§ 604-B — Twenty-five-year and age fifty-five retirement program for New York city transit authority members

New York § 604-B

• Jurisdiction: New York
• Law RSS: Retirement & Social Security
• Art. 15: Coordinated Retirement Plan

Text

§ 604-b. Twenty-five-year and age fifty-five retirement program for\nNew York city transit authority members. a. Definitions. The following\nwords or phrases as used in this section shall have the following\nmeanings unless a different meaning is plainly required by the context:\n 1. "New York city transit authority member" shall mean a member (as\ndefined in subdivision e of section six hundred one of this article) who\n(a) is an employee of the New York city transit authority, and (b) would\nhave been subject to the provisions of section 13-161 of the\nadministrative code of the city of New York had he joined the New York\ncity employees' retirement system prior to July twenty-seven, nineteen\nhundred seventy-six.\n 2. "Twenty-five-year and age fifty-five retirement program" shall mean\nall the terms and conditions of this section.\n 3. "Starting date of the twenty-five-year and age fifty-five\nretirement program" shall mean the commencement date of the payroll\nperiod which includes September first, nineteen hundred ninety-four.\n 4. "Enactment date of the twenty-five-year and age fifty-five\nretirement program" shall mean the date of enactment of the chapter of\nthe laws of nineteen hundred ninety-four which added this section, as\nsuch date is certified pursuant to section forty-one of the legislative\nlaw.\n 5. "Participant in the twenty-five-year and age fifty-five retirement\nprogram" shall mean any New York city transit authority member who,\nunder the applicable provisions of subdivision b of this section, is\nentitled to the rights, benefits and privileges and is subject to the\nobligations of the twenty-five-year and age fifty-five retirement\nprogram, as applicable to him or her.\n 6. "Allowable service in the transit authority" shall mean credited\nservice which was rendered as a member of the New York city transit\nauthority.\n 7. "Minimum period" shall mean the minimum period of twenty-five years\nof allowable service in the transit authority that is required in order\nfor a participant in the twenty-five-year and age fifty-five retirement\nprogram to be eligible for early service retirement pursuant to\nparagraph one of subdivision c of this section.\n 8. "Final average salary" shall mean a participant's final average\nsalary as defined in section six hundred eight of this article.\n 9. "Discontinued member" shall mean a participant in the\ntwenty-five-year and age fifty-five retirement program who, while he or\nshe was a New York city transit authority member, discontinued service\nin the New York city transit authority and has a right to a deferred\nvested benefit under subdivision d of this section.\n 10. "Administrative code" shall mean the administrative code of the\ncity of New York.\n b. Participation in twenty-five-year and age fifty-five retirement\nprogram.\n 1. Subject to the provisions of paragraph six of this subdivision, any\nperson who is a New York city transit authority member on the enactment\ndate of the twenty-five-year and age fifty-five retirement program and\nwho, as such a transit authority member or otherwise, last became\nsubject to the provisions of this article prior to such enactment date,\nmay elect to become a participant in the twenty-five-year and age\nfifty-five retirement program by filing, within forty-five days after\nthe enactment date of the twenty-five-year and age fifty-five retirement\nprogram, a duly executed application for such participation with the\nretirement system of which such person is a member, provided he or she\nis such a transit authority member on the date such application is\nfiled.\n 2. Subject to the provisions of paragraph six of this subdivision, any\nperson who becomes a New York city transit authority member after the\nenactment date of the twenty-five-year and age fifty-five retirement\nprogram and who, as such a transit authority member, last became subject\nto the provisions of this article prior to such enactment date, may\nelect to become a participant in the twenty-five-year and age fifty-five\nretirement program by filing, within forty-five days after becoming such\ntransit authority member, a duly executed application for such\nparticipation with the retirement system of which such person is a\nmember, provided he or she is such a transit authority member on the\ndate such application is filed.\n 3. (i) Any election to be a participant in the twenty-five-year and\nage fifty-five retirement program shall be irrevocable, except as\nprovided in subparagraph (ii) of this paragraph.\n (ii) Notwithstanding the provisions of subparagraph (i) of this\nparagraph, any New York city transit authority member who elected to\nbecome a participant in the twenty-five-year and age fifty-five\nretirement program pursuant to the provisions of paragraph one or\nparagraph two of this subdivision, and whose age and allowable service\nin the transit authority are such that he could not possibly be able to\naccumulate at least twenty-five years of such service by the time he\nreaches age sixty-two, may revoke such election by filing within the\nperiod beginning November first, nineteen hundred ninety-nine and ending\nJanuary thirtieth, two thousand, a written request to withdraw from such\nprogram with the retirement system of which he is member. Upon such\nrevocation the additional member contributions required by subdivision e\nof this section, without interest, shall be refunded to such member.\n 4. Each New York city transit authority member who becomes subject to\nthe provisions of this article on or after the enactment date of the\ntwenty-five-year and age fifty-five retirement program shall become a\nparticipant in the twenty-five-year and age fifty-five retirement\nprogram on the date he or she becomes such a transit authority member.\n 4-a. (i) Notwithstanding any provision of paragraphs one and two of\nthis subdivision to the contrary, each person who is a New York city\ntransit authority member on the starting date of the elimination of\nadditional member contributions as such date is defined in an election\nmade pursuant to paragraph ten of subdivision e of this section and who\nis not on that date a participant in the twenty-five-year and age\nfifty-five retirement program shall become a participant in the\ntwenty-five-year and age fifty-five retirement program on such starting\ndate; provided, however, that any such person who, immediately preceding\nsuch starting date, was a participant in the age fifty-seven retirement\nprogram set forth in section six hundred four-d of this article may\nelect to remain a participant in the age fifty-seven retirement program,\ninstead of becoming a participant in the twenty-five-year and age\nfifty-five retirement program, by filing a written election to that\neffect with the retirement system of which such person is a member.\n (ii) Notwithstanding any provision of paragraph two of this\nsubdivision to the contrary, any person who becomes a New York city\ntransit authority member after the starting date of the elimination of\nadditional member contributions, whether such person became subject to\nthe provisions of this article prior to or subsequent to the enactment\ndate of the twenty-five-year and age fifty-five retirement program,\nshall become a participant in the twenty-five-year and age fifty-five\nretirement program, on the date he or she becomes such a transit\nauthority member.\n 5. Where any participant in the twenty-five-year and age fifty-five\nretirement program shall cease to hold a position as a New York city\ntransit authority member, he or she shall cease to be such a participant\nand, during any period in which such person does not hold such a transit\nauthority position, he or she shall not be a participant in the\ntwenty-five-year and age fifty-five retirement program and shall not be\neligible for the benefits of subdivision c of this section.\n 6. Where any participant in the twenty-five-year and age fifty-five\nretirement program terminates service as a New York city transit\nauthority member and returns to such service as a New York city transit\nauthority member at a later date, he or she shall again become such a\nparticipant on that date.\n 7. Where any participant in the twenty-five-year and age fifty-five\nretirement program terminates service as a New York city transit\nauthority member due to having been promoted to a position that does not\nentail eligibility for such such program, the accumulated additional\nmember contributions made pursuant to subdivision e of this section by\nsuch participant (together with any interest thereon paid to the\nretirement system) may be withdrawn by him or her pursuant to procedures\npromulgated in regulations of the board of trustees of the retirement\nsystem, together with interest thereon at the rate of five percent per\nannum, compounded annually.\n c. Service retirement benefits. 1. A participant in the\ntwenty-five-year and age fifty-five retirement program:\n (i) who has completed twenty-five or more years of allowable service\nin the transit authority; and\n (ii) who has attained age fifty-five; and\n (iii) who 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 (iv) 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 (v) who shall be a participant in the twenty-five-year and age\nfifty-five retirement program at the time so specified for his or her\nretirement;\nshall be retired pursuant to the provisions of this section affording\nearly service retirement.\n 2. Notwithstanding any other provision of law to the contrary, the\nearly service retirement benefit for participants in the\ntwenty-five-year and age fifty-five retirement program who retire\npursuant to paragraph one of this subdivision shall be a pension\nconsisting of:\n (i) an amount, on account of the required minimum period of\ntwenty-five years of allowable service, equal to one-half of his or her\nfinal average salary; plus\n (ii) an amount for each additional year of allowable service, or\nfraction thereof, beyond such required minimum period of twenty-five\nyears of allowable service, equal to two percent of his or her final\naverage salary, to a maximum of thirty years of allowable service; plus\n (iii) an amount for each additional year of allowable service, or\nfraction thereof, in excess of thirty years of allowable service, equal\nto one and one-half percent of his or her final average salary.\n d. Vesting. 1. A participant in the twenty-five-year and age\nfifty-five retirement program who:\n (i) discontinues city-service and service as a member of the New York\ncity transit authority other than by death or retirement; and\n (ii) prior to such discontinuance, completed five but less than\ntwenty-five years of allowable service in the transit authority; and\n (iii) has paid, prior to such discontinuance, all additional member\ncontributions and interest, if any, required by subdivision e of this\nsection; and\n (iv) does not withdraw in whole or in part his or her accumulated\nmember contributions pursuant to section six hundred thirteen of this\narticle unless such participant thereafter returns to public service and\nrepays the amounts so withdrawn, together with interest, pursuant to\nsuch section six hundred thirteen of this article;\nshall be entitled to receive a deferred vested benefit as provided in\nsection six hundred twelve of this article.\n 2. A participant in the twenty-five year and age fifty-five retirement\nprogram who:\n (i) discontinues city service and service as a New York city transit\nauthority member other than by death or retirement with immediate\npayability; and\n (ii) prior to such discontinuance completed twenty-five years of\nallowable service in the transit authority; and\n (iii) has not yet attained age fifty-five; and\n (iv) has paid, prior to such discontinuance, all additional member\ncontributions with interest (if any) required by subdivision e of this\nsection; and\n (v) does not withdraw in whole or in part his or her accumulated\nmember contributions pursuant to section six hundred thirteen of this\narticle unless such participant thereafter returns to public service and\nrepays the amounts so withdrawn, together with interest, pursuant to\nsuch section six hundred thirteen of this article; shall be entitled to\nreceive a deferred vested benefit as provided in this subdivision.\n 3. (i) Upon such discontinuance under the conditions and in compliance\nwith the provisions of paragraph two of this subdivision, such deferred\nvested benefit shall vest automatically.\n (ii) In the case of a participant who is not a New York city revised\nplan member, such vested benefit shall become payable on the earliest\ndate on which such discontinued member could have retired for service if\nsuch discontinuance had not occurred or, in the case of a participant\nwho is a New York city revised plan member, such vested benefit shall\nbecome payable at age sixty-three.\n 4. Such deferred vested benefit shall be determined pursuant to the\nprovisions of paragraph two of subdivision c of this section.\n e. Additional member contributions. 1. In addition to the member\ncontributions required by section six hundred thirteen of this article,\neach participant in the twenty-five-year and age fifty-five retirement\nprogram shall contribute to the retirement system of which he or she is\na member (subject to the applicable provisions of section 13-125.1 of\nthe administrative code) an additional two and thirty-hundredths percent\nof his or her compensation earned from all allowable service in the\ntransit authority rendered on and after the starting date of the\ntwenty-five-year and age fifty-five retirement program. A participant in\nthe twenty-five-year and age fifty-five retirement program shall\ncontribute additional member contributions only until he or she has\nthirty years of allowable service in the transit authority. In the event\nthat the New York city transit authority elects to eliminate additional\nmember contributions pursuant to paragraph ten of this subdivision, a\nparticipant in the twenty-five-year and age fifty-five retirement\nprogram who becomes a participant pursuant to the provisions of\nparagraph four-a of subdivision b of this section shall not be required\nto make any additional member contributions pursuant to this\nsubdivision.\n 2. (i) Commencing with the payroll period which begins on the starting\ndate of the twenty-five-year and age fifty-five retirement program (for\na person who elects to become a participant prior to such starting\ndate), or commencing with the first full payroll period after a person\nbecomes such a participant (for a person who becomes a participant on or\nafter such starting date), additional member contributions at the rate\nspecified in paragraph one of this subdivision shall be deducted\n(subject to the applicable provisions of section 13-125.1 of the\nadministrative code) from the compensation of such participant on each\nand every payroll of such participant for each and every payroll period.\n (ii) (A) Where any additional member contributions required by\nparagraph one of this subdivision are not paid by deductions from a\nparticipant's compensation pursuant to subparagraph (i) of this\nparagraph because such contributions are for service rendered in a\npayroll period prior to the actual commencement of deductions pursuant\nto such subparagraph (i), such amounts shall be paid by deductions from\nthe compensation of such participant pursuant to item (B) of this\nsubparagraph.\n (B) Commencing with the payroll period in which deductions of\nadditional member contributions from a participant's compensation are\nbegun pursuant to subparagraph (i) of this paragraph, in addition to\nsuch deductions required by such subparagraph (i), there shall be\nanother deduction of additional member contributions made from the\ncompensation of such participant at the rate specified in paragraph one\nof this subdivision (subject to the applicable provisions of section\n13-125.1 of the administrative code) on each and every payroll period\nuntil the total amount of unpaid additional member contributions\ndescribed in item (A) of this subparagraph, if any, has been paid by\ndeductions from compensation pursuant to this subparagraph.\n 3. (i) (A) 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, that participant shall be charged with a contribution\ndeficiency consisting of such unpaid amounts, together with such\ninterest thereon as required by subparagraph (ii) of this paragraph,\ncompounded annually.\n (B) Except as provided in subparagraph (ii) of this paragraph, no\nparticipant shall be required to pay any interest on his or her\ncontribution deficiency.\n (ii) (A) Should any person who, pursuant to paragraph eight of this\nsubdivision, has withdrawn any additional member contributions (and any\ninterest paid thereon) again become a participant in the\ntwenty-five-year and age fifty-five retirement program pursuant to\nparagraph six of subdivision b of this section, an appropriate amount\nshall be included in such participant's contribution deficiency\n(including interest thereon as calculated pursuant to item (B) of this\nsubparagraph) as if such additional contributions had never been made.\n (B) Interest on the amounts of additional member contributions\nincluded in a participant's contribution deficiency pursuant to item (A)\nof this subparagraph shall be calculated as if such additional member\ncontributions had never been paid by a participant, and such interest\nshall accrue from the end of the payroll period to which an amount of\nadditional member contributions is attributable, until such amount is\npaid to the retirement system.\n (C) The rate of interest to be applied to each such amount during the\nperiod for which interest accrues on that amount shall be five percent\nper annum, compounded annually.\n 4. A participant, while he or she is a New York city transit authority\nmember, shall pay the total amount of his or her contribution deficiency\nto the retirement system in accordance with payment procedures which\nshall be established by the executive director of the retirement system,\nand approved by the board of trustees of the retirement system.\n 5. Where a contribution deficiency chargeable to a participant\npursuant to paragraph three of this subdivision has not been paid in\nfull before the effective date of retirement, that participant shall not\nbe eligible to retire pursuant to subdivision c of this section.\n 6. Where a contribution deficiency chargeable to a participant\npursuant to paragraph three of this subdivision has not been paid in\nfull before the date of discontinuance of service, that participant\nshall not be entitled to a deferred vested benefit pursuant to\nsubdivision d of this section.\n 7. Where a participant has not paid in full any contribution\ndeficiency chargeable to him or her pursuant to paragraph three of this\nsubdivision, and a benefit, other than a refund of member contributions\npursuant to section six hundred thirteen of this article, a refund of\nadditional member contributions pursuant to paragraph eight of this\nsubdivision or a refund of additional member contributions pursuant to\nparagraph seven of subdivision b of this section, becomes payable under\nthis article to the participant or to his or her designated beneficiary\nor estate, the actuarial equivalent of any such unpaid amount shall be\ndeducted from the benefit otherwise payable.\n 8. (i) Such additional member contributions (and any interest thereon)\nshall be paid into the contingent reserve fund of the retirement system\nof which the participant is a member and shall not for any purpose be\ndeemed to be member contributions or accumulated contributions of a\nmember under section six hundred thirteen of this article or otherwise\nwhile he or she is a participant in the twenty-five-year and age\nfifty-five retirement program or otherwise, except that, a surplus of\nsuch additional member contributions that are paid into the retirement\nsystem's contingent reserve fund may be used for the sole purpose of\noffsetting a deficit of basic member contributions.\n (ii) (A) Should a participant in the twenty-five-year and age\nfifty-five retirement program who has rendered less than\ntwenty-five-years of allowable service in the transit authority cease to\nhold a position as a New York city transit authority member for any\nreason whatsoever, his or her accumulated additional member\ncontributions made pursuant to this subdivision (together with any\ninterest thereon paid to the retirement system) maybe withdrawn by him\nor her pursuant to procedures promulgated in regulations of the board of\ntrustees of the retirement system, together with interest thereon at the\nrate of five percent per annum, compounded annually.\n (B) Upon the death of a participant in the twenty-five-year and age\nfifty-five retirement program, there shall be paid to such person as he\nor she has nominated or shall nominate to receive his or her accumulated\nmember contributions by written designation duly executed and filed with\nthe retirement system during the lifetime of such participant, or, to\nhis or her estate if no such person is nominated, his or her accumulated\nadditional member contributions made pursuant to this subdivision\n(including any interest thereon paid to the retirement system), together\nwith interest thereon at the rate of five percent per annum, compounded\nannually.\n (iii) Except as provided in subparagraph (ii) of this paragraph, no\nmember while he or she is a participant or otherwise, shall have a right\nto withdraw such additional member contributions or any interest thereon\nfrom the retirement system.\n 9. A member who has made the additional contributions specified by\nthis subdivision may borrow a portion of such contributions, pursuant to\nthe provisions of section six hundred thirteen-b of this article.\n 10. The New York city transit authority, by the adoption of a\nresolution or resolutions, may make an election or elections to\neliminate the additional member contributions required to be made\npursuant to paragraph one of this subdivision. Such election or\nelections may be made applicable to all employees of the transit\nauthority, to employees who are represented by a specific collective\nbargaining organization, recognized or certified pursuant to article\nfourteen of the civil service law, and/or to employees who are not\nrepresented for the purposes of collective bargaining. Such election or\nelections shall define the starting date of the elimination of\nadditional member contributions, except as set forth below, which shall\nin no event be earlier than the first payroll period following December\nfifteenth, two thousand. An election made pursuant to this paragraph\nshall be irrevocable. A demand for an elimination of additional member\ncontributions shall not be subject to the provisions of subdivision five\nof section two hundred nine of the civil service law. The New York city\ntransit authority shall notify the head of the New York city employees'\nretirement system of any election or elections made pursuant to this\nparagraph. Notwithstanding the aforementioned starting date of the\nelimination of additional member contributions or any other provision of\nthis section, an eligible participant, as defined below, shall be\nentitled to a refund of all of his or her accumulated additional member\ncontributions made pursuant to this subdivision which shall include any\nand all interest thereon paid to the retirement system, together with\ninterest thereon at the rate of five percent per annum, compounded\nannually, and such refund shall be payable, upon such participant's\napplication, pursuant to procedures promulgated in regulations of the\nboard of trustees of the retirement system. An eligible participant\nshall be a participant (i) who is or was employed in a title represented\nfor purposes of collective bargaining by an employee organization\nrepresenting a majority of non-supervisory employees in the New York\ncity transit authority's Queens Bus and/or Staten Island Bus Divisions,\nrecognized or certified pursuant to article fourteen of the civil\nservice law, and who, on December twenty-eight, two thousand five, had\nan accumulated balance of additional member contributions at the\nretirement system; or (ii) who is or was employed in a title represented\nfor purposes of collective bargaining by the employee organization\nrepresenting the majority of non-supervisory employees in the New York\ncity transit authority in other than the Queens Bus and/or Staten Island\nBus Divisions, recognized or certified pursuant to article fourteen of\nthe civil service law, and who, on December sixteenth, two thousand\nfive, had an accumulated balance of additional member contributions at\nthe retirement system.\n 11. Notwithstanding any provision of law, rule or regulation to the\ncontrary, any member who is a current member of the New York city\ntransit authority twenty-five year and age fifty-five retirement plan\nauthorized in this section:\n (i) whose name was included on a preferred eligible list during any\nperiod occurring on or after May eleventh, two thousand ten and on or\nprior to July twenty-fifth, two thousand twelve, by reason of the\nabolition of a position held by him or her with the New York city\ntransit authority; and\n (ii) who was a member or former member at the time when his or her\nname was placed on such list;\nshall be permitted to contribute to such retirement plan, the amount\nwhich he or she would have contributed to such system for the duration\nof time his or her name was included on such list, together with regular\ninterest on such amount, and the length of credited time for which\ncontributions are made pursuant to this paragraph shall be credited as\nallowable service in the transit authority plan under this section for\nall purposes, including eligibility for benefits.\n