§ 604-G — Twenty-five year/age fifty retirement program for automotive members

New York § 604-G

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

Text

§ 604-g. Twenty-five year/age fifty retirement program for automotive\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. "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 2. "Twenty-five year/age fifty retirement program" shall mean all the\nterms and conditions of this section.\n 3. "Starting date of the twenty-five year/age fifty retirement\nprogram" shall mean, with respect to supervisors of mechanics\n(mechanical equipment), the effective date of this section as such date\nis certified 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 4. "Participant in the twenty-five year/age fifty retirement program"\nshall mean any automotive 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-five year/age\nfifty retirement program, as applicable to him or her.\n 5. "Discontinued member" shall mean a participant in the twenty-five\nyear/age fifty retirement program who, while he or she was an automotive\nmember, discontinued service as such a member and has a right to a\ndeferred vested benefit under subdivision d of this section.\n 6. "Administrative code" shall mean the administrative code of the\ncity of New York.\n b. Participation in twenty-five year/age fifty retirement program. 1.\nSubject to the provisions of paragraphs six and seven of this\nsubdivision, any person who is an automotive member on the starting date\nof the twenty-five year/age fifty retirement program and who, as such an\nautomotive member or otherwise, last became subject to the provisions of\nthis article prior to such starting date, may elect to become a\nparticipant in the twenty-five year/age fifty retirement program by\nfiling, within two hundred seventy days after the starting date of the\ntwenty-five year/age fifty retirement program, a duly executed\napplication for such participation with the retirement system of which\nsuch person is a member, provided he or she is such an automotive member\non the date such application is filed.\n 2. Subject to the provisions of paragraphs six and seven of this\nsubdivision, any person who becomes an automotive member after the\nstarting date of the twenty-five year/age fifty retirement program and\nwho, as such an automotive member or otherwise, last became subject to\nthe provisions of this article prior to such starting date, may elect to\nbecome a participant in the twenty-five year/age fifty retirement\nprogram by filing within two hundred seventy days after becoming such an\nautomotive member, a duly executed application for such participation\nwith the retirement system for which such person is a member provided he\nor she is such an automotive member on the date such application is\nfiled.\n 3. Any election to be a participant in the twenty-five year/age fifty\nretirement program shall be irrevocable.\n 4. Each automotive member who becomes subject to the provisions of\nthis article on or after the starting date of the twenty-five year/age\nfifty retirement program shall become a participant in the twenty-five\nyear/age fifty retirement program on the date he or she becomes such an\nautomotive member.\n 5. Where any participant in the twenty-five year/age fifty retirement\nprogram shall cease to be employed by the city of New York as an\nautomotive member, he or she shall cease to be such a participant and\nduring any period in which such person is not so employed, he or she\nshall not be a participant in the twenty-five year/age fifty retirement\nprogram and shall not be eligible for the benefits of subdivision c of\nthis section.\n 6. Where any participant in the twenty-five year/age fifty retirement\nprogram terminates service as an automotive member and returns to such\nservice as an automotive member at a later date he or she shall again\nbecome such a participant on that date.\n 7. Notwithstanding any other provision of law to the contrary, any\nperson who is eligible to elect to become a participant in the\ntwenty-five year/age fifty retirement program pursuant to paragraph one\nor two of this subdivision for the full two hundred seventy day period\nprovided for in such applicable paragraph and who fails to timely file a\nduly executed application for such participation with the retirement\nsystem, shall not thereafter be eligible to become a participant in such\nprogram.\n c. Service retirement benefits. 1. A participant in the twenty-five\nyear/age fifty retirement program:\n (i) who has attained age fifty; and\n (ii) who has completed twenty-five or more years of credited service;\nand\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,\nnot less than thirty days subsequent to the execution and filing\nthereof, he or she desires to be retired; and\n (v) who shall be a participant in the twenty-five year/age fifty\nretirement program at 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-five year/age fifty retirement program who retire pursuant to\nparagraph one of this subdivision shall be a retirement allowance\nconsisting of:\n (A) an amount on account of the required minimum period of service\nequal to fifty percent of his or her final average salary; plus\n (B) an amount on account of each additional year of credited service,\nor fraction thereof, beyond such required minimum period of service\nequal to two percent of his or her final salary;\n (ii) the maximum retirement allowance computed without optional\nmodification payable pursuant to subparagraph (i) of this paragraph\nshall equal that payable upon completion of thirty years of service.\n d. Vesting. 1. A participant in the twenty-five year/age fifty\nretirement program:\n (i) who discontinues service as such a participant, other than by\ndeath or retirement; and\n (ii) who prior to such discontinuance, completed five but less than\ntwenty-five 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 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; shall be entitled to receive a\ndeferred vested benefit as provided in this 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) 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 3. Subject to the provisions of paragraph seven of subdivision e of\nthis section, such deferred vested benefit shall be a retirement\nallowance consisting of an amount equal to two percent of such\ndiscontinued member's final average salary, multiplied by the number of\nyears of credited service.\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/age fifty retirement program\nshall contribute to the retirement system of which he or she is a member\n(subject to the applicable provisions of subdivision d of section six\nhundred thirteen of this article) an additional four and eighty-three\none-hundredths percent of his or her compensation earned from (i) all\ncredited service, as a participant in the twenty-five year/age fifty\nretirement program, rendered on or after the date which is one hundred\neighty days prior to the starting date of the twenty-five year/age fifty\nretirement program, and (ii) all credited service after such person\nceases to be a participant but before he or she again becomes a\nparticipant pursuant to paragraph six of subdivision b of this section.\nThe additional contributions required by this subdivision shall be in\nlieu of additional member contributions required by subdivision d of\nsection six hundred four-c of this article, as added by chapter\nninety-six of the laws of nineteen hundred ninety-five, and no member\nmaking additional contributions pursuant to this section shall be\nrequired to make contributions pursuant to such subdivision d of section\nsix hundred four-c of this article.\n 2. A participant in the twenty-five year/age fifty retirement program\nshall contribute additional member contributions until the later of (i)\nthe first anniversary of the starting date of the twenty-five year/age\nfifty retirement program, or (ii) the date on which he or she completes\nthirty years of credited service as an automotive member.\n 3. Commencing with the first full payroll period after each person\nbecomes a participant in the twenty-five year/age fifty retirement\nprogram, additional member contributions at the rate specified in\nparagraph one of this subdivision shall be deducted (subject to the\napplicable provisions of subdivision d of section six hundred thirteen\nof this article) from the compensation of such participant on each and\nevery payroll of such participant for each and every payroll period for\nwhich he or she is such a participant.\n 4. (i) Each participant in the twenty-five year/age fifty retirement\nprogram shall he charged with a contribution deficiency consisting of\nthe total amounts of additional member contributions such person is\nrequired to make pursuant to paragraphs one and two of this subdivision\nwhich are not deducted from his or her compensation pursuant to\nparagraph three of this subdivision, if any, together with interest\nthereon, compounded annually, and computed in accordance with the\nprovisions of subparagraphs (ii) and (iii) of this paragraph.\n (ii)(A) The interest required to be paid on each such amount specified\nin subparagraph (i) of this paragraph shall accrue from the end of the\npayroll period for which such amount would have been deducted from\ncompensation if he or she had been a participant at the beginning of\nthat payroll period and such deduction had been required for such\npayroll period, until such amount is paid to the retirement system.\n (B) 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 otherwise provided in paragraph five of this\nsubdivision, no interest shall be due on any unpaid additional member\ncontributions which are not attributable to a period prior to the first\nfull payroll period referred to in paragraph three of this subdivision.\n 5. (i) Should any person who, pursuant to subparagraph (ii) of\nparagraph ten of of this subdivision, has received a refund of his or\nher additional member contributions including any interest paid on such\ncontributions, again become a participant in the twenty-five year/age\nfifty retirement program pursuant to paragraph six of subdivision b of\nthis section, an appropriate amount shall be included in such\nparticipant's contribution deficiency (including interest thereon as\ncalculated pursuant to subparagraph (ii) of this paragraph) for any\ncredited service for which such person received a refund of such\nadditional member contributions (including any amount of an unpaid loan\nbalance deemed to have been returned to such person pursuant to\nparagraph twelve of this subdivision), as if such additional member\ncontributions never had been paid.\n (ii) (A) Interest on a participant's additional member contributions\nincluded in such participant's contribution deficiency pursuant to\nsubparagraph (i) of this paragraph shall be calculated as if such\nadditional member contributions had never been paid by such participant,\nand such interest shall accrue from the end of the payroll period to\nwhich an amount of such additional member contributions is attributable,\nuntil such amount is paid to the retirement system.\n (B) 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 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 paragraphs\nfour and five of this subdivision, or repay the entire amount of a loan\nof his or her additional member contributions pursuant to paragraph\neleven of this subdivision (including accrued interest on such loan),\nthat participant nevertheless, shall be eligible to retire pursuant to\nsubdivision c of this section, provided however, that such participant's\nservice retirement benefit calculated pursuant to paragraph two of such\nsubdivision c shall be reduced by a life annuity (calculated in\naccordance with the method set forth in subdivision i of section six\nhundred thirteen-b of this article) which is actuarially equivalent to:\n (i) the amount of any unpaid contribution deficiency chargeable to\nsuch member pursuant to paragraphs four and five of this subdivision;\nplus\n (ii) the amount of any unpaid balance of a loan of his or her\nadditional member contributions pursuant to paragraph eleven of this\nsubdivision (including accrued interest on such loan).\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\nparagraphs four and five of this subdivision or repay the entire amount\nof a loan of his or her additional member contributions pursuant to\nparagraph eleven of this subdivision (including accrued interest on such\nloan), that participant, nevertheless, shall be eligible for a vested\nright to a deferred benefit pursuant to subdivision d of this section,\nprovided, however, that the deferred vested benefit calculated pursuant\nto paragraph three of such subdivision d shall be reduced by a life\nannuity (calculated in accordance with the method set forth in\nsubdivision i of section six hundred thirteen-b of this article) which\nis actuarially equivalent to:\n (i) the amount of any unpaid contribution deficiency chargeable to\nsuch member pursuant to paragraphs four and five of this subdivision;\nplus\n (ii) the amount of any unpaid balance of a loan of his or her\nadditional member contributions pursuant to paragraph eleven of this\nsubdivision (including accrued interest on such loan).\n 8. The head of a retirement system which includes participants in the\ntwenty-five year/age fifty retirement program in its membership may,\nconsistent with the provisions of this subdivision, promulgate\nregulations for the payment of such additional member contributions, and\nany interest thereon, by such participants (including the deduction of\nsuch contributions, and any interest thereon, from the participant's\ncompensation).\n 9. Subject to the provisions of paragraphs six and seven of this\nsubdivision, where a participant has not paid in full any contribution\ndeficiency chargeable to him or her pursuant to paragraphs four and five\nof this subdivision, and a benefit, other than a refund of member\ncontributions pursuant to section six hundred thirteen of this article\nor a refund of additional member contributions pursuant to subparagraph\n(ii) of paragraph ten of this subdivision, becomes payable under this\narticle to the participant or to his or her designated beneficiary or\nestate, the actuarial equivalent of any such unpaid amount shall be\ndeducted from the benefit otherwise payable.\n 10. (i) Such additional member contributions (and any interest\nthereon) shall be paid into the contingent reserve fund of the\nretirement system of which the participant is a member and shall not for\nany purpose be deemed to be member contributions or accumulated\ncontributions of a member under section six hundred thirteen of this\narticle or otherwise while he or she is a participant in the twenty-five\nyear/age fifty retirement program or otherwise, except that, a surplus\nof such additional member contributions that are paid into the\nretirement system's contingent reserve fund may be used for the sole\npurpose of offsetting a deficit of basic member contributions.\n (ii) Should a participant in the twenty-five year/age fifty retirement\nprogram who has rendered less than five years of credited service cease\nto hold a position as an automotive member for any reason whatsoever,\nhis or her accumulated additional member contributions made pursuant to\nthis subdivision (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 (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 retirement\nprogram, shall be permitted to withdraw any such additional member\ncontributions or any interest paid thereon pursuant to any of the\npreceding subparagraphs of this paragraph or otherwise.\n 11. A participant in the twenty-five year/age fifty retirement program\nshall be permitted to borrow from his or her additional member\ncontributions (including any interest paid thereon) which are credited\nto the additional contributions account established for such participant\nin the contingent reserve fund of the retirement system. The borrowing\nfrom such additional member contributions pursuant to this paragraph\nshall be governed by the rights, privileges, obligations and procedures\nset forth in section six hundred thirteen-b of this article which govern\nthe borrowing of member contributions made pursuant to section six\nhundred thirteen of this article. 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\narticle as made applicable to this subdivision, promulgate regulations\ngoverning the borrowing of such additional member contributions.\n 12. Whenever a person has an unpaid balance of a loan of his or her\nadditional member contributions pursuant to paragraph eleven 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 ten 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 (ii).\n