N.Y. Retirement & Social Security Law § 517: Member contributions

§ 517. Member contributions. * a. Members shall contribute three

percent of annual wages to the retirement system in which they have

membership, provided that such contributions shall not be required for

more than thirty years, for general members, or twenty-five years, for

police/fire members, except that beginning April first, two thousand

thirteen for members who first become members of the New York state and

local employees' retirement system on or after April first, two thousand

twelve, the rate at which each such member shall contribute in any

current plan year (April first to March thirty-first) shall be

determined by reference to the wages of such member in the second plan

year (April first to March thirty-first) preceding such current plan

year as follows:

1. members with wages of forty-five thousand dollars per annum or less

shall contribute three per centum of annual wages;

2. members with wages greater than forty-five thousand per annum, but

not more than fifty-five thousand per annum shall contribute three and

one-half per centum of annual wages;

3. members with wages greater than fifty-five thousand per annum, but

not more than seventy-five thousand per annum shall contribute four and

one-half per centum of annual wages;

4. members with wages greater than seventy-five thousand per annum but

not more than one hundred thousand per annum shall contribute five and

three-quarters per centum of annual wages; and

5. members with wages greater than one hundred thousand per annum

shall contribute six per centum of annual wages.

Notwithstanding the foregoing, during each of the first three plan

years (April first to March thirty-first) in which such member has

established membership in the New York state and local employees'

retirement system, such member shall contribute a percentage of annual

wages in accordance with the preceding schedule based upon a projection

of annual wages provided by the employer. Notwithstanding the foregoing,

when determining the rate at which each such member who became a member

of the New York state and local employees' retirement system on or after

April first, two thousand twelve shall contribute for any plan year

(April first to March thirty-first) between April first, two thousand

twenty-two and April first, two thousand twenty-six, such rate shall be

determined by reference to employees annual base wages of such member in

the second plan year (April first to March thirty-first) preceding such

current plan year. Base wages shall include regular pay, shift

differential pay, location pay, and any increased hiring rate pay, but

shall not include any overtime payments.

The head of each retirement system shall promulgate such regulations

as may be necessary and appropriate with respect to the deduction of

such contribution from members' wages and for the maintenance of any

special fund or funds with respect to amounts so contributed.

* NB Effective until October 1, 2026

* a. Members shall contribute three percent of annual wages to the

retirement system in which they have membership, provided that such

contributions shall not be required for more than thirty years, for

general members, or twenty-five years, for police/fire members, except

that beginning April first, two thousand thirteen for members who first

become members of the New York state and local employees' retirement

system on or after April first, two thousand twelve, the rate at which

each such member shall contribute in any current plan year (April first

to March thirty-first) shall be determined by reference to the wages of

such member in the second plan year (April first to March thirty-first)

preceding such current plan year as follows:

1. members with wages of forty-five thousand dollars per annum or less

shall contribute three per centum of annual wages;

2. members with wages greater than forty-five thousand dollars per

annum, but not more than fifty-five thousand dollars per annum shall

contribute three and one-half per centum of annual wages;

3. members with wages greater than fifty-five thousand dollars per

annum, but not more than seventy-five thousand dollars per annum shall

contribute four and one-half per centum of annual wages;

4. members with wages greater than seventy-five thousand dollars per

annum but not more than one hundred thousand dollars per annum shall

contribute five and three-quarters per centum of annual wages; and

5. members with wages greater than one hundred thousand dollars per

annum shall contribute six per centum of annual wages.

Notwithstanding the foregoing, during each of the first three plan

years (April first to March thirty-first) in which such member has

established membership in the New York state and local employees'

retirement system, such member shall contribute a percentage of annual

wages in accordance with the preceding schedule based upon a projection

of annual wages provided by the employer.

Notwithstanding the foregoing, when determining the rate at which each

such member who became a member of the New York state and local

employees' retirement system on or after April first, two thousand

twelve shall contribute for any plan year (April first to March

thirty-first) between April first, two thousand twenty-two and April

first, two thousand twenty-eight, such rate shall be determined by

reference to employees annual base wages of such member in the second

plan year (April first to March thirty-first) preceding such current

plan year, except that beginning on and after October first, two

thousand twenty-six, for members who first became members of the New

York state and local employees' retirement system on or after April

first, two thousand twelve, the contributions in any current plan year

(April first to March thirty-first) shall be determined by reference to

the base wages of such member in the second plan year (April first to

March thirty-first) preceding such current plan year as follows:

(i) members with wages of seventy-five thousand dollars per annum or

less shall contribute three per centum of annual wages;

(ii) members with wages greater than seventy-five thousand dollars per

annum but not more than one hundred thousand dollars per annum shall

contribute four per centum of annual wages;

(iii) members with wages greater than one hundred thousand dollars per

annum but not more than one hundred twenty-five thousand dollars per

annum shall contribute five and one-quarter per centum of annual wages;

and

(iv) members with wages greater than one hundred twenty-five thousand

dollars per annum shall contribute five and three-quarters per centum of

annual wages.

Base wages shall include regular pay, shift differential pay, location

pay, and any increased hiring rate pay, but from April first, two

thousand twenty-two through March thirty-first, two thousand

twenty-eight shall not include any overtime payments.

The head of each retirement system shall promulgate such regulations

as may be necessary and appropriate with respect to the deduction of

such contribution from members' wages and for the maintenance of any

special fund or funds with respect to amounts so contributed.

* NB Effective October 1, 2026

b. In the event of termination of employment, other than as a result

of transfer to another public employer, a member who is not vested or

entitled to any other benefit under this article may withdraw his

accumulated contributions pursuant to regulations promulgated by the

head of the retirement system involved. In the event membership in a

public retirement system shall terminate, other than as a result of

transfer to another public employer, any contributions remaining to the

credit of the member shall be refunded as specified by the rules or

regulations of the system involved. For the purpose of such withdrawal

or refund, such contributions, commencing on the date of this act or the

date such member first makes contributions hereunder, whichever is

later, together with the balances on such date from any contributions

theretofore made, shall be credited with interest at the rate of five

percent per annum.

c. Upon withdrawal of contributions by a member pursuant to

subdivision b, membership in the public retirement system involved shall

cease. A former member who thereafter returns to public service shall

not receive any credit for previous service to which such withdrawn or

refunded contributions applied unless such member applies therefor and

repays the amounts so withdrawn or refunded, together with interest

through the date of repayment at the rate of five percent per annum.

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

may, upon separation from service of the state or a participating

employer, withdraw his or her member contributions pursuant to the

applicable provision of law until such date as such individual has

accrued ten years of credited service in such system. However, the

withdrawal of contributions pursuant to this section by an individual

who has accrued at least five years of creditable service shall

terminate his or her membership and all rights in such retirement system

in the same manner as withdrawal of contributions would terminate the

membership of an individual who has not attained vested status. Nothing

in this section shall be construed as permitting an individual who has

accrued at least ten years of credit in a retirement system to withdraw

member contributions.

d. Notwithstanding any other provision of this article, a member shall

be entitled to withdraw any excess contributions within six months of

becoming subject to this article. Thereafter, such contributions, and

interest thereon, may only be withdrawn upon separation from service.

Upon retirement, such excess contributions, and any interest thereon,

may be withdrawn in a single lump sum, or at the election of the member

may be paid as an annuity under an option authorized pursuant to section

five hundred fourteen of this article. The retirement system may at any

time use any such excess contributions to offset a deficit of additional

member contributions as required pursuant to sections five hundred

four-a, five hundred four-b, and five hundred four-d of this article.

The use of basic member contributions to offset a deficit of additional

member contributions does not affect the contributions' tax designation

pursuant to section 414(h) of the Internal Revenue Code.

e. Notwithstanding any other provision of law, except as provided in

section five hundred seventeen-b of this article, except as provided in

section five hundred seventeen-c of this article, a member shall not be

permitted to borrow any portion of the contributions which are subject

to this section.

** f. * 1. Notwithstanding any other provision of law, each

participating employer shall pick up the member contributions required

on and after the effective date of this subdivision to be made under

this section by its employees and shall do so by reducing the salary of

each of its employees to which this section is applicable by that amount

which each such employee is required to contribute under this section.

The contributions so picked up shall be paid by each participating

employer in lieu of the member contributions to be paid by its employees

under this section and shall be treated as employer contributions in

determining income tax treatment under section 414(h) of the Internal

Revenue Code.

* NB Effective until notice of ruling by Internal Revenue Service per

ch. 627/2007 §22

* 1. Notwithstanding any other provision of law, each participating

employer shall pick up the member contributions required on and after

the effective date of this subdivision to be made under this section by

its employees, or required to be made for the purchase of credit for

previous service or military service by its employees pursuant to an

irrevocable payroll deduction agreement under subdivision b-1 of section

five hundred thirteen of this article, and shall do so by reducing the

salary of each of its employees to which this section, or subdivision

b-1 of section five hundred thirteen of this article, is applicable by

that amount which each such employee is required to contribute under

this section, or subdivision b-1 of section five hundred thirteen of

this article. The contributions so picked up shall be paid by each

participating employer in lieu of the member contributions to be paid by

its employees under this section, or subdivision b-1 of section five

hundred thirteen of this article, and shall be treated as employer

contributions in determining income tax treatment under section 414(h)

of the Internal Revenue Code.

* NB Takes effect upon notice of ruling by Internal Revenue Service

per ch. 627/2007 §22

2. Each participating employer of any employee (subject to this

article) who, in lieu of joining a public retirement system of the

state, elected an optional retirement program to which their employers

are thereby required to contribute, shall pick up the employee

contributions thereto which would otherwise be mandatory under the

provisions of state law and shall do so by reducing the salary of such

employee by the amount of employee contributions to such optional

retirement program which would otherwise be mandatory under the

provisions of state law. The contributions so picked up shall be paid by

each participating employer in lieu of the member contributions to be

paid by its employees and shall be treated as employer contributions in

determining income tax treatment under section 414(h) of the internal

revenue code.

3. With the exception of federal income tax treatment, the employee

contributions picked up or paid pursuant to this subdivision shall for

all other purposes, including computation of retirement benefits and

contributions by employers and employees, be deemed employee salary.

Nothing contained in this subdivision shall be construed as superseding

the provisions of section four hundred thirty-one of this chapter or any

similar provision of law which limits the salary base for computing

retirement benefits payable by a public retirement system.

* 4. The provisions of this subdivision f shall not apply to a

police/fire member or a member of the New York city employees'

retirement system who is a member of the uniformed correction force or

of the uniformed force of the department of sanitation, as defined in

subdivisions thirty-nine and sixty-two of section 13-101 of the

administrative code of the city of New York.

* NB Effective until chapter 525/2011 § 2 takes effect

* 4. The provisions of this subdivision shall not apply to a

police/fire member who is a member of either the New York city police

pension fund or the New York city fire department pension fund or a

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

of the uniformed correction force or of the uniformed force of the

department of sanitation, as defined in subdivisions thirty-nine and

sixty-two of section 13-101 of the administrative code of the city of

New York.

* NB See ch 525/2011 § 7 for effectiveness

** NB Expires per chap 782/88 § 8

g. Interest shall accrue from the date of death until the date of

payment on accumulated member contributions refunded pursuant to this

section upon the death of a member, where no death benefit is payable on

account of such death. Interest shall accrue at the rate provided in

subdivision one of section three-a of the general municipal law.

h. Notwithstanding any inconsistent provision of subdivision a of this

section, New York city enhanced plan members who are members of the New

York city fire department pension fund shall, as of the effective date

of this subdivision pursuant to chapter two hundred ninety-eight of the

laws of two thousand sixteen, contribute three percent of annual wages

to the pension fund in which they have membership, plus an additional

percentage of annual wages as set forth in the chapter of the laws of

two thousand sixteen which added this subdivision.

i. Notwithstanding any inconsistent provision of subdivision a of this

section, New York city enhanced plan members who are members of the New

York city police pension fund shall, as of the effective date of this

subdivision, contribute three percent of annual wages to the pension

fund in which they have membership, plus an additional percentage of

annual wages as set forth in the chapter of the laws of two thousand

seventeen which added this subdivision.