N.Y. RSS Law § 517 — New York Code / Act RSS / Article 14 / Section 517
Member contributions
Status: in_force

§ 517. Member contributions. * a. Members shall contribute three\npercent of annual wages to the retirement system in which they have\nmembership, provided that such contributions shall not be required for\nmore than thirty years, for general members, or twenty-five years, for\npolice/fire members, except that beginning April first, two thousand\nthirteen for members who first become members of the New York state and\nlocal employees' retirement system on or after April first, two thousand\ntwelve, the rate at which each such member shall contribute in any\ncurrent plan year (April first to March thirty-first) shall be\ndetermined by reference to the wages of such member in the second plan\nyear (April first to March thirty-first) preceding such current plan\nyear as follows:\n  1. members with wages of forty-five thousand dollars per annum or less\nshall contribute three per centum of annual wages;\n  2. members with wages greater than forty-five thousand per annum, but\nnot more than fifty-five thousand per annum shall contribute three and\none-half per centum of annual wages;\n  3. members with wages greater than fifty-five thousand per annum, but\nnot more than seventy-five thousand per annum shall contribute four and\none-half per centum of annual wages;\n  4. members with wages greater than seventy-five thousand per annum but\nnot more than one hundred thousand per annum shall contribute five and\nthree-quarters per centum of annual wages; and\n  5. members with wages greater than one hundred thousand per annum\nshall contribute six per centum of annual wages.\n  Notwithstanding the foregoing, during each of the first three plan\nyears (April first to March thirty-first) in which such member has\nestablished membership in the New York state and local employees'\nretirement system, such member shall contribute a percentage of annual\nwages in accordance with the preceding schedule based upon a projection\nof annual wages provided by the employer. Notwithstanding the foregoing,\nwhen determining the rate at which each such member who became a member\nof the New York state and local employees' retirement system on or after\nApril first, two thousand twelve shall contribute for any plan year\n(April first to March thirty-first) between April first, two thousand\ntwenty-two and April first, two thousand twenty-six, such rate shall be\ndetermined by reference to employees annual base wages of such member in\nthe second plan year (April first to March thirty-first) preceding such\ncurrent plan year. Base wages shall include regular pay, shift\ndifferential pay, location pay, and any increased hiring rate pay, but\nshall not include any overtime payments.\n  The head of each retirement system shall promulgate such regulations\nas may be necessary and appropriate with respect to the deduction of\nsuch contribution from members' wages and for the maintenance of any\nspecial fund or funds with respect to amounts so contributed.\n  * NB Effective until October 1, 2026\n  * a. Members shall contribute three percent of annual wages to the\nretirement system in which they have membership, provided that such\ncontributions shall not be required for more than thirty years, for\ngeneral members, or twenty-five years, for police/fire members, except\nthat beginning April first, two thousand thirteen for members who first\nbecome members of the New York state and local employees' retirement\nsystem on or after April first, two thousand twelve, the rate at which\neach such member shall contribute in any current plan year (April first\nto March thirty-first) shall be determined by reference to the wages of\nsuch member in the second plan year (April first to March thirty-first)\npreceding such current plan year as follows:\n  1. members with wages of forty-five thousand dollars per annum or less\nshall contribute three per centum of annual wages;\n  2. members with wages greater than forty-five thousand dollars per\nannum, but not more than fifty-five thousand dollars per annum shall\ncontribute three and one-half per centum of annual wages;\n  3. members with wages greater than fifty-five thousand dollars per\nannum, but not more than seventy-five thousand dollars per annum shall\ncontribute four and one-half per centum of annual wages;\n  4. members with wages greater than seventy-five thousand dollars per\nannum but not more than one hundred thousand dollars per annum shall\ncontribute five and three-quarters per centum of annual wages; and\n  5. members with wages greater than one hundred thousand dollars per\nannum shall contribute six per centum of annual wages.\n  Notwithstanding the foregoing, during each of the first three plan\nyears (April first to March thirty-first) in which such member has\nestablished membership in the New York state and local employees'\nretirement system, such member shall contribute a percentage of annual\nwages in accordance with the preceding schedule based upon a projection\nof annual wages provided by the employer.\n  Notwithstanding the foregoing, when determining the rate at which each\nsuch member who became a member of the New York state and local\nemployees' retirement system on or after April first, two thousand\ntwelve shall contribute for any plan year (April first to March\nthirty-first) between April first, two thousand twenty-two and April\nfirst, two thousand twenty-eight, such rate shall be determined by\nreference to employees annual base wages of such member in the second\nplan year (April first to March thirty-first) preceding such current\nplan year, except that beginning on and after October first, two\nthousand twenty-six, for members who first became members of the New\nYork state and local employees' retirement system on or after April\nfirst, two thousand twelve, the contributions in any current plan year\n(April first to March thirty-first) shall be determined by reference to\nthe base wages of such member in the second plan year (April first to\nMarch thirty-first) preceding such current plan year as follows:\n  (i) members with wages of seventy-five thousand dollars per annum or\nless shall contribute three per centum of annual wages;\n  (ii) members with wages greater than seventy-five thousand dollars per\nannum but not more than one hundred thousand dollars per annum shall\ncontribute four per centum of annual wages;\n  (iii) members with wages greater than one hundred thousand dollars per\nannum but not more than one hundred twenty-five thousand dollars per\nannum shall contribute five and one-quarter per centum of annual wages;\nand\n  (iv) members with wages greater than one hundred twenty-five thousand\ndollars per annum shall contribute five and three-quarters per centum of\nannual wages.\n  Base wages shall include regular pay, shift differential pay, location\npay, and any increased hiring rate pay, but from April first, two\nthousand twenty-two through March thirty-first, two thousand\ntwenty-eight shall not include any overtime payments.\n  The head of each retirement system shall promulgate such regulations\nas may be necessary and appropriate with respect to the deduction of\nsuch contribution from members' wages and for the maintenance of any\nspecial fund or funds with respect to amounts so contributed.\n  * NB Effective October 1, 2026\n  b. In the event of termination of employment, other than as a result\nof transfer to another public employer, a member who is not vested or\nentitled to any other benefit under this article may withdraw his\naccumulated contributions pursuant to regulations promulgated by the\nhead of the retirement system involved. In the event membership in a\npublic retirement system shall terminate, other than as a result of\ntransfer to another public employer, any contributions remaining to the\ncredit of the member shall be refunded as specified by the rules or\nregulations of the system involved. For the purpose of such withdrawal\nor refund, such contributions, commencing on the date of this act or the\ndate such member first makes contributions hereunder, whichever is\nlater, together with the balances on such date from any contributions\ntheretofore made, shall be credited with interest at the rate of five\npercent per annum.\n  c. Upon withdrawal of contributions by a member pursuant to\nsubdivision b, membership in the public retirement system involved shall\ncease. A former member who thereafter returns to public service shall\nnot receive any credit for previous service to which such withdrawn or\nrefunded contributions applied unless such member applies therefor and\nrepays the amounts so withdrawn or refunded, together with interest\nthrough the date of repayment at the rate of five percent per annum.\nNotwithstanding any other provision of law to the contrary, a member\nmay, upon separation from service of the state or a participating\nemployer, withdraw his or her member contributions pursuant to the\napplicable provision of law until such date as such individual has\naccrued ten years of credited service in such system. However, the\nwithdrawal of contributions pursuant to this section by an individual\nwho has accrued at least five years of creditable service shall\nterminate his or her membership and all rights in such retirement system\nin the same manner as withdrawal of contributions would terminate the\nmembership of an individual who has not attained vested status. Nothing\nin this section shall be construed as permitting an individual who has\naccrued at least ten years of credit in a retirement system to withdraw\nmember contributions.\n  d. Notwithstanding any other provision of this article, a member shall\nbe entitled to withdraw any excess contributions within six months of\nbecoming subject to this article. Thereafter, such contributions, and\ninterest thereon, may only be withdrawn upon separation from service.\nUpon retirement, such excess contributions, and any interest thereon,\nmay be withdrawn in a single lump sum, or at the election of the member\nmay be paid as an annuity under an option authorized pursuant to section\nfive hundred fourteen of this article. The retirement system may at any\ntime use any such excess contributions to offset a deficit of additional\nmember contributions as required pursuant to sections five hundred\nfour-a, five hundred four-b, and five hundred four-d of this article.\nThe use of basic member contributions to offset a deficit of additional\nmember contributions does not affect the contributions' tax designation\npursuant to section 414(h) of the Internal Revenue Code.\n  e. Notwithstanding any other provision of law, except as provided in\nsection five hundred seventeen-b of this article, except as provided in\nsection five hundred seventeen-c of this article, a member shall not be\npermitted to borrow any portion of the contributions which are subject\nto this section.\n  ** f. * 1. Notwithstanding any other provision of law, each\nparticipating employer shall pick up the member contributions required\non and after the effective date of this subdivision to be made under\nthis section by its employees and shall do so by reducing the salary of\neach of its employees to which this section is applicable by that amount\nwhich each such employee is required to contribute under this section.\nThe contributions so picked up shall be paid by each participating\nemployer in lieu of the member contributions to be paid by its employees\nunder this section and shall be treated as employer contributions in\ndetermining income tax treatment under section 414(h) of the Internal\nRevenue Code.\n  * NB Effective until notice of ruling by Internal Revenue Service per\nch. 627/2007 §22\n  * 1. Notwithstanding any other provision of law, each participating\nemployer shall pick up the member contributions required on and after\nthe effective date of this subdivision to be made under this section by\nits employees, or required to be made for the purchase of credit for\nprevious service or military service by its employees pursuant to an\nirrevocable payroll deduction agreement under subdivision b-1 of section\nfive hundred thirteen of this article, and shall do so by reducing the\nsalary of each of its employees to which this section, or subdivision\nb-1 of section five hundred thirteen of this article, is applicable by\nthat amount which each such employee is required to contribute under\nthis section, or subdivision b-1 of section five hundred thirteen of\nthis article. The contributions so picked up shall be paid by each\nparticipating employer in lieu of the member contributions to be paid by\nits employees under this section, or subdivision b-1 of section five\nhundred thirteen of this article, and shall be treated as employer\ncontributions in determining income tax treatment under section 414(h)\nof the Internal Revenue Code.\n  * NB Takes effect upon notice of ruling by Internal Revenue Service\nper ch. 627/2007 §22\n  2. Each participating employer of any employee (subject to this\narticle) who, in lieu of joining a public retirement system of the\nstate, elected an optional retirement program to which their employers\nare thereby required to contribute, shall pick up the employee\ncontributions thereto which would otherwise be mandatory under the\nprovisions of state law and shall do so by reducing the salary of such\nemployee by the amount of employee contributions to such optional\nretirement program which would otherwise be mandatory under the\nprovisions of state law. The contributions so picked up shall be paid by\neach participating employer in lieu of the member contributions to be\npaid by its employees and shall be treated as employer contributions in\ndetermining income tax treatment under section 414(h) of the internal\nrevenue code.\n  3. With the exception of federal income tax treatment, the employee\ncontributions picked up or paid pursuant to this subdivision shall for\nall other purposes, including computation of retirement benefits and\ncontributions by employers and employees, be deemed employee salary.\nNothing contained in this subdivision shall be construed as superseding\nthe provisions of section four hundred thirty-one of this chapter or any\nsimilar provision of law which limits the salary base for computing\nretirement benefits payable by a public retirement system.\n  * 4. The provisions of this subdivision f shall not apply to a\npolice/fire member or a member of the New York city employees'\nretirement system who is a member of the uniformed correction force or\nof the uniformed force of the department of sanitation, as defined in\nsubdivisions thirty-nine and sixty-two of section 13-101 of the\nadministrative code of the city of New York.\n  * NB Effective until chapter 525/2011 § 2 takes effect\n  * 4. The provisions of this subdivision shall not apply to a\npolice/fire member who is a member of either the New York city police\npension fund or the New York city fire department pension fund or a\nmember of the New York city employees' retirement system who is a member\nof the uniformed correction force or of the uniformed force of the\ndepartment of sanitation, as defined in subdivisions thirty-nine and\nsixty-two of section 13-101 of the administrative code of the city of\nNew York.\n  * NB See ch 525/2011 § 7 for effectiveness\n  ** NB Expires per chap 782/88 § 8\n  g. Interest shall accrue from the date of death until the date of\npayment on accumulated member contributions refunded pursuant to this\nsection upon the death of a member, where no death benefit is payable on\naccount of such death. Interest shall accrue at the rate provided in\nsubdivision one of section three-a of the general municipal law.\n  h. Notwithstanding any inconsistent provision of subdivision a of this\nsection, New York city enhanced plan members who are members of the New\nYork city fire department pension fund shall, as of the effective date\nof this subdivision pursuant to chapter two hundred ninety-eight of the\nlaws of two thousand sixteen, contribute three percent of annual wages\nto the pension fund in which they have membership, plus an additional\npercentage of annual wages as set forth in the chapter of the laws of\ntwo thousand sixteen which added this subdivision.\n  i. Notwithstanding any inconsistent provision of subdivision a of this\nsection, New York city enhanced plan members who are members of the New\nYork city police pension fund shall, as of the effective date of this\nsubdivision, contribute three percent of annual wages to the pension\nfund in which they have membership, plus an additional percentage of\nannual wages as set forth in the chapter of the laws of two thousand\nseventeen which added this subdivision.\n