N.Y. Retirement & Social Security Law § 445-g: Optional twenty-five year/age fifty improved benefit retirement program for automotive members

§ 445-g. Optional twenty-five year/age fifty improved benefit

retirement program for automotive 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. "Automotive member" shall mean a member of the retirement system

employed by the mayoral and non-mayoral agencies of the city of New York

as a senior automotive service worker, an automotive service worker, an

auto body worker, an auto mechanic, a marine maintenance mechanic, an

oil burner specialist, a supervisor of mechanics (mechanical equipment),

senior stationary engineer, stationary engineer, auto mechanic (diesel),

auto electrician, auto machinist, machinist or machinist helper.

3. "Twenty-five year/age fifty improved benefit retirement program"

shall mean all the terms and conditions of this section.

4. "Starting date of the twenty-five year/age fifty improved benefit

retirement program" shall mean, with respect to supervisors of mechanics

(mechanical equipment), the effective date of an act amending chapter

five hundred sixty of the laws of two thousand one, as such date is

certified pursuant to section forty-one of the legislative law, and

shall mean December twelfth, two thousand one with respect to all other

automotive members.

5. "Participant in the twenty-five year/age fifty improved benefit

retirement program" shall mean any automotive 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/age fifty 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 (i) the

attainment of age fifty and (ii) the completion of twenty-five years of

credited service.

b. Election of twenty-five year/age fifty improved benefit retirement

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

subdivision, any person who is an automotive member on the starting date

of the twenty-five year/age fifty improved benefit retirement program

may elect to become a participant in the twenty-five year/age fifty

improved benefit retirement program by filing, within two hundred

seventy days after such starting date, a duly executed application for

such participation with the retirement system, provided he or she is

such an automotive 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 an automotive member after the

starting date of the twenty-five year/age fifty improved benefit

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

year/age fifty improved benefit retirement program by filing, within two

hundred seventy days after becoming such an automotive member, a duly

executed application for such participation with the retirement system,

provided he or she is such an automotive member on the date such

application is filed.

3. Any election to be a participant in the twenty-five year/age fifty

improved benefit retirement program shall be irrevocable.

4. Where any participant in the twenty-five/age fifty improved benefit

retirement program shall cease to hold a position as an automotive

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

period in which such a person does not hold such an automotive position,

he or she shall not be a participant in the twenty-five year/age fifty

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/age fifty improved

benefit retirement program terminates service as an automotive member

and returns to such service as an automotive 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/age fifty improved benefit retirement program pursuant to paragraph

one or two of this subdivision for the full two hundred seventy 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/age

fifty 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 an automotive 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 from 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 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 two 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 13-162 of the

administrative code, each participant in the twenty-five year/age fifty

improved benefit retirement program shall contribute, subject to the

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

additional four and eighty-three one-hundredths percent of his or her

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

the twenty-five year/age fifty improved benefit retirement program,

rendered on and after the date which is one hundred eighty days prior to

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/age fifty 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/age fifty 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/age fifty 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) Interest on each such amount included in such participant's

contribution deficiency pursuant to this subparagraph (i) 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.

(ii) 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.

(iii) Except as provided in subparagraph (iv) 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.

(iv) 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/age fifty 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 subparagraph (ii) 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/age fifty 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, or repay the entire amount of a loan of his or her

additional member contributions pursuant to paragraph eight of this

subdivision (including accrued interest on such loan), 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:

(i) the amount of any unpaid contribution deficiency chargeable to

such member pursuant to paragraph three of this subdivision; plus

(ii) the amount of any unpaid balance of a loan of his or her

additional member contributions pursuant to paragraph eight of this

subdivision (including accrued interest on such loan).

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 13-162 of the

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

year/age fifty improved benefit retirement program or otherwise.

(ii) Should a participant in the twenty-five year/age fifty improved

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

credited service cease to hold a position as an automotive 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/age fifty 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. A participant in the twenty-five year/age fifty improved benefit

retirement program shall be permitted to borrow from his or her

additional member contributions including any interest paid thereon,

which are credited to the additional contributions account established

for such participant in the contingent reserve fund of the retirement

system. The borrowing from such additional member contributions pursuant

to this paragraph shall be governed by the same rights, privileges,

obligations and procedures set forth in section six hundred thirteen-b

of this chapter which govern the borrowing by members subject to article

fifteen of this chapter of member contributions made pursuant to section

six hundred thirteen of this chapter. The board of trustees of the

retirement system may, consistent with the provisions of this

subdivision and the provisions of section six hundred thirteen-b of this

chapter as made applicable to this subdivision, promulgate regulations

governing the borrowing of such additional member contributions.

9. Wherever a person has an unpaid balance of a loan of his or her

additional member contributions pursuant to paragraph eight of this

subdivision at the time he or she becomes entitled to a refund of his or

her additional member contributions pursuant to subparagraph (ii) of

paragraph seven of this subdivision, the amount of such unpaid loan

balance (including accrued interest) shall be deemed to have been

returned to such member, and the refund of such additional contributions

shall be the net amount of such contributions, together with interest

thereon in accordance with the provisions of such subparagraph.

10. 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.

11. Notwithstanding any other provisions of law th the contrary, the

additional member contributions which are required by this subdivision

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