§ 445-G — Optional twenty-five year/age fifty improved benefit retirement program for automotive members

New York § 445-G

• Jurisdiction: New York
• Law RSS: Retirement & Social Security
• Art. 11: Limitations Applicable to New Entrants

Text

§ 445-g. Optional twenty-five year/age fifty improved benefit\nretirement program for automotive members. a. Definitions. The following\nwords and phrases as used in this section shall have the following\nmeanings unless a different meaning is plainly required by the context.\n 1. "Retirement system" shall mean the New York city employees'\nretirement system.\n 2. "Automotive member" shall mean a member of the retirement system\nemployed by the mayoral and non-mayoral agencies of the city of New York\nas a senior automotive service worker, an automotive service worker, an\nauto body worker, an auto mechanic, a marine maintenance mechanic, an\noil burner specialist, a supervisor of mechanics (mechanical equipment),\nsenior stationary engineer, stationary engineer, auto mechanic (diesel),\nauto electrician, auto machinist, machinist or machinist helper.\n 3. "Twenty-five year/age fifty improved benefit retirement program"\nshall mean all the terms and conditions of this section.\n 4. "Starting date of the twenty-five year/age fifty improved benefit\nretirement program" shall mean, with respect to supervisors of mechanics\n(mechanical equipment), the effective date of an act amending chapter\nfive hundred sixty of the laws of two thousand one, as such date is\ncertified pursuant to section forty-one of the legislative law, and\nshall mean December twelfth, two thousand one with respect to all other\nautomotive members.\n 5. "Participant in the twenty-five year/age fifty improved benefit\nretirement program" shall mean any automotive member who, under the\napplicable provisions of subdivision b of this section, is entitled to\nthe rights, benefits and privileges and is subject to the obligations of\nthe twenty-five year/age fifty improved benefit retirement program, as\napplicable to him or her.\n 6. "Administrative code" shall mean the administrative code of the\ncity of New York.\n 7. "Accumulated deductions" shall mean accumulated deductions as\ndefined in subdivision eleven of section 13-101 of the administrative\ncode.\n 8. "Optional retirement provisions" shall mean the right to retire and\nreceive a retirement allowance under this section upon (i) the\nattainment of age fifty and (ii) the completion of twenty-five years of\ncredited service.\n b. Election of twenty-five year/age fifty improved benefit retirement\nprogram. 1. Subject to the provisions of paragraphs five and six of this\nsubdivision, any person who is an automotive member on the starting date\nof the twenty-five year/age fifty improved benefit retirement program\nmay elect to become a participant in the twenty-five year/age fifty\nimproved benefit retirement program by filing, within two hundred\nseventy days after such starting date, a duly executed application for\nsuch participation with the retirement system, provided he or she is\nsuch an automotive member on the date such application is filed.\n 2. Subject to the provisions of paragraphs five and six of this\nsubdivision, any person who becomes an automotive member after the\nstarting date of the twenty-five year/age fifty improved benefit\nretirement program may elect to become a participant in the twenty-five\nyear/age fifty improved benefit retirement program by filing, within two\nhundred seventy days after becoming such an automotive member, a duly\nexecuted application for such participation with the retirement system,\nprovided he or she is such an automotive member on the date such\napplication is filed.\n 3. Any election to be a participant in the twenty-five year/age fifty\nimproved benefit retirement program shall be irrevocable.\n 4. Where any participant in the twenty-five/age fifty improved benefit\nretirement program shall cease to hold a position as an automotive\nmember, he or she shall cease to be such a participant and during any\nperiod in which such a person does not hold such an automotive position,\nhe or she shall not be a participant in the twenty-five year/age fifty\nimproved benefit retirement program and shall not be eligible for the\nbenefits of subdivision c of this section.\n 5. Where any participant in the twenty-five year/age fifty improved\nbenefit retirement program terminates service as an automotive member\nand returns to such service as an automotive member at a later date, he\nor she shall again become such a participant on that date.\n 6. Notwithstanding any other provision of law to the contrary, any\nperson who is eligible to become a participant in the twenty-five\nyear/age fifty improved benefit retirement program pursuant to paragraph\none or two of this subdivision for the full two hundred seventy day\nperiod provided for in such applicable paragraph and who fails to timely\nfile a duly executed application for such participation with the\nretirement system, shall not thereafter be eligible to become a\nparticipant in such program.\n c. Service retirement benefits. Notwithstanding any other provision of\nlaw to the contrary, where a participant in the twenty-five year/age\nfifty improved benefit retirement program, who is otherwise qualified\nfor a retirement allowance pursuant to the optional retirement\nprovisions set forth in subdivision a of this section, has made and/or\npaid while he or she is an automotive member, all additional member\ncontributions and interest (if any) required by subdivision d of this\nsection, then:\n 1. that participant while he or she remains a participant, shall not\nbe subject to the provisions of subdivision a of section four hundred\nforty-five of this article; and\n 2. if that participant while such a participant, retires from service,\nhe or she shall not be subject to the provisions of section four hundred\nforty-four of this article; and\n 3. his or her retirement allowance shall be an amount, on account of\nthe required minimum period of service, equal to the sum of (i) an\nannuity which shall be the actuarial equivalent of the accumulated\ndeductions from his or her pay during such period, (ii) a pension for\nincreased-take-home-pay which shall be the actuarial equivalent of the\nreserve for increased-take-home-pay to which he or she may be entitled\nfor such period, and (iii) a pension which, when added to such annuity\nand such pension for increased-take-home-pay, produces a retirement\nallowance equal to fifty percent of his or her final average salary,\nplus an amount for each additional year of allowable service, or\nfraction thereof, beyond such required minimum period of service equal\nto two percent of his or her final average salary; and\n 4. the maximum retirement benefit computed without optional\nmodification payable to that participant upon his or her retirement for\nservice as such a participant shall equal that payable upon completion\nof thirty years of service.\n d. Additional member contributions. 1. In addition to the member\ncontributions required pursuant to section 13-125 or 13-162 of the\nadministrative code, each participant in the twenty-five year/age fifty\nimproved benefit retirement program shall contribute, subject to the\napplicable provisions of section 13-125.2 of the administrative code, an\nadditional four and eighty-three one-hundredths percent of his or her\ncompensation earned from (i) all credited service, as a participant in\nthe twenty-five year/age fifty improved benefit retirement program,\nrendered on and after the date which is one hundred eighty days prior to\nthe starting date of the improved benefit retirement program, and (ii)\nall credited service after such person ceases to be a participant, but\nbefore he or she again becomes a participant pursuant to paragraph five\nof subdivision b of this section. A participant in the twenty-five\nyear/age fifty improved benefit retirement program shall contribute\nadditional member contributions until the later of (i) the date as of\nwhich he or she is eligible to retire with twenty-five years of credited\nservice under such retirement program, or (ii) the first anniversary of\nthe starting date of the twenty-five year/age fifty improved benefit\nretirement program. The additional contributions required by this\nparagraph shall be in lieu of additional member contributions required\nby subdivision d of section four hundred forty-five-d of this article,\nas added by chapter ninety-six of the laws of nineteen hundred\nninety-five, and no member paying additional contributions pursuant to\nthis section shall be required to pay additional contributions pursuant\nto such subdivision d of section four hundred forty-five-d of this\narticle.\n 2. Commencing with the first full payroll period after each person\nbecomes a participant in the twenty-five year/age fifty improved benefit\nretirement program, additional member contributions at the rate\nspecified in paragraph one of this subdivision shall be deducted,\nsubject to the applicable provisions of section 13-125.2 of the\nadministrative code, from the compensation of such participant on each\nand every payroll of such participant for each and every payroll period\nfor which he or she is such a participant.\n 3. (i) Subject to the provisions of subparagraph (ii) of this\nparagraph, where any additional member contributions required by\nparagraph one of this subdivision are not paid by deductions from a\nparticipant's compensation pursuant to paragraph two of this\nsubdivision.\n (A) that participant shall be charged with a contribution deficiency\nconsisting of such unpaid amounts, together with interest thereon,\ncompounded annually; and\n (B) such interest on each amount of undeducted contributions shall\naccrue from the end of the payroll period for which such amount would\nhave been deducted from compensation if he or she had been a participant\nat the beginning of that payroll period and such deductions had been\nrequired for such payroll period until such amount is paid to the\nretirement system; and\n (C) Interest on each such amount included in such participant's\ncontribution deficiency pursuant to this subparagraph (i) shall be\ncalculated as if such additional member contributions never had been\npaid by such participant, and such interest shall accrue from the end of\nthe payroll period to which an amount of such additional member\ncontributions is attributable, compounded annually, until such amount is\npaid to the retirement system.\n (ii) The rate of interest to be applied to each such amount during the\nperiod for which interest accrues on that amount shall be equal to the\nrate or rates of interest required by law to be used during that same\nperiod to credit interest on the accumulated deductions of retirement\nsystem members.\n (iii) Except as provided in subparagraph (iv) of this paragraph, no\ninterest shall be due on any unpaid additional contributions which are\nnot attributable to the period prior to the first full payroll period\nreferred to in paragraph two of this subdivision.\n (iv) Should any person who, pursuant to paragraph seven of this\nsubdivision, has withdrawn any additional member contributions (and any\ninterest paid thereon) again become a participant in the twenty-five\nyear/age fifty improved benefit retirement program pursuant to paragraph\nfive of subdivision b of this section, an appropriate amount shall be\nincluded in such participant's contribution deficiency (including\ninterest thereon as calculated pursuant to subparagraph (ii) of this\nparagraph) for any credited service with respect to which such person\nreceived a refund of additional member contributions (including any\namount of an unpaid loan balance deemed to have been returned to such\nperson pursuant to paragraph seven of this subdivision), as if such\nadditional member contributions never had been paid.\n 4. The board of trustees of the retirement system may, consistent with\nthe provisions of this subdivision, promulgate regulations for the\npayment of the additional member contributions required by this\nsubdivision, and any interest thereon, by a participant in the\ntwenty-five year/age fifty improved benefit retirement program\n(including the deduction of such contributions, and any interest\nthereon, from his or her compensation).\n 5. Where a participant who is otherwise eligible for service\nretirement pursuant to subdivision c of this section did not prior to\nthe effective date of retirement pay the entire amount of a contribution\ndeficiency chargeable to him or her pursuant to paragraph three of this\nsubdivision, or repay the entire amount of a loan of his or her\nadditional member contributions pursuant to paragraph eight of this\nsubdivision (including accrued interest on such loan), that participant\nnevertheless shall be eligible to retire pursuant to subdivision c of\nthis section, provided, however, that where such participant is not\nentitled to a refund of additional member contributions pursuant to\nparagraph seven of this subdivision, such participant's service\nretirement benefit calculated pursuant to the applicable provisions of\nsubdivision c of this section shall be reduced by a life annuity\n(calculated in accordance with the method set forth in subdivision i of\nsection six hundred thirteen-b of this chapter) which is actuarially\nequivalent to:\n (i) the amount of any unpaid contribution deficiency chargeable to\nsuch member pursuant to paragraph three of this subdivision; plus\n (ii) the amount of any unpaid balance of a loan of his or her\nadditional member contributions pursuant to paragraph eight of this\nsubdivision (including accrued interest on such loan).\n 6. Subject to the provisions of paragraph five of this subdivision,\nwhere a participant has not paid in full any contribution deficiency\nchargeable to him or her pursuant to paragraph three of this subdivision\nand a benefit, other than a refund of a member's accumulated deductions\nor a refund of additional member contributions pursuant to paragraph\nseven of this subdivision, becomes payable by the retirement system to\nthe participant or to his or her designated beneficiary or estate, the\nactuarial equivalent of any such unpaid amount shall be deducted from\nthe benefit otherwise payable.\n 7. (i) All additional member contributions required by this\nsubdivision (and any interest thereon) which are received by the\nretirement system, shall be paid into its contingent reserve fund and\nshall be the property of the retirement system. Such additional member\ncontributions (and any interest thereon) shall not for any purpose be\ndeemed to be member contributions or accumulated deductions of a member\nof the retirement system under section 13-125 or 13-162 of the\nadministrative code while he or she is a participant in the twenty-five\nyear/age fifty improved benefit retirement program or otherwise.\n (ii) Should a participant in the twenty-five year/age fifty improved\nbenefit retirement program, who has rendered less than five years of\ncredited service cease to hold a position as an automotive member for\nany reason whatsoever, his or her accumulated additional member\ncontributions made pursuant to this subdivision (together with any\ninterest thereon paid to the retirement system) which remain credited to\nsuch participant's account may be withdrawn by him or her pursuant to\nprocedures promulgated in regulations of the board of trustees of the\nretirement system, together with interest thereon at the rate of\ninterest required by law to be used to credit interest on the\naccumulated deductions of retirement system members compounded annually.\n (iii) Notwithstanding any other provision of law to the contrary, (A)\nno person shall be permitted to withdraw from the retirement system any\nadditional member contributions paid pursuant to this subdivision or any\ninterest paid thereon, except pursuant to and in accordance with the\npreceding subparagraphs of this paragraph; and (B) no person, while he\nor she is a participant in the twenty-five year/age fifty improved\nbenefit retirement program shall be permitted to withdraw any such\nadditional member contributions or any interest paid thereon pursuant to\nany of the preceding subparagraphs of this paragraph or otherwise.\n 8. A participant in the twenty-five year/age fifty improved benefit\nretirement program shall be permitted to borrow from his or her\nadditional member contributions including any interest paid thereon,\nwhich are credited to the additional contributions account established\nfor such participant in the contingent reserve fund of the retirement\nsystem. The borrowing from such additional member contributions pursuant\nto this paragraph shall be governed by the same rights, privileges,\nobligations and procedures set forth in section six hundred thirteen-b\nof this chapter which govern the borrowing by members subject to article\nfifteen of this chapter of member contributions made pursuant to section\nsix hundred thirteen of this chapter. The board of trustees of the\nretirement system may, consistent with the provisions of this\nsubdivision and the provisions of section six hundred thirteen-b of this\nchapter as made applicable to this subdivision, promulgate regulations\ngoverning the borrowing of such additional member contributions.\n 9. Wherever a person has an unpaid balance of a loan of his or her\nadditional member contributions pursuant to paragraph eight of this\nsubdivision at the time he or she becomes entitled to a refund of his or\nher additional member contributions pursuant to subparagraph (ii) of\nparagraph seven of this subdivision, the amount of such unpaid loan\nbalance (including accrued interest) shall be deemed to have been\nreturned to such member, and the refund of such additional contributions\nshall be the net amount of such contributions, together with interest\nthereon in accordance with the provisions of such subparagraph.\n 10. Notwithstanding any other provision of law to the contrary, the\nprovisions of section one hundred thirty-eight-b of this chapter shall\nnot be applicable to the additional member contributions which are\nrequired by this subdivision.\n 11. Notwithstanding any other provisions of law th the contrary, the\nadditional member contributions which are required by this subdivision\nshall not be reduced under any program for increased-take-home-pay.\n