§ 321 — Members' contributions and their use; annuity savings fund

New York § 321

• Jurisdiction: New York
• Law RSS: Retirement & Social Security
• Title 4: Funds of the System; Members' Contributions and Employers' Contributions
• Art. 8: New York State and Local Police and Fire Retirement System

Text

§ 321. Members' contributions and their use; annuity savings fund. a.\nThe annuity savings funds shall be the fund in which shall be\naccumulated all contributions made by members to provide for their\nannuities and their withdrawal allowances.\n b. Upon the basis of tables adopted by the comptroller and regular\ninterest, the actuary shall determine the rate of contribution for each\nmember. Such rate shall be computed as the constant proportion of annual\ncompensation which, when deducted from each payment of such member's\nprospective earnable compensation until he shall attain age sixty, would\nprovide, at that time, an annuity equal to one-one hundred fortieth of\nhis final average salary for each year of member service for which he\nshall be entitled to credit. This method of computation of a member's\nrate of contribution shall be appropriately modified in case of a member\nfor whom such a rate is otherwise fixed pursuant to any other section of\nthis article.\n c. The rate of contribution of a member who is over age fifty-nine, at\nthe time of his last becoming a member, shall be the same as if his age\nwere fifty-nine.\n d. The comptroller shall certify each member's rate of contribution to\nhis employer. Each employer by whom a member is employed shall deduct\nfrom the compensation of such member, on each payroll and for every\npayroll period, the proportion of such member's compensation based upon\nhis rate of contribution. In determining the amount earnable by a member\nin a payroll period, the comptroller may consider the rate of annual\ncompensation payable to such member on the first day thereof as\ncontinuing throughout such period. If an employee was not a member on\nthe first day of a payroll period, deductions from compensation for such\nperiod may be omitted. No deductions shall be made from the compensation\nof a member over age sixty who has credit for at least thirty-five years\nof government service and who elects to discontinue his contributions to\nthe annuity savings fund. The contributions herein provided shall be\nmade notwithstanding that the minimum compensation provided by law for\nany member shall be reduced thereby.\n e. The chief fiscal officer of each employer promptly shall certify\nand file a copy of each payroll with the comptroller. Each such payroll\nand certification shall be in a form approved by the comptroller. The\ncomptroller, in his discretion, may waive the requirements of\ncertification and filing as to any particular payroll.\n f. Deductions from the compensation of a member shall constitute his\ncontributions. Such contributions shall be remitted promptly to the\ncomptroller. The comptroller shall deposit them in the annuity savings\nfund and they shall be credited, together with regular interest thereon,\nand special interest, if any, to the member's individual account in such\nfund. Regular interest upon accumulated contributions in the annuity\nsavings fund, and special interest, if any, shall be transferred to such\nfund from the pension accumulation fund at the close of each fiscal\nyear.\n g. If a member shall have deposited in the annuity savings fund of the\nNew York state employees' retirement system, before June thirteenth,\nnineteen hundred thirty-nine, amounts in addition to the contributions\nthen required by law, the same shall be included in his accumulated\ncontributions. Interest thereon, however, shall be credited only at such\nrate as in the opinion of the comptroller is the prevailing rate of\ninterest allowed on savings bank deposits. A member, at any time, may\nwithdraw such additional amounts and such interest thereon, in whole or\nin part. The total of such withdrawn amounts may be redeposited by a\nsingle payment at any time. If such additional amounts be not withdrawn\nbefore retirement, they thereupon shall be used to purchase an annuity\non account of such member. Such annuity shall be in addition to the\nretirement allowance to which he would otherwise be entitled. It shall\nbe computed on the basis of regular interest and the mortality tables\nwhich are used in computing other annuities under this article.\n h. Valuation of maintenance in certain cases.\n 1. A member of the police and fire retirement system, whose retirement\ncontributions to the New York state employees' retirement system were\ndetermined by fixing the value of his or her maintenance at one-half the\ncash compensation received by him or her and whose contributions were\nsubsequently reduced by the fixing of a lower value for the same\nmaintenance theretofore furnished, may elect to have his or her\ncontributions computed on the basis of his or her gross compensation as\nestablished prior to such reduction in value of maintenance, provided\nthat:\n (a) His retirement contributions prior to October first, nineteen\nhundred forty-three, were based on such higher value of maintenance as\ndetermined by the comptroller and his retirement contributions after\nsuch date were reduced because of the fixation of such lower value of\nmaintenance, or\n (b) His retirement contributions prior to April sixteenth, nineteen\nhundred forty-six, were based on such higher value of maintenance as\ndetermined by the board of supervisors of the county of Monroe and his\nretirement contributions after such date were reduced because of the\nfixation of such lower value of maintenance, or\n (c) He was employed by the county of Westchester on March\ntwenty-ninth, nineteen hundred forty-eight, his retirement contributions\nprior to March thirty-first, nineteen hundred forty-seven, were based on\nsuch higher value of maintenance and his retirement contributions after\nJanuary first, nineteen hundred forty-eight, were reduced because of the\nfixation of such lower value of maintenance, or\n (cc) His retirement contributions prior to the initial fixation of the\nvalue of his maintenance pursuant to section two hundred one or section\ntwo hundred five of the county law, were based on such higher value of\nmaintenance as determined by the comptroller and his retirement\ncontributions after the date of such fixation were reduced because of\nthe fixation of such lower value of maintenance, or\n (d) He was employed by the county of Onondaga on April twelfth,\nnineteen hundred forty-nine, his retirement contributions prior to\nDecember fifteenth, nineteen hundred forty-seven, were based on such\nhigher value of maintenance and his retirement contributions after\nDecember fifteenth, nineteen hundred forty-seven, were reduced because\nof the fixation of such lower value of maintenance, or\n (e) He was or shall have been employed in a county or city\ntuberculosis hospital which was or shall have been transferred to the\nstate pursuant to section twenty-two hundred sixty-eight of the public\nhealth law, his retirement contributions prior to such transfer were or\nshall have been based on such higher value of maintenance and his\nretirement contributions after such transfer were or shall have been\nreduced because of the fixation of such lower value of maintenance.\n 2. Upon filing such election and paying the additional contributions\nrequired thereby, such member shall be entitled to have his pension,\nretirement allowance or other rights and privileges in the retirement\nsystem computed in accordance with such gross compensation, provided\nthat:\n (a) In a case covered by subparagraph (a) of paragraph one of this\nsubdivision h, such election was so filed with the comptroller on or\nbefore April first, nineteen hundred forty-six, and such additional\ncontributions are paid from and after October first, nineteen hundred\nforty-three, or\n (b) In a case covered by subparagraph (b) of paragraph one of this\nsubdivision h, such election was so filed with the comptroller on or\nbefore January first, nineteen hundred forty-eight, and such additional\ncontributions are paid from and after April sixteenth, nineteen hundred\nforty-six, or\n (c) In a case covered by subparagraph (c) of paragraph one of this\nsubdivision h, such election was so filed with the comptroller on or\nbefore January first, nineteen hundred forty-nine, and such additional\ncontributions are paid from and after March thirty-first, nineteen\nhundred forty-seven, or\n (cc) In a case covered by subparagraph (cc) of paragraph one of this\nsubdivision h, such election was so filed with the comptroller on or\nbefore October first, nineteen hundred fifty-five, and such additional\ncontributions are paid from and after the date of the initial fixation\nof the value of his maintenance pursuant to such subparagraph, or\n (d) In a case covered by subparagraph (d) or paragraph one of this\nsubdivision h, such election was so filed with the county auditor on or\nbefore November first, nineteen hundred forty-nine, and such additional\ncontributions are paid from and after December fifteenth, nineteen\nhundred forty-seven, or\n (e) In a case covered by subparagraph (e) of paragraph one of this\nsubdivision h, such election is so filed with the comptroller on or\nbefore April first, nineteen hundred fifty, or within one year after the\ndate of such transfer, whichever is later, and such additional\ncontributions are paid from and after the date of such transfer.\n 3. The gross compensation of such member shall be the amount\nestablished on the basis of such higher value of maintenance.\nContributions based on such gross compensation shall continue to be made\nuntil such member retires or until such election is terminated as\nprovided in paragraph four of this subdivision h.\n 4. An election made pursuant to paragraph one of this subdivision h\nshall be terminated if and when the compensation of the member,\nincluding cash and the current value of maintenance, shall equal the\ngross compensation of such member as fixed on the basis of the higher\nvalue of maintenance described in such paragraph one, provided that:\n (a) In a case covered by subparagraph (a) of paragraph one of this\nsubdivision h, such current value of maintenance shall have been\ndetermined by the director of the budget pursuant to section forty-two\nof the civil service law, or\n (b) In a case covered by subparagraph (b) of paragraph one of this\nsubdivision h, such current value of maintenance shall have been\ndetermined by the board of supervisors of the county of Monroe, or\n (c) In a case covered by subparagraph (c) of paragraph one of this\nsubdivision h, such current value of maintenance shall have been\ndetermined by the board of supervisors of the county of Westchester, or\n (cc) In a case covered by subparagraph (cc) of paragraph one of this\nsubdivision h, such current value of maintenance shall have been\ndetermined by the board of supervisors of the county, or\n (d) In a case covered by subparagraph (d) of paragraph one of this\nsubdivision h, such current value of maintenance shall have been\ndetermined by the board of supervisors of Onondaga county, or\n (e) In a case covered by subparagraph (e) of paragraph one of this\nsubdivision h, such current value of maintenance shall have been\ndetermined by the director of the budget pursuant to section one hundred\nthirty-five of the civil service law.\n i. Additional contributions.\n 1. Any member of the police and fire retirement system, upon forms\nprescribed and furnished by the comptroller, may elect to make\nadditional contributions at the rate of fifty per centum of his or her\nrate of normal contribution for the purpose of purchasing additional\nannuity.\n 2. Additional contributions made pursuant to this subdivision i shall\nbe included in the member's accumulated contributions, except that in\ncomputing a retirement allowance:\n (a) For ordinary disability pursuant to section three hundred\nsixty-two of this article, or\n (b) In any other case under this article where the inclusion of such\nadditional contributions in the computation of an annuity would have the\neffect of decreasing the amount of a pension that otherwise would be\npayable,\n such additional contributions shall be treated as excess contributions\nand shall be used to provide an annuity in addition to the annuity which\notherwise would be payable in such case. Such additional annuity shall\nbe computed on the basis of regular interest and the mortality tables\nwhich are used in computing other annuities under this article.\n 3. One year or more after the filing thereof, a member may withdraw\nhis election to make additional contributions pursuant to this\nsubdivision i. Such withdrawal shall be by written notice duly\nacknowledged and filed with the comptroller.\n j. Where a member's rate of contribution is reduced because his or her\nemployer contributes toward\npensions-providing-for-increased-take-home-pay pursuant to section three\nhundred seventy-a of this article, such member may by written notice\nduly acknowledged and filed with the comptroller within one year after\nsuch reduction or within one year after he or she last became a member,\nwhichever is later, elect to waive such reduction. One year or more\nafter the filing thereof, a member may withdraw any such waiver by\nwritten notice duly acknowledged and filed with the comptroller. Where a\nmember makes an election to waive such reduction, he or she shall\ncontribute to the police and fire retirement system as otherwise\nprovided in this article.\n k. A member in the employ of the state who retires on or after April\nfirst, nineteen hundred seventy-three may elect to withdraw his excess\ncontributions at the time of his retirement; provided, however, in the\ncase of persons who last became members on or after July first, nineteen\nhundred seventy-three, the provisions of this subdivision shall apply\nonly to those who retire prior to July first, nineteen hundred\nseventy-four. Such election shall be duly executed and filed with the\ncomptroller. The term excess contributions shall mean accumulated\ncontributions in excess of the amount thereof necessary to provide the\nrequired pension or retirement allowance specified under the plan\napplicable to the member. In no case shall such withdrawal of\ncontributions result in an increase in the pension benefit. The\nprovisions of this subdivision shall not apply to a member of the state\npolice in collective negotiating units established pursuant to article\nfourteen of the civil service law.\n l. Voluntary contributions. 1. Any member of the police and fire\nretirement system who is not otherwise required by law to make\ncontributions may elect to make voluntary contributions for the purpose\nof purchasing additional annuity.\n 2. Voluntary contributions made pursuant to this subdivision shall be\nincluded in the member's accumulated contributions, except that in\ncomputing a retirement allowance:\n (a) For ordinary disability pursuant to section three hundred\nsixty-two of this chapter, or\n (b) In any other case under this chapter where the inclusion of such\nvoluntary contributions in the computation of an annuity would have the\neffect of decreasing the amount of a pension that otherwise would be\npayable,\nsuch voluntary contributions shall be treated as excess contributions\nand shall be used to provide an annuity in addition to the annuity which\notherwise would be payable in such case. Such additional annuity shall\nbe computed on the basis of regular interest and the mortality tables\nwhich are used in computing other annuities under this chapter.\n 3. Any member electing to make such voluntary contributions shall file\nsuch election with the comptroller on a form prescribed for such purpose\nby the comptroller. Such election shall specify a rate of contribution\nin a whole number percentage no greater than ten percent of the member's\nsalary, such contributions to be remitted to the comptroller by regular\npayroll deductions from the compensation of the member. The rate of\ncontribution shall be subject to change by the member only once in any\ntwelve month period. These contributions may be withdrawn by the member\nin accordance with section three hundred fifty-one of this chapter only\nonce in any twelve month period.\n 4. Any member electing to make such voluntary contributions may\nwithdraw his election to make such contributions at any time and thereby\nterminate such contributions, provided, however, that such termination\nof voluntary contributions shall preclude the member from again electing\nto make such contributions for a period of twelve months.\n 5. Any member electing to make such voluntary contributions pursuant\nto this subdivision shall be deemed by such act to have: (a) withdrawn\nhis election to make additional contributions pursuant to subdivisions i\nand j of this section, and (b) made all his excess contributions in\naccordance with this subdivision.\n