N.Y. Education Law § 516: Annuity savings fund; contributions and payments

§ 516. Annuity savings fund; contributions and payments. The annuity

savings fund shall be the fund in which shall be accumulated the

deductions made from the compensation of contributors. Contributions to

and payments from the annuity savings fund shall be made in the

following manner:

1. Each employer shall deduct from the compensation of each

contributor on each and every payroll of such contributor for each and

every payroll period subsequent to the date upon which such contributor

became a member an amount equal to four per centum of such contributor's

earnable compensation in the cases of teachers who last became members

on or before the thirtieth day of June, nineteen hundred forty-eight and

five per centum of earnable compensation in the cases of teachers who

last became members on or after the first day of July, nineteen hundred

forty-eight except if membership is renewed upon restoration to active

service after retirement for disability, regular interest shall be

credited at the rate allowed to the member at the time his retirement

for disability last became effective. But no employer shall make any

deduction for annuity purposes from the compensation of a member who has

completed at least thirty-five years of total service, or who has

attained the age of sixty and completed at least twenty-five years of

total state service, if such member elects not to contribute.

2. In determining the amount earnable by a contributor in a payroll

period, the retirement board may consider the rate of compensation

payable to such member on the first day of the payroll period as

continuing throughout such payroll period, and it may omit deductions

from compensation for any period less than a full payroll period if a

teacher was not a contributor on the first day of the payroll period,

and to facilitate the making of deductions, it may modify the deduction

required of any contributor by such an amount as shall not exceed

one-tenth of one per centum of the compensation upon the basis of which

said deduction is to be made.

3. a. In addition to the deductions from compensation hereinbefore

required, any contributor may redeposit in the annuity savings fund by a

single payment an amount equal to the total amount which he withdrew

therefrom as provided in this article, or he may deposit therein by a

single payment an amount computed to be sufficient, together with the

retirement allowance otherwise provided to provide for him a total

retirement allowance of one-half of his final average salary upon

superannuation retirement, or any member or annuitant may deposit

therein by a single payment an amount permitted so to be deposited by

the retirement board for the purpose of purchasing additional annuity,

provided that no such member or annuitant shall be permitted to purchase

a total additional annuity thereby in excess of one-half his final

average salary; such additional annuity shall afford the usual optional

privileges. Such additional amounts so deposited shall become a part of

his accumulated contributions.

b. Notwithstanding anything to the contrary in this article, in

addition to the deposits hereinbefore permitted by this subdivision, any

contributor to this system, who is actually on the payroll of a school

district or the state, may, for the purpose of purchasing additional

annuity, deposit in the annuity savings fund once in any school year by

a single payment an amount not in excess of four per centum of his

earnable rate of compensation for the school year immediately preceding

the date when such payment is made. Any such amount so deposited shall

be credited with regular interest and, on the basis of said rate of

interest, shall become a part of the contributor's accumulated

contributions in all respects including computation of benefits upon

retirement.

c. Any member by written notice duly acknowledged and filed with the

retirement board before the first day of July, nineteen hundred

sixty-seven or within two years after he last became a member, whichever

is later, may elect to contribute pursuant to this paragraph c of

subdivision three of this section in order to qualify for an increased

pension for total service in excess of twenty-five years. After such

election the rate of deduction from earnable compensation shall be

increased by two and one-half per centum in the cases of teachers who

last became members on or before the thirtieth day of June, nineteen

hundred forty-eight and by three per centum in the cases of teachers who

last became members on or after the first day of July, nineteen hundred

forty-eight and such deductions shall be added to the accumulated

contributions of each member. Where a member elects to contribute

pursuant to this paragraph c of subdivision three of this section, such

additional contributions shall be made from the first day of July,

nineteen hundred fifty-seven or from the first day of the month

following the expiration of thirty days subsequent to the filing of his

election, whichever is later, except that if the member is contributing

pursuant to subdivision one of section five hundred eleven-a, such

additional contributions pursuant to this paragraph c of subdivision

three of this section shall be made from the first day of July following

the completion of twenty-five years of total service. If such a member,

upon the completion of twenty-five years of total service, wishes to

forfeit his right to special service retirement under the provisions of

section five hundred eleven-a, he may cease making contributions

pursuant to subdivision one of such section, leave such contributions in

the retirement system and commence making contributions pursuant to this

paragraph c of subdivision three of this section in order to receive

credit for service rendered after the completion of twenty-five years of

total service. If such a member, upon the completion of twenty-five

years of total service wishes to maintain his right to special service

retirement, he shall continue to make contributions pursuant to

subdivision one of section five hundred eleven-a and commence making

contributions pursuant to this paragraph c. Contributions made pursuant

to this paragraph c shall cease on the first day of July following the

completion of thirty-five years of total service, except that, any

member who has completed more than twenty-five years of service on the

first day of July, nineteen hundred sixty-seven may deposit in a lump

sum an amount equivalent to the sum of the contributions he would have

made prior to the first day of July, nineteen hundred sixty-seven, had

this paragraph c become effective as of the date when twenty-five years

of service was completed or as of any date thereafter which the member

may elect for the purpose of determining the amount to be so deposited.

d. Members of the retirement system who elect to contribute pursuant

to paragraph c of subdivision three of this section, shall receive

credit for each year, not in excess of ten, of service in excess of

twenty-five years for which contributions were made pursuant to

paragraph c of subdivision three of this section.

4. The accumulated contributions of a contributor returned to him upon

his withdrawal or paid to his estate or designated beneficiary in the

event of his death as provided in this article shall be paid from the

annuity savings fund.

5. Upon the retirement of a contributor his accumulated contributions

shall be transferred from the annuity savings fund to the annuity

reserve fund.

6. The retirement board may adopt rules and regulations providing for

the withdrawal at retirement by members of the accumulated contributions

credited to their individual accounts in the annuity savings fund. Such

rules and regulations shall provide that the application for withdrawal

of contributions be filed no earlier than the date the member files the

application for retirement and no later than the day preceding the

effective date of retirement. Provided, however, this section has no

application to members subject to article fourteen or article fifteen of

the retirement and social security law.