N.Y. Education Law § 528: Pensions-providing-for-increased-take-home-pay

§ 528. Pensions-providing-for-increased-take-home-pay.

1. Notwithstanding any other provision of law to the contrary,

a. beginning with the payroll period the first day of which is nearest

to April first, nineteen hundred sixty, and ending with the payroll

period immediately prior to that the first day of which is nearest to

April first, nineteen hundred seventy, the contribution of each member

of the retirement system who is a teacher within the provisions of

subdivision four of section five hundred one of this article in the

employ of the state of New York shall be reduced by five per centum of

the compensation paid such member, and

b. beginning with the payroll period the first day of which is nearest

to April first, nineteen hundred sixty-four, and ending with the payroll

period immediately prior to that the first day of which is nearest to

April first, nineteen hundred seventy, the contribution of each member

of the retirement system who is a teacher within the provisions of

subdivision four of section five hundred one of this article in the

employ of the state of New York shall be reduced by an additional three

per centum of the compensation paid such member, and

c. beginning with the payroll period the first day of which is nearest

to April first, nineteen hundred sixty-six, and ending with the payroll

period immediately prior to that the first day of which is nearest to

April first, nineteen hundred seventy, the contribution of each member

of the retirement system who is a teacher within the provisions of

subdivision four of section five hundred one of this article in the

employ of the state of New York whose rate of contribution is in excess

of eight per centum shall be suspended.

Where a member's rate of contribution is less than the per centum by

which his contribution is reduced, such rate shall be discontinued. A

member whose rate of contribution shall be reduced pursuant to the

provisions of this subdivision shall be deemed to have elected to have

his rate so reduced unless he files an election pursuant to the

provisions of subdivision two of this section.

2. Any member whose rate of contribution is reduced pursuant to the

provisions of subdivision one of this section may by a written notice,

duly acknowledged and filed with the retirement board within one year

after such reduction or within one year after he last became a member,

whichever is later, elect to make an additional contribution in addition

to other contributions otherwise allowed in this article equal to the

amount of such reduction. One year or more after the filing of such

notice a member may withdraw such election by filing a written notice

duly acknowledged and filed with the retirement board.

3. For the period of time as the provisions of this section shall be

in effect, contributions for each member of the system whose rate of

contribution is reduced by virtue of the provisions of subdivision one

of this section shall be made to the pension accumulation fund by the

state of New York in the same manner and at the same time as other

contributions made by the state as employer of members of the retirement

system at a rate fixed by the actuary which shall be computed to be

sufficient to provide pensions-providing-for-increased-take-home-pay and

other benefits which become payable on account of members in the employ

of the state. The actuary engaged by the retirement board shall compute

an additional contribution to be known as the "special deficiency

contribution to provide a reserve-for-increased-take-home-pay." The

amount of the reserve-for-increased-take-home-pay shall be the present

value of that per centum of the member's compensation by which his

contribution is reduced, or would otherwise be reduced if his rate of

contribution equaled or exceeded eight per centum, during the period for

which his rate of contribution was reduced as provided in subdivision

one, plus regular and additional interest thereon to the date that

pension and other benefits become payable.

4. Upon retirement a member whose rate of contribution shall be

reduced pursuant to the provisions of subdivision one of this section

will receive, in addition to the annuity and other pension benefits

provided by this article, a pension which is the actuarial equivalent of

the reserve-for-increased-take-home-pay to which he may be entitled, if

any.

5. In addition to the return of accumulated contributions and the

death benefit provided by the provisions of section five hundred twelve

of this article, upon the death of a member who died before the

effective date of his retirement and was in service upon which his

membership was based when he died or was on the payroll in such service

and paid within a period of twelve months prior to his death and had not

been otherwise gainfully employed since he ceased to be on such payroll,

and provided further, he had credit for one or more years of service

while actually a member, then the reserve-for-increased-take-home-pay

attributable to such member shall be paid in the same manner and at the

same time as the death benefit is paid by reason of such member's

membership in the retirement system.

6. The reserve-for-increased-take-home-pay shall be a portion of the

pension accumulation fund and upon the retirement of a new entrant an

amount equal to the reserve-for-increased-take-home-pay for such member

shall be transferred from the pension accumulation fund to the pension

reserve fund.

7. If a person has been a member of the retirement system and

contributions have been made by the state as his employer to provide a

reserve-for-increased-take-home-pay and such person has ceased to be a

member of the system and upon rejoining the retirement system claims

credit for such period, the member shall not be required to pay for such

years of service as a contribution shall have been made by the state for

pensions-providing-for-increased-take-home-pay pursuant to the

provisions of this section.

8. Commencing with the payroll period the first day of which is

nearest to April first, nineteen hundred sixty-one, the provisions of

this section shall not apply to any member for any period or periods

during which he ceases or has ceased contributing toward retirement

pursuant to subdivision one of section five hundred sixteen of this

article, provided, however, that such member shall receive credit

pursuant to this section for such period or periods for which he

contributes or has contributed toward retirement.