§ 528 — Pensions-providing-for-increased-take-home-pay

§ 528. Pensions-providing-for-increased-take-home-pay. 1.\nNotwithstanding any other provision of law to the contrary,\n a. beginning with the payroll period the first day of which is nearest\nto April first, nineteen hundred sixty, and ending with the payroll\nperiod immediately prior to that the first day of which is nearest to\nApril first, nineteen hundred seventy, the contribution of each member\nof the retirement system who is a teacher within the provisions of\nsubdivision four of section five hundred one of this article in the\nemploy of the state of New York shall be reduced by five per centum of\nthe compensation paid such member, and\n b. beginning with the payroll period the first day of which is nearest\nto April first, nineteen hundred sixty-four, and ending with the payroll\nperiod immediately prior to that the first day of which is nearest to\nApril first, nineteen hundred seventy, the contribution of each member\nof the retirement system who is a teacher within the provisions of\nsubdivision four of section five hundred one of this article in the\nemploy of the state of New York shall be reduced by an additional three\nper centum of the compensation paid such member, and\n c. beginning with the payroll period the first day of which is nearest\nto April first, nineteen hundred sixty-six, and ending with the payroll\nperiod immediately prior to that the first day of which is nearest to\nApril first, nineteen hundred seventy, the contribution of each member\nof the retirement system who is a teacher within the provisions of\nsubdivision four of section five hundred one of this article in the\nemploy of the state of New York whose rate of contribution is in excess\nof eight per centum shall be suspended.\n Where a member's rate of contribution is less than the per centum by\nwhich his contribution is reduced, such rate shall be discontinued. A\nmember whose rate of contribution shall be reduced pursuant to the\nprovisions of this subdivision shall be deemed to have elected to have\nhis rate so reduced unless he files an election pursuant to the\nprovisions of subdivision two of this section.\n 2. Any member whose rate of contribution is reduced pursuant to the\nprovisions of subdivision one of this section may by a written notice,\nduly acknowledged and filed with the retirement board within one year\nafter such reduction or within one year after he last became a member,\nwhichever is later, elect to make an additional contribution in addition\nto other contributions otherwise allowed in this article equal to the\namount of such reduction. One year or more after the filing of such\nnotice a member may withdraw such election by filing a written notice\nduly acknowledged and filed with the retirement board.\n 3. For the period of time as the provisions of this section shall be\nin effect, contributions for each member of the system whose rate of\ncontribution is reduced by virtue of the provisions of subdivision one\nof this section shall be made to the pension accumulation fund by the\nstate of New York in the same manner and at the same time as other\ncontributions made by the state as employer of members of the retirement\nsystem at a rate fixed by the actuary which shall be computed to be\nsufficient to provide pensions-providing-for-increased-take-home-pay and\nother benefits which become payable on account of members in the employ\nof the state. The actuary engaged by the retirement board shall compute\nan additional contribution to be known as the "special deficiency\ncontribution to provide a reserve-for-increased-take-home-pay." The\namount of the reserve-for-increased-take-home-pay shall be the present\nvalue of that per centum of the member's compensation by which his\ncontribution is reduced, or would otherwise be reduced if his rate of\ncontribution equaled or exceeded eight per centum, during the period for\nwhich his rate of contribution was reduced as provided in subdivision\none, plus regular and additional interest thereon to the date that\npension and other benefits become payable.\n 4. Upon retirement a member whose rate of contribution shall be\nreduced pursuant to the provisions of subdivision one of this section\nwill receive, in addition to the annuity and other pension benefits\nprovided by this article, a pension which is the actuarial equivalent of\nthe reserve-for-increased-take-home-pay to which he may be entitled, if\nany.\n 5. In addition to the return of accumulated contributions and the\ndeath benefit provided by the provisions of section five hundred twelve\nof this article, upon the death of a member who died before the\neffective date of his retirement and was in service upon which his\nmembership was based when he died or was on the payroll in such service\nand paid within a period of twelve months prior to his death and had not\nbeen otherwise gainfully employed since he ceased to be on such payroll,\nand provided further, he had credit for one or more years of service\nwhile actually a member, then the reserve-for-increased-take-home-pay\nattributable to such member shall be paid in the same manner and at the\nsame time as the death benefit is paid by reason of such member's\nmembership in the retirement system.\n 6. The reserve-for-increased-take-home-pay shall be a portion of the\npension accumulation fund and upon the retirement of a new entrant an\namount equal to the reserve-for-increased-take-home-pay for such member\nshall be transferred from the pension accumulation fund to the pension\nreserve fund.\n 7. If a person has been a member of the retirement system and\ncontributions have been made by the state as his employer to provide a\nreserve-for-increased-take-home-pay and such person has ceased to be a\nmember of the system and upon rejoining the retirement system claims\ncredit for such period, the member shall not be required to pay for such\nyears of service as a contribution shall have been made by the state for\npensions-providing-for-increased-take-home-pay pursuant to the\nprovisions of this section.\n 8. Commencing with the payroll period the first day of which is\nnearest to April first, nineteen hundred sixty-one, the provisions of\nthis section shall not apply to any member for any period or periods\nduring which he ceases or has ceased contributing toward retirement\npursuant to subdivision one of section five hundred sixteen of this\narticle, provided, however, that such member shall receive credit\npursuant to this section for such period or periods for which he\ncontributes or has contributed toward retirement.\n