N.Y. Retirement & Social Security Law § 370-a: Pensions-for-increased-take-home-pay

§ 370-a. Pensions-for-increased-take-home-pay. a. Beginning with a

payroll period commencing as specified by a participating employer

electing to contribute pursuant to the provisions of this section the

contribution of each member of the police and fire retirement system in

the employ of such a participating employer, exclusive of any increase

thereof pursuant to subdivision i of section three hundred twenty-one of

this chapter or of any reduction thereof pursuant to subdivision one of

section one hundred thirty-eight-b of article three of this chapter,

shall be reduced by five per centum of the compensation of such member.

Beginning with a payroll period commencing as specified by a

participating employer, specifically electing, as provided in

subdivision c of this section, to contribute at the higher rate pursuant

to the provisions of this section the contribution of each member of the

retirement system in the employ of such a participating employer,

exclusive of any increase thereof pursuant to subdivision i of section

twenty-one of this chapter or of any reduction thereof pursuant to

subdivision one of section one hundred thirty-eight-b of this chapter,

shall be reduced by an additional three per centum of the compensation

of such member. Where a member's rate of contribution as so qualified is

less than the per centum by which his contribution is reduced, such rate

shall be discontinued. Such a reduction or discontinuance, as the case

may be, shall:

1. Be subject to waiver by the member as provided in subdivision j of

section three hundred twenty-one of this article, as added by this act,

and

2. Take precedence over the member's privilege under subdivision one

of section one hundred thirty-eight-b of article three of this chapter,

to decrease his annuity contribution for the purpose of paying his

contributions for old-age, survivors, and disability insurance coverage

of the tax imposed upon him pursuant to the federal insurance

contributions act.

aa. Beginning with a payroll period commencing on or after such date,

as specified by a participating employer electing to contribute pursuant

to the provisions of this subdivision, the contribution of each member

of the retirement system in the employ of such a participating employer,

whose rate of contribution is in excess of eight per centum, exclusive

of any increase thereof pursuant to subdivision i of section three

hundred twenty-one of this chapter or of any reduction thereof pursuant

to subdivision one of section one hundred thirty-eight-b of this chapter

or subdivision a of this section, shall be suspended. In the case of a

participating employer any member may by written notice duly

acknowledged and filed with the comptroller beginning with the payroll

period commencing on or after such date as specified by a participating

employer within one year after the effective date of this act or within

one year after he last became a member, whichever is later, elect to

waive the suspension of his contributions provided by this subdivision.

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 the suspension of

his contributions as herein provided, he shall contribute to the

retirement system as otherwise provided in this chapter. The foregoing

provisions of this subdivision shall be inapplicable as to any

participating employers other than those who had filed a resolution

prior to April first, nineteen hundred sixty-seven, to participate

thereunder.

b. For such period of time as the provisions of subdivision a and

subdivision aa of this section shall be in effect, contributions shall

be made to the pension accumulation fund by or on account of the state

and each such participating employer, as provided in sections three

hundred sixteen, three hundred seventeen and three hundred forty-two of

this article, at a rate fixed by the actuary which shall be computed to

be sufficient to provide death benefits and

pensions-providing-for-increased-take-home-pay which are or may become

payable on account of members in the employ of the state or of such a

participating employer. Such a benefit or pension shall be based on a

reserve-for-increased-take-home-pay which shall be equivalent to the per

centum of the member's compensation during such period by which his

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

contribution equaled or exceeded eight per centum, pursuant to

subdivision a of this section, plus in the case of any member in the

employ of the state or of any employee of a participating employer who

has elected to participate pursuant to the provisions of this section

whose rate of contribution before any reduction as provided in

subdivision a of this section exceeds eight per centum, the per centum

of his compensation during such period by which his contribution is

suspended pursuant to subdivision aa, plus regular interest thereon.

Commencing with the payroll period 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 upon completion of years of

service or attainment of specified age pursuant to the provisions of any

section 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.

c. By the adoption, filing and approval, where required, of a

resolution in the manner, provided by sections three hundred thirty or

three hundred thirty-one of this article, as the case may be, a

participating employer may elect to make contributions to the pension

accumulation fund pursuant to this section for the purpose of providing

death benefits and pensions-providing-for-increased-take-home-pay. Such

resolution shall specify the first payroll period after the date of such

filing for which reductions shall be made pursuant to subdivision a of

this section in the contributions of members in its employ and the per

centum of their compensation by which their contributions shall be

reduced, which shall be five per centum unless eight per centum is

specifically elected.

d. In the case of persons who last became members on or after July

first, nineteen hundred seventy-three, the provisions of this section

shall apply only until the payroll period immediately prior to that the

first day of which is nearest to July first, nineteen hundred

seventy-four.