N.Y. Retirement & Social Security Law § 604-g: Twenty-five year/age fifty retirement program for automotive members

§ 604-g. Twenty-five year/age fifty 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. "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.

2. "Twenty-five year/age fifty retirement program" shall mean all the

terms and conditions of this section.

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

program" shall mean, with respect to supervisors of mechanics

(mechanical equipment), the effective date of this section 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.

4. "Participant in the twenty-five year/age fifty 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 retirement program, as applicable to him or her.

5. "Discontinued member" shall mean a participant in the twenty-five

year/age fifty retirement program who, while he or she was an automotive

member, discontinued service as such a member and has a right to a

deferred vested benefit under subdivision d of this section.

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

city of New York.

b. Participation in twenty-five year/age fifty retirement program. 1.

Subject to the provisions of paragraphs six and seven of this

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

of the twenty-five year/age fifty retirement program and who, as such an

automotive 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-five year/age fifty retirement program by

filing, within two hundred seventy days after the starting date of the

twenty-five year/age fifty 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 an automotive member

on the date such application is filed.

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

subdivision, any person who becomes an automotive member after the

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

who, as such an automotive 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-five year/age fifty 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 for which such person is a member 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

retirement program shall be irrevocable.

4. Each automotive member who becomes subject to the provisions of

this article on or after the starting date of the twenty-five year/age

fifty retirement program shall become a participant in the twenty-five

year/age fifty retirement program on the date he or she becomes such an

automotive member.

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

program shall cease to be employed by the city of New York as an

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

during any period in which such person is not so employed, he or she

shall not be a participant in the twenty-five year/age fifty 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/age fifty 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.

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

person who is eligible to elect to become a participant in the

twenty-five year/age fifty 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. 1. A participant in the twenty-five

year/age fifty retirement program:

(i) who has attained age fifty; and

(ii) who has completed twenty-five or more years of credited service;

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,

not less than thirty days subsequent to the execution and filing

thereof, he or she desires to be retired; and

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

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

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

section, the early service retirement benefit for participants in the

twenty-five year/age fifty retirement program who retire pursuant to

paragraph one of this subdivision shall be a retirement allowance

consisting of:

(A) an amount on account of the required minimum period of service

equal to fifty percent of his or her final average salary; plus

(B) an amount on account of each additional year of credited service,

or fraction thereof, beyond such required minimum period of service

equal to two percent of his or her final salary;

(ii) the maximum retirement allowance computed without optional

modification payable pursuant to subparagraph (i) of this paragraph

shall equal that payable upon completion of thirty years of service.

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

retirement program:

(i) who discontinues service as such a participant, other than by

death or retirement; and

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

twenty-five years of credited service; and

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

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

additional member contributions and interest (if any) required by

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 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; 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) 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.

3. Subject to the provisions of paragraph seven of subdivision e of

this section, such deferred vested benefit shall be a retirement

allowance consisting of an amount equal to two percent of such

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

years of credited service.

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/age fifty retirement program

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

(subject to the applicable provisions of subdivision d of section six

hundred thirteen of this article) 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

retirement program, rendered on or after the date which is one hundred

eighty days prior to the starting date of the twenty-five year/age fifty

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 six of subdivision b of this section.

The additional contributions required by this subdivision shall be in

lieu of additional member contributions required by subdivision d of

section six hundred four-c of this article, as added by chapter

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

making additional contributions pursuant to this section shall be

required to make contributions pursuant to such subdivision d of section

six hundred four-c of this article.

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

shall contribute additional member contributions until the later of (i)

the first anniversary of the starting date of the twenty-five year/age

fifty retirement program, or (ii) the date on which he or she completes

thirty years of credited service as an automotive member.

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

becomes a participant in the twenty-five year/age fifty retirement

program, additional member contributions at the rate specified in

paragraph one of this subdivision shall be deducted (subject to the

applicable provisions of subdivision d of section six hundred thirteen

of this article) 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.

4. (i) Each participant in the twenty-five year/age fifty retirement

program shall he charged with a contribution deficiency consisting of

the total amounts of additional member contributions such person is

required to make pursuant to paragraphs one and two of this subdivision

which are not deducted from his or her compensation pursuant to

paragraph three of this subdivision, if any, together with interest

thereon, compounded annually, and computed in accordance with the

provisions of subparagraphs (ii) and (iii) of this paragraph.

(ii)(A) The interest required to be paid on each such amount specified

in subparagraph (i) of this paragraph 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.

(B) 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 otherwise provided in paragraph five of this

subdivision, 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.

5. (i) Should any person who, pursuant to subparagraph (ii) of

paragraph ten of of this subdivision, has received a refund of his or

her additional member contributions including any interest paid on such

contributions, again become a participant in the twenty-five year/age

fifty 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 subparagraph (ii) of this paragraph) for any

credited service for which such person received a refund of such

additional member contributions (including any amount of an unpaid loan

balance deemed to have been returned to such person pursuant to

paragraph twelve of this subdivision), as if such additional member

contributions never had been paid.

(ii) (A) Interest on a participant's additional member contributions

included in such participant's contribution deficiency pursuant to

subparagraph (i) of this paragraph shall be calculated as if such

additional member contributions had never 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,

until such amount is paid to the retirement system.

(B) 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.

6. 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

four and five of this subdivision, or repay the entire amount of a loan

of his or her additional member contributions pursuant to paragraph

eleven 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 such participant's

service retirement benefit calculated pursuant to paragraph two of such

subdivision c 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 article) which is actuarially equivalent to:

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

such member pursuant to paragraphs four and five of this subdivision;

plus

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

additional member contributions pursuant to paragraph eleven of this

subdivision (including accrued interest on such loan).

7. 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 four and five of this subdivision or repay the entire amount

of a loan of his or her additional member contributions pursuant to

paragraph eleven of this subdivision (including accrued interest on such

loan), 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 a life

annuity (calculated in accordance with the method set forth in

subdivision i of section six hundred thirteen-b of this article) which

is actuarially equivalent to:

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

such member pursuant to paragraphs four and five of this subdivision;

plus

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

additional member contributions pursuant to paragraph eleven of this

subdivision (including accrued interest on such loan).

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

twenty-five year/age fifty retirement program 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 participant's

compensation).

9. Subject to the provisions of paragraphs six and seven of this

subdivision, where a participant has not paid in full any contribution

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

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

contributions pursuant to section six hundred thirteen of this article

or a refund of additional member contributions pursuant to subparagraph

(ii) of paragraph 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.

10. (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/age fifty 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) Should a participant in the twenty-five year/age fifty 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) 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.

(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 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.

11. A participant in the twenty-five year/age fifty 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 rights, privileges, obligations and procedures

set forth in section six hundred thirteen-b of this article which govern

the borrowing of member contributions made pursuant to section six

hundred thirteen of this article. 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

article as made applicable to this subdivision, promulgate regulations

governing the borrowing of such additional member contributions.

12. Whenever a person has an unpaid balance of a loan of his or her

additional member contributions pursuant to paragraph eleven 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 ten 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 (ii).