N.Y. Retirement & Social Security Law § 321: Members' contributions and their use; annuity savings fund

§ 321. Members' contributions and their use; annuity savings fund. a.

The annuity savings funds shall be the fund in which shall be

accumulated all contributions made by members to provide for their

annuities and their withdrawal allowances.

b. Upon the basis of tables adopted by the comptroller and regular

interest, the actuary shall determine the rate of contribution for each

member. Such rate shall be computed as the constant proportion of annual

compensation which, when deducted from each payment of such member's

prospective earnable compensation until he shall attain age sixty, would

provide, at that time, an annuity equal to one-one hundred fortieth of

his final average salary for each year of member service for which he

shall be entitled to credit. This method of computation of a member's

rate of contribution shall be appropriately modified in case of a member

for whom such a rate is otherwise fixed pursuant to any other section of

this article.

c. The rate of contribution of a member who is over age fifty-nine, at

the time of his last becoming a member, shall be the same as if his age

were fifty-nine.

d. The comptroller shall certify each member's rate of contribution to

his employer. Each employer by whom a member is employed shall deduct

from the compensation of such member, on each payroll and for every

payroll period, the proportion of such member's compensation based upon

his rate of contribution. In determining the amount earnable by a member

in a payroll period, the comptroller may consider the rate of annual

compensation payable to such member on the first day thereof as

continuing throughout such period. If an employee was not a member on

the first day of a payroll period, deductions from compensation for such

period may be omitted. No deductions shall be made from the compensation

of a member over age sixty who has credit for at least thirty-five years

of government service and who elects to discontinue his contributions to

the annuity savings fund. The contributions herein provided shall be

made notwithstanding that the minimum compensation provided by law for

any member shall be reduced thereby.

e. The chief fiscal officer of each employer promptly shall certify

and file a copy of each payroll with the comptroller. Each such payroll

and certification shall be in a form approved by the comptroller. The

comptroller, in his discretion, may waive the requirements of

certification and filing as to any particular payroll.

f. Deductions from the compensation of a member shall constitute his

contributions. Such contributions shall be remitted promptly to the

comptroller. The comptroller shall deposit them in the annuity savings

fund and they shall be credited, together with regular interest thereon,

and special interest, if any, to the member's individual account in such

fund. Regular interest upon accumulated contributions in the annuity

savings fund, and special interest, if any, shall be transferred to such

fund from the pension accumulation fund at the close of each fiscal

year.

g. If a member shall have deposited in the annuity savings fund of the

New York state employees' retirement system, before June thirteenth,

nineteen hundred thirty-nine, amounts in addition to the contributions

then required by law, the same shall be included in his accumulated

contributions. Interest thereon, however, shall be credited only at such

rate as in the opinion of the comptroller is the prevailing rate of

interest allowed on savings bank deposits. A member, at any time, may

withdraw such additional amounts and such interest thereon, in whole or

in part. The total of such withdrawn amounts may be redeposited by a

single payment at any time. If such additional amounts be not withdrawn

before retirement, they thereupon shall be used to purchase an annuity

on account of such member. Such annuity shall be in addition to the

retirement allowance to which he would otherwise be entitled. It shall

be computed on the basis of regular interest and the mortality tables

which are used in computing other annuities under this article.

h. Valuation of maintenance in certain cases.

1. A member of the police and fire retirement system, whose retirement

contributions to the New York state employees' retirement system were

determined by fixing the value of his or her maintenance at one-half the

cash compensation received by him or her and whose contributions were

subsequently reduced by the fixing of a lower value for the same

maintenance theretofore furnished, may elect to have his or her

contributions computed on the basis of his or her gross compensation as

established prior to such reduction in value of maintenance, provided

that:

(a) His retirement contributions prior to October first, nineteen

hundred forty-three, were based on such higher value of maintenance as

determined by the comptroller and his retirement contributions after

such date were reduced because of the fixation of such lower value of

maintenance, or

(b) His retirement contributions prior to April sixteenth, nineteen

hundred forty-six, were based on such higher value of maintenance as

determined by the board of supervisors of the county of Monroe and his

retirement contributions after such date were reduced because of the

fixation of such lower value of maintenance, or

(c) He was employed by the county of Westchester on March

twenty-ninth, nineteen hundred forty-eight, his retirement contributions

prior to March thirty-first, nineteen hundred forty-seven, were based on

such higher value of maintenance and his retirement contributions after

January first, nineteen hundred forty-eight, were reduced because of the

fixation of such lower value of maintenance, or

(cc) His retirement contributions prior to the initial fixation of the

value of his maintenance pursuant to section two hundred one or section

two hundred five of the county law, were based on such higher value of

maintenance as determined by the comptroller and his retirement

contributions after the date of such fixation were reduced because of

the fixation of such lower value of maintenance, or

(d) He was employed by the county of Onondaga on April twelfth,

nineteen hundred forty-nine, his retirement contributions prior to

December fifteenth, nineteen hundred forty-seven, were based on such

higher value of maintenance and his retirement contributions after

December fifteenth, nineteen hundred forty-seven, were reduced because

of the fixation of such lower value of maintenance, or

(e) He was or shall have been employed in a county or city

tuberculosis hospital which was or shall have been transferred to the

state pursuant to section twenty-two hundred sixty-eight of the public

health law, his retirement contributions prior to such transfer were or

shall have been based on such higher value of maintenance and his

retirement contributions after such transfer were or shall have been

reduced because of the fixation of such lower value of maintenance.

2. Upon filing such election and paying the additional contributions

required thereby, such member shall be entitled to have his pension,

retirement allowance or other rights and privileges in the retirement

system computed in accordance with such gross compensation, provided

that:

(a) In a case covered by subparagraph (a) of paragraph one of this

subdivision h, such election was so filed with the comptroller on or

before April first, nineteen hundred forty-six, and such additional

contributions are paid from and after October first, nineteen hundred

forty-three, or

(b) In a case covered by subparagraph (b) of paragraph one of this

subdivision h, such election was so filed with the comptroller on or

before January first, nineteen hundred forty-eight, and such additional

contributions are paid from and after April sixteenth, nineteen hundred

forty-six, or

(c) In a case covered by subparagraph (c) of paragraph one of this

subdivision h, such election was so filed with the comptroller on or

before January first, nineteen hundred forty-nine, and such additional

contributions are paid from and after March thirty-first, nineteen

hundred forty-seven, or

(cc) In a case covered by subparagraph (cc) of paragraph one of this

subdivision h, such election was so filed with the comptroller on or

before October first, nineteen hundred fifty-five, and such additional

contributions are paid from and after the date of the initial fixation

of the value of his maintenance pursuant to such subparagraph, or

(d) In a case covered by subparagraph (d) or paragraph one of this

subdivision h, such election was so filed with the county auditor on or

before November first, nineteen hundred forty-nine, and such additional

contributions are paid from and after December fifteenth, nineteen

hundred forty-seven, or

(e) In a case covered by subparagraph (e) of paragraph one of this

subdivision h, such election is so filed with the comptroller on or

before April first, nineteen hundred fifty, or within one year after the

date of such transfer, whichever is later, and such additional

contributions are paid from and after the date of such transfer.

3. The gross compensation of such member shall be the amount

established on the basis of such higher value of maintenance.

Contributions based on such gross compensation shall continue to be made

until such member retires or until such election is terminated as

provided in paragraph four of this subdivision h.

4. An election made pursuant to paragraph one of this subdivision h

shall be terminated if and when the compensation of the member,

including cash and the current value of maintenance, shall equal the

gross compensation of such member as fixed on the basis of the higher

value of maintenance described in such paragraph one, provided that:

(a) In a case covered by subparagraph (a) of paragraph one of this

subdivision h, such current value of maintenance shall have been

determined by the director of the budget pursuant to section forty-two

of the civil service law, or

(b) In a case covered by subparagraph (b) of paragraph one of this

subdivision h, such current value of maintenance shall have been

determined by the board of supervisors of the county of Monroe, or

(c) In a case covered by subparagraph (c) of paragraph one of this

subdivision h, such current value of maintenance shall have been

determined by the board of supervisors of the county of Westchester, or

(cc) In a case covered by subparagraph (cc) of paragraph one of this

subdivision h, such current value of maintenance shall have been

determined by the board of supervisors of the county, or

(d) In a case covered by subparagraph (d) of paragraph one of this

subdivision h, such current value of maintenance shall have been

determined by the board of supervisors of Onondaga county, or

(e) In a case covered by subparagraph (e) of paragraph one of this

subdivision h, such current value of maintenance shall have been

determined by the director of the budget pursuant to section one hundred

thirty-five of the civil service law.

i. Additional contributions.

1. Any member of the police and fire retirement system, upon forms

prescribed and furnished by the comptroller, may elect to make

additional contributions at the rate of fifty per centum of his or her

rate of normal contribution for the purpose of purchasing additional

annuity.

2. Additional contributions made pursuant to this subdivision i shall

be included in the member's accumulated contributions, except that in

computing a retirement allowance:

(a) For ordinary disability pursuant to section three hundred

sixty-two of this article, or

(b) In any other case under this article where the inclusion of such

additional contributions in the computation of an annuity would have the

effect of decreasing the amount of a pension that otherwise would be

payable,

such additional contributions shall be treated as excess contributions

and shall be used to provide an annuity in addition to the annuity which

otherwise would be payable in such case. Such additional annuity shall

be computed on the basis of regular interest and the mortality tables

which are used in computing other annuities under this article.

3. One year or more after the filing thereof, a member may withdraw

his election to make additional contributions pursuant to this

subdivision i. Such withdrawal shall be by written notice duly

acknowledged and filed with the comptroller.

j. Where a member's rate of contribution is reduced because his or her

employer contributes toward

pensions-providing-for-increased-take-home-pay pursuant to section three

hundred seventy-a of this article, such member may by written notice

duly acknowledged and filed with the comptroller within one year after

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

whichever is later, elect to waive such reduction. One year or more

after the filing thereof, a member may withdraw any such waiver by

written notice duly acknowledged and filed with the comptroller. Where a

member makes an election to waive such reduction, he or she shall

contribute to the police and fire retirement system as otherwise

provided in this article.

k. A member in the employ of the state who retires on or after April

first, nineteen hundred seventy-three may elect to withdraw his excess

contributions at the time of his retirement; provided, however, in the

case of persons who last became members on or after July first, nineteen

hundred seventy-three, the provisions of this subdivision shall apply

only to those who retire prior to July first, nineteen hundred

seventy-four. Such election shall be duly executed and filed with the

comptroller. The term excess contributions shall mean accumulated

contributions in excess of the amount thereof necessary to provide the

required pension or retirement allowance specified under the plan

applicable to the member. In no case shall such withdrawal of

contributions result in an increase in the pension benefit. The

provisions of this subdivision shall not apply to a member of the state

police in collective negotiating units established pursuant to article

fourteen of the civil service law.

l. Voluntary contributions. 1. Any member of the police and fire

retirement system who is not otherwise required by law to make

contributions may elect to make voluntary contributions for the purpose

of purchasing additional annuity.

2. Voluntary contributions made pursuant to this subdivision shall be

included in the member's accumulated contributions, except that in

computing a retirement allowance:

(a) For ordinary disability pursuant to section three hundred

sixty-two of this chapter, or

(b) In any other case under this chapter where the inclusion of such

voluntary contributions in the computation of an annuity would have the

effect of decreasing the amount of a pension that otherwise would be

payable,

such voluntary contributions shall be treated as excess contributions

and shall be used to provide an annuity in addition to the annuity which

otherwise would be payable in such case. Such additional annuity shall

be computed on the basis of regular interest and the mortality tables

which are used in computing other annuities under this chapter.

3. Any member electing to make such voluntary contributions shall file

such election with the comptroller on a form prescribed for such purpose

by the comptroller. Such election shall specify a rate of contribution

in a whole number percentage no greater than ten percent of the member's

salary, such contributions to be remitted to the comptroller by regular

payroll deductions from the compensation of the member. The rate of

contribution shall be subject to change by the member only once in any

twelve month period. These contributions may be withdrawn by the member

in accordance with section three hundred fifty-one of this chapter only

once in any twelve month period.

4. Any member electing to make such voluntary contributions may

withdraw his election to make such contributions at any time and thereby

terminate such contributions, provided, however, that such termination

of voluntary contributions shall preclude the member from again electing

to make such contributions for a period of twelve months.

5. Any member electing to make such voluntary contributions pursuant

to this subdivision shall be deemed by such act to have: (a) withdrawn

his election to make additional contributions pursuant to subdivisions i

and j of this section, and (b) made all his excess contributions in

accordance with this subdivision.