2013 New York Consolidated Laws
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,  except  that  beginning April first, two thousand thirteen for
  members who first become  members  of  the  New  York  state  and  local
  employees'  retirement  system  on  or  after  April first, two thousand
  twelve, the rate at which each  such  member  shall  contribute  in  any
  current   plan  year  (April  first  to  March  thirty-first)  shall  be
  determined by reference to the wages of such member in the  second  plan
  year  (April  first  to  March thirty-first) preceding such current plan
  year as follows:
    1. members with wages of forty-five thousand dollars per annum or less
  shall contribute three per centum of annual wages;
    2. members with wages greater than forty-five thousand per annum,  but
  not  more  than fifty-five thousand per annum shall contribute three and
  one-half per centum of annual wages;
    3. members with wages greater than fifty-five thousand per annum,  but
  not  more than seventy-five thousand per annum shall contribute four and
  one-half per centum of annual wages;
    4. members with wages greater than seventy-five thousand per annum but
  not more than one hundred thousand per annum shall contribute  five  and
  three-quarters per centum of annual wages; and
    5.  members  with  wages  greater  than one hundred thousand per annum
  shall contribute six per centum of annual wages.
    Notwithstanding the foregoing, during each of  the  first  three  plan
  years  (April  first  to  March  thirty-first)  in which such member has
  established membership in  the  New  York  state  and  local  employees'
  retirement  system,  such member shall contribute a percentage of annual
  wages in accordance with the preceding schedule based upon a  projection
  of annual wages provided by the employer.
    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.