N.Y. Retirement & Social Security Law § 1204-a: Pick up of member contributions by employer

* § 1204-a. Pick up of member contributions by employer. a.

Notwithstanding any other provision of law, each participating employer

shall pick up the member contributions required to be made under section

twelve hundred four of this article by its employees and shall do so by

reducing the salary of each of its employees to which this section is

applicable by that amount which each such employee is required to

contribute under section twelve hundred four of this article. The

contributions so picked up shall be paid by each participating employer

in lieu of the member contributions to be paid by its employees under

this section and shall be treated as employer contributions in

determining income tax treatment under section 414(h) of the Internal

Revenue Code. With the exception of federal income tax treatment, the

member contributions picked up pursuant to this subdivision shall for

all other purposes, including computation of retirement benefits and

contributions by employers and employees, be deemed employee salary.

b. Any employee (subject to this article) of a participating employer

who, in lieu of joining a public retirement system of the state, elected

an optional retirement program to which their employers are thereby

required to contribute shall, in order for the provisions of this

subdivision to apply, be required to execute a salary reduction

agreement (in accordance with the regulations promulgated under section

403(b) of the Internal Revenue Code) in an amount equal to the employee

contributions which would otherwise be mandatory under the provisions of

state law. With the exception of federal income tax treatment, the

employee contributions picked up or paid pursuant to this subdivision

shall for all other purposes, including computation of retirement

benefits and contributions by employers and employees, be deemed

employee salary. Nothing contained in this subdivision shall be

construed as superseding any provision of law which limits the salary

base for computing retirement benefits payable by a public retirement

system.

* NB See ch 525/2011 § 7 for effectiveness