentioned in subdivision b of
  section 13-172 of this chapter, if such member, at the time his  or  her
  last   membership  in  the  retirement  system  began,  were  instead  a
  fifty-five-year-one-percentum member.
    (ii) The normal rate of contribution of  each  fiftyfiveyearincreased-
  servicefraction member at the commencement of his or her last membership
  in  the  retirement  system, shall be that which would be fixed for such
  member pursuant to paragraph one of this subdivision on the basis of the
  tables herein authorized  with  respect  to  group  three  mentioned  in
  subdivision b of section 13-172 of this chapter, if such member, at such
  commencement    of    his    or   her   membership,   were   instead   a
  fifty-five-year-one-percentum member.
    (f) Subject to the provisions of paragraph two  of  subdivision  a  of
  section  13-162  of  this  chapter, relating to the career pension plan,
  during any period wherein a member is a career pension plan member under
  the provisions of such section, the normal rate of contribution of  such
  member shall be as prescribed by the applicable terms of such section.
    2-a.  The  normal  rate  of contribution of a transit twenty-year plan
  member (as defined in subdivision sixty-one of section  13-101  of  this
  chapter)  shall  be  as  prescribed  by  the applicable terms of section
  13-161 of this chapter, during any period wherein the provisions of such
  section  are  applicable  to  such  member,  subject,  however  to   the
  applicable  provisions  of  subdivision  l  of  such section relating to
  relief from member contributions.
    3. The proportion of compensation fixed pursuant to this subdivision a
  shall be computed to remain constant.
    4. (a) The rate of contribution required to be paid on and  after  the
  first  day of the first payroll period following January first, nineteen
  hundred sixty-eight, by any  member  who  became  a  member  after  June
  thirtieth,  nineteen  hundred  forty-seven  and prior to June thirtieth,
  nineteen hundred sixty-seven, shall be:
    (1) such member's rate  as  of  June  twenty-ninth,  nineteen  hundred
  sixty-seven  computed  pursuant to paragraph one or two of subdivision a
  of this section, including any increase thereof pursuant to  subdivision
  d,  e,  f,  or  g  of this section or pursuant to section 13-108 of this


  chapter, and including any decrease thereof pursuant to  section  13-152
  of  this  chapter  or pursuant to subdivision one of section one hundred
  thirty-eight-b of the retirement and social  security  law,  hereinafter
  referred  to  as  his  or her "computed prior rate", less the difference
  between the rate which was computed for such member on the  date  he  or
  she  last became a member, pursuant to paragraph one or subparagraph (a)
  of paragraph two of this subdivision, exclusive of any increase  thereof
  pursuant  to subdivision d, e, f, or g of this section or section 13-108
  of this chapter, and exclusive  of  any  decrease  thereof  pursuant  to
  subparagraph  (b) of paragraph two of this subdivision or section 13-152
  of this chapter, or pursuant to subdivision one of section  one  hundred
  thirty-eight-b  of  the  retirement and social security law and the rate
  which would have been computed for such member on the  date  he  or  she
  last  became  a member, pursuant to paragraph one or subparagraph (a) of
  paragraph two of this subdivision had he or she been  entitled  on  that
  date to regular interest at four per cent; or
    (2)  if  such  member  made  an election pursuant to section 13-164 or
  paragraph six of  subdivision  a  of  section  13-172  of  this  chapter
  subsequent  to the certification of his or her rate of contribution, his
  or her "computed prior rate", less the difference between the rate which
  would have been computed for such member on the  date  he  or  she  last
  became  a  member  pursuant  to  paragraph  one of subdivision a of this
  section if the later election he or she made had been made on that date,
  and the rate which would have been computed for such member on the  date
  he  or she last became a member pursuant to paragraph one of subdivision
  a of this section if the later election he or she made had been made  on
  that  date, and if, on that date, he or she had been entitled to regular
  interest  at  four  per  cent;  provided  that  the  adjusted  rate   of
  contribution  computed  pursuant  to  this paragraph shall be subject to
  change as authorized by item two of subparagraph (b) of paragraph two of
  this subdivision, subdivision d, e, f, or g  of  this  section,  section
  13-108  or  13-152  of  this  chapter, or subdivision one of section one
  hundred thirty-eight-b of the retirement and social security law.
    (b) For any member to whom subparagraph (a) of this paragraph applies,
  and beginning with the first day of the first payroll period  commencing
  after  June  thirtieth, nineteen hundred sixty-seven and ending with the
  last day of the last payroll period before the first day  of  the  first
  payroll  period  following  January first, nineteen hundred sixty-eight,
  the amount of contributions paid by such  member  which  represents  the
  difference  between  the "computed prior rate" of such member and his or
  her adjusted rate of contributions computed pursuant to subparagraph (a)
  of this paragraph shall be refunded  upon  the  member's  election,  or,
  otherwise, shall be deemed additional contributions made for the purpose
  of  purchasing  additional  annuity,  but  such additional contributions
  shall  not  enter  into  the  computation  for  allowance  on   ordinary
  disability retirement as described in section 13-174 of this chapter.
    b.  The  proportion so computed for a member one year younger than the
  minimum retirement age for service retirement  from  his  or  her  group
  shall  be  applied  to  any member who has attained a greater age before
  entrance into the retirement system.
    c. 1. Such board shall certify to the head of each  agency  who  shall
  deduct from the compensation of each member on each and every payroll of
  such  member for each and every payroll period, the proportion of his or
  her earnable compensation so computed.
    2. Such board shall not certify nor shall the head of any agency  make
  any deduction for annuity purposes from the compensation of a member who
  elects not to contribute if his or her age and total-service are such as
  would entitle a new-entrant in his or her group to retire for service on


  a  pension  not  less  than one-fourth of his or her final compensation;
  provided, however, that such board shall not certify nor shall the  head
  of  the  agency  make  any  deductions  for  annuity  purposes  from the
  compensation of any member:
    (a)  who  is  a  member  of  the  uniformed force of the department of
  sanitation (as defined in  subdivision  a  of  section  13-154  of  this
  chapter  and  who  elects  not to contribute, if he or she has completed
  twenty-five years of service as a member of such force, with  a  service
  fraction of one one-hundredth during such period of service; or
    (b)  who  is  a  sanitation  worker  in  such  force and elects not to
  contribute, if he or she elected the benefits of section 13-159 of  this
  chapter  and  has  completed  twenty  years  of  allowable  service as a
  sanitation worker in such department and the provisions of such  section
  are  applicable  to  him  or  her  at the time of such election to cease
  contributing, except, however, that such  right  to  cease  contributing
  under this subparagraph shall continue only so long as the provisions of
  section 13-159 of this chapter continue to be applicable to such member.
    (c)  who is a member in such force and elects not to contribute, if he
  or she elected the benefits of section 13-160 of this  chapter  and  has
  completed  twenty  years  of allowable service as a member of such force
  and the provisions of such section are applicable to him or her  at  the
  time  of such election to cease contributing, except, however, that such
  right to cease contributing under this subparagraph shall continue  only
  so  long as the provisions of section 13-160 of this chapter continue to
  be applicable to such member.
    3. In determining the amount earnable by a member in a payroll period,
  such board may consider the rate of compensation payable to such  member
  on  the  first  day  of the payroll period as continuing throughout such
  payroll period and it may omit  deductions  from  compensation  for  any
  period  less  than a full payroll period if an employee was not a member
  on the first day of the payroll period.  To  facilitate  the  making  of
  deductions,  it  may modify the deduction required of any member by such
  an amount as  shall  not  exceed  one-tenth  of  one  per  cent  of  the
  compensation upon the basis of which such deduction is to be made.
    4.  The  deductions provided herein shall be made notwithstanding that
  the minimum compensation provided by law for any member shall be reduced
  thereby. Every member shall be  deemed  to  consent  and  agree  to  the
  deductions  made  and  provided for herein and shall receipt in full for
  his or her salary or compensation,  and  payment  less  such  deductions
  shall be a full and complete discharge and acquittance of all claims and
  demands  whatsoever  for the services rendered by such person during the
  period covered by such  payment,  except  such  member's  claim  to  the
  benefits to which he or she may be entitled under the provisions of this
  chapter.  Such  head  of each agency shall certify to the comptroller on
  each and every payroll the amounts to be deducted. Each of such  amounts
  shall  be  deducted  and  when  deducted  shall be paid into the annuity
  savings fund, and shall be credited, together with regular interest,  to
  an  individual  account  of  the  member  from  whose  compensation such
  deduction was made.
    5. The  method  of  computation  and  deductions  prescribed  by  this
  subdivision  and  by  subdivisions  a  and  b  of  this section shall be
  appropriately modified in the case of  a  member  for  whom  a  rate  is
  otherwise fixed pursuant to section 13-152 of this chapter.
    c-1. (1) Such board shall not certify nor shall the head of any agency
  make  any  deduction  for  annuity  purposes  from the compensation of a
  member  who  is  a  transit  twenty-year  plan  member  (as  defined  in
  subdivision  sixty-one of section 13-101 of this chapter) and elects not
  to contribute, if such member is eligible to retire under section 13-161


  of this chapter, except, however, that such right to cease  contributing
  under  this subdivision shall continue only so long as the provisions of
  section 13-161 of this chapter continue to be applicable to such member.
    (2)  Nothing  contained  in paragraph one of this subdivision shall be
  construed to affect or impair any right  conferred  by  or  pursuant  to
  subdivision  l  of  section  13-161  of  this  chapter  upon any transit
  twenty-year plan member to be relieved of making member contributions.
    c-2. Such board shall not certify nor shall the  head  of  the  agency
  make  any  deductions  for annuity purposes from the compensation of any
  member:
    (1) who is  a  fifty-five-year-increased-service-fraction  member  and
  elects   not   to   contribute,  if  such  member,  were  he  or  she  a
  fifty-five-year-one-per-centum member of the same age and having a  like
  amount  of  total-service, would be entitled to elect not to contribute;
  or
    (2) who is a career pension plan member and elects not to  contribute,
  if he or she is eligible to retire under section 13-162 of this chapter,
  relating  to  the  career  pension  plan,  by reason of having completed
  twenty-five years of allowable service in one  or  more  career  pension
  plan  positions,  except, however, that such right to cease contributing
  under this paragraph two shall continue only  so  long  as  such  member
  continues to be a career pension plan member.
    d. (1) Subject to the provisions of paragraph four of this subdivision
  d,  in  addition  to  the  computed  deductions, any member may elect to
  contribute at a rate fifty per  centum  in  excess  of  that  heretofore
  provided, for the purpose of purchasing additional annuity. In computing
  the  amount of such additional rate, any modification of the normal rate
  pursuant to section 13-152 of this chapter shall be disregarded.
    (2) Such additional contributions shall be  credited  to  the  annuity
  fund  with  regular  interest.  Such  additional contributions shall not
  enter  into  the  computation  for  allowance  on  ordinary   disability
  retirement as described in section 13-174 of this chapter.
    (3)   A  member  may  elect  to  discontinue  his  or  her  additional
  contributions at any time.
    (4) The provisions of paragraph  one  of  this  subdivision  shall  be
  inapplicable  to  any  transit  twenty-year  plan  member (as defined in
  subdivision sixty-one of section 13-101  of  this  chapter)  during  any
  period  wherein, under any right conferred by or pursuant to subdivision
  l of section 13-161 of this chapter, such member is not required to make
  contributions. In the event  that  a  member,  while  making  additional
  contributions  pursuant to paragraph one of this subdivision d, acquires
  such right under subdivision l of such section to be relieved of  making
  contributions,  such additional contributions shall cease as of the date
  next preceding the date on which such right becomes effective.
    e. (1) In addition to the deductions  from  compensation  hereinbefore
  provided,  any  member  may  redeposit  in the annuity savings fund by a
  single payment an amount equal to the  total  amount  which  he  or  she
  withdrew previously therefrom as provided in this chapter, or any member
  may deposit therein by a single payment, or in equal installments over a
  period  to  be  designated by such member, but not exceeding five years,
  immediately prior to his or her retirement, an  amount  computed  to  be
  sufficient  to purchase an additional annuity, which, together with such
  member's prospective retirement allowance, will provide for him or her a
  total retirement allowance of one-half of his or her final  compensation
  at  the  minimum age of retirement for his or her group. Such additional
  amounts so deposited shall become a  part  of  his  or  her  accumulated
  deductions.


    (2)  The  accumulated  deductions of a member withdrawn as provided in
  this title shall be paid out of the annuity savings fund.
    (3) Upon retirement of a member, his or her accumulated deductions, if
  any, shall be transferred from such fund to the annuity reserve fund.
    f.  In  addition  to  any  other  deductions  a  member  may  elect to
  contribute to the annuity savings fund an amount not exceeding the  cost
  of  providing  two  service  fractions  of final compensation at minimum
  retirement age for each year of service  as  a  civil  employee  of  the
  United  States government rendered on or after the first day of October,
  nineteen hundred twenty.
    g. In  addition  to  any  other  deductions  a  member  may  elect  to
  contribute  to  the  annuity  savings  fund a lump sum equivalent to the
  additional amount which would be in such fund  if  deductions  had  been
  made  on  the  basis  of  such  member's  total  earnable  compensation,
  including cost-of-living bonus, for the period during which  he  or  she
  received  such  bonus,  in so far as such period is within the period of
  final compensation. The pension part of the retirement  allowance  of  a
  member making such payment shall be computed on a like basis.
    h.  Where  a  member's  rate  of  contribution  is reduced because the
  contributing            agency            contributes            towards
  pensions-providing-for-increased-take-home-pay   pursuant   to   section
  13-152  of  this  chapter,  such  member  may  by  written  notice  duly
  acknowledged  and filed with the retirement system within one year after
  such reduction or within one year after he or she last became a  member,
  whichever  is  later,  elect  to  waive such reduction. One year or more
  after the filing thereof, a member  may  withdraw  any  such  waiver  by
  written  notice  duly acknowledged and filed with the retirement system.
  Where a member makes an election to waive  such  reduction,  he  or  she
  shall  contribute to the retirement system as otherwise provided in this
  chapter.
    i.  Notwithstanding  any  other  provision  of  this  chapter  to  the
  contrary,   any  fifty-five-year-increased-service-fraction  member  may
  elect at any time, by a written application duly executed and filed with
  the board, to contribute to the retirement system  at  a  rate  one  per
  centum  less  than  such  member's  normal  rate  of  contribution. Such
  election by such a member  and  the  making  of  contributions  at  such
  reduced rate shall not change his or her normal rate of contribution. At
  any  time  after  the filing of such an application, such member may, by
  written application duly executed and filed with  the  board,  elect  to
  discontinue such reduction. Such member may thereafter at any time, by a
  like application so filed, elect such reduction or discontinue same.