N.Y. Retirement & Social Security Law § 341: Allowances for service

§ 341. Allowances for service. a. Generally. Subject to all provisions

of law appertaining thereto and to such reasonable rules and regulations

as the comptroller shall adopt or amend in pursuance thereof, he shall

determine and may modify allowances for service and shall issue prior

service certificates and certificates for service in war after world war

I. The comptroller, however, shall not allow more than one year of

credit for all service rendered in any calendar year.

b. Allowable service. Only the following types of service shall be

allowable in computing service credits:

1. Police or fire service.

2. Government service.

3. Prior city and county service rendered in a city of the state or in

a county within the boundaries of such city, if such city has a pension

system allowing credit for prior state and county service.

4. Prior service rendered to an employer before the latter became a

participating employer. Such credit shall be allowable immediately upon

such employer's becoming a participating employer. The employer for whom

the member is working at the time such prior service credit is allowed,

shall pay the contribution required to be made by an employer on account

of such credit.

5. Service rendered to the state or a participating employer while a

member of the state employees retirement system.

6. Civil service in any capacity as an officer or employee of the

federal government, or military duty in the armed forces of the federal

government and not otherwise creditable, rendered or performed by a

member prior to the time he or she last became a member. The allowance

of credit for such service shall be conditioned upon the receipt by the

police and fire retirement system of all the payments required to be

made on account thereof by section three hundred forty-two of this

article.

7. Civil service rendered as an officer or employee of the federal

government as provided in subdivision d of section three hundred forty

of this article. The allowance of credit for such service shall be

conditioned upon the receipt by the retirement system of all the

payments required to be made on account thereof by section three hundred

forty-two of this article. Except as so provided, employment by the

federal government shall not entitle a person to contribute to the

police and fire retirement system during the period of such employment.

8. Any member may obtain credit for any allowable service:

(a) For which he made contributions, regardless of whether such

contributions were returned to him when he left such service, or

(b) Rendered by him while not a member of any retirement system that

is actuarially sound and of which the state or municipality thereof is a

contributor,

provided he makes the contributions required by this article for such

credit and renders at least two years of member service after he last

became a member.

No credit shall be allowed for service if, but for the member's

failure to avail himself of the privilege of transfer within the time

and in the manner provided in section three hundred forty-three of this

article, credit for such service could have been obtained upon transfer

from another retirement system pursuant to such section.

c. Purchase of previous member service credit.

1. A member who has not previously been a member may purchase credit

at any time for all allowable member service; provided, however, that a

member joining the system pursuant to paragraph one of subdivision c of

section three hundred forty of this article shall not be permitted to

purchase credit for, or otherwise be allowed credit for the previous

service upon which his retirement or pension from another pension or

retirement system is or would be based. In order to purchase credit,

which may be purchased pursuant to this paragraph, the member shall pay

into the annuity savings fund, either in a lump sum or in installments,

a sum equal to the amount which would have been in such fund to his

credit had he actually been a member contributing thereto during the

entire period of such previous member service. If such payment be made

in installments, the same shall be paid within a period no greater than

the number of months of such member service.

2. A member who, after a previous membership, withdrew all or part of

his accumulated contributions shall be credited with all allowable

service rendered prior to such withdrawal, provided he:

(a) Renders at least two years of member service after his last

withdrawal, and

(b) Redeposits such withdrawn amount in the annuity savings fund,

either in a lump sum or in installments; provided, however, that a

member joining the police and fire retirement system pursuant to

paragraph three of subdivision c of section three hundred forty of this

article shall not be permitted to purchase credit for, or otherwise be

allowed credit for the previous service upon which his or her retirement

or pension from another pension or retirement system is or would be

based. If such payment be made in installments, the same shall be paid

within a period no greater than the number of months of member service

lost by such withdrawal.

d. Credit allowable only if paid for. In the event that a member

retires or that any benefit becomes payable because of his membership in

the retirement system prior to the completion of all of the payments

required to be made by him as a condition precedent to his obtaining

credit for member service, the amount of his retirement allowance or

such other benefits shall be based only on:

1. The service rendered by him since he last became a member of the

retirement system and for which contributions have been paid by him, and

2. Any additional service, all the conditions precedent to the

crediting of which have been completely fulfilled by him. However, if

the full amount of the payments required to be made by the member is not

paid to the retirement system, the amount of service credit shall be

proportional to the total amount of the payments made.

e. Waiver of membership requirement in certain cases. In the case of a

person in the employ of a participating employer, the requirements in

sections three hundred sixty and three hundred seventy-five of this

article that a member must have credit for one or more years of service

as a member shall not apply if:

1. Such person became a member within one year after his employer

became a participating employer, and

2. He was in the service of such participating employer for the entire

year previous to his retirement or death.

f. Restoration of credit in certain cases.

1. A member who has been discontinued from service through no fault of

his own and who has withdrawn his accumulated contributions shall have

his total service credit restored in full if:

(a) He had less than twenty years of total service credit when he was

so discontinued, and

(b) He returns to service within ten years after such discontinuance,

and

(c) He redeposits the total amount so withdrawn by him and

(d) His employer elects to and does pay to the pension accumulation

fund an amount equal to the reserve required to cover such restoration

of credit.

2. Upon such return to service, such member shall contribute to the

police and fire retirement system as a new member.

3. In the event such a member retires before his employer makes such

payment, he may elect to receive his benefit immediately as if full

service credit were allowable. He thereupon shall be entitled to receive

the full amount of such benefit for such period as the same can be paid

from the combined reserve available on his account in the annuity

reserve fund and pension reserve fund. When his employer makes such

payment, his benefit thereafter shall be continued from the reserve so

paid.

4. The provisions of this subdivision f shall be controlling

notwithstanding any provision in this article to the contrary.

g. Prior service credit and credit for service in war after world war

I in certain cases. Allowable prior service credit and allowable credit

for service in war after world war I shall be granted immediately to:

1. Any member who shall have rendered at least two years of service

since he last became a member.

2. Any person who is in the service of a participating employer on the

date it approves participation and who becomes a member within one year

after such date.

The employer for whom the member is working at the time such prior

service credit or credit for service in war after world war I is

allowed, shall pay the contribution required to be made by an employer

on account of such credit.

h. Prior service certificates and certificates for service in war

after world war I.

1. The comptroller shall issue a certificate, to be known as a prior

service certificate, to each member entitled to prior service credit.

Such certificate shall certify the amount of such credit which shall be

allowed in computing any pension provided for by this article.

2. The comptroller, upon application, shall issue a certificate for

service in war after world war I to each member entitled thereto. Such

certificate shall certify to service in war after world war I allowable

to such member.

3. The comptroller, upon application of a member at any time, or upon

his own initiative within one year from the date of issuance of a prior

service certificate or a certificate for service in war after world war

I may modify any such certificate in accordance with the allowance for

prior service or service in war after world war I credit to which the

member is shown to be entitled.

4. A member's prior service certificate, certificate for service in

war after world war I, or any such certificate as modified, shall become

void upon the termination of his or her membership in the police and

fire retirement system. Except as provided by subdivision d of section

four hundred two of this article, resumption of membership after such

termination shall be without credit for prior service or service in war

after world war I.

i. Allowances during leaves of absence without pay.

1. Time during which a member is absent on leave without pay:

(a) Shall not be included in computing prior service.

(b) May be included in computing member service and final average

salary only if the head of the department in which such member is

employed and the comptroller allow such time for retirement purposes at

the time such leave of absence is granted.

(c) Shall be included in computing member service and final average

salary in case such a leave of absence was granted, during the period

from March first, nineteen hundred forty, until six months after the

termination of world war II, to enable the member to enter the service

of the federal government or its associated powers, or to engage in war

work or defense industries only if:

(1) The fact that such service was rendered is established to the

satisfaction of the comptroller, and

(2) Such member shall have notified the comptroller in writing, on or

before July first, nineteen hundred forty-seven, or within one year

after such leave of absence was granted, that he claims member service

credit pursuant to the provisions of this subparagraph c, and

(3) Such member, within a period not greater than the number of months

during which he was on leave of absence, shall pay into:

(aa) The annuity savings fund such amounts as would have been in such

fund to his credit had he remained in the performance of his regular

duties as a member at the same salary he was receiving when such leave

of absence was granted, and

(bb) The pension accumulation fund such amounts as would have been in

such fund had he remained in the performance of his regular duties. Such

amounts shall be determined by the actuary and shall be sufficient to

pay the contribution that the state or a participating employer would

have paid for an ordinary death benefit and for that portion of the

pension provided for in paragraph two of subdivision a or paragraph two

of subdivision b of section three hundred seventy-five of this article

for service during such period.

(d) Shall be included in computing member service and final average

salary in case such a leave of absence commenced during the period from

April first, nineteen hundred sixty-six through June thirtieth, nineteen

hundred seventy-four, and was granted for a period of not more than two

years to enable the member to perform services as a civilian officer or

employee of the Federal government or one of its agencies or a

contractor of the United States Agency for International Development

engaged to perform the work of such agency, the United Nations, any

other international organization of which the United States of America

is a member, or a foreign government only if:

(1) The comptroller allows inclusion of such time for retirement

purposes at the time such leave of absence is granted, and

(2) Payment during such leave of absence or within one year after the

end of such leave of absence is made by the employee into:

(aa) The annuity savings fund of contributions equal to the

contributions which the member would have made during the period of such

leave of absence had he been performing his regular duties, and

(bb) The pension accumulation fund of a further contribution equal to

the contribution which his employer would have made on his behalf during

the period of such leave of absence had he been performing his regular

duties. The payments required by this item (bb) may be made on the

member's behalf by the organization employing him during such leave of

absence.

j. Allowance for unused sick leave for members in the employ of the

state.

1. In addition to any other service credit to which he or she is

entitled, a member who meets the requirements set forth in paragraphs

two and three of this subdivision shall be granted one day of additional

service credit for each day of accumulated unused sick leave which he or

she has at time of retirement for service, but such credit shall not (a)

exceed one hundred sixty-five days, (b) be considered in meeting any

service or age requirements prescribed in this chapter, and (c) be

considered in computing final average salary. However, for a member of

the collective negotiating units established by article fourteen of the

civil service law designated the security services negotiating unit, the

security supervisors negotiating unit and effective on and after June

twenty-seventh, two thousand seventeen, the agency police services unit

such service credit limitation provided in subparagraph (a) of this

paragraph shall not exceed two hundred days.

2. Such service retirement credit shall be granted only to members in

the employ of the state, other than members of the state police in a

collective negotiating unit defined in the certification of the public

employment relations board dated December twenty-ninth, nineteen hundred

seventy in case numbers C-0570 and C-0575 established pursuant to

article fourteen of the civil service law, who prior to retirement were

subject to a plan established by law, rule, regulation, written order or

written policy which provided for the regular earning and accumulation

of sick leave, provided, however, that such service retirement credit

shall be granted to members of the state police who are in the

collective negotiating unit defined in the certification of the public

employment relations board dated November twentieth, nineteen hundred

eighty-one in case number C-2298 and in case number C-2299, and to such

a member in the negotiating unit defined in such board's certification

dated April second, nineteen hundred eighty-five, in case number C-2819

established pursuant to article fourteen of the civil service law, who

retire on or after the first day of June, nineteen hundred eighty-five.

3. 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 retiring from service prior to

July first, nineteen hundred seventy-four.

k. Credit for certain world war II service. 1. In addition to credit

for military service as defined in paragraph one of subdivision

thirty-one of section three hundred two of this chapter a member in the

employ of the state, other than a member of the state police in

collective negotiating units established pursuant to article fourteen of

the civil service law, as of March thirty-first, nineteen hundred

seventy, may obtain credit for military service as defined in paragraph

two of subdivision thirty-one of section two of this chapter in

accordance with the provisions of this subdivision.

2. To obtain such credit a member shall: (a) deposit in the annuity

savings fund a sum equal to the product of his normal rate of

contribution at time of entry into state service, his annual rate of

compensation at that time, and the period of military service being

claimed, with regular interest, and (b) deposit in the pension

accumulation fund a sum equal to the product of the state's normal

contribution rate at the time of the member's entry into such service,

his annual rate of compensation at that time, and the period of military

service being claimed, with regular interest. Such deposit must be made

on or before March thirty-first, nineteen hundred seventy-two, provided,

however, such member may elect to deposit such amount over a period of

time no greater than the period for which credit is being claimed, in

which case such payments must commence no later than March thirty-first,

nineteen hundred seventy-two. If the full amount of such payments is not

paid to the retirement system, the amount of service credited shall be

proportional to the total amount of the payments made.

3. (a) A member who enters the employ of the state on or after April

first, nineteen hundred seventy and prior to April first, nineteen

hundred seventy-two shall have one year from his date of entry to make

application and payment for such service in the manner specified above.

The salary base for such an employee shall be his annual rate of

compensation at the time of his entry into state service.

(b) A member who reenters the employ of the state on or after April

first, nineteen hundred seventy and prior to April first, nineteen

hundred seventy-two shall have one year from his date of reentry to make

application and payment for such service in the manner specified above.

The salary base for such payments shall be either the employee's (i)

annual rate of compensation at the time of original entry into such

service or (ii) his annual rate of compensation upon reentry into such

service, whichever would result in the greatest contributions.

4. Such credit for military service shall not be used to increase a

service retirement benefit if at the time of retirement such member (a)

is retiring from service with less than ten years of total service

credit, or (b) is retiring with less than three years of member service

rendered subsequent to the date of last entry into state service; upon

retirement as specified in (a) or (b), there shall be refunded to such

member the amount of such deposit plus accrued interest exclusive of the

amount deposited to the pension accumulation fund attributable to death

and disability benefits.

5. For the purposes of this subdivision the member's normal rate of

contribution in the case of an employee of the state who (a) enters

service on or after the date that employee contributions were reduced

pursuant to section seventy-a or that no employee contributions were

required shall be based on the latest schedule of normal contribution

rates in effect for employees of the state, and shall be set as if such

schedule had been in effect at the time of his entry into state service,

or (b) transfers into the retirement system shall not be less than the

rate the member would have had if all his service, exclusive of that

being claimed pursuant to this subdivision, had been rendered as a

member of the retirement system.

6. In no event shall credit be granted pursuant to this subdivision if

credit is granted for the same period of time pursuant to other

provisions of law.

7. Subject to the provisions of paragraph three of this subdivision no

application for credit pursuant to the provisions of this subdivision

shall be honored if made on or after April first, nineteen hundred

seventy-two.

8. A member may direct, upon a form prepared by the comptroller, that

his excess contributions be applied toward the payment required by this

subdivision. The term excess contributions shall mean accumulated

contributions in excess of the amount thereof required to provide a

pension or retirement allowance. Appropriate transfers and credits to

the annuity savings fund and the pension accumulation fund will be made

in the manner set forth in the official regulation adopted by the

comptroller for such purpose.

* l. Employer pick-up of contributions in respect of previous service

or military service. Notwithstanding any other provision of law, any

member eligible to purchase credit for previous service with a public

employer pursuant to this section or section three hundred forty-two of

this title or to purchase credit for military service pursuant to

article twenty of this chapter, may elect to purchase any or all of such

service by executing a periodic payroll deduction agreement where and to

the extent such elections are permitted by the retirement system by rule

or regulation. Such agreement shall set forth the amount of previous

service or military service being purchased, the estimated total cost of

such service credit, and the number of payroll periods in which such

periodic payments shall be made. Such agreement shall be irrevocable,

shall not be subject to amendment or modification in any manner, and

shall expire only upon completion of payroll deductions required

therein. Notwithstanding the foregoing, any member who has entered into

such a payroll deduction agreement and who terminates employment prior

to the completion of the payments required therein shall be credited

with any service as to which such members shall have paid the

contributions required under the terms of the agreement.

* NB Takes effect upon notice of ruling by Internal Revenue Service --

expires per ch. 627/2007 §22