N.Y. Retirement & Social Security Law § 604-b: Twenty-five-year and age fifty-five retirement program for New York city transit authority members

§ 604-b. Twenty-five-year and age fifty-five retirement program for

New York city transit authority members. a. Definitions. The following

words or 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 transit authority member" shall mean a member (as

defined in subdivision e of section six hundred one of this article) who

(a) is an employee of the New York city transit authority, and (b) would

have been subject to the provisions of section 13-161 of the

administrative code of the city of New York had he joined the New York

city employees' retirement system prior to July twenty-seven, nineteen

hundred seventy-six.

2. "Twenty-five-year and age fifty-five retirement program" shall mean

all the terms and conditions of this section.

3. "Starting date of the twenty-five-year and age fifty-five

retirement program" shall mean the commencement date of the payroll

period which includes September first, nineteen hundred ninety-four.

4. "Enactment date of the twenty-five-year and age fifty-five

retirement program" shall mean the date of enactment of the chapter of

the laws of nineteen hundred ninety-four which added this section, as

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

law.

5. "Participant in the twenty-five-year and age fifty-five retirement

program" shall mean any New York city transit authority 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 and age fifty-five retirement

program, as applicable to him or her.

6. "Allowable service in the transit authority" shall mean credited

service which was rendered as a member of the New York city transit

authority.

7. "Minimum period" shall mean the minimum period of twenty-five years

of allowable service in the transit authority that is required in order

for a participant in the twenty-five-year and age fifty-five retirement

program to be eligible for early service retirement pursuant to

paragraph one of subdivision c of this section.

8. "Final average salary" shall mean a participant's final average

salary as defined in section six hundred eight of this article.

9. "Discontinued member" shall mean a participant in the

twenty-five-year and age fifty-five retirement program who, while he or

she was a New York city transit authority member, discontinued service

in the New York city transit authority and has a right to a deferred

vested benefit under subdivision d of this section.

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

city of New York.

b. Participation in twenty-five-year and age fifty-five retirement

program.

1. Subject to the provisions of paragraph six of this subdivision, any

person who is a New York city transit authority member on the enactment

date of the twenty-five-year and age fifty-five retirement program and

who, as such a transit authority member or otherwise, last became

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

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

fifty-five retirement program by filing, within forty-five days after

the enactment date of the twenty-five-year and age fifty-five retirement

program, 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 transit authority member on the date such application is

filed.

2. Subject to the provisions of paragraph six of this subdivision, any

person who becomes a New York city transit authority member after the

enactment date of the twenty-five-year and age fifty-five retirement

program and who, as such a transit authority member, last became subject

to the provisions of this article prior to such enactment date, may

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

retirement program by filing, within forty-five days after becoming such

transit authority 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 transit authority member on the

date such application is filed.

3. (i) Any election to be a participant in the twenty-five-year and

age fifty-five retirement program shall be irrevocable, except as

provided in subparagraph (ii) of this paragraph.

(ii) Notwithstanding the provisions of subparagraph (i) of this

paragraph, any New York city transit authority member who elected to

become a participant in the twenty-five-year and age fifty-five

retirement program pursuant to the provisions of paragraph one or

paragraph two of this subdivision, and whose age and allowable service

in the transit authority are such that he could not possibly be able to

accumulate at least twenty-five years of such service by the time he

reaches age sixty-two, may revoke such election by filing within the

period beginning November first, nineteen hundred ninety-nine and ending

January thirtieth, two thousand, a written request to withdraw from such

program with the retirement system of which he is member. Upon such

revocation the additional member contributions required by subdivision e

of this section, without interest, shall be refunded to such member.

4. Each New York city transit authority member who becomes subject to

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

twenty-five-year and age fifty-five retirement program shall become a

participant in the twenty-five-year and age fifty-five retirement

program on the date he or she becomes such a transit authority member.

4-a. (i) Notwithstanding any provision of paragraphs one and two of

this subdivision to the contrary, each person who is a New York city

transit authority member on the starting date of the elimination of

additional member contributions as such date is defined in an election

made pursuant to paragraph ten of subdivision e of this section and who

is not on that date a participant in the twenty-five-year and age

fifty-five retirement program shall become a participant in the

twenty-five-year and age fifty-five retirement program on such starting

date; provided, however, that any such person who, immediately preceding

such starting date, was a participant in the age fifty-seven retirement

program set forth in section six hundred four-d of this article may

elect to remain a participant in the age fifty-seven retirement program,

instead of becoming a participant in the twenty-five-year and age

fifty-five retirement program, by filing a written election to that

effect with the retirement system of which such person is a member.

(ii) Notwithstanding any provision of paragraph two of this

subdivision to the contrary, any person who becomes a New York city

transit authority member after the starting date of the elimination of

additional member contributions, whether such person became subject to

the provisions of this article prior to or subsequent to the enactment

date of the twenty-five-year and age fifty-five retirement program,

shall become a participant in the twenty-five-year and age fifty-five

retirement program, on the date he or she becomes such a transit

authority member.

5. Where any participant in the twenty-five-year and age fifty-five

retirement program shall cease to hold a position as a New York city

transit authority member, he or she shall cease to be such a participant

and, during any period in which such person does not hold such a transit

authority position, he or she shall not be a participant in the

twenty-five-year and age fifty-five retirement program and shall not be

eligible for the benefits of subdivision c of this section.

6. Where any participant in the twenty-five-year and age fifty-five

retirement program terminates service as a New York city transit

authority member and returns to such service as a New York city transit

authority member at a later date, he or she shall again become such a

participant on that date.

7. Where any participant in the twenty-five-year and age fifty-five

retirement program terminates service as a New York city transit

authority member due to having been promoted to a position that does not

entail eligibility for such such program, the accumulated additional

member contributions made pursuant to subdivision e of this section by

such participant (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 five percent per

annum, compounded annually.

c. Service retirement benefits. 1. A participant in the

twenty-five-year and age fifty-five retirement program:

(i) who has completed twenty-five or more years of allowable service

in the transit authority; and

(ii) who has attained age fifty-five; and

(iii) who has paid, before the effective date of retirement, all

additional member contributions and interest, if any, required by

subdivision e of this section; and

(iv) 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

(v) who shall be a participant in the twenty-five-year and age

fifty-five retirement program 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. Notwithstanding any other provision of law to the contrary, the

early service retirement benefit for participants in the

twenty-five-year and age fifty-five retirement program who retire

pursuant to paragraph one of this subdivision shall be a pension

consisting of:

(i) an amount, on account of the required minimum period of

twenty-five years of allowable service, equal to one-half of his or her

final average salary; plus

(ii) an amount for each additional year of allowable service, or

fraction thereof, beyond such required minimum period of twenty-five

years of allowable service, equal to two percent of his or her final

average salary, to a maximum of thirty years of allowable service; plus

(iii) an amount for each additional year of allowable service, or

fraction thereof, in excess of thirty years of allowable service, equal

to one and one-half percent of his or her final average salary.

d. Vesting. 1. A participant in the twenty-five-year and age

fifty-five retirement program who:

(i) discontinues city-service and service as a member of the New York

city transit authority other than by death or retirement; and

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

twenty-five years of allowable service in the transit authority; and

(iii) has paid, prior to such discontinuance, all additional member

contributions and interest, if any, required by subdivision e of this

section; and

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

member contributions pursuant to section six hundred thirteen of this

article unless such participant thereafter returns to public service and

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

such section six hundred thirteen of this article;

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

section six hundred twelve of this article.

2. A participant in the twenty-five year and age fifty-five retirement

program who:

(i) discontinues city service and service as a New York city transit

authority member other than by death or retirement with immediate

payability; and

(ii) prior to such discontinuance completed twenty-five years of

allowable service in the transit authority; and

(iii) has not yet attained age fifty-five; and

(iv) has paid, prior to such discontinuance, all additional member

contributions with interest (if any) required by subdivision e of this

section; and

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

member contributions pursuant to section six hundred thirteen of this

article unless such participant thereafter returns to public service and

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

such section six hundred thirteen of this article; shall be entitled to

receive a deferred vested benefit as provided in this subdivision.

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

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

vested benefit shall vest automatically.

(ii) In the case of a participant who is not a New York city revised

plan member, such vested benefit shall become payable on the earliest

date on which such discontinued member could have retired for service if

such discontinuance had not occurred or, in the case of a participant

who is a New York city revised plan member, such vested benefit shall

become payable at age sixty-three.

4. Such deferred vested benefit shall be determined pursuant to the

provisions of paragraph two of subdivision c of this section.

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

contributions required by section six hundred thirteen of this article,

each participant in the twenty-five-year and age fifty-five retirement

program shall contribute to the retirement system of which he or she is

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

the administrative code) an additional two and thirty-hundredths percent

of his or her compensation earned from all allowable service in the

transit authority rendered on and after the starting date of the

twenty-five-year and age fifty-five retirement program. A participant in

the twenty-five-year and age fifty-five retirement program shall

contribute additional member contributions only until he or she has

thirty years of allowable service in the transit authority. In the event

that the New York city transit authority elects to eliminate additional

member contributions pursuant to paragraph ten of this subdivision, a

participant in the twenty-five-year and age fifty-five retirement

program who becomes a participant pursuant to the provisions of

paragraph four-a of subdivision b of this section shall not be required

to make any additional member contributions pursuant to this

subdivision.

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

date of the twenty-five-year and age fifty-five 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, in 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 such

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 eight of this

subdivision, has withdrawn any additional member contributions (and any

interest paid thereon) again become a participant in the

twenty-five-year and age fifty-five retirement program 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 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 five percent

per annum, compounded annually.

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

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 before the effective date of retirement, that participant shall not

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

6. Where a contribution deficiency chargeable to a participant

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

full before the date of discontinuance of service, that participant

shall not be entitled to a deferred vested benefit pursuant to

subdivision d of this section.

7. 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 member contributions

pursuant to section six hundred thirteen of this article, a refund of

additional member contributions pursuant to paragraph eight of this

subdivision or a refund of additional member contributions pursuant to

paragraph seven of subdivision b of this section, 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.

8. (i) Such additional member contributions (and any interest thereon)

shall be paid into the contingent reserve fund of the retirement system

of which the participant is a member and shall not for any purpose be

deemed to be member contributions or accumulated contributions of a

member under section six hundred thirteen of this article or otherwise

while he or she is a participant in the twenty-five-year and age

fifty-five retirement program 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-five-year and age

fifty-five retirement program who has rendered less than

twenty-five-years of allowable service in the transit authority cease to

hold a position as a New York city transit authority 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) maybe 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 five percent per annum, compounded annually.

(B) Upon the death of a participant in the twenty-five-year and age

fifty-five retirement program, 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.

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

member while he or she is a participant or otherwise, shall have a right

to withdraw such additional member contributions or any interest thereon

from the retirement system.

9. A member who has made the additional contributions specified by

this subdivision may borrow a portion of such contributions, pursuant to

the provisions of section six hundred thirteen-b of this article.

10. The New York city transit authority, by the adoption of a

resolution or resolutions, may make an election or elections to

eliminate the additional member contributions required to be made

pursuant to paragraph one of this subdivision. Such election or

elections may be made applicable to all employees of the transit

authority, to employees who are represented by a specific collective

bargaining organization, recognized or certified pursuant to article

fourteen of the civil service law, and/or to employees who are not

represented for the purposes of collective bargaining. Such election or

elections shall define the starting date of the elimination of

additional member contributions, except as set forth below, which shall

in no event be earlier than the first payroll period following December

fifteenth, two thousand. An election made pursuant to this paragraph

shall be irrevocable. A demand for an elimination of additional member

contributions shall not be subject to the provisions of subdivision five

of section two hundred nine of the civil service law. The New York city

transit authority shall notify the head of the New York city employees'

retirement system of any election or elections made pursuant to this

paragraph. Notwithstanding the aforementioned starting date of the

elimination of additional member contributions or any other provision of

this section, an eligible participant, as defined below, shall be

entitled to a refund of all of his or her accumulated additional member

contributions made pursuant to this subdivision which shall include any

and all interest thereon paid to the retirement system, together with

interest thereon at the rate of five percent per annum, compounded

annually, and such refund shall be payable, upon such participant's

application, pursuant to procedures promulgated in regulations of the

board of trustees of the retirement system. An eligible participant

shall be a participant (i) who is or was employed in a title represented

for purposes of collective bargaining by an employee organization

representing a majority of non-supervisory employees in the New York

city transit authority's Queens Bus and/or Staten Island Bus Divisions,

recognized or certified pursuant to article fourteen of the civil

service law, and who, on December twenty-eight, two thousand five, had

an accumulated balance of additional member contributions at the

retirement system; or (ii) who is or was employed in a title represented

for purposes of collective bargaining by the employee organization

representing the majority of non-supervisory employees in the New York

city transit authority in other than the Queens Bus and/or Staten Island

Bus Divisions, recognized or certified pursuant to article fourteen of

the civil service law, and who, on December sixteenth, two thousand

five, had an accumulated balance of additional member contributions at

the retirement system.

11. Notwithstanding any provision of law, rule or regulation to the

contrary, any member who is a current member of the New York city

transit authority twenty-five year and age fifty-five retirement plan

authorized in this section:

(i) whose name was included on a preferred eligible list during any

period occurring on or after May eleventh, two thousand ten and on or

prior to July twenty-fifth, two thousand twelve, by reason of the

abolition of a position held by him or her with the New York city

transit authority; and

(ii) who was a member or former member at the time when his or her

name was placed on such list;

shall be permitted to contribute to such retirement plan, the amount

which he or she would have contributed to such system for the duration

of time his or her name was included on such list, together with regular

interest on such amount, and the length of credited time for which

contributions are made pursuant to this paragraph shall be credited as

allowable service in the transit authority plan under this section for

all purposes, including eligibility for benefits.