N.Y. Retirement & Social Security Law § 504-b: Twenty-year retirement program for New York city correction members of the rank of captain or above

§ 504-b. Twenty-year retirement program for New York city correction

members of the rank of captain or above. 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. "New York city correction officer of the rank of captain or above"

shall mean a member of the uniformed force of the department of

correction of the city of New York who holds the rank of correction

captain; assistant deputy warden, also known as warden correction level

I; deputy warden or deputy warden-in-command, also known as warden

correction level II; warden or deputy chief, also known as warden

correction level III; or chief of department, also known as warden

correction in the correction service of such city.

2. "New York city correction member of the rank of captain or above"

shall mean a general member (as defined in subdivision twelve of section

five hundred one of this article) who is a New York city correction

officer of the rank of captain or above.

3. "Twenty-year retirement program for captains and above" shall mean

all the terms and conditions of this section.

4. "Starting date of the twenty-year retirement program for captains

and above" shall mean the effective date of this section, as such date

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

5. "Participant in the twenty-year retirement program for captains and

above" shall mean any New York city correction member of the rank of

captain or above 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 retirement program for

captains and above, as applicable to him or her.

6. "Discontinued member" shall mean a participant in the twenty-year

retirement program for captains and above who, while he or she was a New

York city correction officer of the rank of captain or above,

discontinued service in the uniformed force of the department of

correction of the city of New York and has a right to a deferred vested

benefit under subdivision d of this section.

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

city of New York.

8. "Revised contribution date" shall mean the effective date of this

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

the legislative law.

b. Participation in twenty-year retirement program for captains and

above. 1. (i) Subject to the provisions of paragraph six of this

subdivision and of subparagraph (iii) of paragraph eight of subdivision

e of section five hundred four-a of this article, any person who is a

New York city correction member of the rank of captain or above on the

starting date of the twenty-year retirement program for captains and

above who, as such a correction member or otherwise, last became subject

to the provisions of this article prior to such starting date, may elect

to become a participant in the twenty-year retirement program for

captains and above by filing, within ninety days after such starting

date, a duly executed application for such participation with the

retirement system of which such person is a member, provided he or she

is a correction member of the rank of captain or above on the date such

application is filed.

(ii) Notwithstanding the provisions of subparagraph (iii) of paragraph

eight of subdivision e of section five hundred four-a of this article or

of any other law to the contrary, any New York city correction member of

the rank of captain or above who was eligible pursuant to the provisions

of this paragraph to elect to become a participant in the twenty-year

retirement program for captains and above, but who failed to make such

an election, may be deemed to have elected to become a participant in

the twenty-year retirement program for captains and above as of the

starting date of the twenty-year retirement program for captains and

above by filing with the retirement system, within one hundred twenty

days after the revised contribution date, a duly executed application to

become a participant in such retirement program as of such starting

date, provided he or she is a correction member of the rank of captain

or above on the date such application is filed.

2. (i) Subject to the provisions of paragraph six of this subdivision

and of subparagraph (iii) of paragraph eight of subdivision e of section

five hundred four-a of this article, any person who becomes a New York

city correction member of the rank of captain or above after the

starting date of the twenty-year retirement program for captains and

above and who, as such a correction member or otherwise, last became

subject to the provisions of this article prior to such starting date,

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

for captains and above by filing, within ninety days after becoming such

a correction member, a duly executed application for such participation

with the retirement system of which such person is a member, provided he

or she is such a correction member of the rank of captain or above on

the date such application is filed.

(ii) Notwithstanding the provisions of subparagraph (iii) of paragraph

eight of subdivision e of section five hundred four-a of this article or

of any other law to the contrary, any New York city correction member of

the rank of captain or above who became such a correction member of such

rank prior to the revised contribution date, and who was eligible

pursuant to the provisions of this paragraph to elect to become a

participant in the twenty-year retirement program for captains and

above, but who failed to make such an election, may be deemed to have

elected to become a participant in the twenty-year retirement program

for captains and above as the date he or she first became a New York

city correction member of the rank of captain or above by filing with

the retirement system, within one hundred twenty days after the revised

contribution date, a duly executed application to become a participant

in such retirement program as of the date he or she became such a

correction member, provided he or she is a correction member of the rank

of captain or above on the date such application is filed.

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

program for captains and above shall be irrevocable.

4. Each person who becomes a New York city correction member of the

rank of captain or above on or after the starting date of the

twenty-year retirement program for captains and above (other than such a

correction member who is required pursuant to subdivision b of section

five hundred four-d of this article to be a participant in the

twenty-year retirement program established by such section five hundred

four-d) and who, as such a correction member or otherwise, becomes

subject to the provisions of this article on or after such starting

date, shall become a participant in the twenty-year retirement program

for captains and above on the date he or she becomes such a correction

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

New York city correction member of the rank of captain or above who

becomes a participant in the twenty-year retirement program for captains

and above pursuant to this paragraph by becoming subject to the

provisions of this article on or after the starting date of the

twenty-year retirement program for captains and above shall have the

term "credited service" applied to him or her in the same manner as such

term would be applied to a similarly situated correction officer of the

rank of captain or above who is governed by article eleven of this

chapter and who is a participant in the twenty-year improved benefit

retirement program for captains and above pursuant to section four

hundred forty-five-c of such article eleven.

4-a. Notwithstanding any other provision of this subdivision or any

other provision of law to the contrary, no member of the uniformed force

of the New York city department of correction who is a New York city

uniformed correction/sanitation revised plan member shall be a

participant in the twenty-year retirement program for captains and

above.

5. Where any participant in the twenty-year retirement program for

captains and above shall cease to hold the position of New York city

correction officer of the rank of captain or above, he or she shall

cease to be such a participant and shall not be such a participant

during any period in which he or she does not hold the position of New

York city correction officer of the rank of captain or above.

6. Where any participant in the twenty-year retirement program for

captains or above terminates service as a New York city correction

officer of the rank of captain or above and returns to such service as a

New York city correction member of the rank of captain or above at a

later date, he or she shall again become such a participant on that

date.

c. Service retirement benefits. 1. A participant in the twenty-year

retirement program for captains and above:

(i) who has completed twenty or more years of credited service; and

(ii) who, subject to the provisions of paragraph nine of subdivision e

of this section, has paid, before the effective date of retirement, all

additional member contributions and interest (if any) required by

paragraphs one, four, five and seven of subdivision e of this section;

and

(iii) who files with the retirement system of which he or she is a

member an application for service retirement setting forth at what time

he or she desires to be retired; and

(iv) who shall be a participant in the twenty-year retirement program

for captains and above at the time so specified for his or her

retirement;

shall be retired pursuant to the provisions of this section affording

early service retirement.

2. (i) Notwithstanding any other provision of law to the contrary, and

subject to the provisions of paragraph nine of subdivision e of this

section, the early service retirement benefit for participants in the

twenty-year retirement program for captains and above who retire

pursuant to paragraph one of this subdivision shall be a pension

consisting of:

(A) an amount, on account of twenty years of credited service, equal

to one-half of his or her final average salary; plus

(B) an amount for each additional year of credited service, or

fraction thereof, beyond such twenty years of credited service equal to

one-sixtieth of the final average salary for such credited service

during the period from the completion of twenty years of credited

service to the date of retirement.

(ii) The maximum pension computed without optional modification

payable pursuant to subparagraph (i) of this paragraph shall be equal to

that payable upon completion of thirty years of service.

d. Vesting. 1. A participant in the twenty-year retirement program for

captains and above:

(i) who discontinues service in the uniformed force of the department

of correction of the city of New York while he or she is a New York city

correction officer of the rank of captain or above, other than by death

or retirement; and

(ii) who, prior to such discontinuance, completed five but less than

twenty years of credited service; and

(iii) who, subject to the provisions of paragraph ten of subdivision e

of this section, has paid, prior to such discontinuance, all additional

member contributions and interest (if any) required by paragraphs one,

four, five and seven of subdivision e of this section; and

(iv) who does not withdraw in whole or in part his or her accumulated

member contributions pursuant to section five hundred seventeen of this

article unless such participant thereafter returns to public service and

repays the amounts so withdrawn, together with interest, pursuant to

such section five hundred seventeen;

shall be entitled to receive a deferred vested benefit as provided in

this subdivision.

2. (i) Upon such discontinuance under the conditions and in compliance

with the provisions of paragraph one of this subdivision, such deferred

vested benefit shall vest automatically.

(ii) Such vested benefit shall become payable on the earliest date on

which such discontinued member could have retired from service if such

discontinuance had not occurred.

3. Subject to the provisions of paragraph ten of subdivision e of this

section, such deferred vested benefit shall be a pension consisting of

an amount equal to two and one-half percent of such discontinued

member's final average salary, multiplied by the number of years of

credited service on the date of such discontinuance.

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

contributions required by section five hundred seventeen of this

article, each participant in the twenty-year retirement program for

captains and above shall contribute (subject to the applicable

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

percentage of his or her compensation to the retirement system in

accordance with the following schedule:

(i) each such participant who became a New York city correction member

of the rank of captain or above prior to November first, nineteen

hundred ninety-two shall contribute an additional five and fifty-nine

one-hundredths percent of his or her compensation earned from all

service as a New York city correction member of the rank of captain or

above rendered on and after the starting date of the twenty-year

retirement program for captains and above and prior to the revised

contribution date, provided, however, that for any person covered by

this subparagraph who is such a participant on or after the revised

contribution date, the additional member contributions required by this

subparagraph (including any interest required thereon) shall be

recomputed using the rate of five and eleven one-hundredths percent

instead of the rate of five and fifty-nine one-hundredths percent;

(ii) each such participant who became or becomes a New York city

correction member of the rank of captain or above for the first time on

or after November first, nineteen hundred ninety-two shall contribute an

additional seven and forty-six one-hundredths percent of his or her

compensation earned from all service as a New York city correction

member of the rank of captain or above rendered on and after the

starting date of the twenty-year retirement program for captains and

above and prior to the revised contribution date, provided, however,

that for any person covered by this subparagraph who is such a

participant on or after the revised contribution date, the additional

member contributions required by this subparagraph (including any

interest required thereon) shall be recomputed using the rate of five

and eleven one-hundredths percent instead of the rate of seven and

forty-six one-hundredths percent;

(iii) each participant in the twenty-year retirement program for

captains and above shall contribute an additional five and eleven

one-hundredths percent of his or her compensation earned from all

service as a New York city correction member of the rank of captain or

above rendered on and after the revised contribution date.

2. A participant in the twenty-year retirement program for captains

and above shall contribute additional member contributions only until he

or she has twenty years of credited service.

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

becomes a participant in the twenty-year retirement program for captains

and above, additional member contributions at the applicable 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.

4. In addition to the member contributions required pursuant to

section five hundred seventeen of this article, and the additional

member contributions required pursuant to paragraph one of this

subdivision, each participant in the twenty-year retirement program for

captains and above who, prior to becoming such a participant, rendered

service as a New York city correction member of the rank of captain or

above on or after December nineteenth, nineteen hundred ninety and prior

to the starting date of the twenty-year retirement program for captains

and above, and/or service as a New York city correction member below the

rank of captain on or after December nineteenth, nineteen hundred ninety

and prior to becoming such a participant shall make retroactive

additional member contributions to the retirement system based on such

service in accordance with the following schedule:

(i) each such participant who became a New York city correction member

of the rank of captain or above prior to November first, nineteen

hundred ninety-two shall, subject to the provisions of subparagraph

(iii) of this paragraph, contribute an amount equal to five and

fifty-nine one-hundredths percent of his or her compensation earned

from:

(A) all service as a New York city correction member of the rank of

captain or above rendered on and after December nineteenth, nineteen

hundred ninety and prior to the starting date of the twenty-year

retirement program for captains and above; and

(B) all service as a New York city correction member below the rank of

captain rendered on and after December nineteenth, nineteen hundred

ninety and prior to becoming a participant in the twenty-year retirement

program for captains and above;

(ii) each such participant who became or becomes a New York city

correction member of the rank of captain or above for the first time on

or after November first, nineteen hundred ninety-two and prior to the

revised contribution date shall, subject to the provisions of

subparagraph (iii) of this paragraph, contribute an amount equal to

seven and forty-six one-hundredths percent of his or her compensation

earned from:

(A) all service as a New York city correction member of the rank of

captain or above rendered on and after November first, nineteen hundred

ninety-two and prior to the starting date of the twenty-year retirement

program for captains and above; and

(B) all service as a New York city correction member below the rank of

captain rendered on and after December nineteenth, nineteen hundred

ninety and prior to becoming a participant in the twenty-year retirement

program for captains and above;

(iii) for each such participant covered by either subparagraph (i) or

(ii) of this paragraph who is a participant in the twenty-year

retirement program for captains and above on or after the revised

contribution date, the additional member contributions required by

subparagraph (i) or (ii) of this paragraph (including any interest

required thereon) shall be recomputed using the rate of five and eleven

one-hundredths percent instead of the rate set forth in subparagraph (i)

or (ii) of this paragraph;

(iv) each such participant who becomes a New York city correction

member of the rank of captain or above for the first time on or after

the revised contribution date, and who became a New York city correction

member below the rank of captain prior to July first, nineteen hundred

eighty-eight, shall contribute an amount equal to five and eleven

one-hundredths percent of his or her compensation earned from all

service as a New York city correction member below the rank of captain

rendered on and after December nineteenth, nineteen hundred ninety and

prior to becoming a participant in the twenty-year retirement program

for captains and above;

(v) each such participant who becomes a New York city correction

member of the rank of captain or above for the first time on or after

the revised contribution date, who became a New York city correction

member below the rank of captain on or after July first, nineteen

hundred eighty-eight, and who was a participant in the twenty-year

retirement program for New York city correction members below the rank

of captain established by section five hundred four-a of this article on

the day immediately preceding the revised contribution date, shall

contribute an amount equal to three and sixty-one one-hundredths percent

of his or her compensation earned from all service as a New York city

correction member below the rank of captain rendered on and after

December nineteenth, nineteen hundred ninety and prior to becoming a

participant in the twenty-year retirement program for captains and

above;

(vi) each such participant who becomes a New York city correction

member of the rank of captain or above for the first time on or after

the revised contribution date, who became a New York city correction

member below the rank of captain on or after July first, nineteen

hundred eighty-eight, and who was not a participant in the twenty-year

retirement program for New York city correction members below the rank

of captain established by section five hundred four-a of this article on

the day immediately preceding the revised contribution date, shall

contribute an amount equal to five and eleven one-hundredths percent of

his or her compensation earned from all service as a New York city

correction member below the rank of captain rendered on and after

December nineteenth, nineteen hundred ninety and prior to becoming a

participant in the twenty-year retirement program for captains and

above.

5. Each participant in the twenty-year retirement program for captains

and above who is required to make retroactive additional member

contributions in accordance with the provisions of paragraph four of

this subdivision shall be charged with a contribution deficiency

consisting of the amounts of such retroactive additional member

contributions determined in accordance with such paragraph four,

together with interest thereon compounded annually, and

(i) such interest on each such amount 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 deduction had been required for such

payroll period, until such amount is paid to the retirement system; and

(ii) the rate of interest to be applied to each such 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.

6. Where a person who became or becomes a participant in the

twenty-year retirement program for captains and above has rendered less

than fifteen years of credited service as of the date he or she became

or becomes a New York city correction member of the rank of captain or

above, the amount of the contribution deficiency charged to such a

participant pursuant to paragraph five of this subdivision, consisting

of retroactive additional member contributions plus interest on such

amounts, shall be reduced by an amount equal to the additional member

contributions which such participant made pursuant to paragraph one of

subdivision e of section five hundred four-a of this article as a

participant in the twenty-year retirement program for correction

officers below the rank of captain (together with any interest thereon)

which are on deposit in the contingent reserve fund of the retirement

system on the date such person became or becomes a participant in the

twenty-year retirement program for captains and above, provided,

however, that for persons who elect to become a participant in the

twenty-year retirement program for captains and above pursuant to

subparagraph (ii) of paragraph one of subdivision b of this section or

subparagraph (ii) of paragraph two of subdivision b of this section,

such reduction pursuant to this paragraph in the amount of such

contribution deficiency shall be by the amount of such additional member

contributions made pursuant to subdivision e of section five hundred

four-a (together with any interest thereon) which are on deposit in such

contingent reserve fund at the time such member files such election to

become such a participant, and such participant shall not thereafter be

permitted to withdraw any portion of such additional member

contributions made pursuant to subdivision e of section five hundred

four-a at any time while he or she is a participant in the twenty-year

retirement program for captains and above, and provided further that the

provisions of this paragraph shall apply to any person who is a

participant in the twenty-year retirement program for captains and above

on or after the revised contribution date, even where such person has

rendered fifteen or more years of credited service as of the date he or

she became a New York city correction member of the rank of captain or

above.

7. (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 three of this

subdivision:

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

consisting of such unpaid amounts, together with interest thereon at the

rate of five percent per annum, 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, until such amount is paid to

the retirement system.

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

paragraph, no interest shall be due on any unpaid additional member

contributions which are not attributable to a period prior to the first

full payroll period referred to in paragraph three of this subdivision.

(iii) Should any person who, pursuant to paragraph twelve of this

subdivision, has withdrawn any additional member contributions (and any

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

retirement program for captains and above pursuant to paragraph six 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 (i) of this paragraph) as

if such additional contributions had never been made.

8. The head of a retirement system which includes participants in the

twenty-year retirement program for captains and above in its membership

may, consistent with the provisions of this subdivision, promulgate

regulations for the payment of such additional member contributions, and

any interest thereon, by such participants (including the deduction of

such contributions, and any interest thereon, from the participants'

compensation).

9. 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 paragraphs

five and/or seven of this subdivision, that participant, nevertheless,

shall be eligible to retire pursuant to subdivision c of this section

provided, however, that the service retirement benefit calculated

pursuant to paragraph two of such subdivision c shall be reduced by the

actuarial equivalent of the amount of any contribution deficiency

pursuant to such paragraphs five and/or seven which such participant did

not pay prior to the effective date of his or her retirement.

10. Where a participant who is otherwise eligible for a vested right

to a deferred benefit pursuant to subdivision d of this section did not,

prior to the date of discontinuance of service, pay the entire amount of

a contribution deficiency chargeable to him or her pursuant to

paragraphs five and/or seven of this subdivision, that participant,

nevertheless, shall be eligible for a vested right to a deferred benefit

pursuant to subdivision d of this section provided, however, that the

deferred vested benefit calculated pursuant to paragraph three of such

subdivision d shall be reduced by the actuarial equivalent of the amount

of any contribution deficiency pursuant to such paragraphs five and/or

seven which such participant did not pay prior to his or her

discontinuance of service.

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

deficiency chargeable to him or her pursuant to paragraphs five and/or

seven of this subdivision, and a benefit, other than a refund of member

contributions pursuant to section five hundred seventeen of this

article, or a refund of additional member contributions pursuant to

paragraph twelve of this subdivision, or a benefit which has been

reduced pursuant to paragraph nine or ten of this subdivision becomes

payable under this article 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.

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

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

retirement system of which the participant is a member shall be paid

into its contingent reserve fund and shall not for any purpose be deemed

to be member contributions or accumulated contributions of a member

under section five hundred seventeen of this article or otherwise while

he or she is a participant in the twenty-year retirement program for

captains and above or otherwise, except that, a surplus of such

additional member contributions that are paid into the retirement

system's contingent reserve fund may be used for the sole purpose of

offsetting a deficit of basic member contributions.

(ii)(A) Should a participant in the twenty-year retirement program for

captains and above who has rendered less than fifteen years of credited

service cease to hold the position of New York city correction officer

of the rank of captain or above 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 head of the retirement system,

together with interest thereon at the rate of five percent per annum,

compounded annually.

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

program for captains and above, there shall be paid to such person as he

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

member contributions 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 five percent per annum, compounded

annually.

(C) A participant in the twenty-year retirement program for captains

and above with twenty or more years of credited service, who has made

additional member contributions pursuant to this subdivision in an

amount which exceeds the amount of additional member contributions

required by this subdivision, and who retires pursuant to this article

on or after the revised contribution date, shall receive upon retirement

a refund of that portion of such additional member contributions on

deposit in the contingent reserve fund which exceeds such required

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

together with interest thereon at the rate of five percent per annum,

compounded annually.

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

paragraph, no member while he or she is such a participant or otherwise

shall have a right to withdraw such additional member contributions or

any interest thereon from the retirement system.

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

member of the retirement system shall not be permitted to borrow any

portion of his or her additional member contributions (including any

interest paid thereon) which are subject to this subdivision.

f. The escalation of benefits provisions of section five hundred ten

of this article shall not apply to any benefits received pursuant to the

provisions of this section.

g. Except as provided in clause (B) of subparagraph (i) of paragraph

two of subdivision c of this section, the provisions of subdivision d of

section five hundred of this article shall apply to participants under

this section.

h. In the event that the provisions of this section should result in

any increase in the contribution rate of the city of New York, that

increase shall not apply to any calculation or certification for the

purposes of subdivision c of section five hundred of this article.