2010 New York Code
RSS - Retirement & Social Security
Article 14 - (500 - 520) COORDINATED-ESCALATOR RETIREMENT PLAN
517 - Member contributions.

§ 517. Member contributions. a. Members shall contribute three percent
  of  annual wages to the retirement system in which they have membership,
  provided that such contributions shall not be  required  for  more  than
  thirty years, for general members, or twenty-five years, for police/fire
  members.  The  head  of  each  retirement  system  shall promulgate such
  regulations as may be necessary and  appropriate  with  respect  to  the
  deduction   of  such  contribution  from  members'  wages  and  for  the
  maintenance of any special fund or funds  with  respect  to  amounts  so
  contributed.
    b.  In  the event of termination of employment, other than as a result
  of transfer to another public employer, a member who is  not  vested  or
  entitled  to  any  other  benefit  under  this  article may withdraw his
  accumulated contributions pursuant to  regulations  promulgated  by  the
  head  of  the  retirement  system involved. In the event membership in a
  public retirement system shall terminate, other  than  as  a  result  of
  transfer  to another public employer, any contributions remaining to the
  credit of the member shall be refunded as  specified  by  the  rules  or
  regulations  of  the system involved. For the purpose of such withdrawal
  or refund, such contributions, commencing on the date of this act or the
  date such member  first  makes  contributions  hereunder,  whichever  is
  later,  together  with  the balances on such date from any contributions
  theretofore made, shall be credited with interest at the  rate  of  five
  percent per annum.
    c.   Upon   withdrawal  of  contributions  by  a  member  pursuant  to
  subdivision b, membership in the public retirement system involved shall
  cease. A former member who thereafter returns to  public  service  shall
  not  receive  any credit for previous service to which such withdrawn or
  refunded contributions applied unless such member applies  therefor  and
  repays  the  amounts  so  withdrawn  or refunded, together with interest
  through the date of repayment at the rate of  five  percent  per  annum.
  Notwithstanding  any  other  provision  of law to the contrary, a member
  may, upon separation from  service  of  the  state  or  a  participating
  employer,  withdraw  his  or  her  member  contributions pursuant to the
  applicable provision of law until  such  date  as  such  individual  has
  accrued  ten  years  of  credited  service  in such system. However, the
  withdrawal of contributions pursuant to this section  by  an  individual
  who  has  accrued  at  least  five  years  of  creditable  service shall
  terminate his or her membership and all rights in such retirement system
  in the same manner as withdrawal of contributions  would  terminate  the
  membership  of an individual who has not attained vested status. Nothing
  in this section shall be construed as permitting an individual  who  has
  accrued  at least ten years of credit in a retirement system to withdraw
  member contributions.
    d. Notwithstanding any other provision of this article, a member shall
  be entitled to withdraw any excess contributions within  six  months  of
  becoming  subject  to  this article. Thereafter, such contributions, and
  interest thereon, may only be withdrawn upon  separation  from  service.
  Upon  retirement,  such  excess contributions, and any interest thereon,
  may be withdrawn in a single lump sum, or at the election of the  member
  may be paid as an annuity under an option authorized pursuant to section
  five hundred fourteen of this article.
    e.  Notwithstanding  any other provision of law, except as provided in
  section five hundred seventeen-b of this article, except as provided  in
  section  five hundred seventeen-c of this article, a member shall not be
  permitted to borrow any portion of the contributions which  are  subject
  to this section.
    ** f.   * 1.   Notwithstanding   any  other  provision  of  law,  each
  participating employer shall pick up the member  contributions  required

on  and  after  the  effective date of this subdivision to be made under
  this section by its employees and shall do so by reducing the salary  of
  each of its employees to which this section is applicable by that amount
  which  each  such employee is required to contribute under this section.
  The contributions so picked up  shall  be  paid  by  each  participating
  employer in lieu of the member contributions to be paid by its employees
  under  this  section  and  shall be treated as employer contributions in
  determining income tax treatment under section 414(h)  of  the  Internal
  Revenue Code.
    * NB  Effective until notice of ruling by Internal Revenue Service per
  ch. 627/2007 §22
    * 1. Notwithstanding any other provision of  law,  each  participating
  employer  shall  pick  up the member contributions required on and after
  the effective date of this subdivision to be made under this section  by
  its  employees,  or  required  to be made for the purchase of credit for
  previous service or military service by its  employees  pursuant  to  an
  irrevocable payroll deduction agreement under subdivision b-1 of section
  five  hundred  thirteen of this article, and shall do so by reducing the
  salary of each of its employees to which this  section,  or  subdivision
  b-1  of  section five hundred thirteen of this article, is applicable by
  that amount which each such employee is  required  to  contribute  under
  this  section,  or  subdivision  b-1 of section five hundred thirteen of
  this article. The contributions so picked  up  shall  be  paid  by  each
  participating employer in lieu of the member contributions to be paid by
  its  employees  under  this  section, or subdivision b-1 of section five
  hundred thirteen of this article,  and  shall  be  treated  as  employer
  contributions  in  determining income tax treatment under section 414(h)
  of the Internal Revenue Code.
    * NB Takes effect upon notice of ruling by  Internal  Revenue  Service
  per ch. 627/2007 §22
    2.  Each  participating  employer  of  any  employee  (subject to this
  article) who, in lieu of joining  a  public  retirement  system  of  the
  state,  elected  an optional retirement program to which their employers
  are  thereby  required  to  contribute,  shall  pick  up  the   employee
  contributions  thereto  which  would  otherwise  be  mandatory under the
  provisions of state law and shall do so by reducing the salary  of  such
  employee  by  the  amount  of  employee  contributions  to such optional
  retirement  program  which  would  otherwise  be  mandatory  under   the
  provisions of state law. The contributions so picked up shall be paid by
  each  participating  employer  in lieu of the member contributions to be
  paid by its employees and shall be treated as employer contributions  in
  determining  income  tax  treatment under section 414(h) of the internal
  revenue code.
    3. With the exception of federal income tax  treatment,  the  employee
  contributions  picked  up or paid pursuant to this subdivision shall for
  all other purposes, including computation  of  retirement  benefits  and
  contributions  by  employers  and  employees, be deemed employee salary.
  Nothing contained in this subdivision shall be construed as  superseding
  the provisions of section four hundred thirty-one of this chapter or any
  similar  provision  of  law  which  limits the salary base for computing
  retirement benefits payable by a public retirement system.
    4. The  provisions  of  this  subdivision  f  shall  not  apply  to  a
  police/fire  member  or  a  member  of  the  New  York  city  employees'
  retirement system who is a member of the uniformed correction  force  or
  of  the  uniformed  force of the department of sanitation, as defined in
  subdivisions  thirty-nine  and  sixty-two  of  section  13-101  of   the
  administrative code of the city of New York.
    ** NB Expires per chap 782/88 § 8

g.  Interest  shall  accrue  from  the date of death until the date of
  payment on accumulated member contributions refunded  pursuant  to  this
  section upon the death of a member, where no death benefit is payable on
  account  of  such  death.  Interest shall accrue at the rate provided in
  subdivision one of section three-a of the general municipal law.