N.Y. Retirement & Social Security Law § 604-i: Age fifty-five retirement program for New York city teachers and certain other members

§ 604-i. Age fifty-five retirement program for New York city teachers

and certain other 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. "TRS" shall mean the New York city teachers' retirement system.

2. "BERS" shall mean the board of education retirement system of the

city of New York.

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

city of New York.

4. "BERS rules and regulations" shall mean the rules and regulations

for the government, management and control of BERS adopted pursuant to

section twenty-five hundred seventy-five of the education law.

5. "New York city eligible position" shall mean:

(i) with respect to members of TRS, all positions as a teacher (as

defined in subdivision seven of section 13-501 of the administrative

code), and shall not include any position covered by section 13-563 of

the administrative code; or

(ii) with respect to members of BERS, the following positions in

education service: head nurses, head nurses (BOE), supervisors of

nurses, staff nurses, registered nurses (BOE), public health nurses,

pediatric nurse associates, supervising therapists, senior occupational

therapists, senior occupational therapists (BOE), occupational

therapists, occupational therapists (BOE), senior physical therapists,

senior physical therapists (BOE), physical therapists, physical

therapists (BOE), substitute vocational assistants, non-annualized adult

education teachers, non-annualized adult education assistant

coordinators, non-annualized adult education coordinators, directors of

drug and alcohol programs, assistant directors of drug and alcohol

programs, sign language interpreters, teachers of military science,

senior army, navy, air force, aerospace, marine corps or coast guard

instructors, army, navy, air force, aerospace, marine corps or coast

guard instructors, youth development specialists and the following

positions represented by the recognized teacher organization for

collective bargaining purposes: education administrators, education

officers, associate education officers, education analysts and associate

education analysts.

6. "New York city eligible member" shall mean a member of TRS or BERS

who is subject to the provisions of this article and who is employed in

a New York city eligible position.

7. "Age fifty-five retirement program" shall mean all the terms and

conditions of this section.

8. "Starting date of the age fifty-five retirement program" shall mean

the commencement date of the first payroll period which begins after the

enactment date of the age fifty-five retirement program.

9. "Enactment date of the age fifty-five retirement program" shall

mean the date this section takes effect.

10. "Participant in the age fifty-five retirement program" shall mean

any New York city eligible 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 age fifty-five

retirement program, as applicable to him or her.

11. "Twenty-five-year participant in the age fifty-five retirement

program" shall mean a participant in the age fifty-five retirement

program who first became such a participant pursuant to paragraph one or

two of subdivision b of this section.

12. "Twenty-seven-year participant in the age fifty-five retirement

program" shall mean a participant in the age fifty-five retirement

program who first became such a participant pursuant to paragraph four

or five of subdivision b of this section.

13. "Participating retirement system" shall mean TRS or BERS.

14. "Education service" shall mean service as a paid official or

employee of the board of education of the city of New York or the New

York city school construction authority, and allowable pursuant to the

applicable provisions which govern the service credit of a member of

BERS.

b. Participation in age fifty-five retirement program. 1. Subject to

the provisions of paragraphs seven, eight and nine of this subdivision,

any person who is employed in a New York city eligible position on the

enactment date of the age fifty-five retirement program, and who is a

New York city eligible member in active service on such enactment date,

may elect to become a participant in the age fifty-five retirement

program by filing, within one hundred eighty days after the enactment

date of the 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 a New York city eligible

member in active service on the date such application is filed.

2. Subject to the provisions of paragraphs seven, eight and nine of

this subdivision, any person: (i) who is employed in a New York city

eligible position on the enactment date of the age fifty-five retirement

program, or who, on such enactment date, is a discontinued member not in

active service who is entitled to a deferred vested benefit at normal

retirement age; and (ii) who becomes a New York city eligible member in

active service after such enactment date, may elect to become a

participant in the age fifty-five retirement program by filing, within

one hundred eighty days after becoming a New York city eligible member

in active service, a duly executed application for such participation

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

or she is a New York city eligible member in active service on the date

such application is filed.

3. (i) Except as provided in subparagraph (ii) of this paragraph, any

election to be a participant in the age fifty-five retirement program

shall be irrevocable.

(ii) Notwithstanding any other provision of law to the contrary, any

participant in the age fifty-five retirement program who became such a

participant pursuant to paragraph one or two of this subdivision, and

whose age and amount of credited service (which amount of credited

service shall, for the limited purposes only of this subparagraph,

include service rendered previous to becoming a member which is not yet

credited, but for which such person is or may become eligible to obtain

credit pursuant to section six hundred nine of this article) at the time

of first becoming such a participant are such that he or she could not

possibly be able to accumulate a total of at least twenty-five years of

credited service by the time he or she reaches age sixty-two, assuming

such person were to earn a full year of credited service in each and

every year until he or she becomes sixty-two years of age (whether or

not such person actually intends to earn such amounts of credit), may

withdraw from the age fifty-five retirement program by filing, within

three hundred sixty-five days after first becoming such a participant, a

written request to withdraw from such program with the retirement system

of which such person is a member.

4. Subject to the provisions of paragraphs seven and nine of this

subdivision, any person (i) other than a person who is deemed pursuant

to paragraph eight of this subdivision to be employed for the purposes

of paragraph one or two of this subdivision in a New York city eligible

position on the enactment date of the age fifty-five retirement program,

or other than a person who, on such enactment date, is a discontinued

member not in active service who is entitled to a deferred vested

benefit at normal retirement age, (ii) who becomes a New York city

eligible member in active service after the enactment date of the age

fifty-five retirement program and (iii) who, as such an eligible 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

age fifty-five retirement program by filing, within one hundred eighty

days after becoming a New York city eligible member in active service, a

duly executed application for such participation with the retirement

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

New York city eligible member in active service on the date such

application is filed. Any election pursuant to this paragraph to be a

participant in the age fifty-five retirement program shall be

irrevocable.

5. Each person (i) other than a person who is deemed pursuant to

paragraph eight of this subdivision to be employed for the purposes of

paragraph one or two of this subdivision in a New York city eligible

position on the enactment date of the age fifty-five retirement program,

or other than a person who, on such enactment date, is a discontinued

member not in active service who is entitled to a deferred vested

benefit at normal retirement age, (ii) who becomes a New York city

eligible member in active service after the enactment date of the age

fifty-five retirement program and (iii) who, as such an eligible member

or otherwise, becomes subject to the provisions of this article after

the enactment date of the age fifty-five retirement program shall become

a participant in the age fifty-five retirement program on the date he or

she becomes a New York city eligible member in active service.

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

other provision of law to the contrary, no member who becomes subject to

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

paragraph shall be a participant in the age fifty-five retirement

program.

6. Where any participant in the age fifty-five retirement program

shall cease to hold a New York city eligible position, he or she shall

cease to be such a participant and, during any period in which such

person is not a New York city eligible member, he or she shall not be a

participant in the age fifty-five retirement program.

7. Where any participant in the age fifty-five retirement program

terminates service in a New York city eligible position and returns to

service in a New York city eligible position at a later date and again

becomes a New York city eligible member, he or she shall again become

such a participant upon becoming a New York city eligible member.

8. For the limited purposes only of determining eligibility to elect

to become a participant in the age fifty-five retirement program

pursuant to paragraph one or two of this subdivision, a person shall be

deemed to be employed in a New York city eligible position on the

enactment date of the age fifty-five retirement program if, on such

enactment date, such person is: (i) in active service in a New York city

eligible position; (ii) on a leave of absence without pay from a New

York city eligible position approved by his or her public employer, and

such person returns to active service in a New York city eligible

position after such enactment date and within five years after beginning

such unpaid leave of absence; or (iii) on suspension without pay from a

New York city eligible position, and such person is reinstated from such

suspension to active service in such an eligible position after such

enactment date by his or her public employer.

9. Notwithstanding any other provision of law to the contrary, and

except as provided in paragraph five of this subdivision, any person who

is eligible to elect to become a participant in the age fifty-five

retirement program pursuant to paragraph one, two or four of this

subdivision for the full one hundred eighty-day period provided for in

such applicable paragraph, and who fails to timely file a duly executed

application for such participation with the appropriate retirement

system, shall not thereafter be eligible to become a participant in such

program.

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

fifty-five retirement program:

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

(ii) who has attained age fifty-five;

(iii) 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 and five of subdivision e of this section;

(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 age fifty-five retirement

program in active service at the time so specified for his or her

retirement; shall be retired pursuant to the provisions of this

paragraph affording early service retirement, provided, however, that no

such participant who otherwise meets the retirement eligibility

requirements of this paragraph shall be permitted to retire pursuant to

this paragraph prior to June thirtieth, two thousand eight.

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

program:

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

(ii) who has attained age fifty-five;

(iii) 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 and five of subdivision e of this section;

(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 age fifty-five retirement

program in active service at the time so specified for his or her

retirement; shall be retired pursuant to the provisions of this

paragraph affording early service retirement.

3. 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 a participant in the

age fifty-five retirement program who retires pursuant to either

paragraph one or two of this subdivision shall be a retirement allowance

equal to one-fiftieth of final average salary times years of credited

service not in excess of thirty years. Credited service in excess of

thirty years shall provide an additional retirement allowance equal to

three-two hundredths of the final average salary for each year of

credited service in excess of thirty years.

d. Vesting. 1. (i) A twenty-five-year participant in the age

fifty-five retirement program:

(A) who, on or after June thirtieth, two thousand eight, as such a

participant in such retirement program, discontinues service as a

teacher (as defined in subdivision seven of section 13-501 of the

administrative code) or discontinues education service (as defined in

paragraph fourteen of subdivision a of this section), other than by

death or retirement;

(B) who, prior to such discontinuance, completed twenty-five or more

years of credited service;

(C) 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 and five of subdivision e of this section; and

(D) 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 paragraph.

(ii) (A) Upon such discontinuance under the conditions and in

compliance with the provisions of subparagraph (i) of this paragraph,

such deferred vested benefit shall vest automatically.

(B) 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.

(iii) Subject to the provisions of paragraph ten of subdivision e of

this section, such deferred benefit shall be a retirement allowance

computed in accordance with the applicable provisions of paragraph three

of subdivision c of this section.

2. (i) A twenty-seven-year participant in the age fifty-five

retirement program:

(A) who, as such a participant in such retirement program,

discontinues service as a teacher (as defined in subdivision seven of

section 13-501 of the administrative code) or discontinues education

service (as defined in paragraph fourteen of subdivision a of this

section), other than by death or retirement; and

(B) who, prior to such discontinuance, completed twenty-seven or more

years of credited service; and

(C) 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 and five of subdivision e of this section; and

(D) 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 paragraph.

(ii) (A) Upon such discontinuance under the conditions and in

compliance with the provisions of subparagraph (i) of this paragraph,

such deferred vested benefit shall vest automatically.

(B) 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.

(iii) Subject to the provisions of paragraph ten of subdivision e of

this section, such deferred benefit shall be a retirement allowance

computed in accordance with the applicable provisions of paragraph three

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 age fifty-five retirement program shall

contribute (subject to the applicable provisions of subdivision d of

section six hundred thirteen of this article) an additional percentage

of his or her compensation to the retirement system of which he or she

is a member in accordance with the following applicable provisions:

(i) each twenty-five-year participant in the age fifty-five retirement

program shall contribute an additional one and eighty-five

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

credited service rendered on and after the starting date of the age

fifty-five retirement program

(A) while such person is a participant in such program; and

(B) before such person becomes such a participant pursuant to

paragraph one or two of subdivision b of this section (whether or not

rendered in a New York city eligible position); and

(C) after such person ceases to be a participant, but before he or she

again becomes such a participant pursuant to paragraph seven of

subdivision b of this section (whether or not rendered in a New York

city eligible position); and

(ii) each twenty-seven-year participant in the age fifty-five

retirement program shall contribute an additional one and eighty-five

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

credited service rendered

(A) while such person is a participant in such program; and

(B) before such person becomes such a participant pursuant to

paragraph four or five of subdivision b of this section (whether or not

rendered in a New York city eligible position, and whether rendered

before or after the starting date of the age fifty-five retirement

program); and

(C) after such person ceases to be a participant, but before he or she

again becomes such a participant pursuant to paragraph seven of

subdivision b of this section (whether or not rendered in a New York

city eligible position).

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

program (as defined in paragraph eleven of subdivision a of this

section) shall contribute additional member contributions until the

later of (i) June twenty-ninth, two thousand eight, or (ii) the date on

which he or she has completed twenty-five years of credited service. A

twenty-seven-year participant in the age fifty-five retirement program

shall contribute additional member contributions only until he or she

has completed twenty-seven years of credited service; provided, however,

that a twenty-seven-year participant in the age fifty-five retirement

program who becomes subject to the provisions of this article after the

effective date of the chapter of the laws of two thousand nine that

amended this paragraph shall contribute additional member contributions

for all years of credited service as provided in subparagraph (ii) of

paragraph one of this subdivision.

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

becomes a participant in the age fifty-five 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.

(ii)(A) Those portions of the additional member contributions required

by paragraph one of this subdivision which are attributable to credited

service rendered on and after the starting date of the age fifty-five

retirement program, and prior to the actual commencement of deductions

from compensation pursuant to subparagraph (i) of this paragraph, by a

person who becomes a participant pursuant to paragraph one of

subdivision b of this section, shall be paid by deductions from the

compensation of such participant pursuant to and in accordance with the

provisions of item (B) of this subparagraph.

(B) Commencing with the payroll period in which deductions of

additional member contributions from such participant's compensation are

begun pursuant to subparagraph (i) of this paragraph, in addition to

such deductions required by subparagraph (i) of this paragraph, there

shall be another deduction of additional member contributions made from

the compensation of such participant at one-third the rate at which

deductions are being made pursuant to subparagraph (i) of this paragraph

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

hundred thirteen of this article) 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, provided, however, that

deductions pursuant to this item shall be made only during the period

while such person is a participant after first becoming a participant

pursuant to paragraph one of subdivision b of this section and before

ceasing to be such a participant.

4. (i) Each participant in the age fifty-five retirement program shall

be charged with a contribution deficiency consisting of the total amount

of additional member contributions such person is required to make

pursuant to paragraph one of this subdivision which is 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) Subject to the provisions of subparagraph (iii) of this

paragraph, the interest required to be paid on the amount specified in

subparagraph (i) of this paragraph shall accrue from the end of each of

the payroll periods 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 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) (A) Should any person who, pursuant to paragraph twelve of this

subdivision, has received a refund of the employee portion of his or her

additional member contributions (as established in accordance with item

(B) of subparagraph (ii) of paragraph six of this subdivision),

including any interest paid on such employee portion, again become a

participant in the age fifty-five retirement program pursuant to

paragraph seven 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 employee portion of additional member

contributions (including any amount of an unpaid loan balance deemed to

have been returned to such person pursuant to paragraph fourteen of this

subdivision), as if such employee portion of additional member

contributions never had been paid.

(B) Any person who has his or her membership in one participating

retirement system terminated without transferring such membership

directly from such participating retirement system to the other

participating retirement system, who has an unpaid balance of a loan of

the employee portion of his or her additional member contributions

pursuant to paragraph thirteen of this subdivision at the time of the

termination of such membership, who, pursuant to paragraph seven of

subdivision b of this section, thereafter again becomes a participant in

the age fifty-five retirement program as a member of either

participating retirement system without having received a refund of the

employee portion of his or her additional member contributions pursuant

to paragraph twelve of this subdivision, shall have an appropriate

amount included in such participant's contribution deficiency (including

interest thereon as calculated in subparagraph (ii) of this paragraph)

for any credited service for which such person borrowed and did not

repay such employee portion of additional member contributions, as if

such employee portion of additional member contributions never had been

paid.

(ii)(A) Interest on the employee portion of 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 employee portion of additional member

contributions never had been paid by such participant, and such interest

shall accrue from the end of the payroll period to which an amount of

such employee portion of 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. (i) All additional member contributions required by this

subdivision (and any interest paid 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 six hundred thirteen of this article or otherwise while he

or she is a participant in the age fifty-five retirement program or

otherwise.

(ii) All additional member contributions required for any period of

credited service pursuant to paragraph one of this subdivision (and any

interest paid thereon pursuant to paragraph four of this subdivision)

which, pursuant to subparagraph (i) of this paragraph, are paid by a

participant (subject to the applicable provisions of subdivision d of

section six hundred thirteen of this article) into the contingent

reserve fund of the retirement system of which such participant is a

member (other than repayments of loans of additional member

contributions pursuant to paragraph thirteen of this subdivision or

amounts paid in satisfaction of a contribution deficiency calculated in

accordance with paragraph five of this subdivision) shall be divided in

the following manner:

(A) one-half of such additional member contributions (and any such

interest paid thereon) shall be the employer contribution portion of

such additional member contributions; and

(B) one-half of such additional member contributions (and any such

interest paid thereon) shall be the employee portion of such additional

member contributions, and shall be credited to the employee additional

contributions account which shall be established for such participant

within the contingent reserve fund of such retirement system.

(iii) No person, while he or she is a participant or otherwise, shall

at any time be permitted:

(A) to borrow, pursuant to paragraph thirteen of this subdivision or

any other provision, any of the employer contribution portion of his or

her additional member contributions (as established in accordance with

item (A) of subparagraph (ii) of this paragraph, including any interest

paid thereon) which has been paid into the contingent reserve fund of

the retirement system; or

(B) to receive a refund of any of such employer contribution portion

pursuant to paragraph twelve of this subdivision or any other provision.

(iv) None of the employer contribution portion of a participant's

additional member contributions (including any interest paid thereon)

shall for any purpose:

(A) be deemed to be part of the employee portion of additional member

contributions paid by a participant; or

(B) be credited to the employee additional contributions account

established for such participant in the contingent reserve fund of the

retirement system.

(v) All repayments of loans of the employee portion of additional

member contributions pursuant to paragraph thirteen of this subdivision

and all payments of the employee portion of additional member

contributions in satisfaction of a contribution deficiency calculated in

accordance with paragraph five of this subdivision which are paid by a

participant to the contingent reserve fund of a participating retirement

system (and any interest paid thereon) shall be part of the employee

portion of such participant's additional member contributions and shall

be credited to the employee additional contributions account established

for such participant in the contingent reserve fund of such retirement

system.

7. Where a person who was a participant in the age fifty-five

retirement program as a member of one participating retirement system

becomes such a participant as a member of the other participating

retirement system:

(i) the employer contribution portion of the additional member

contributions paid by such person to such first retirement system

pursuant to this subdivision (including any interest paid thereon) that

is attributable to any period of credited service obtained in such

second retirement system by purchase or transfer, which previously was

credited in such first retirement system, shall (only for purposes of

this subdivision, and not for purposes of determining required employer

contributions to such second retirement system) be deemed to have been

paid to such second retirement system rather than to such first

retirement system; and

(ii) the employee portion of the additional member contributions paid

by such person to such first retirement system pursuant to this

subdivision (including any interest paid thereon) which remains credited

to the employee additional contributions account established for such

person in the contingent reserve fund of such first retirement system

that is attributable to any period of credited service obtained in such

second retirement system by purchase or transfer, which previously was

credited in such first retirement system, shall (only for purposes of

this subdivision, and not for purposes of determining required employer

contributions to such second retirement system) be deemed to have been

paid to such second retirement system rather than to such first

retirement system, and shall be credited to the employee additional

contributions account established for such participant in the contingent

reserve fund of such second retirement system.

8. A person who was a participant in the age fifty-five retirement

program as a member of one participating retirement system, who becomes

such a participant as a member of the other participating retirement

system and who thereafter transfers his or her membership in such first

retirement system directly to such second retirement system as such a

participant shall be deemed to have the same unpaid balance of a loan of

the employee portion of additional member contributions pursuant to

paragraph thirteen of this subdivision (including accrued interest) as

he or she had in such first retirement system at the time of such

transfer of membership to the second retirement system.

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

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

of the employee portion of his or her additional member contributions

pursuant to paragraph thirteen of this subdivision (including accrued

interest on such loan), that participant, nevertheless, shall be

eligible to retire pursuant to subdivision c of this section, provided,

however, that where such participant is not entitled to a refund of the

employee portion of additional member contributions pursuant to

subparagraph (iii) of paragraph twelve of this subdivision, such

participant's service retirement benefit calculated pursuant to

paragraph three of such subdivision c shall be reduced by a life annuity

(calculated in accordance with the method set forth in subdivision h of

section six hundred thirteen-a 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 the employee

portion of his or her additional member contributions pursuant to

paragraph thirteen of this subdivision (including accrued interest on

such loan).

10. Where a participant in the age fifty-five retirement program 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 the

employee portion of his or her additional member contributions pursuant

to paragraph thirteen 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 the otherwise applicable provisions of such subdivision d

shall be reduced by a life annuity (calculated in accordance with the

method set forth in subdivision h of section six hundred thirteen-a 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 the employee

portion of his or her additional member contributions pursuant to

paragraph thirteen of this subdivision (including accrued interest on

such loan).

11. The retirement board of TRS and the retirement board of BERS may,

consistent with the provisions of this subdivision, promulgate

regulations for the payment of additional member contributions required

by this subdivision, and any interest thereon, by participants in the

age fifty-five retirement program (including the deduction of such

contributions, and any interest thereon, from the participants'

compensation).

12. (i) Subject to the provisions of paragraph fourteen of this

subdivision, a participant in the age fifty-five retirement program who

retires for disability pursuant to section six hundred five of this

article shall be entitled, upon such retirement, to a refund of the

employee portion of his or her additional member contributions paid

pursuant to this subdivision (including any interest on such employee

portion paid to the retirement system) which remains credited to the

employee additional contributions account established for such person in

the contingent reserve fund of the retirement system of which he or she

is a member at the time of such retirement for disability, together with

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

annually.

(ii) Subject to the provisions of paragraph fourteen of this

subdivision, upon the death of a participant in the 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, the employee portion of his

or her additional member contributions paid pursuant to this subdivision

(including any interest on such employee portion paid to the retirement

system) which remains credited to the employee additional contributions

account established for such person in the contingent reserve fund of

the retirement system of which he or she is a member at the time of his

or her death, together with interest thereon at the rate of five percent

per annum, compounded annually.

(iii) Subject to the provisions of paragraph fourteen of this

subdivision, a person:

(A) who is or was a participant in the age fifty-five retirement

program;

(B) who retires for service as a member of TRS or BERS pursuant to the

applicable service retirement provisions of this article;

(C) who is in active service on the effective date of retirement;

(D) who is at least sixty-two years of age on the effective date of

retirement; and

(E) who was in active service for a total of at least six months out

of each of the two twelve-month periods immediately preceding his or her

retirement for service, shall, upon such retirement for service, be

entitled to a refund of the employee portion of his or her additional

member contributions paid pursuant to this subdivision (including any

interest on such employee portion paid to the retirement system) which

remains credited to the employee additional contributions account

established for such person in the contingent reserve fund of the

retirement system of which he or she is a member at the time of such

retirement for service, together with interest thereon at the rate of

five percent per annum, compounded annually.

(iv) Subject to the provisions of paragraph fourteen of this

subdivision, a person who ceases to be a participant in the age

fifty-five retirement program as a member of a participating retirement

system because he or she ceases to hold a New York city eligible

position, who thereafter is employed in another position in public

employment which is not a New York city eligible position, but which

entitles such person to membership in another public retirement system

which is maintained in whole or in part by the city or state of New

York, and who thereafter transfers his or her membership in such

participating retirement system directly to such second public

retirement system, shall be permitted to withdraw the employee portion

of his or her additional member contributions paid pursuant to this

subdivision (including any interest on such employee portion paid to the

retirement system) which remains credited to the employee additional

contributions account established for such person in the contingent

reserve fund of such participating retirement system, together with

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

annually.

(v) Subject to the provisions of paragraph fourteen of this

subdivision, any person who withdraws as a participant in the age

fifty-five retirement program by filing a valid request for such

withdrawal pursuant to subparagraph (ii) of paragraph three of

subdivision b of this section shall, upon such withdrawal, be entitled

to a refund of the employee portion of his or her additional member

contributions paid pursuant to this subdivision (including any interest

on such employee portion paid to the retirement system) which remains

credited to the employee additional contributions account established

for such person in the contingent reserve fund of the retirement system

of which he or she is a member at the time of such withdrawal as a

participant, together with interest thereon at the rate of five percent

per annum, compounded annually.

(vi) Subject to the provisions of paragraph fourteen of this

subdivision, a participant in the age fifty-five retirement program who

has been terminated from employment in a New York city eligible position

for economic reasons by his or her public employer shall be entitled,

upon such termination, to withdraw the employee portion of his or her

additional member contributions paid pursuant to this subdivision

(including any interest on such employee portion paid to the retirement

system) which remains credited to the employee additional contributions

account established for such person in the contingent reserve fund of

the retirement system of which he or she is a member at the time of such

termination from employment, together with interest thereon at the rate

of five percent per annum, compounded annually.

(vii) 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;

(B) no person, while he or she is a participant in the age fifty-five

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; and

(C) no person, while he or she is a participant or otherwise, shall at

any time be permitted to withdraw any of the employer contribution

portion of his or her additional member contributions, including any

interest paid thereon (as established in accordance with item (A) of

subparagraph (ii) of paragraph six of this subdivision), pursuant to any

of the preceding subparagraphs of this paragraph or otherwise.

13. A participant in the age fifty-five retirement program shall be

permitted to borrow from the employee portion of his or her additional

member contributions (as established in accordance with item (B) of

subparagraph (ii) of paragraph six of this subdivision, including any

interest paid thereon) which is credited to the employee additional

contributions account established for such participant in the contingent

reserve fund of the retirement system of which he or she is a member.

The borrowing from such employee portion of additional member

contributions pursuant to this paragraph shall be governed by the

rights, privileges, obligations and procedures set forth in the

applicable provisions of section six hundred thirteen-a of this article

(for TRS members) or section six hundred thirteen-b of this article (for

BERS members) which govern the borrowing of member contributions made

pursuant to section six hundred thirteen of this article. The retirement

board of TRS and the retirement board of BERS may, consistent with the

provisions of this subdivision and the applicable provisions of section

six hundred thirteen-a of this article (for TRS) or section six hundred

thirteen-b of this article (for BERS) as made applicable to this

subdivision, promulgate regulations governing the borrowing of such

employee portion of additional member contributions, provided, however,

that no person, while he or she is a participant or otherwise, shall at

any time be permitted to borrow, pursuant to this paragraph or any other

provision, any of the employer contribution portion of his or her

additional member contributions, including any interest paid thereon (as

established in accordance with item (A) of subparagraph (ii) of

paragraph six of this subdivision).

14. Whenever a person has an unpaid balance of a loan of the employee

portion of his or her additional member contributions pursuant to

paragraph thirteen of this subdivision at the time he or she becomes

entitled to a refund of the employee portion of his or her additional

member contributions pursuant to paragraph twelve 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 employee portion shall be the net amount of such employee portion,

together with interest thereon in accordance with the provisions of

paragraph eleven of this subdivision.