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

 
    § 13-225 Contributions of members and their use; annuity savings fund.
  a.  (1)  The annuity savings fund shall be the fund in which there shall
  be accumulated deductions from the compensation of  members  to  provide
  for  their  annuities and their withdrawal allowances. 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 retirement and
  accumulated  at regular interest until the attainment of the minimum age
  or period of service retirement elected by 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.
  Such  proportion  of  compensation shall be computed to remain constant.
  Notwithstanding the foregoing, the rate of contribution required  to  be
  made  on  and  after  October  first, nineteen hundred fifty-one, by any
  member whose rate was computed pursuant to this subdivision, as  enacted
  by  local  law  two  of  nineteen  hundred  forty,  shall be twenty-five
  forty-fifths of such prior rate.
    (2) Notwithstanding the foregoing provisions  of  paragraph  (one)  of
  this  subdivision a, the rate of contribution required to be made on and
  after the first day of the first payroll period beginning after  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 his or her rate as of
  June twenty-ninth, nineteen hundred sixty-seven, as computed pursuant to
  paragraph (one) of this subdivision a, including  any  increase  thereof
  pursuant to subdivisions c and d of this section or any decrease thereof
  pursuant  to  section  13-226  of  this subchapter or 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)  of
  the  subdivision  a,  exclusive  of  any  increase  thereof  pursuant to
  subdivisions c and d of this section or any decrease thereof pursuant to
  paragraph (one) of this subdivision or section 13-226 of this subchapter
  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) of this subdivision, had he or she
  been entitled on that  date  to  regular  interest  at  four  per  cent;
  provided  that  the  adjusted  rate of contribution computed pursuant to
  this paragraph shall be subject to change pursuant to subdivisions c and
  d of this section, section 13-226 of  this  subchapter  or  pursuant  to
  subdivision  one of section one hundred thirty-eight-b of the retirement
  and social security law.
    (3) for any member to whom the last 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 payroll period beginning after
  January first, nineteen hundred sixty-eight, the amount of  contribution
  paid by him or her which represents the difference between the "computed
  prior  rate" of such member and his or her adjusted rate of contribution
  as computed pursuant to paragraph (two) of this subdivision a  shall  be
  refunded  upon  the  member's  election,  or, otherwise, shall be deemed
  additional  contributions  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 13-251 of this subchapter.


    b. Such board shall certify to the commissioner who shall deduct  from
  the  compensation  of  each  member  on  each and every pay roll of such
  member for each and every pay roll period, the proportion of his or  her
  earnable  compensation  so  computed.  Such  board shall not certify nor
  shall  the commissioner 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 to retire for
  service on a pension not less than seventy-five per cent of one-half  of
  his  or  her final compensation. 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 such  board  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, such board 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. 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 his or her claim to the benefits  to  which  he  or  she  may  be
  entitled under the provisions of this subchapter. The commissioner 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.  The method of computation and
  deductions prescribed by this subdivision  and  subdivision  a  of  this
  section shall be appropriately modified in the case of a member for whom
  a rate is otherwise fixed pursuant to section 13-226 of this subchapter.
    c.  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 13-226 of  this  subchapter  shall  be  disregarded.
  These  additional contributions shall be credited to the annuity savings
  fund with regular interest.  Such  additional  contributions  shall  not
  enter   into  the  computation  for  allowance  on  ordinary  disability
  retirement as described in section 13-251 of this subchapter.  A  member
  may  elect  to  discontinue  his  or her additional contributions at any
  time.
    d. 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 subchapter, 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
  his or her 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 or period of retirement elected by him
  or her. Such additional amounts so deposited shall become a part of  his


  or  her  accumulated  deductions. The accumulated deductions of a member
  withdrawn as provided in this  subchapter  shall  be  paid  out  of  the
  annuity   savings  fund.  Upon  retirement  of  a  member,  his  or  her
  accumulated  deductions  shall  be  transferred  from  such  fund to the
  annuity reserve fund.
    e. In the case of a member receiving extra pay, salary or compensation
  for additional duties assigned to him or her, the comptroller shall make
  such semi-monthly deductions on the basis of such extra pay,  salary  or
  compensation  unless  such member shall signify in writing to the board,
  within thirty days after the first receipt thereof, his or her  election
  to have his or her benefits and obligations computed on the basis of the
  pay,  salary  or  compensation  received by him or her prior to the time
  when he or she first received such extra  compensation.  If  any  member
  receives  extra  pay,  salary  or  compensation for an aggregate or five
  years or more or for the period of time fixed by section 14-114 of  this
  code,   the   comptroller  shall  continue  to  make  such  semi-monthly
  deductions on the basis of  such  extra  pay,  salary  or  compensation,
  notwithstanding that such member does not continue to receive it, unless
  such member shall signify to the board in writing his or her election to
  have  his  or  her benefits and obligations computed on the basis of the
  pay,  salary  or  compensation  actually  received  by  him.  Additional
  deductions  so  made shall entitle such member to a retirement allowance
  on the basis of such extra pay, salary or compensation.  The  provisions
  of  this  subdivision shall not diminish or impair the benefits provided
  in subdivision c of section 14-114 of this code.