N.Y. Retirement & Social Security Law § 445-f: Optional twenty-five year improved benefit retirement program for deputy sheriff members

* § 445-f. Optional twenty-five year improved benefit retirement

program for deputy sheriff 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. "Deputy sheriff member" shall mean a member of the retirement

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

by the city of New York as a deputy city sheriff level one, deputy city

sheriff level two, supervising deputy sheriff or administrative sheriff.

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

all the terms and conditions of this section.

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

program" shall mean the date of enactment of this section, as such date

is certified pursuant to section forty-one of the legislative law.

5. "Participant in the twenty-five year improved benefit retirement

program" shall mean any deputy sheriff 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-five year improved benefit retirement program, as applicable to

him or her.

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

city of New York.

7. "Accumulated deductions" shall mean accumulated deductions as

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

code.

8. "Optional retirement provisions" shall mean the right to retire and

receive a retirement allowance under this section upon the completion of

twenty-five years of credited service.

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

1. Subject to the provisions of paragraphs five and six of this

subdivision, any person who is a deputy sheriff member on the starting

date of the twenty-five year improved benefit retirement program may

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

retirement program by filing, within one hundred eighty days after such

starting date, a duly executed application for such participation with

the retirement system, provided he or she is such a deputy sheriff

member on the date such application is filed.

2. Subject to the provisions of paragraphs five and six of this

subdivision, any person who becomes a deputy sheriff member after the

starting date of the twenty-five year improved benefit retirement

program may elect to become a participant in the twenty-five year

improved benefit retirement program by filing, within one hundred eighty

days after becoming such a deputy sheriff member, a duly executed

application for such participation with the retirement system, provided

he or she is such a deputy sheriff member on the date such application

is filed.

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

benefit retirement program shall be irrevocable.

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

retirement program shall cease to hold a position as a deputy sheriff

member, he or she shall cease to be such a participant and, during any

period in which such a person does not hold such a deputy sheriff

position, he or she shall not be a participant in the twenty-five 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-five year improved benefit

retirement program terminates service as a deputy sheriff member and

returns to such service as a deputy sheriff member at a later date, he

or she shall again become such a participant on that date.

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

person who is eligible to become a participant in the twenty-five year

improved benefit retirement program pursuant to paragraph one or two of

this subdivision for the full one hundred eighty day period provided for

in such applicable paragraph and who fails to timely file a duly

executed application for such participation with the retirement system,

shall not thereafter be eligible to become a participant in such

program.

c. Service retirement benefits. Notwithstanding any other provision of

law to the contrary, where a participant in the twenty-five year

improved benefit retirement program, who is otherwise qualified for a

retirement allowance pursuant to the optional retirement provisions set

forth in subdivision a of this section, has made and/or paid, while he

or she is a deputy sheriff member, all additional member contributions

and interest (if any) required by subdivision d of this section, then:

1. 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 article; and

2. if that participant, while such a participant, retires for service,

he or she shall not be subject to the provisions of section four hundred

forty-four of this article; and

3. his or her retirement allowance shall be an amount, on account of

the required minimum period of service, equal to the sum of (i) an

annuity which shall be the actuarial equivalent of the accumulated

deductions from his or her pay during such period, (ii) a pension for

increased-take-home-pay which shall be the actuarial equivalent of the

reserve for increased-take-home-pay to which he or she may be entitled

for such period, and (iii) a pension which, when added to such annuity

and such pension for increased-take-home-pay, produces a retirement

allowance equal to fifty-five percent of his or her final average

salary, plus an amount for each additional year of allowable service, or

fraction thereof, beyond such required minimum period of service equal

to one and seven-tenths percent of his or her final average salary; and

4. 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 13-125 or section 13-162 of

the administrative code, each participant in the twenty-five year

improved benefit retirement program shall contribute, subject to the

applicable provisions of section 13-125.2 of the administrative code, an

additional six and three-quarters percent of his or her compensation

earned from (i) all credited service, as a participant in the

twenty-five year improved benefit retirement program, rendered on and

after the starting date of the improved benefit retirement program, and

(ii) all credited service after such person ceases to be a participant,

but before he or she again becomes a participant pursuant to paragraph

five of subdivision b of this section. A participant in the twenty-five

year improved benefit retirement program shall contribute additional

member contributions until the later of (i) the date as of which he or

she is eligible to retire with twenty-five years of credited service

under such retirement program, or (ii) the first anniversary of the

starting date of the twenty-five year improved benefit retirement

program. The additional contributions required by this paragraph shall

be in lieu of additional member contributions required by subdivision d

of section four hundred forty-five-d of this article, as added by

chapter ninety-six of the laws of nineteen hundred ninety-five, and no

member paying additional contributions pursuant to this section shall be

required to pay additional contributions pursuant to such subdivision d

of section four hundred forty-five-d of this article.

2. Commencing with the first full payroll period after each person

becomes a participant in the twenty-five year improved benefit

retirement program, additional member contributions at the rate

specified in paragraph one of this subdivision shall be deducted,

subject to the applicable provisions of section 13-125.2 of the

administrative code, from the compensation of such participant on each

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

for which he or she is such a participant.

3. (i) Subject to the provisions of subparagraph (ii) of this

paragraph, 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:

(A) that participant shall be charged with a contribution deficiency

consisting of such unpaid amounts, together with interest thereon,

compounded annually; and

(B) such interest on each amount of undeducted contributions shall

accrue from the end of the payroll period for which such amount would

have been deducted from compensation if he or she had been a participant

at the beginning of that payroll period and such deductions had been

required for such payroll period until such amount is paid to the

retirement system; and

(C) (1) interest on each such amount included in such participant's

contribution deficiency pursuant to this subparagraph shall be

calculated as if such additional member contributions never had been

paid by such participant, and such interest shall accrue from the end of

the payroll period to which an amount of such additional member

contributions is attributable, compounded annually, until such amount is

paid to the retirement system.

(2) 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.

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

interest shall be due on any unpaid additional contributions which are

not attributable to the period prior to the first full payroll period

referred to in paragraph two of this subdivision.

(iii) 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-five

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 subclause two of clause (C) of

subparagraph (i) of this paragraph) for any credited service with

respect to which such person received a refund of additional member

contributions (including any amount of an unpaid loan balance deemed to

have been returned to such person pursuant to paragraph seven of this

subdivision), as if such additional member contributions never had been

paid.

4. The board of trustees of the retirement system may, consistent with

the provisions of this subdivision, promulgate regulations for the

payment of the additional member contributions required by this

subdivision, and any interest thereon, by a participant in the

twenty-five year improved benefit retirement program (including the

deduction of such contributions, and any interest thereon, from his or

her compensation).

5. Where a participant who is otherwise eligible for service

retirement pursuant to subdivision c of this section did not, prior to

the effective date of retirement, pay the entire amount of a

contribution deficiency chargeable to him or her pursuant to paragraph

three of this subdivision, that participant, nevertheless, shall be

eligible to retire pursuant to subdivision c of this section, provided,

however, that where such participant is not entitled to a refund of

additional member contributions pursuant to paragraph seven of this

subdivision, such participant's service retirement benefit calculated

pursuant to the applicable provisions of subdivision c of this section

shall be reduced by a life annuity (calculated in accordance with the

method set forth in subdivision i of section six hundred thirteen-b of

this chapter) which is actuarially equivalent to the amount of any

unpaid contribution deficiency chargeable to such member pursuant to

paragraph three of this subdivision.

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

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 member contributions or accumulated deductions of a member

of the retirement system under section 13-125 or section 13-162 of the

administrative code while he or she is a participant in the twenty-five

year improved benefit retirement program or otherwise.

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

retirement program, who has rendered less than five years of credited

service cease to hold a position as a deputy sheriff member 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) which remain credited to

such participant's account 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

interest required by law to be used to credit interest on the

accumulated deductions of retirement system members compounded annually.

(iii) Notwithstanding any other provision of law to the contrary, (A)

no person shall be permitted to withdraw from the retirement system any

additional member contributions paid pursuant to this subdivision or any

interest paid thereon, except pursuant to and in accordance with the

preceding subparagraphs of this paragraph; and (B) no person, while he

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

retirement program, shall be permitted to withdraw any such additional

member contributions or any interest paid thereon pursuant to any of the

preceding subparagraphs of this paragraph or otherwise.

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 required by 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.

* NB There are 3 § 445-f's