N.Y. Retirement & Social Security Law § 70-a: Pensions-for-increased-take-home-pay

§ 70-a. Pensions-for-increased-take-home-pay. a. Beginning with a

payroll period commencing as specified by a participating employer

electing to contribute pursuant to the provisions of this section the

contribution of each member of the retirement system in the employ of

such a participating employer, exclusive of any increase thereof

pursuant to subdivision i of section twenty-one of this chapter or of

any reduction thereof pursuant to subdivision one of section one hundred

thirty-eight-b of this chapter, shall be reduced by five per centum of

the compensation of such member. Beginning with a payroll period

commencing as specified by a participating employer specifically

electing, as provided in subdivision c of this section, to contribute at

the higher rate pursuant to the provisions of this section the

contribution of each member of the retirement system in the employ of

such a participating employer, exclusive of any increase thereof

pursuant to subdivision i of section twenty-one of this chapter or of

any reduction thereof pursuant to subdivision one of section one hundred

thirty-eight-b of this chapter, shall be reduced by an additional three

per centum of the compensation of such member. Where a member's rate of

contribution as so qualified is less than the per centum by which his

contribution is reduced, such rate shall be discontinued. Such a

reduction or discontinuance, as the case may be, shall:

1. Be subject to waiver by the member as provided in subdivision j of

section twenty-one of this article, as added by this act, and

2. Take precedence over the member's privilege under subdivision one

of section one hundred thirty-eight-b of this chapter, as amended by

this act, to decrease his annuity contribution for the purpose of paying

his contributions for old-age, survivors, and disability insurance

coverage or the tax imposed upon him pursuant to the federal insurance

contribution act.

aa. Beginning with a payroll period commencing on or after such date,

as specified by a participating employer electing to contribute pursuant

to the provisions of this subdivision, the contribution of each member

of the retirement system in the employ of such a participating employer,

whose rate of contribution is in excess of eight per centum, exclusive

of any increase thereof pursuant to subdivision i of section twenty-one

of this chapter or of any reduction thereof pursuant to subdivision one

of section one hundred thirty-eight-b of this chapter or subdivision a

of this section, shall be suspended. In the case of a participating

employer any member may by written notice duly acknowledged and filed

with the comptroller beginning with the payroll period commencing on or

after such date as specified by a participating employer within one year

after the effective date of this act or within one year after he last

became a member, whichever is later, elect to waive the suspension of

his contribution provided by this subdivision. One year or more after

the filing thereof a member may withdraw any such waiver by written

notice duly acknowledged and filed with the comptroller. Where a member

makes an election to waive the suspension of his contributions as herein

provided, he shall contribute to the retirement system as otherwise

provided in this chapter.

However, commencing with the payroll period the first day of which is

nearest to July first, nineteen hundred sixty-six, the foregoing

provisions of subdivision aa shall be inapplicable as to any

participating employers other than those who had filed a resolution

prior to the effective date of this act to participate thereunder.

b. For such period of time as the provisions of subdivision a and

subdivision aa of this section shall be in effect, contributions shall

be made to the pension accumulation fund by or on account of the state

and each such participating employer, as provided in sections sixteen,

seventeen and forty-two of this article, at a rate fixed by the actuary

which shall be computed to be sufficient to provide death benefits and

pensions-providing-for-increased-take-home-pay which are or may become

payable on account of members in the employ of the state or of such a

participating employer. Such a benefit or pensions shall be based on a

reserve-for-increased-take-home-pay which shall be equivalent to the per

centum of the member's compensation during such period by which his

contribution is reduced, or would otherwise be reduced if his rate of

contribution equaled or exceeded eight per centum, pursuant to

subdivision a of this section, plus in the case of any member in the

employ of the state or of any employee of a participating employer who

has elected to participate pursuant to the provisions of this section

whose rate of contribution before any reduction as provided in

subdivision a of this section exceeds eight per centum, the per centum

of his compensation during such period by which his contribution is

suspended pursuant to subdivision aa, plus regular interest thereon.

Commencing with the payroll period which is nearest to April first,

nineteen hundred sixty-one, the provisions of this section shall not

apply to any member for any period or periods during which he ceases or

has ceased contributing toward retirement upon completion of twenty

years of service pursuant to subdivision c of section eighty, completion

of twenty-five years of service pursuant to subdivision d of section

eighty-one, subdivision d of section eighty-three, paragraph four of

subdivision d of section eighty-four, subdivision e of section

eighty-five, subdivision d of section eighty-six and subdivision d of

section eighty-seven, completion of thirty-five years of service and

attainment of age sixty pursuant to subdivision d of section twenty-one,

or completion of years of service or attainment of specified age under

any other similar requirement of this article heretofore or hereafter

enacted, provided, however, that such member shall receive credit

pursuant to this section for such period or periods for which he

contributes or has contributed toward retirement.

c. By the adoption, filing and approval, where required, of a

resolution in the manner provided by sections thirty, thirty-one or

thirty-two of this article, as the case may be, a participating employer

may elect to make contributions to the pension accumulation fund

pursuant to this section for the purpose of providing death benefits and

pensions-providing-for-increased-take-home-pay. Such resolution shall

specify the first payroll period after the date of such filing for which

reduction shall be made pursuant to subdivision a of this section in the

contributions of members in its employ and the per centum of their

compensation by which their contributions shall be reduced, which shall

be five per centum unless eight per centum is specifically elected.

d. In the case of persons who last became members on or after July

first, nineteen hundred seventy-three, the provisions of this section

shall apply only until the payroll period immediately prior to that the

first day of which is nearest to July first, nineteen hundred

seventy-four.