§ 504-D — Twenty-year retirement program for New York city correction members

New York § 504-D

• Jurisdiction: New York
• Law RSS: Retirement & Social Security
• Art. 14: Coordinated-escalator Retirement Plan

Text

§ 504-d. Twenty-year retirement program for New York city correction\nmembers. a. Definitions. The following words and phrases as used in this\nsection shall have the following meanings unless a different meaning is\nplainly required by the context.\n 1. "New York city correction officer" shall mean a member of the\nuniformed force of the New York city department of correction who holds\nthe rank of correction officer below the rank of captain; correction\ncaptain; assistant deputy warden, also known as warden correction level\nI; deputy warden or deputy warden-in-command, also known as warden\ncorrection level II; warden or deputy chief, also known as warden\ncorrection level III; or chief of department, also known as warden\ncorrection in the correction service of such city.\n 2. "New York city correction member" shall mean a general member (as\ndefined in subdivision twelve of section five hundred one of this\narticle) who is a New York city correction officer.\n 3. "Twenty-year retirement program" shall mean all the terms and\nconditions of this section.\n 4. "Starting date of the twenty-year retirement program" shall mean\nthe effective date of this section, as such date is certified pursuant\nto section forty-one of the legislative law.\n 5. "Participant in the twenty-year retirement program" shall mean any\nNew York city correction member who, under the applicable provisions of\nsubdivision b of this section, is entitled to the rights, benefits and\nprivileges and is subject to the obligations of the twenty-year\nretirement program, as applicable to him or her.\n 6. "Discontinued member" shall mean a participant in the twenty-year\nretirement program who, while he or she was a New York city correction\nofficer, discontinued service in the uniformed force of the New York\ncity department of correction and has a right to a deferred vested\nbenefit under subdivision d of this section.\n 7. "Administrative code" shall mean the administrative code of the\ncity of New York.\n b. Participation in twenty-year retirement program. 1. Each person who\nbecomes a New York city correction member on or after the starting date\nof the twenty-year retirement program, who first became or becomes a New\nYork city correction member on or after such starting date and who, as\nsuch a correction member or otherwise, becomes subject to the provisions\nof this article on or after such starting date, shall become a\nparticipant in the twenty-year retirement program on the date he or she\nbecomes a New York city correction member. Notwithstanding any other\nprovision of law to the contrary, a participant in the twenty-year\nretirement program shall have the term "credited service" applied to him\nor her in the same manner as such term would be applied to a similarly\nsituated correction officer who is governed by article eleven of this\nchapter, and who is a participant in either the twenty-year improved\nbenefit retirement program for correction officers below the rank of\ncaptain established by section four hundred forty-five-a of such article\neleven or the twenty-year improved benefit retirement program for\ncaptains and above established by section four hundred forty-five-c of\nsuch article eleven.\n 1-a. Notwithstanding any other provision of this subdivision or any\nother provision of law to the contrary, no member of the uniformed force\nof the New York city department of correction who is a New York city\nuniformed correction/sanitation revised plan member shall be a\nparticipant in the twenty-year retirement program.\n 2. Where any participant in the twenty-year retirement program shall\ncease to hold the position of New York city correction officer, he or\nshe shall cease to be such a participant, and shall not be such a\nparticipant during any period in which he or she does not hold the\nposition of New York city correction officer.\n 3. Where any participant in the twenty-year retirement program\nterminates service as a New York city correction officer and returns to\nsuch service as a New York city correction member at a later date, he or\nshe shall again become such a participant on that date.\n c. Service retirement benefits. 1. A participant in the twenty-year\nretirement program:\n (i) who has completed twenty or more years of credited service; and\n (ii) who, subject to the provisions of paragraph six of subdivision e\nof this section, has paid, before the effective date of retirement, all\nadditional member contributions and interest (if any) required by\nsubdivision e of this section; and\n (iii) who files with the retirement system of which he or she is a\nmember an application for service retirement setting forth at what time\nhe or she desires to be retired; and\n (iv) who shall be a participant in the twenty-year retirement program\nat the time so specified for his or her retirement;\nshall be retired pursuant to the provisions of this section affording\nearly service retirement.\n 2. (i) Notwithstanding any other provision of law to the contrary, and\nsubject to the provisions of paragraph six of subdivision e of this\nsection, the early service retirement benefit for participants in the\ntwenty-year retirement program who retire pursuant to paragraph one of\nthis subdivision shall be a pension consisting of:\n (A) an amount, on account of twenty years of credited service, equal\nto one-half of his or her final average salary; plus\n (B) an amount for each additional year of credited service, or\nfraction thereof, beyond such twenty years of credited service equal to\none-sixtieth of the final average salary for such credited service\nduring the period from the completion of twenty years of credited\nservice to the date of retirement.\n (ii) The maximum pension computed without optional modification\npayable pursuant to subparagraph (i) of this paragraph shall equal that\npayable upon completion of thirty years of service.\n d. Vesting. 1. A participant in the twenty-year retirement program:\n (i) who discontinues service in the uniformed force of the New York\ncity department of correction while he or she is a New York city\ncorrection officer, other than by death or retirement; and\n (ii) who, prior to such discontinuance, completed five but less than\ntwenty years of credited service; and\n (iii) who, subject to the provisions of paragraph seven of subdivision\ne of this section, has paid, prior to such discontinuance, all\nadditional member contributions and interest (if any) required by\nsubdivision e of this section; and\n (iv) who does not withdraw in whole or in part his or her accumulated\nmember contributions pursuant to section five hundred seventeen of this\narticle unless such participant thereafter returns to public service and\nrepays the amounts so withdrawn, together with interest, pursuant to\nsuch section five hundred seventeen;\nshall be entitled to receive a deferred vested benefit as provided in\nthis subdivision.\n 2. (i) Upon such discontinuance under the conditions and in compliance\nwith the provisions of paragraph one of this subdivision, such deferred\nvested benefit shall vest automatically.\n (ii) Such vested benefit shall become payable on the earliest date on\nwhich such discontinued member could have retired for service if such\ndiscontinuance had not occurred.\n 3. Subject to the provisions of paragraph seven of subdivision e of\nthis section, such deferred vested benefit shall be a pension consisting\nof an amount equal to two and one-half percent of such discontinued\nmember's final average salary, multiplied by the number of years of\ncredited service on the date of such discontinuance.\n e. Additional member contributions. 1. In addition to the member\ncontributions required by section five hundred seventeen of this\narticle, each participant in the twenty-year retirement program shall\ncontribute to the retirement system of which he or she is a member\n(subject to the applicable provisions of section 13-125.1 of the\nadministrative code) an additional four and sixty-one one-hundredths\npercent of his or her compensation earned from all service as a New York\ncity correction member.\n 2. A participant in the twenty-year retirement program shall\ncontribute additional member contributions only until he or she has\ntwenty years of credited service.\n 3. Commencing with the first full payroll period after each person\nbecomes a participant in the twenty-year retirement program, additional\nmember contributions at the rate specified in paragraph one of this\nsubdivision shall be deducted (subject to the applicable provisions of\nsection 13-125.1 of the administrative code) from the compensation of\nsuch participant on each and every payroll of such participant for each\nand every payroll period.\n 4. (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 three of this\nsubdivision:\n (A) that participant shall be charged with a contribution deficiency\nconsisting of such unpaid amounts, together with interest thereon at the\nrate of five percent per annum, compounded 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, until such amount is paid to\nthe retirement system.\n (ii) Except as provided in subparagraph (iii) of this paragraph, no\ninterest shall be due on any such unpaid additional member contributions\nwhich are not attributable to the period prior to the first full payroll\nperiod referred to in paragraph three of this subdivision.\n (iii) Should any person who, pursuant to paragraph nine of this\nsubdivision, has withdrawn any additional member contributions (and any\ninterest paid thereon) again become a participant in the twenty-year\nretirement program pursuant to paragraph three of subdivision b of this\nsection, an appropriate amount shall be included in such participant's\ncontribution deficiency (including interest thereon as calculated\npursuant to subparagraph (i) of this paragraph) as if such additional\ncontributions had never been made.\n 5. The head of a retirement system which includes participants in the\ntwenty-year retirement program in its membership may, consistent with\nthe provisions of this subdivision, promulgate regulations for the\npayment of such additional member contributions, and any interest\nthereon, by such participants (including the deduction of such\ncontributions, and any interest thereon, from the participants'\ncompensation).\n 6. 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\ncontribution deficiency chargeable to him or her pursuant to paragraph\nfour of this subdivision, that participant, nevertheless, shall be\neligible to retire pursuant to subdivision c of this section provided,\nhowever, that the service retirement benefit calculated pursuant to\nparagraph two of such subdivision c shall be reduced by the actuarial\nequivalent of the amount of any contribution deficiency pursuant to such\nparagraph four which such participant did not pay prior to the effective\ndate of his or her retirement.\n 7. Where a participant who is otherwise eligible for a vested right to\na deferred benefit pursuant to subdivision d of this section did not,\nprior to the date of discontinuance of service, pay the entire amount of\na contribution deficiency chargeable to him or her pursuant to paragraph\nfour of this subdivision, that participant, nevertheless, shall be\neligible for a vested right to a deferred benefit pursuant to\nsubdivision d of this section provided, however, that the deferred\nvested benefit calculated pursuant to paragraph three of such\nsubdivision d shall be reduced by the actuarial equivalent of the amount\nof any contribution deficiency pursuant to such paragraph four which\nsuch participant did not pay prior to his or her discontinuance of\nservice.\n 8. Where a participant has not paid in full any contribution\ndeficiency chargeable to him or her pursuant to paragraph four of this\nsubdivision, and a benefit, other than a refund of member contributions\npursuant to section five hundred seventeen of this article, or a refund\nof additional member contributions pursuant to paragraph nine of this\nsubdivision, or a benefit which has been reduced pursuant to paragraph\nsix or seven of this subdivision becomes payable under this article 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 9. (i) All additional member contributions required by this\nsubdivision (and any interest thereon) which are received by the\nretirement system of which the participant is a member shall be paid\ninto its contingent reserve fund and shall not for any purpose be deemed\nto be member contributions or accumulated contributions of a member\nunder section five hundred seventeen of this article or otherwise while\nhe or she is a participant in the twenty-year retirement program or\notherwise, except that, a surplus of such additional member\ncontributions that are paid into the retirement system's contingent\nreserve fund may be used for the sole purpose of offsetting a deficit of\nbasic member contributions.\n (ii)(A) Should a participant in the twenty-year retirement program who\nhas rendered less than fifteen years of credited service cease to hold\nthe position of New York city correction officer for any reason\nwhatsoever, his or her accumulated additional member contributions made\npursuant to this subdivision (together with any interest thereon paid to\nthe retirement system) may be withdrawn by him or her pursuant to\nprocedures promulgated in regulations of the head of the retirement\nsystem, together with interest thereon at the rate of five percent per\nannum, compounded annually.\n (B) Upon the death of a participant in the twenty-year retirement\nprogram, there shall be paid to such person as he or she has nominated\nor shall nominate to receive his or her accumulated member contributions\nby written designation duly executed and filed with the retirement\nsystem during the lifetime of such participant, or, to his or her estate\nif no such person is nominated, his or her accumulated additional member\ncontributions made pursuant to this subdivision (including any interest\nthereon paid to the retirement system), together with interest thereon\nat the rate of five percent per annum, compounded annually.\n (iii) Except as otherwise provided in subparagraph (ii) of this\nparagraph, no member while he or she is a participant in the twenty-year\nretirement program or otherwise shall have a right to withdraw such\nadditional member contributions or any interest thereon from the\nretirement system.\n 10. Notwithstanding any other provision of law to the contrary, no\nmember of the retirement system shall be permitted to borrow any portion\nof his or her additional member contributions (including any interest\npaid thereon) which are subject to this subdivision.\n f. The escalation of benefits provisions of section five hundred ten\nof this article shall not apply to any benefits received pursuant to the\nprovisions of this section.\n g. Except as provided in clause (B) of subparagraph (i) of paragraph\ntwo of subdivision c of this section, the provisions of subdivision d of\nsection five hundred of this article shall apply to participants under\nthis section.\n h. In the event that the provisions of this section should result in\nany increase in the contribution rate of the city of New York, that\nincrease shall not apply to any calculation or certification for the\npurposes of subdivision c of section five hundred of this article.\n