§ 114 — Reduction of salaries for investment in custodial accounts

§ 114. Reduction of salaries for investment in custodial accounts. 1.\nThe department, in its discretion, may enter into a written agreement\nwith any employee to reduce the annual salary otherwise payable by law\nto such employee for the purpose of investing in a custodial account, as\npermitted by paragraph seven of subdivision (b) of section four hundred\nthree of the United States internal revenue code, as amended, or in a\ntax deferred annuity, as permitted by subdivision (b) of section four\nhundred three of the United States internal revenue code, as amended,\nfor such employee. Any such agreement shall be subject to approval and\nfiling by the comptroller, and shall specify the amount of such\nreduction and the effective date thereof. Any such agreement may be\nterminated at any time upon written notice by either such employee or\nthe department. Such termination shall take effect at the beginning of\nthe payroll period the first day of which is nearest to the thirtieth\nday following the day on which such notification of termination was (a)\nreceived by the department, in the event such termination is initiated\nby the employee, or (b) sent to the employee, in the event such\ntermination is initiated by the department. No more than one such\nagreement shall be entered into in any period of twelve successive\ncalendar months.\n 2. Upon approval and filing by the comptroller of any such agreement\nthe comptroller shall reduce an employee's salary pursuant to said\nagreement and pay an amount equal to the amount agreed upon for such\nsalary reduction as an employer contribution to the designated custodian\nof the employee's account or the issuer of the employee's annuity.\nNotwithstanding the reductions of salary authorized by this section, (a)\nthe amount of employer and employee contributions otherwise required on\nbehalf of an employee electing the optional retirement program pursuant\nto part five of this article shall continue to be made on the basis of\nthe salary of such employee without regard to such reduction, or (b) in\nthe event a member of a public retirement system in this state agrees to\na reduction of salary pursuant to this section, such agreement shall not\ncause the employee to lose any benefits under such public retirement\nsystem to which such employee would otherwise be entitled had he or she\nnot agreed to a reduction in salary for the purpose of establishing a\ncustodial account or purchasing a tax-deferred annuity, and any required\nemployer and employee contributions shall continue to be made on the\nbasis of the salary of such employee without regard to such reduction.\nAny survivor's benefit payable pursuant to sections one hundred\nfifty-four and one hundred fifty-four-a of the civil service law shall\nbe based upon the salary of such employee without regard to the\nreduction authorized by this section.\n 3. Any payroll deduction, other than income tax withholdings as\nrequired by law, which may be required or authorized pursuant to law,\ncontract, agreement, or any other instrument, the amount of which is\ndetermined in relation to an employee's earnings, shall be based on the\nsalary of such employee without regard to reduction thereof pursuant to\nany agreement authorized by this section.\n 4. Payments for custodial accounts or tax deferred annuities shall be\nmade by the comptroller to the designated custodian or custodians of\nsuch accounts or the issuers of such annuities out of moneys otherwise\navailable in accordance with law for salaries of the employees who have\nentered into agreements pursuant to this section.\n 5. Nothing contained in this section shall be construed to diminish or\nimpair any benefits to which such employee or his legal representatives\nor beneficiaries would be otherwise entitled had such salary reduction\nagreement not been entered into in accordance with the provisions of\nthis section.\n