NY Ret & SS L § 21 (2021)
2021 New York Laws RSS - Retirement and Social Security Article 2 - New York State Employees' Retirement System Title 3 - Funds of the System; Members' Contributions and Employers' Contributions 21 - Members' Contributions and Their Use; Annuity Savings Fund.

§  21. Members' contributions and their use; annuity savings fund.  a. The annuity savings fund shall be the fund in which shall be accumulated all contributions made by members to provide  for  their  annuities  and their withdrawal allowances.   b.  Upon  the  basis  of tables adopted by the comptroller and regular interest, the actuary shall determine the rate of contribution for  each member. Such rate shall be computed as the constant proportion of annual compensation  which,  when  deducted  from each payment of such member's prospective earnable compensation until he shall attain age sixty, would provide, at that time, an annuity equal to one-one hundred  fortieth  of his  final  average  salary for each year of member service for which he shall be entitled to credit.  This method of computation of  a  member's rate of contribution shall be appropriately modified in case of a member for whom such a rate is otherwise fixed pursuant to any other section of this article.   c. The rate of contribution of a member who is over age fifty-nine, at the  time of his last becoming a member, shall be the same as if his age were fifty-nine.   d. The comptroller shall certify each member's rate of contribution to his employer. Each employer by whom a member is  employed  shall  deduct from  the  compensation  of  such  member, on each payroll and for every payroll period, the proportion of such member's compensation based  upon his rate of contribution. In determining the amount earnable by a member in  a  payroll  period,  the comptroller may consider the rate of annual compensation payable  to  such  member  on  the  first  day  thereof  as continuing  throughout  such  period. If an employee was not a member on the first day of a payroll period, deductions from compensation for such period may be omitted. No deductions shall be made from the compensation of a member over age sixty who has credit for at least thirty-five years of government service and who elects to discontinue his contributions to the annuity savings fund. The contributions  herein  provided  shall  be made  notwithstanding  that the minimum compensation provided by law for any member shall be reduced thereby.   e. The chief fiscal officer of each employer  promptly  shall  certify and  file a copy of each payroll with the comptroller. Each such payroll and certification shall be in a form approved by  the  comptroller.  The comptroller,   in   his   discretion,  may  waive  the  requirements  of certification and filing as to any particular payroll.   f. Deductions from the compensation of a member shall  constitute  his contributions.  Such  contributions  shall  be  remitted promptly to the comptroller. The comptroller shall deposit them in the  annuity  savings fund and they shall be credited, together with regular interest thereon, and special interest, if any, to the member's individual account in such fund.  Regular  interest  upon  accumulated contributions in the annuity savings fund, and special interest, if any, shall be transferred to such fund from the pension accumulation fund at  the  close  of  each  fiscal year.   g.  If  a  member  shall  have  deposited in the annuity savings fund, before  June  thirteenth,  nineteen  hundred  thirty-nine,  amounts   in addition  to  the  contributions then required by law, the same shall be included in his accumulated contributions.  Interest  thereon,  however, shall be credited only at such rate as in the opinion of the comptroller is  the  prevailing rate of interest allowed on savings bank deposits. A member, at any time, may  withdraw  such  additional  amounts  and  such interest  thereon,  in  whole  or  in  part. The total of such withdrawn amounts may be redeposited by a single payment  at  any  time.  If  such additional  amounts  be  not withdrawn before retirement, they thereupon shall be used to purchase an annuity on account  of  such  member.  Such  annuity  shall  be  in  addition to the retirement allowance to which he would otherwise be entitled. It  shall  be  computed  on  the  basis  of regular  interest  and  the mortality tables which are used in computing other annuities under this article.   h.  Valuation  of  maintenance  in  certain  cases. 1. A member of the retirement system, whose retirement  contributions  were  determined  by fixing  the  value  of his maintenance at one-half the cash compensation received by him and whose contributions were subsequently reduced by the fixing of a lower value for the same maintenance theretofore  furnished, may  elect  to have his contributions computed on the basis of his gross compensation  as  established  prior  to  such  reduction  in  value  of maintenance, provided that:  (a)  His  retirement  contributions  prior  to October first, nineteen hundred forty-three, were based on such higher value of  maintenance  as determined  by  the  comptroller  and his retirement contributions after such date were reduced because of the fixation of such  lower  value  of maintenance, or  (b)  His  retirement  contributions prior to April sixteenth, nineteen hundred forty-six, were based on such higher  value  of  maintenance  as determined  by  the board of supervisors of the county of Monroe and his retirement contributions after such date were  reduced  because  of  the fixation of such lower value of maintenance, or  (c)   He   was   employed  by  the  county  of  Westchester  on  March twenty-ninth, nineteen hundred forty-eight, his retirement contributions prior to March thirty-first, nineteen hundred forty-seven, were based on such higher value of maintenance and his retirement contributions  after January first, nineteen hundred forty-eight, were reduced because of the fixation of such lower value of maintenance, or  (cc) His retirement contributions prior to the initial fixation of the value  of his maintenance pursuant to section two hundred one or section two hundred five of the county law, were based on such higher  value  of maintenance   as  determined  by  the  comptroller  and  his  retirement contributions after the date of such fixation were  reduced  because  of the fixation of such lower value of maintenance, or  (d)  He  was  employed  by  the  county  of Onondaga on April twelfth, nineteen hundred  forty-nine,  his  retirement  contributions  prior  to December  fifteenth,  nineteen  hundred  forty-seven, were based on such higher value of  maintenance  and  his  retirement  contributions  after December  fifteenth,  nineteen hundred forty-seven, were reduced because of the fixation of such lower value of maintenance, or  (e)  He  was  or  shall  have  been  employed  in  a  county  or  city tuberculosis  hospital  which  was or shall have been transferred to the state pursuant to section twenty-two hundred sixty-eight of  the  public health  law, his retirement contributions prior to such transfer were or shall have been based on  such  higher  value  of  maintenance  and  his retirement  contributions  after  such  transfer were or shall have been reduced because of the fixation of such lower value of maintenance.   2. Upon filing such election and paying the  additional  contributions required  thereby,  such  member  shall be entitled to have his pension, retirement allowance or other rights and privileges  in  the  retirement system  computed  in  accordance  with such gross compensation, provided that:  (a) In a case covered by subparagraph (a) of  paragraph  one  of  this subdivision  h,  such  election  was so filed with the comptroller on or before April first, nineteen  hundred  forty-six,  and  such  additional contributions  are  paid  from and after October first, nineteen hundred forty-three, or  (b) In a case covered by subparagraph (b) of  paragraph  one  of  this subdivision  h,  such  election  was so filed with the comptroller on or before January first, nineteen hundred forty-eight, and such  additional contributions  are paid from and after April sixteenth, nineteen hundred forty-six, or  (c)  In  a  case  covered by subparagraph (c) of paragraph one of this subdivision h, such election was so filed with  the  comptroller  on  or before  January  first, nineteen hundred forty-nine, and such additional contributions are paid  from  and  after  March  thirty-first,  nineteen hundred forty-seven, or  (cc)  In  a case covered by subparagraph (cc) of paragraph one of this subdivision h, such election was so filed with  the  comptroller  on  or before  October  first, nineteen hundred fifty-five, and such additional contributions are paid from and after the date of the  initial  fixation of the value of his maintenance pursuant to such subparagraph, or  (d)  In  a  case  covered by subparagraph (d) of paragraph one of this subdivision h, such election was so filed with the county auditor on  or before  November first, nineteen hundred forty-nine, and such additional contributions are paid  from  and  after  December  fifteenth,  nineteen hundred forty-seven, or  (e)  In  a  case  covered by subparagraph (d) of paragraph one of this subdivision h, such election is so filed  with  the  comptroller  on  or before April first, nineteen hundred fifty, or within one year after the date   of  such  transfer,  whichever  is  later,  and  such  additional contributions are paid from and after the date of such transfer.   3.  The  gross  compensation  of  such  member  shall  be  the  amount established   on   the  basis  of  such  higher  value  of  maintenance. Contributions based on such gross compensation shall continue to be made until such member retires  or  until  such  election  is  terminated  as provided in paragraph four of this subdivision h.   4.  An  election  made pursuant to paragraph one of this subdivision h shall be  terminated  if  and  when  the  compensation  of  the  member, including  cash  and  the  current value of maintenance, shall equal the gross compensation of such member as fixed on the basis  of  the  higher value of maintenance described in such paragraph one, provided that:  (a)  In  a  case  covered by subparagraph (a) of paragraph one of this subdivision h,  such  current  value  of  maintenance  shall  have  been determined  by  the director of the budget pursuant to section forty-two of the civil service law, or  (b) In a case covered by subparagraph (b) of  paragraph  one  of  this subdivision  h,  such  current  value  of  maintenance  shall  have been determined by the board of supervisors of the county of Monroe, or  (c) In a case covered by subparagraph (c) of  paragraph  one  of  this subdivision  h,  such  current  value  of  maintenance  shall  have been determined by the board of supervisors of the county of Westchester, or  (cc) In a case covered by subparagraph (cc) of paragraph one  of  this subdivision  h,  such  current  value  of  maintenance  shall  have been determined by the board of supervisors of the county, or  (d) In a case covered by subparagraph (d) of  paragraph  one  of  this subdivision  h,  such  current  value  of  maintenance  shall  have been determined by the board of supervisors of Onondaga county, or  (e) In a case covered by subparagraph (d) of  paragraph  one  of  this subdivision  h,  such  current  value  of  maintenance  shall  have been determined by the director of the budget pursuant to  section  forty-two of the civil service law.   i. Additional contributions.   1.  Any  member  of  the  retirement system, upon forms prescribed and furnished by the comptroller, may elect to make additional contributions  at the rate of fifty per centum of his rate of normal  contribution  for the purpose of purchasing additional annuity.   2.  Additional contributions made pursuant to this subdivision i shall be included in the member's accumulated contributions,  except  that  in computing a retirement allowance:  (a)  For  ordinary  disability  pursuant  to section sixty-two of this article, or  (b) In any other case under this article where the inclusion  of  such additional contributions in the computation of an annuity would have the effect  of  decreasing  the  amount of a pension that otherwise would be payable, such additional contributions shall be treated as  excess  contributions and shall be used to provide an annuity in addition to the annuity which otherwise  would be payable in such case.  Such additional annuity shall be computed on the basis of regular interest and  the  mortality  tables which are used in computing other annuities under this article.   3.  One  year  or more after the filing thereof, a member may withdraw his  election  to  make  additional  contributions  pursuant   to   this subdivision   i.  Such  withdrawal  shall  be  by  written  notice  duly acknowledged and filed with the comptroller.   j. Where a member's  rate  of  contribution  is  reduced  because  his employer                        contributes                       toward pensions-providing-for-increased-take-home-pay   pursuant   to   section seventy-a  of  this  article,  such  member  may  by written notice duly acknowledged and filed with the comptroller within one year  after  such reduction or within one year after he last became a member, whichever is later,  elect to waive such reduction. 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 such reduction, he shall contribute to the  retirement system as otherwise provided in this article.   k.  A  member in the employ of the state who retires on or after April first, nineteen hundred seventy-three may elect to withdraw  his  excess contributions  at  the time of his retirement; provided, however, in the case of persons who last became members on or after July first, nineteen hundred seventy-three, the provisions of this  subdivision  shall  apply only  to  those  who  retire  prior  to  July  first,  nineteen  hundred seventy-four. Such election shall be duly executed and  filed  with  the comptroller.  The  term  excess  contributions  shall  mean  accumulated contributions in excess of the amount thereof necessary to  provide  the required  pension  or  retirement  allowance  specified  under  the plan applicable  to  the  member.  In  no  case  shall  such  withdrawal   of contributions result in an increase in the pension benefit.   l.  Voluntary  contributions.  1.  Any  member  who  is  not otherwise required by law to  make  contributions  may  elect  to  make  voluntary contributions for the purpose of purchasing additional annuity.   2.  Voluntary contributions made pursuant to this subdivision shall be included in the  member's  accumulated  contributions,  except  that  in computing a retirement allowance:  (a)  For  ordinary  disability  pursuant  to section sixty-two of this chapter, or  (b) In any other case under this chapter where the inclusion  of  such voluntary  contributions in the computation of an annuity would have the effect of decreasing the amount of a pension  that  otherwise  would  be payable, such  voluntary  contributions  shall be treated as excess contributions and shall be used to provide an annuity in addition to the annuity which otherwise would be payable in such case. Such additional  annuity  shall  be  computed  on  the basis of regular interest and the mortality tables which are used in computing other annuities under this chapter.   3. Any member electing to make such voluntary contributions shall file such election with the comptroller on a form prescribed for such purpose by  the comptroller. Such election shall specify a rate of contributions in a whole number percentage no greater than ten percent of the member's salary, such contributions to be remitted to the comptroller by  regular payroll  deductions  from  the  compensation  of the member. The rate of contribution shall be subject to change by the member only once  in  any twelve  month period. These contributions may be withdrawn by the member in accordance with section fifty-one of this chapter only  once  in  any twelve month period.   4.  Any  member  electing  to  make  such  voluntary contributions may withdraw his election to make such contributions at any time and thereby terminate such contributions; provided, however, that  such  termination of voluntary contributions shall preclude the member from again electing to make such contributions for a period of twelve months.   5.  Any  member electing to make such voluntary contributions pursuant to this subdivision shall be deemed by such act to have:  (a)  withdrawn his election to make additional contributions pursuant to subdivisions i and  j  of  this  section,  and (b) made all his excess contributions in accordance with this subdivision.