N.Y. Retirement & Social Security Law § 604-j: Twenty-five year retirement program for fire protection inspector members

§ 604-j. Twenty-five year retirement program for fire protection

inspector 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. "Fire protection inspector member" shall mean a member who is

employed by the city of New York or by the New York city fire department

in a title whose duties are those of a fire protection inspector or

associate fire protection inspector; or in a title whose duties require

the supervision of employees whose duties are those of a fire protection

inspector or associate fire protection inspector.

2. "Twenty-five year retirement program" shall mean all the terms and

conditions of this section.

3. "Starting date of the twenty-five year retirement program" shall

mean the effective date of this section.

4. "Participant in the twenty-five year retirement program" shall mean

any fire protection inspector 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 retirement program, as applicable to them.

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

year retirement program who, while they were a fire protection inspector

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.

7. "Allowable service as a fire protection inspector member" shall

mean all service as a fire protection inspector member.

b. Participation in the twenty-five year retirement program. 1.

Subject to the provisions of paragraphs six and seven of this

subdivision, any person who is a fire protection inspector member on the

starting date of the twenty-five year retirement program and who, as

such a fire protection inspector 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 retirement

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

date of the twenty-five year retirement program, a duly executed

application for such participation with the retirement system of which

such person is a member, provided they are such a fire protection

inspector 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 a fire protection inspector member

after the starting date of the twenty-five year retirement program and

who, as such a fire protection inspector 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

retirement program by filing, within one hundred eighty days after

becoming such a fire protection inspector member, a duly executed

application for such participation with the retirement system for which

such person is a member, provided they are such a fire protection

inspector member on the date such application is filed.

3. Each fire protection inspector member, other than a fire protection

inspector member subject to paragraph one or two of this subdivision,

who becomes subject to the provisions of this article on or after the

starting date of the twenty-five year retirement program shall become a

participant in the twenty-five year retirement program on the date they

become such a fire protection inspector member. Provided, however, a

person subject to this paragraph, and who has exceeded age twenty-five

upon employment as a fire protection inspector member, shall be exempt

from participation in the improved twenty-five year retirement program

if such person elects not to participate by filing a duly executed form

with the retirement system within one hundred eighty days of becoming a

fire protection inspector member.

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

program shall be irrevocable.

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

shall cease to be employed as a fire protection inspector member, they

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

such person is not so employed, they shall not be a participant in the

twenty-five year 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 retirement program

terminates service as a fire protection inspector member and returns to

such service as a fire protection inspector member at a later date, they

shall again become such a participant on that date.

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

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

twenty-five year retirement program pursuant to paragraph one or two 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 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 retirement program:

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

as a fire protection inspector member; and

(ii) 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

(iii) who files with the retirement system of which they are a member

an application for service retirement setting forth at what time, not

less than thirty days subsequent to the execution and filing thereof,

their desire to be retired; and

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

program at the time so specified for their retirement; shall be retired

pursuant to the provisions of this section affording early service

retirement.

2. Notwithstanding the provisions of subdivision a-1 of section six

hundred three of this article, or 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 retirement program who retire pursuant to

paragraph one of this subdivision shall be a retirement allowance

consisting of:

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

equal to fifty percent of their final average salary; plus

(ii) an amount on account of allowable service as a fire protection

inspector member, or fraction thereof, beyond such required minimum

period of service equal to two percent of their final salary for such

allowable service as a fire protection inspector member during the

period from completion of twenty-five years of allowable service as a

fire protection inspector member to the date of retirement but not to

exceed more than five years of additional service as a fire protection

inspector member.

d. Vesting. 1. A participant in the twenty-five year 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 allowable service as a fire protection inspector

member; 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 their 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. 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 retirement program shall

contribute to the retirement system of which they are a member (subject

to the applicable provisions of subdivision d of section six hundred

thirteen of this article and subject to the limitation provided for in

paragraph two of this subdivision) an additional six and twenty-five

one-hundredths percent of their compensation earned from (i) all

allowable service, as a participant in the twenty-five year retirement

program, rendered on or after the starting date of the twenty-five year

retirement program, and (ii) all allowable service after such person

ceases to be a participant, but before they again become a participant

pursuant to paragraph six of subdivision b of this section. The

additional contributions required by this section 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. Notwithstanding the foregoing provisions of this

paragraph, the additional member contribution required to be paid by

each participant pursuant to this paragraph shall not exceed the

percentage of their compensation that, when added to the contribution

made pursuant to subdivision d of section six hundred thirteen of this

article, equals nine and twenty-five one-hundredths percent of that

compensation.

2. A participant in the twenty-five year retirement program shall

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

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

retirement program, or (ii) the date on which they complete thirty years

of allowable service as a fire protection inspector member.

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

becomes a participant in the twenty-five year 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

they are such a participant.

4. (i) Each participant in the twenty-five year retirement program

shall be 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 their 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 they 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 this subdivision, has received a refund of their

additional member contribution including any interest paid on such

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

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 them pursuant to paragraphs four

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

their 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 of this section 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 their 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 them pursuant to paragraphs four

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

their additional member contributions pursuant to paragraph eleven of

this subdivision (including accrued interest on such loan), that

participant, nevertheless, shall have 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 two of

subdivision d of this section 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 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 their additional

member contributions pursuant to paragraph eleven of this subdivision

(including accrued interest on such a loan).

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

twenty-five year 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 them 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 their 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 they are a participant in the twenty-five

year retirement program or otherwise.

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

who has rendered less than fifteen years of credited service cease to

hold a position as a fire protection inspector member for any reason

whatsoever, their accumulated additional member contributions made

pursuant to this subdivision (together with any interest thereon paid to

the retirement system) may be withdrawn by them 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 they

are a participant in the twenty-five year 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 retirement program shall be

permitted to borrow from their 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 or their

additional member contributions pursuant to paragraph eleven of this

subdivision at the time they become entitled to a refund of their

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 contribution, together with interest

thereon in accordance with the provisions of such subparagraph (ii).