NY Ret & SS L § 517 (2021)
2021 New York Laws RSS - Retirement and Social Security Article 14 - Coordinated-Escalator Retirement Plan 517 - Member Contributions.

§ 517. Member contributions. a. Members shall contribute three percent   of  annual wages to the retirement system in which they have membership,   provided that such contributions shall not be  required  for  more  than   thirty years, for general members, or twenty-five years, for police/fire   members,  except  that  beginning April first, two thousand thirteen for   members who first become  members  of  the  New  York  state  and  local   employees'  retirement  system  on  or  after  April first, two thousand   twelve, the rate at which each  such  member  shall  contribute  in  any   current   plan  year  (April  first  to  March  thirty-first)  shall  be   determined by reference to the wages of such member in the  second  plan   year  (April  first  to  March thirty-first) preceding such current plan   year as follows:1. members with wages of forty-five thousand dollars per annum or less   shall contribute three per centum of annual wages;2. members with wages greater than forty-five thousand per annum,  but   not  more  than fifty-five thousand per annum shall contribute three and   one-half per centum of annual wages;3. members with wages greater than fifty-five thousand per annum,  but   not  more than seventy-five thousand per annum shall contribute four and   one-half per centum of annual wages;4. members with wages greater than seventy-five thousand per annum but   not more than one hundred thousand per annum shall contribute  five  and   three-quarters per centum of annual wages; and5.  members  with  wages  greater  than one hundred thousand per annum   shall contribute six per centum of annual wages.Notwithstanding the foregoing, during each of  the  first  three  plan   years  (April  first  to  March  thirty-first)  in which such member has   established membership in  the  New  York  state  and  local  employees'   retirement  system,  such member shall contribute a percentage of annual   wages in accordance with the preceding schedule based upon a  projection   of annual wages provided by the employer.The  head  of each retirement system shall promulgate such regulations   as may be necessary and appropriate with respect  to  the  deduction  of   such  contribution  from  members'  wages and for the maintenance of any   special fund or funds with respect to amounts so contributed.b. In the event of termination of employment, other than as  a  result   of  transfer  to  another public employer, a member who is not vested or   entitled to any other  benefit  under  this  article  may  withdraw  his   accumulated  contributions  pursuant  to  regulations promulgated by the   head of the retirement system involved. In the  event  membership  in  a   public  retirement  system  shall  terminate,  other than as a result of   transfer to another public employer, any contributions remaining to  the   credit  of  the  member  shall  be refunded as specified by the rules or   regulations of the system involved. For the purpose of  such  withdrawal   or refund, such contributions, commencing on the date of this act or the   date  such  member  first  makes  contributions  hereunder, whichever is   later, together with the balances on such date  from  any  contributions   theretofore  made,  shall  be credited with interest at the rate of five   percent per annum.c.  Upon  withdrawal  of  contributions  by  a  member   pursuant   to   subdivision b, membership in the public retirement system involved shall   cease.  A  former  member who thereafter returns to public service shall   not receive any credit for previous service to which such  withdrawn  or   refunded  contributions  applied unless such member applies therefor and   repays the amounts so withdrawn  or  refunded,  together  with  interest   through  the  date  of  repayment at the rate of five percent per annum.   Notwithstanding any other provision of law to  the  contrary,  a  member   may,  upon  separation  from  service  of  the  state or a participating    employer, withdraw his or  her  member  contributions  pursuant  to  the   applicable  provision  of  law  until  such  date as such individual has   accrued ten years of credited  service  in  such  system.  However,  the   withdrawal  of  contributions  pursuant to this section by an individual   who has  accrued  at  least  five  years  of  creditable  service  shall   terminate his or her membership and all rights in such retirement system   in  the  same  manner as withdrawal of contributions would terminate the   membership of an individual who has not attained vested status.  Nothing   in  this  section shall be construed as permitting an individual who has   accrued at least ten years of credit in a retirement system to  withdraw   member contributions.d. Notwithstanding any other provision of this article, a member shall   be  entitled  to  withdraw any excess contributions within six months of   becoming subject to this article. Thereafter,  such  contributions,  and   interest  thereon,  may  only be withdrawn upon separation from service.   Upon retirement, such excess contributions, and  any  interest  thereon,   may  be withdrawn in a single lump sum, or at the election of the member   may be paid as an annuity under an option authorized pursuant to section   five hundred fourteen of this article. The retirement system may at  any   time use any such excess contributions to offset a deficit of additional   member  contributions  as  required  pursuant  to  sections five hundred   four-a, five hundred four-b, and five hundred four-d  of  this  article.   The  use of basic member contributions to offset a deficit of additional   member contributions does not affect the contributions' tax  designation   pursuant to section 414(h) of the Internal Revenue Code.e.  Notwithstanding  any other provision of law, except as provided in   section five hundred seventeen-b of this article, except as provided  in   section  five hundred seventeen-c of this article, a member shall not be   permitted to borrow any portion of the contributions which  are  subject   to this section.** f.   * 1.   Notwithstanding   any  other  provision  of  law,  each   participating employer shall pick up the member  contributions  required   on  and  after  the  effective date of this subdivision to be made under   this section by its employees and shall do so by reducing the salary  of   each of its employees to which this section is applicable by that amount   which  each  such employee is required to contribute under this section.   The contributions so picked up  shall  be  paid  by  each  participating   employer in lieu of the member contributions to be paid by its employees   under  this  section  and  shall be treated as employer contributions in   determining income tax treatment under section 414(h)  of  the  Internal   Revenue Code.* NB  Effective until notice of ruling by Internal Revenue Service per   ch. 627/2007 §22* 1. Notwithstanding any other provision of  law,  each  participating   employer  shall  pick  up the member contributions required on and after   the effective date of this subdivision to be made under this section  by   its  employees,  or  required  to be made for the purchase of credit for   previous service or military service by its  employees  pursuant  to  an   irrevocable payroll deduction agreement under subdivision b-1 of section   five  hundred  thirteen of this article, and shall do so by reducing the   salary of each of its employees to which this  section,  or  subdivision   b-1  of  section five hundred thirteen of this article, is applicable by   that amount which each such employee is  required  to  contribute  under   this  section,  or  subdivision  b-1 of section five hundred thirteen of   this article. The contributions so picked  up  shall  be  paid  by  each   participating employer in lieu of the member contributions to be paid by   its  employees  under  this  section, or subdivision b-1 of section five   hundred thirteen of this article,  and  shall  be  treated  as  employer    contributions  in  determining income tax treatment under section 414(h)   of the Internal Revenue Code.* NB  Takes  effect  upon notice of ruling by Internal Revenue Service   per ch. 627/2007 §222. Each participating  employer  of  any  employee  (subject  to  this   article)  who,  in  lieu  of  joining  a public retirement system of the   state, elected an optional retirement program to which  their  employers   are   thereby  required  to  contribute,  shall  pick  up  the  employee   contributions thereto which  would  otherwise  be  mandatory  under  the   provisions  of  state law and shall do so by reducing the salary of such   employee by the  amount  of  employee  contributions  to  such  optional   retirement   program  which  would  otherwise  be  mandatory  under  the   provisions of state law. The contributions so picked up shall be paid by   each participating employer in lieu of the member  contributions  to  be   paid  by its employees and shall be treated as employer contributions in   determining income tax treatment under section 414(h)  of  the  internal   revenue code.3.  With  the  exception of federal income tax treatment, the employee   contributions picked up or paid pursuant to this subdivision  shall  for   all  other  purposes,  including  computation of retirement benefits and   contributions by employers and employees,  be  deemed  employee  salary.   Nothing  contained in this subdivision shall be construed as superseding   the provisions of section four hundred thirty-one of this chapter or any   similar provision of law which limits  the  salary  base  for  computing   retirement benefits payable by a public retirement system.* 4.  The  provisions  of  this  subdivision  f  shall  not apply to a   police/fire  member  or  a  member  of  the  New  York  city  employees'   retirement  system  who is a member of the uniformed correction force or   of the uniformed force of the department of sanitation,  as  defined  in   subdivisions   thirty-nine  and  sixty-two  of  section  13-101  of  the   administrative code of the city of New York.* NB Effective until chapter 525/2011 § 2 takes effect* 4.  The  provisions  of  this  subdivision  shall  not  apply  to  a   police/fire  member  who  is a member of either the New York city police   pension fund or the New York city fire  department  pension  fund  or  a   member of the New York city employees' retirement system who is a member   of  the  uniformed  correction  force  or  of the uniformed force of the   department of sanitation, as defined  in  subdivisions  thirty-nine  and   sixty-two  of  section  13-101 of the administrative code of the city of   New York.* NB See ch 525/2011 § 7 for effectiveness** NB Expires per chap 782/88 § 8g. Interest shall accrue from the date of  death  until  the  date  of   payment  on  accumulated  member contributions refunded pursuant to this   section upon the death of a member, where no death benefit is payable on   account of such death. Interest shall accrue at  the  rate  provided  in   subdivision one of section three-a of the general municipal law.h. Notwithstanding any inconsistent provision of subdivision a of this   section,  New York city enhanced plan members who are members of the New   York city fire department pension fund shall, as of the  effective  date   of  this subdivision pursuant to chapter two hundred ninety-eight of the   laws of two thousand sixteen, contribute three percent of  annual  wages   to  the  pension  fund in which they have membership, plus an additional   percentage of annual wages as set forth in the chapter of  the  laws  of   two thousand sixteen which added this subdivision.i. Notwithstanding any inconsistent provision of subdivision a of this   section,  New York city enhanced plan members who are members of the New   York city police pension fund shall, as of the effective  date  of  this    subdivision,  contribute  three  percent  of annual wages to the pension   fund in which they have membership, plus  an  additional  percentage  of   annual  wages  as  set  forth in the chapter of the laws of two thousand   seventeen which added this subdivision.