N.Y. Retirement & Social Security Law § 445-b: Optional twenty-year improved benefit retirement program for New York city sanitation members

§ 445-b. Optional twenty-year improved benefit retirement program for

New York city sanitation members. a. Definitions. The following words

and phrases as used in this section shall have the following meanings

unless a different meaning is plainly required by the context:

1. "Retirement system" shall mean the New York city employees'

retirement system.

2. "New York city sanitation member" shall mean a member of the

retirement system who is subject to the provisions of this article, who

is a member of the uniformed force of the New York city department of

sanitation and who has elected to contribute to the retirement system on

the basis of a minimum retirement period of twenty years of allowable

service rendered in such sanitation force pursuant to the optional

retirement provisions of section 13-159 or 13-160 of the administrative

code.

3. "Twenty-year improved benefit retirement program" shall mean all

the terms and conditions of this section.

4. "Starting date of the twenty-year improved benefit retirement

program" shall mean the commencement date of the payroll period which

includes July first, nineteen hundred ninety-two.

5. "Enactment date of the twenty-year improved benefit retirement

program" shall mean the date of enactment of the act which added this

section, as such date is certified pursuant to section forty-one of the

legislative law.

6. "Participant in the twenty-year improved benefit retirement

program" shall mean any New York city sanitation member who, under the

applicable provisions of subdivision b of this section, is entitled to

the rights, benefits and privileges and is subject to the obligations of

the twenty-year improved benefit retirement program, as applicable to

him or her.

7. "Administrative code" shall mean the administrative code of the

city of New York.

8. "Accumulated deductions" shall mean accumulated deductions as

defined in subdivision eleven of section 13-101 of the administrative

code.

b. Election of twenty-year improved benefit retirement program. 1.

Subject to the provisions of paragraph five of this subdivision, any

person who is a New York city sanitation member on the enactment date of

the twenty-year improved benefit retirement program may elect to become

a participant in the twenty-year improved benefit retirement program by

filing, within ninety days after such enactment date, a duly executed

application for such participation with the retirement system, provided

he or she is such a sanitation member on the date such application is

filed.

2. Subject to the provisions of paragraph five of this subdivision,

any person who becomes a New York city sanitation member after the

enactment date of the twenty-year improved benefit retirement program

may elect to become a participant in the twenty-year improved benefit

retirement program by filing, within ninety days after becoming such a

sanitation member, a duly executed application for such participation

with the retirement system, provided he or she is such a sanitation

member on the date such application is filed.

3. Any election to be a participant in the twenty-year improved

benefit retirement program shall be irrevocable.

4. Where any participant in the twenty-year improved benefit

retirement program shall cease to hold a position in the uniformed force

of the New York city department of sanitation, he or she shall cease to

be such a participant and, during any period in which such person does

not hold such a uniformed sanitation position, he or she shall not be a

participant in the twenty-year improved benefit retirement program and

shall not be eligible for the benefits of subdivision c of this section.

5. Where any participant in the twenty-year improved benefit

retirement program terminates service in the uniformed force of the New

York city department of sanitation and returns to such service as a New

York city sanitation member at a later date, he or she shall again

become such a participant on that date.

c. Notwithstanding any other provision of law to the contrary, where a

participant in the twenty-year improved benefit retirement program, who

is otherwise qualified for a retirement allowance pursuant to section

13-159, 13-160 or 13-173.1 of the administrative code, has made and/or

paid, while he or she is a New York city sanitation member, all

additional member contributions and interest (if any) required by

subdivision d of this section, then:

(i) that participant, while he or she remains a participant, shall not

be subject to the provisions of subdivision a of section four hundred

forty-five of this chapter; and

(ii) if that participant, while such a participant, retires from

service, he or she shall not be subject to the provisions of section

four hundred forty-four of this chapter; and

(iii) the maximum retirement benefit computed without optional

modification payable to that participant upon his or her retirement for

service as such a participant shall equal that payable upon completion

of thirty years of service.

d. Additional member contributions. 1. In addition to the member

contributions required pursuant to section 13-159 or 13-160 of the

administrative code, each participant in the twenty-year improved

benefit retirement program shall contribute (subject to the applicable

provisions of section 13-125.1 of the administrative code) an additional

five and thirty-five one-hundredths percent of his or her compensation

earned from all service as a New York city sanitation member (including

service creditable as such sanitation service) rendered on and after the

starting date of the twenty-year improved benefit retirement program. A

participant in the twenty-year improved benefit retirement program shall

contribute additional member contributions only until he or she is

eligible to retire with twenty years of allowable service in the

uniformed force of the New York city department of sanitation under such

retirement program.

2. (i) Commencing with the payroll period which begins on the starting

date of the twenty-year improved benefit retirement program (for a

person who elects to become a participant prior to such starting date),

or commencing with the first full payroll period after a person becomes

such a participant (for a person who becomes a participant on or after

such starting date), additional member contributions at the rate

specified in paragraph one of this subdivision shall be deducted

(subject to the applicable provisions of section 13-125.1 of the

administrative code) from the compensation of such participant on each

and every payroll of such participant for each and every payroll period.

(ii) (A) Where any additional member contributions required by

paragraph one of this subdivision are not paid by deductions from a

participant's compensation pursuant to subparagraph (i) of this

paragraph because such contributions are for service rendered in a

payroll period prior to the actual commencement of deductions pursuant

to such subparagraph (i), such amounts shall be paid by deductions from

the compensation of such participant pursuant to item (B) of this

subparagraph.

(B) Commencing with the payroll period in which deductions of

additional member contributions from a participant's compensation are

begun pursuant to subparagraph (i) of this paragraph, addition to such

deductions required by such subparagraph (i), there shall be another

deduction of additional member contributions made from the compensation

of such participant at the rate specified in paragraph one of this

subdivision (subject to the applicable provisions of section 13-125.1 of

the administrative code) on each and every payroll period until the

total amount of unpaid additional member contributions described in item

(A) of this subparagraph, if any, has been paid by deductions from

compensation pursuant to this subparagraph.

3. (i) (A) Where any additional member contributions required by

paragraph one of this subdivision are not paid by deductions from a

participant's compensation pursuant to paragraph two of this

subdivision, that participant shall be charged with a contribution

deficiency consisting of such unpaid amounts, together with interest

thereon as required by subparagraph (ii) of this paragraph compounded

annually.

(B) Except as provided in subparagraph (ii) of this paragraph, no

participant shall be required to pay any interest on his or her

contribution deficiency.

(ii) (A) Should any person who, pursuant to paragraph seven of this

subdivision, has withdrawn any additional member contributions (and any

interest paid thereon) again become a participant in the twenty-year

improved benefit retirement program pursuant to paragraph five of

subdivision b of this section, an appropriate amount shall be included

in such participant's contribution deficiency (including interest

thereon as calculated pursuant to item (B) of this subparagraph) as if

such additional contributions had never been made.

(B) Interest on the amounts of additional member contributions

included in a participant's contribution deficiency pursuant to item (A)

of this subparagraph shall be calculated as if such additional member

contributions had never been paid by a participant, and such interest

shall accrue from the end of the payroll period to which an amount of

additional member contributions is attributable, until such amount is

paid to the retirement system.

(C) The rate of interest to be applied to each such amount during the

period for which interest accrues on that amount shall be equal to the

rate or rates of interest required by law to be used during that same

period to credit interest on the accumulated deductions of retirement

system members, compounded annually.

4. A participant, while he or she is a New York city sanitation

member, shall pay the total amount of his or her contribution deficiency

to the retirement system in accordance with payment procedures which

shall be established by the executive director of the retirement system,

and approved by the board of trustees of the retirement system.

5. Where a contribution deficiency chargeable to a participant

pursuant to paragraph three of this subdivision has not been paid in

full while the participant is a New York city sanitation member, that

participant shall not be entitled to the benefits provided in

subdivision c of this section.

6. Where a participant has not paid in full any contribution

deficiency chargeable to him or her pursuant to paragraph three of this

subdivision, and a benefit, other than a refund of a member's

accumulated deductions or a refund of additional member contributions

pursuant to paragraph seven of this subdivision, becomes payable by the

retirement system to the participant or to his or her designated

beneficiary or estate, the actuarial equivalent of any such unpaid

amount shall be deducted from the benefit otherwise payable.

7. (i) All additional member contributions required by this

subdivision (and any interest thereon) which are received by the

retirement system shall be paid into its contingent reserve fund and

shall be the property of the retirement system. Such additional member

contributions (and any interest thereon) shall not for any purpose be

deemed to be accumulated deductions of a member of the retirement system

while he or she is a participant in the twenty-year improved benefit

retirement program or otherwise.

(ii) (A) Should a participant in the twenty-year improved benefit

retirement program, who has rendered less than fifteen years of service

in the uniformed force of the New York city department of sanitation

cease to hold a position in such uniformed force for any reason

whatsoever, his or her accumulated additional member contributions made

pursuant to this subdivision (together with any interest thereon paid to

the retirement system) may be withdrawn by him or her pursuant to

procedures promulgated in regulations of the board of trustees of the

retirement system, together with interest thereon at the rate of eight

and one-quarter percent per annum, compounded annually.

(B) Upon the death of a participant in the twenty-year improved

benefit retirement program, there shall be paid to such person as he or

she has nominated or shall nominate to receive his or her accumulated

deductions by written designation duly executed and filed with the

retirement system during the lifetime of such participant, or, to his or

her estate if no such person is nominated, his or her accumulated

additional member contributions made pursuant to this subdivision

(including any interest thereon paid to the retirement system), together

with interest thereon at the rate of eight and one-quarter percent per

annum, compounded annually.

(iii) Except as otherwise provided in subparagraph (ii) of this

paragraph, no member of the retirement system, while he or she is a

participant in such retirement program or otherwise, shall have a right

to withdraw such additional member contributions or any interest thereon

from the retirement system.

8. No member of the retirement system shall be permitted to borrow any

portion of the additional member contributions (including any interest

paid thereon) which are subject to this subdivision.

9. Notwithstanding any other provision of law to the contrary, the

provisions of section one hundred thirty-eight-b of this chapter shall

not be applicable to the additional member contributions which are

required by this subdivision.

10. Notwithstanding any other provision of law to the contrary, the

additional member contributions which are required by this subdivision

shall not be reduced under any program for increased-take-home-pay.

e. The provisions of this section shall not be construed to provide

benefits to any participant in the twenty-year improved benefit

retirement program which are greater than those which would be received

by a similarly situated member of the uniformed force of the New York

city department of sanitation who is governed by the provisions of

section 13-159 or 13-160 of the administrative code, but who is not

governed by the provisions of this article.