N.Y. Retirement & Social Security Law § 384: Optional retirement of certain police officers and firefighters

§ 384. Optional retirement of certain police officers and

firefighters. a. Any member of the police and fire retirement system

who is an officer or member of any organized fire department or

organized police force or police department of any county, city, town,

village, fire district, police district or participating employer may

elect to contribute to the police and fire retirement system on the

basis of retirement upon his or her completion of twenty-five years of

service as an officer or member of any such force or department on an

allowance of:

1. One-fiftieth of his final average salary for each year of total

service as such officer or member, and

2. One-seventieth of his final average salary for each year of total

service for which he otherwise shall be entitled to credit, but not

exceeding in the aggregate one-half of his final average salary.

b. Any officer or member of such an organized fire department or

organized police force or department may elect to contribute to the

police and fire retirement system pursuant to this section within one

year after he or she becomes such an officer or member, or on or before

January first, nineteen hundred seventy, or within one year after his or

her employer assumed, or assumes in whole or in part, the additional

cost to the police and fire retirement system resulting from an election

pursuant to this section.

bb. On and after April first, nineteen hundred sixty-seven only

firefighters, police officers or officers of such a fire department or

police force may elect to contribute to the police and fire retirement

system on the basis of retirement pursuant to this section and, as to

members so electing, in addition to service in war after world war I, as

defined in section three hundred two of this article, only credit for

service:

1. As such a firefighter, police officer or officer, or

2. As a member or officer of the state police, or

3. In the regional state park police service, shall be included in

computing years of police or fire service for retirement pursuant to

this section.

c. Elections made pursuant to this section shall be in writing and

shall be duly acknowledged and filed with the comptroller. Any member

who files such an election pursuant to this section may withdraw it

after it has been filed for at least one year. Such withdrawal shall be

by written notice duly acknowledged and filed with the comptroller.

After such withdrawal such member shall contribute to the police and

fire retirement system as otherwise provided in this article. Any member

who has contributed the entire additional cost to the police and fire

retirement system resulting from an election pursuant to this section,

may withdraw such entire additional amount in the event that he or she

so withdraws such election.

d. Contributions for additional costs of elections to contribute

pursuant to this section shall be payable as follows:

1. Except as otherwise provided in this subdivision, a member electing

to contribute to the police and fire retirement system pursuant to this

section shall pay the entire additional cost to the police and fire

retirement system resulting from such election by means of a rate of

contribution. Such rate shall be computed to provide, upon his or her

completion of twenty-five years of service as an officer or member of

any such department or force, the portion of the retirement allowance

for which he or she is required to provide pursuant to this section.

Such rate of contribution shall be determined in a manner similar to

that provided in section three hundred twenty-three of this article and

subject to the provisions of paragraph four of this subdivision, the

contributions based thereon shall be paid while such member is an

officer or member of any such department or force.

2. The member's employer, however, by appropriate action, may (a) in

its initial action under this section, elect to assume all of the

additional cost on account of service as an officer or member of any

such department or force rendered prior to the effective date of such

election and (b) in any subsequent action, as hereafter provided in this

paragraph, elect to assume all of the additional cost on account of

service as an officer or member of any such other prior department or

force rendered prior to the effective date of such subsequent election

and, in addition may in its initial action under this section, elect to

assume any multiple of twenty-five per centum of such additional cost on

account of such service for such current employer rendered on and after

the effective date of such initial election. Any subsequent election

changing the percentage of additional cost assumed by an employer shall

apply only to service rendered for such employer on and after the

effective date of such subsequent election. The employer shall pay the

additional cost so assumed by any such election by means of annual

contributions which shall be determined by the actuary and paid by the

employer in the same manner as the contributions required under section

three hundred twenty-three of this article. An employer, which in its

initial action elected to assume all of the additional cost on account

of service only as an officer or member of its police or fire department

rendered prior to the effective date of such election may, on or before

April first, nineteen hundred sixty-nine, elect to assume all of the

additional cost, including the cost of the necessary actuarial

re-evaluation on account of service rendered prior to the effective date

of the initial action hereunder, as an officer or member of any such

organized fire department or organized police force or department of any

county, city, town, village, fire district, police district, or

participating employer other than such employer. Such rate shall be

computed to provide the appropriate pension benefits under paragraph two

of subdivision e of this section.

3. Where the employer elected or elects to assume fifty per centum of

the additional cost on account of service rendered on and after the

effective date of any such election, the member shall thereafter

contribute at a rate computed by the actuary to provide, upon retirement

after twenty-five years of service as an officer or member of any such

department or force or upon the attainment of age sixty with less than

twenty-five years of such service, an annuity of one-one hundredth of

final average salary for each year of such service rendered on and after

the effective date of such election. If the employer assumed or assumes

a percentage other than fifty per centum of the additional cost on

account of service rendered on and after the effective date of any such

election, the member's rate of contribution shall be modified so that it

is computed to provide the portion of the retirement allowance for which

he is required to provide.

Such member's rate of contribution pursuant to this subdivision d

shall be appropriately reduced pursuant to section three hundred

seventy-a of this article for such period of time as his employer

contributes pursuant to such section toward

pensions-providing-for-increased-take-home-pay provided, however, that

such member may by written notice duly acknowledged and filed with the

comptroller make an election to waive such reduction as provided by

subdivision j of section three hundred twenty-one of this article. One

year or more after the filing thereof, a member may withdraw any such

election by written notice duly acknowledged and filed with the

comptroller.

4. No such member shall be required to continue contributions after

completing twenty-five years of such service.

5. For actuarial purposes relative to rates or amounts of

contributions to the funds of the police and fire retirement system,

service of a member making an election pursuant to this section shall,

as to his or her service and status subsequent thereto, be deemed

continuous and constant. If the continuity of such service be

interrupted or such status be changed, however, appropriate changes as

may be necessary for actuarial purposes shall be made in such rates and

amounts.

e. Computation of retirement allowances pursuant to this section.

1. Computation of retirement allowance where member has elected to pay

the entire additional cost:

A member who has elected to contribute pursuant to this section and

who has made the contributions required by this section shall be

entitled to retire on or after his completion of twenty-five years of

service as an officer or member of any such fire department, police

force or police department, or upon the attainment of age sixty with

less than twenty-five years of such service, by filing an application

therefor in a manner similar to that provided in section three hundred

seventy of this article. He thereupon shall receive, upon retirement, a

retirement allowance which shall not exceed one-half of his final

average salary. Such retirement allowance shall consist of:

(a) An annuity which shall be the actuarial equivalent of his

accumulated contributions at the time of his retirement, and

(b) A pension which is the actuarial equivalent of the

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

any, and

(c) A pension of one-one hundredth of his final average salary for

each year of service as an officer or member of any such fire

department, police force or police department, and

(d) An additional pension of one-one hundred fortieth of his final

average salary for each year of member service for which he otherwise

shall be entitled to credit and which was earned by him since he last

become a member, and

(e) If he has had one or more years of service as a member, an

additional pension which shall be equal to one-fiftieth of his final

average salary for each year of prior service as an officer or member of

any such fire department, police force or police department, plus

one-seventieth of his final average salary for each year of prior

service to which he otherwise shall be entitled to credit.

(f) Upon completion of twenty-five years service, an additional

pension, if required, of such amount as shall be necessary to increase

the total amount of the benefits provided herein to one-half of his

final average salary. The pension provided by this sub-paragraph shall

be payable only if a member retires from service on or before the last

day of the calendar month next succeeding the calendar month in which he

attains age sixty-two. Provided, however, that in the case of any member

who attained the age of sixty-two on or before July first, nineteen

hundred sixty-six, to be eligible for additional pension credit under

this sub-paragraph, his service shall be terminated and he shall retire

on or before December thirty-first, nineteen hundred sixty-seven. For

the purpose only of determining the amount of the pension provided in

this paragraph, the annuity shall be computed as it would be if it were

not reduced by the actuarial equivalent of any outstanding loan, and if

it were not increased by the actuarial equivalent of any additional

contributions, and if it were not reduced by reason of the member's

election to decrease his annuity contributions to the retirement system

in order to apply the amount of such reduction in payment of his

contributions for old-age and survivors insurance coverage.

2. Computation of retirement allowance where employer has elected to

pay all or part of the additional cost:

A member who has elected to contribute pursuant to this section and

who has made the contributions required by this section, and whose

employer has by appropriate action elected to pay all or part of the

additional cost of the benefits provided by this section, shall be

entitled to retire on or after his completion of twenty-five years of

service as an officer or member of any such fire department, police

force or police department, or upon the attainment of age sixty with

less than twenty-five years of such service, by filing an application

therefor in a manner similar to that provided in section three hundred

seventy of this article. He thereupon shall receive, upon retirement, a

retirement allowance which shall not exceed one-half of his final

average salary. Such retirement allowance shall consist of:

(a) An annuity which shall be the actuarial equivalent of his

accumulated contributions at the time of his retirement, and

(b) A pension which the actuarial equivalent of the

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

any, and

(c) A pension for each year of service as an officer or member of any

such fire department, police force or police department, rendered on and

after the effective date of the employer's election under this section,

computed pursuant to the one of the following four formulae which is

appropriate:

(1) If his employer elected to pay twenty-five per centum of the

additional cost on account of such service rendered on and after the

effective date of such election, such pension shall be six-seven

hundredths (6/700) of his final average salary for each year of such

service after such date, or

(2) If his employer elected to pay fifty per centum of the additional

cost on account of such service rendered on and after the effective date

of such election, such pension shall be one-one hundredth (1/100) of his

final average salary for each year of such service after such date, or

(3) If his employer elected to pay seventy-five per centum of the

additional cost on account of such service rendered on and after the

effective date of such election, such pension shall be eight-seven

hundredths (8/700) of his final average salary for each year of such

service after such date, or

(4) If his employer elected to pay one hundred per centum of the

additional cost on account of such service rendered on and after the

effective date of such election, such pension shall be nine-seven

hundredths (9/700) of his final average salary for each year of such

service after such date, and

(d) An additional pension for such service, exclusive of prior

service, rendered before the effective date of the employer's initial

election under this section, of one-fiftieth of his final average salary

for each year of such service, minus a sum equal to the annuity provided

out of the normal contributions, with accumulated interest thereon, made

by the member during such period and minus a sum which is the actuarial

equivalent of the reduction in his contributions pursuant to the

provisions of section three hundred seventy-a of this article, if any,

during such period, with regular interest thereon, and

(e) An additional pension of one-one hundred fortieth of his final

average salary for each year of member service for which he otherwise

shall be entitled to credit and which was earned by him since he last

became a member, and

(f) If he has had one or more years of service as a member, an

additional pension which shall be equal to one-fiftieth of his final

average salary for each year of such service, which is credited as prior

service, plus one-seventieth of his final average salary for each year

of prior service for which he otherwise shall be entitled to credit.

(g) Upon completion of twenty-five years service, an additional

pension, if required, of such amount as shall be necessary to increase

the total amount of the benefits provided herein to one-half of his

final average salary. The pension provided by this sub-paragraph shall

be payable only if a member retires from service on or before the last

day of the calendar month next succeeding the calendar month in which he

attains age sixty-two. Provided, however, that in the case of any member

who attained the age of sixty-two before or within one month after his

employer first elected to assume all or part of the additional cost of

service as provided by paragraph two of subdivision d of this section,

to be eligible for additional pension credit under this sub-paragraph,

his service shall be terminated and he shall retire within three months

after his employer so elects or on or before December thirty-first,

nineteen hundred sixty-eight, whichever shall last occur.

For the purpose only of determining the amount of the pension provided

in this paragraph, the annuity shall be computed as it would be if it

were not reduced by the actuarial equivalent of any outstanding loan,

and if it were not increased by the actuarial equivalent of any

additional contributions, and if it were not reduced by reason of the

member's election to decrease his annuity contributions to the

retirement system in order to apply the amount of said reduction in

payment of his contributions for old-age and survivors insurance

coverage.

f. In the event a member shall continue in service after twenty-five

years of total creditable service, as defined in subdivision bb of this

section, there shall be added to his pension upon retirement a sum equal

to one-sixtieth of his final average salary for each completed

additional year of service after twenty-five years.

g. The increased pension provided for in subdivision f hereof shall be

conditioned upon the participating employer electing in a manner similar

to that provided in subdivision a of section three hundred thirty of

this article to provide this added benefit and assuming the additional

cost thereof on account of all of the officers and members of its

organized fire department or organized police force or department who

are contributing under the provisions of this section. Such increased

pensions to the members in either department shall be paid from

additional contributions made by the appropriate participating employer

on account of such members. The actuary of the retirement system shall

compute the additional contributions for each employer who elects to

provide the special benefits provided under subdivision f of this

section. Such additional contributions shall be computed on the basis of

contributions during the prospective service of such members which will

cover the liability of the retirement system for such extra pensions.

Upon approval of the comptroller, such additional contributions shall be

certified by him to the fiscal officer of the participating employer.

The amount thereof shall be included in the annual appropriation of the

participating employer for its police and fire departments. Such amount

shall be paid on the warrant of the fiscal officer of the participating

employer to the pension accumulation fund of the retirement system.

h. Any officer or member of such organized fire department or

organized police force or department, may, within one year after he

becomes such officer or member or within one year after his employer

assumes the additional cost therefor, whichever shall last occur, elect

to receive the additional benefits provided for by subdivision f hereof.

Any officer or member who elects to receive such benefits shall be

separated from service on the first day of the calendar month next

succeeding his attainment of age sixty-two and the completion of

twenty-five years of service, provided, however, that in the case of any

officer or member who attained the age of sixty-two before his employer

assumed the additional cost therefor, or who attains the age of

sixty-two within one month after his employer assumes the additional

cost therefor, to be eligible for additional pension credit under

subdivision f of this section, his service shall be terminated and he

shall be retired within three months after his employer assumes the

additional cost therefor or on or before December thirty-first, nineteen

hundred sixty-eight, whichever shall last occur, and provided further

that a member who is a chief or commanding officer of a police

department or police force shall retire on the first day of the calendar

month next succeeding his attainment of age sixty-five; a member who is

a chief or commanding officer of a police department or police force,

who attained age sixty-five before his employer elected to provide this

added benefit and has rendered twenty-five years of total creditable

service, shall retire on or before December thirty-first, nineteen

hundred sixty-eight, or within one year after his employer assumes the

additional cost therefor, whichever shall last occur.

i. In lieu of the provisions of subdivisions f, g and h and in the

event a member shall continue in service after twenty-five years of

total creditable service, as defined in subdivision bb of this section,

there shall be added to his pension upon retirement a sum equal to

one-one hundred twentieth of his final average salary for each completed

additional year of service after twenty-five years.

j. The increased pension provided for in subdivision i hereof shall be

conditioned upon the participating employer electing in a manner similar

to that provided in subdivision a of section three hundred thirty of

this article to provide this added benefit and assuming the additional

cost thereof on account of all of the officers and members of its

organized fire department or organized police force or department who

are contributing under the provisions of this section. Such increased

pensions to the members in either department shall be paid from

additional contributions made by the appropriate participating employer

on account of such members. The actuary of the retirement system shall

compute the additional contributions for each employer who elects to

provide the special benefits provided under subdivision i of this

section. Such additional contributions shall be computed on the basis of

contributions during the prospective service of such members which will

cover the liability of the retirement system for such extra pensions.

Upon approval of the comptroller, such additional contributions shall be

certified by him to the fiscal officer of the participating employer.

The amount thereof shall be included in the annual appropriation of the

participating employer for its police and fire departments. Such amount

shall be paid on the warrant of the fiscal officer of the participating

employer to the pension accumulation fund of the retirement system.

k. Any officer or member of such organized fire department or

organized police force or department, may, within one year after he

becomes such officer or member or within one year after his employer

assumes the additional cost therefor, whichever shall last occur, elect

to receive the additional benefits provided for by subdivision i hereof.

Any officer or member who elects to receive such benefits shall be

separated from service on the first day of the calendar month next

succeeding his attainment of age sixty-two and the completion of

twenty-five years of service, provided, however, that in the case of any

officer or member who attained the age of sixty-two before his employer

assumed the additional cost therefor, or who attains the age of

sixty-two within one month after his employer assumes the additional

cost therefor, to be eligible for additional pension credit under

subdivision i of this section, his service shall be terminated and he

shall be retired within three months after his employer assumes the

additional cost therefor, or on or before December thirty-first,

nineteen hundred sixty-eight, whichever shall last occur, and provided

further that a member who is a chief or commanding officer of a police

department or police force shall retire on the first day of the calendar

month next succeeding his attainment of age sixty-five; a member who is

a chief or commanding officer of a police department or police force,

who attained age sixty-five before his employer elected to provide this

added benefit and has rendered twenty-five years of total creditable

service, shall retire on or before December thirty-first, nineteen

hundred sixty-eight, or within one year after his employer assumes the

additional cost therefor, whichever shall last occur.

l. Upon retirement of any member pursuant to this section, any

additional amounts credited to the member's annuity savings account

pursuant to subdivision b of section three hundred thirty of this

article shall be treated as excess contributions and shall be used to

provide an annuity in addition to the annuity prescribed by this

section. Any other amounts credited to the member's annuity savings

account, except the amounts contributed or required to be contributed

under this section and except such amounts as are required to produce

the retirement allowance provided by subdivision e of this section, may

at the option of the member at the time of retirement be withdrawn or

used to provide an annuity in addition to the annuity prescribed by this

section.

m. Service in the division of state police in the executive department

shall be considered allowable service in an organized fire department or

an organized police force or police department for the purpose of this

section, provided that the member pays or has paid the required

contributions.

n. Notwithstanding any provision of subdivision bb or g of this

section, service as a fire chief-airport, firefighter-airport, and fire

captain-airport of the county of Monroe shall be included for the

purpose of computing police or fire service for retirement pursuant to

this section, provided the county of Monroe has elected to participate

in the New York state and local police and fire retirement system on the

behalf of its fire chief-airport, firefighters-airport, and fire

captains-airport and elects to provide the benefit of this section.

* o. The benefits hereinabove provided shall be payable to a member,

unless at the date of retirement, such member would otherwise be

entitled to a greater benefit under other provisions of this article had

he withdrawn from this section, in which event such greater benefits

shall be payable.

* NB There are 2 sb o's

* o. Any member of the New York state and local police and fire

retirement system who was a member of the New York city employees'

retirement system while employed as a New York city police department

trainee or a New York city transit officer trainee and whose membership

therein was terminated by his attaining membership in the New York state

and local police and fire retirement system, may purchase credit in the

New York state and local police and fire retirement system for prior

creditable service in the New York city employees' retirement system

earned while employed as a police department trainee or transit officer

trainee and shall have the period of such prior service credit counted

as police service for the purpose of determining the amount of his

pension and retirement allowance and period of service needed for

retirement. In order to purchase credit pursuant to this subdivision,

the member shall pay into the pension accumulation fund the contribution

amount as determined by the comptroller, either in a lump sum or in

installments, necessary to pay in full the cost of such previous

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 granted.

* NB There are 2 sb o's

p. Notwithstanding any provision of this section, service as an

aircraft rescue firefighter employed by the Niagara frontier

transportation authority shall be included for the purpose of computing

police or fire service for retirement pursuant to this section, provided

such authority has elected to participate in the New York state and

local police and fire retirement system on the behalf of its aircraft

rescue firefighters and elects to provide the benefit of this section.

q. The provisions of this section shall be controlling notwithstanding

any provision of this article to the contrary.