§ 516 — Annuity savings fund; contributions and payments

New York § 516

• Jurisdiction: New York
• Law EDN: Education
• Title 1: General Provisions Article 1 Short Title and Definitions (§§
• Art. 11: State Teachers' Retirement System For Public School Teachers

Text

§ 516. Annuity savings fund; contributions and payments. The annuity\nsavings fund shall be the fund in which shall be accumulated the\ndeductions made from the compensation of contributors. Contributions to\nand payments from the annuity savings fund shall be made in the\nfollowing manner:\n 1. Each employer shall deduct from the compensation of each\ncontributor on each and every payroll of such contributor for each and\nevery payroll period subsequent to the date upon which such contributor\nbecame a member an amount equal to four per centum of such contributor's\nearnable compensation in the cases of teachers who last became members\non or before the thirtieth day of June, nineteen hundred forty-eight and\nfive per centum of earnable compensation in the cases of teachers who\nlast became members on or after the first day of July, nineteen hundred\nforty-eight except if membership is renewed upon restoration to active\nservice after retirement for disability, regular interest shall be\ncredited at the rate allowed to the member at the time his retirement\nfor disability last became effective. But no employer shall make any\ndeduction for annuity purposes from the compensation of a member who has\ncompleted at least thirty-five years of total service, or who has\nattained the age of sixty and completed at least twenty-five years of\ntotal state service, if such member elects not to contribute.\n 2. In determining the amount earnable by a contributor in a payroll\nperiod, the retirement board may consider the rate of compensation\npayable to such member on the first day of the payroll period as\ncontinuing throughout such payroll period, and it may omit deductions\nfrom compensation for any period less than a full payroll period if a\nteacher was not a contributor on the first day of the payroll period,\nand to facilitate the making of deductions, it may modify the deduction\nrequired of any contributor by such an amount as shall not exceed\none-tenth of one per centum of the compensation upon the basis of which\nsaid deduction is to be made.\n 3. a. In addition to the deductions from compensation hereinbefore\nrequired, any contributor may redeposit in the annuity savings fund by a\nsingle payment an amount equal to the total amount which he withdrew\ntherefrom as provided in this article, or he may deposit therein by a\nsingle payment an amount computed to be sufficient, together with the\nretirement allowance otherwise provided to provide for him a total\nretirement allowance of one-half of his final average salary upon\nsuperannuation retirement, or any member or annuitant may deposit\ntherein by a single payment an amount permitted so to be deposited by\nthe retirement board for the purpose of purchasing additional annuity,\nprovided that no such member or annuitant shall be permitted to purchase\na total additional annuity thereby in excess of one-half his final\naverage salary; such additional annuity shall afford the usual optional\nprivileges. Such additional amounts so deposited shall become a part of\nhis accumulated contributions.\n b. Notwithstanding anything to the contrary in this article, in\naddition to the deposits hereinbefore permitted by this subdivision, any\ncontributor to this system, who is actually on the payroll of a school\ndistrict or the state, may, for the purpose of purchasing additional\nannuity, deposit in the annuity savings fund once in any school year by\na single payment an amount not in excess of four per centum of his\nearnable rate of compensation for the school year immediately preceding\nthe date when such payment is made. Any such amount so deposited shall\nbe credited with regular interest and, on the basis of said rate of\ninterest, shall become a part of the contributor's accumulated\ncontributions in all respects including computation of benefits upon\nretirement.\n c. Any member by written notice duly acknowledged and filed with the\nretirement board before the first day of July, nineteen hundred\nsixty-seven or within two years after he last became a member, whichever\nis later, may elect to contribute pursuant to this paragraph c of\nsubdivision three of this section in order to qualify for an increased\npension for total service in excess of twenty-five years. After such\nelection the rate of deduction from earnable compensation shall be\nincreased by two and one-half per centum in the cases of teachers who\nlast became members on or before the thirtieth day of June, nineteen\nhundred forty-eight and by three per centum in the cases of teachers who\nlast became members on or after the first day of July, nineteen hundred\nforty-eight and such deductions shall be added to the accumulated\ncontributions of each member. Where a member elects to contribute\npursuant to this paragraph c of subdivision three of this section, such\nadditional contributions shall be made from the first day of July,\nnineteen hundred fifty-seven or from the first day of the month\nfollowing the expiration of thirty days subsequent to the filing of his\nelection, whichever is later, except that if the member is contributing\npursuant to subdivision one of section five hundred eleven-a, such\nadditional contributions pursuant to this paragraph c of subdivision\nthree of this section shall be made from the first day of July following\nthe completion of twenty-five years of total service. If such a member,\nupon the completion of twenty-five years of total service, wishes to\nforfeit his right to special service retirement under the provisions of\nsection five hundred eleven-a, he may cease making contributions\npursuant to subdivision one of such section, leave such contributions in\nthe retirement system and commence making contributions pursuant to this\nparagraph c of subdivision three of this section in order to receive\ncredit for service rendered after the completion of twenty-five years of\ntotal service. If such a member, upon the completion of twenty-five\nyears of total service wishes to maintain his right to special service\nretirement, he shall continue to make contributions pursuant to\nsubdivision one of section five hundred eleven-a and commence making\ncontributions pursuant to this paragraph c. Contributions made pursuant\nto this paragraph c shall cease on the first day of July following the\ncompletion of thirty-five years of total service, except that, any\nmember who has completed more than twenty-five years of service on the\nfirst day of July, nineteen hundred sixty-seven may deposit in a lump\nsum an amount equivalent to the sum of the contributions he would have\nmade prior to the first day of July, nineteen hundred sixty-seven, had\nthis paragraph c become effective as of the date when twenty-five years\nof service was completed or as of any date thereafter which the member\nmay elect for the purpose of determining the amount to be so deposited.\n d. Members of the retirement system who elect to contribute pursuant\nto paragraph c of subdivision three of this section, shall receive\ncredit for each year, not in excess of ten, of service in excess of\ntwenty-five years for which contributions were made pursuant to\nparagraph c of subdivision three of this section.\n 4. The accumulated contributions of a contributor returned to him upon\nhis withdrawal or paid to his estate or designated beneficiary in the\nevent of his death as provided in this article shall be paid from the\nannuity savings fund.\n 5. Upon the retirement of a contributor his accumulated contributions\nshall be transferred from the annuity savings fund to the annuity\nreserve fund.\n 6. The retirement board may adopt rules and regulations providing for\nthe withdrawal at retirement by members of the accumulated contributions\ncredited to their individual accounts in the annuity savings fund. Such\nrules and regulations shall provide that the application for withdrawal\nof contributions be filed no earlier than the date the member files the\napplication for retirement and no later than the day preceding the\neffective date of retirement. Provided, however, this section has no\napplication to members subject to article fourteen or article fifteen of\nthe retirement and social security law.\n