NY Ret & SS L § 341 (2021)
2021 New York Laws RSS - Retirement and Social Security Article 8 - New York State and Local Police and Fire Retirement System Title 6 - Right to Membership, Service Credit and Transfers Between Retirement Systems 341 - Allowances for Service.

§ 341. Allowances for service. a. Generally. Subject to all provisions of law appertaining thereto and to such reasonable rules and regulations as  the  comptroller shall adopt or amend in pursuance thereof, he shall determine and may modify allowances for service and  shall  issue  prior service certificates and certificates for service in war after world war I.  The  comptroller,  however,  shall  not  allow more than one year of credit for all service rendered in any calendar year.   b. Allowable service. Only the following types  of  service  shall  be allowable in computing service credits:   1. Police or fire service.   2. Government service.   3. Prior city and county service rendered in a city of the state or in a  county within the boundaries of such city, if such city has a pension system allowing credit for prior state and county service.   4. Prior service rendered to an employer before the  latter  became  a participating  employer. Such credit shall be allowable immediately upon such employer's becoming a participating employer. The employer for whom the member is working at the time such prior service credit is  allowed, shall pay the contribution required to be made by an employer on account of such credit.   5.  Service  rendered to the state or a participating employer while a member of the state employees retirement system.   6. Civil service in any capacity as an  officer  or  employee  of  the federal  government, or military duty in the armed forces of the federal government and not otherwise creditable,  rendered  or  performed  by  a member  prior  to the time he or she last became a member. The allowance of credit for such service shall be conditioned upon the receipt by  the police  and  fire  retirement  system of all the payments required to be made on account thereof by  section  three  hundred  forty-two  of  this article.   7.  Civil  service  rendered  as an officer or employee of the federal government as provided in subdivision d of section three  hundred  forty of  this  article.  The  allowance  of  credit for such service shall be conditioned upon the  receipt  by  the  retirement  system  of  all  the payments required to be made on account thereof by section three hundred forty-two  of  this  article.  Except  as so provided, employment by the federal government shall not entitle  a  person  to  contribute  to  the police and fire retirement system during the period of such employment.   8. Any member may obtain credit for any allowable service:  (a)  For  which  he  made  contributions,  regardless  of whether such contributions were returned to him when he left such service, or  (b) Rendered by him while not a member of any retirement  system  that is actuarially sound and of which the state or municipality thereof is a contributor, provided  he  makes  the contributions required by this article for such credit and renders at least two years of member service  after  he  last became a member.   No  credit  shall  be  allowed  for  service  if, but for the member's failure to avail himself of the privilege of transfer  within  the  time and  in the manner provided in section three hundred forty-three of this article, credit for such service could have been obtained upon  transfer from another retirement system pursuant to such section.   c. Purchase of previous member service credit.   1.  A  member who has not previously been a member may purchase credit at any time for all allowable member service; provided, however, that  a member  joining the system pursuant to paragraph one of subdivision c of section three hundred forty of this article shall not  be  permitted  to purchase  credit  for,  or  otherwise be allowed credit for the previous  service upon which his retirement or pension  from  another  pension  or retirement  system  is  or  would be based. In order to purchase credit, which may be purchased pursuant to this paragraph, the member shall  pay into  the annuity savings fund, either in a lump sum or in installments, a sum equal to the amount which would have been  in  such  fund  to  his credit  had  he  actually  been a member contributing thereto during the entire period of such previous member service. If such payment  be  made in  installments, the same shall be paid within a period no greater than the number of months of such member service.   2. A member who, after a previous membership, withdrew all or part  of his  accumulated  contributions  shall  be  credited  with all allowable service rendered prior to such withdrawal, provided he:  (a) Renders at least two  years  of  member  service  after  his  last withdrawal, and  (b)  Redeposits  such  withdrawn  amount  in the annuity savings fund, either in a lump sum or  in  installments;  provided,  however,  that  a member  joining  the  police  and  fire  retirement  system  pursuant to paragraph three of subdivision c of section three hundred forty of  this article  shall  not be permitted to purchase credit for, or otherwise be allowed credit for the previous service upon which his or her retirement or pension from another pension or retirement  system  is  or  would  be based.   If such payment be made in installments, the same shall be paid within a period no greater than the number of months of  member  service lost by such withdrawal.   d.  Credit  allowable  only  if  paid  for. In the event that a member retires or that any benefit becomes payable because of his membership in the retirement system prior to the completion of  all  of  the  payments required  to  be  made  by him as a condition precedent to his obtaining credit for member service, the amount of  his  retirement  allowance  or such other benefits shall be based only on:   1.  The  service  rendered by him since he last became a member of the retirement system and for which contributions have been paid by him, and   2. Any  additional  service,  all  the  conditions  precedent  to  the crediting  of  which  have been completely fulfilled by him. However, if the full amount of the payments required to be made by the member is not paid to the retirement system, the amount of  service  credit  shall  be proportional to the total amount of the payments made.   e. Waiver of membership requirement in certain cases. In the case of a person  in  the  employ of a participating employer, the requirements in sections three hundred sixty and  three  hundred  seventy-five  of  this article  that a member must have credit for one or more years of service as a member shall not apply if:   1. Such person became a member within  one  year  after  his  employer became a participating employer, and   2. He was in the service of such participating employer for the entire year previous to his retirement or death.   f. Restoration of credit in certain cases.   1. A member who has been discontinued from service through no fault of his  own  and who has withdrawn his accumulated contributions shall have his total service credit restored in full if:  (a) He had less than twenty years of total service credit when he  was so discontinued, and  (b)  He returns to service within ten years after such discontinuance, and  (c) He redeposits the total amount so withdrawn by him and  (d) His employer elects to and does pay to  the  pension  accumulation fund  an  amount equal to the reserve required to cover such restoration of credit.    2. Upon such return to service, such member shall  contribute  to  the police and fire retirement system as a new member.   3.  In  the event such a member retires before his employer makes such payment, he may elect to receive his  benefit  immediately  as  if  full service credit were allowable. He thereupon shall be entitled to receive the  full amount of such benefit for such period as the same can be paid from the combined reserve  available  on  his  account  in  the  annuity reserve  fund  and  pension  reserve  fund. When his employer makes such payment, his benefit thereafter shall be continued from the  reserve  so paid.   4.   The  provisions  of  this  subdivision  f  shall  be  controlling notwithstanding any provision in this article to the contrary.   g. Prior service credit and credit for service in war after world  war I  in certain cases. Allowable prior service credit and allowable credit for service in war after world war I shall be granted immediately to:   1. Any member who shall have rendered at least two  years  of  service since he last became a member.   2. Any person who is in the service of a participating employer on the date  it approves participation and who becomes a member within one year after such date. The employer for whom the member is  working  at  the  time  such  prior service  credit  or  credit  for  service  in  war  after world war I is allowed, shall pay the contribution required to be made by  an  employer on account of such credit.   h.  Prior  service  certificates  and  certificates for service in war after world war I.   1. The comptroller shall issue a certificate, to be known as  a  prior service  certificate,  to  each member entitled to prior service credit. Such certificate shall certify the amount of such credit which shall  be allowed in computing any pension provided for by this article.   2.  The  comptroller,  upon application, shall issue a certificate for service in war after world war I to each member entitled  thereto.  Such certificate  shall certify to service in war after world war I allowable to such member.   3. The comptroller, upon application of a member at any time, or  upon his  own initiative within one year from the date of issuance of a prior service certificate or a certificate for service in war after world  war I  may  modify any such certificate in accordance with the allowance for prior service or service in war after world war I credit  to  which  the member is shown to be entitled.   4.  A  member's  prior service certificate, certificate for service in war after world war I, or any such certificate as modified, shall become void upon the termination of his or her membership  in  the  police  and fire  retirement  system. Except as provided by subdivision d of section four hundred two of this article, resumption of  membership  after  such termination  shall be without credit for prior service or service in war after world war I.   i. Allowances during leaves of absence without pay.   1. Time during which a member is absent on leave without pay:  (a) Shall not be included in computing prior service.  (b) May be included in computing  member  service  and  final  average salary  only  if  the  head  of  the  department in which such member is employed and the comptroller allow such time for retirement purposes  at the time such leave of absence is granted.  (c)  Shall  be  included in computing member service and final average salary in case such a leave of absence was granted,  during  the  period from  March  first,  nineteen  hundred forty, until six months after the termination of world war II, to enable the member to enter  the  service  of  the federal government or its associated powers, or to engage in war work or defense industries only if:  (1)  The  fact  that  such  service was rendered is established to the satisfaction of the comptroller, and  (2) Such member shall have notified the comptroller in writing, on  or before  July  first,  nineteen  hundred  forty-seven, or within one year after such leave of absence was granted, that he claims  member  service credit pursuant to the provisions of this subparagraph c, and  (3) Such member, within a period not greater than the number of months during which he was on leave of absence, shall pay into:  (aa)  The annuity savings fund such amounts as would have been in such fund to his credit had he remained in the  performance  of  his  regular duties  as  a member at the same salary he was receiving when such leave of absence was granted, and  (bb) The pension accumulation fund such amounts as would have been  in such fund had he remained in the performance of his regular duties. Such amounts  shall  be  determined by the actuary and shall be sufficient to pay the contribution that the state or a  participating  employer  would have  paid  for  an  ordinary  death benefit and for that portion of the pension provided for in paragraph two of subdivision a or paragraph  two of  subdivision  b of section three hundred seventy-five of this article for service during such period.  (d) Shall be included in computing member service  and  final  average salary  in case such a leave of absence commenced during the period from April first, nineteen hundred sixty-six through June thirtieth, nineteen hundred seventy-four, and was granted for a period of not more than  two years  to enable the member to perform services as a civilian officer or employee of  the  Federal  government  or  one  of  its  agencies  or  a contractor  of  the  United  States Agency for International Development engaged to perform the work of such  agency,  the  United  Nations,  any other  international  organization of which the United States of America is a member, or a foreign government only if:  (1) The comptroller allows  inclusion  of  such  time  for  retirement purposes at the time such leave of absence is granted, and  (2)  Payment during such leave of absence or within one year after the end of such leave of absence is made by the employee into:  (aa)  The  annuity  savings  fund  of  contributions  equal   to   the contributions which the member would have made during the period of such leave of absence had he been performing his regular duties, and  (bb)  The pension accumulation fund of a further contribution equal to the contribution which his employer would have made on his behalf during the period of such leave of absence had he been performing  his  regular duties.  The  payments  required  by  this  item (bb) may be made on the member's behalf by the organization employing him during such  leave  of absence.   j.  Allowance  for  unused sick leave for members in the employ of the state.   1. In addition to any other service credit  to  which  he  or  she  is entitled,  a  member  who meets the requirements set forth in paragraphs two and three of this subdivision shall be granted one day of additional service credit for each day of accumulated unused sick leave which he or she has at time of retirement for service, but such credit shall not (a) exceed one hundred sixty-five days, (b) be  considered  in  meeting  any service  or  age  requirements  prescribed  in  this chapter, and (c) be considered in computing final average salary. However, for a  member  of the  collective negotiating units established by article fourteen of the civil service law designated the security services negotiating unit  and the security supervisors negotiating unit such service credit limitation  provided  in  subparagraph  (a)  of  this paragraph shall not exceed two hundred days.   2.  Such service retirement credit shall be granted only to members in the employ of the state, other than members of the  state  police  in  a collective  negotiating  unit defined in the certification of the public employment relations board dated December twenty-ninth, nineteen hundred seventy in case  numbers  C-0570  and  C-0575  established  pursuant  to article  fourteen of the civil service law, who prior to retirement were subject to a plan established by law, rule, regulation, written order or written policy which provided for the regular earning  and  accumulation of  sick  leave,  provided, however, that such service retirement credit shall be granted  to  members  of  the  state  police  who  are  in  the collective  negotiating  unit defined in the certification of the public employment relations board dated November  twentieth,  nineteen  hundred eighty-one  in case number C-2298 and in case number C-2299, and to such a member in the negotiating unit defined in such  board's  certification dated  April second, nineteen hundred eighty-five, in case number C-2819 established pursuant to article fourteen of the civil service  law,  who retire on or after the first day of June, nineteen hundred eighty-five.   3.  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 retiring from service prior to July first, nineteen hundred seventy-four.   k. Credit for certain world war II service. 1. In addition  to  credit for  military  service  as  defined  in  paragraph  one  of  subdivision thirty-one of section three hundred two of this chapter a member in  the employ  of  the  state,  other  than  a  member  of  the state police in collective negotiating units established pursuant to article fourteen of the civil service  law,  as  of  March  thirty-first,  nineteen  hundred seventy,  may obtain credit for military service as defined in paragraph two of  subdivision  thirty-one  of  section  two  of  this  chapter  in accordance with the provisions of this subdivision.   2.  To  obtain  such credit a member shall: (a) deposit in the annuity savings fund  a  sum  equal  to  the  product  of  his  normal  rate  of contribution  at  time  of  entry into state service, his annual rate of compensation at that time, and the  period  of  military  service  being claimed,   with  regular  interest,  and  (b)  deposit  in  the  pension accumulation fund a sum equal to  the  product  of  the  state's  normal contribution  rate  at the time of the member's entry into such service, his annual rate of compensation at that time, and the period of military service being claimed, with regular interest. Such deposit must be  made on or before March thirty-first, nineteen hundred seventy-two, provided, however,  such  member may elect to deposit such amount over a period of time no greater than the period for which credit is  being  claimed,  in which case such payments must commence no later than March thirty-first, nineteen hundred seventy-two. If the full amount of such payments is not paid  to  the retirement system, the amount of service credited shall be proportional to the total amount of the payments made.   3. (a) A member who enters the employ of the state on or  after  April first,  nineteen  hundred  seventy  and  prior  to April first, nineteen hundred seventy-two shall have one year from his date of entry  to  make application  and payment for such service in the manner specified above. The salary base for such  an  employee  shall  be  his  annual  rate  of compensation at the time of his entry into state service.  (b)  A  member  who reenters the employ of the state on or after April first, nineteen hundred seventy  and  prior  to  April  first,  nineteen hundred seventy-two shall have one year from his date of reentry to make application  and payment for such service in the manner specified above.  The salary base for such payments shall be  either  the  employee's  (i) annual  rate  of  compensation  at  the time of original entry into such service or (ii) his annual rate of compensation upon reentry  into  such service, whichever would result in the greatest contributions.   4.  Such  credit  for military service shall not be used to increase a service retirement benefit if at the time of retirement such member  (a) is  retiring  from  service  with  less  than ten years of total service credit, or (b) is retiring with less than three years of member  service rendered  subsequent  to the date of last entry into state service; upon retirement as specified in (a) or (b), there shall be refunded  to  such member the amount of such deposit plus accrued interest exclusive of the amount  deposited to the pension accumulation fund attributable to death and disability benefits.   5. For the purposes of this subdivision the member's  normal  rate  of contribution  in  the  case  of  an employee of the state who (a) enters service on or after the date that employee  contributions  were  reduced pursuant  to  section  seventy-a  or that no employee contributions were required shall be based on the latest schedule  of  normal  contribution rates  in effect for employees of the state, and shall be set as if such schedule had been in effect at the time of his entry into state service, or (b) transfers into the retirement system shall not be less  than  the rate  the  member  would  have had if all his service, exclusive of that being claimed pursuant to this  subdivision,  had  been  rendered  as  a member of the retirement system.   6. In no event shall credit be granted pursuant to this subdivision if credit  is  granted  for  the  same  period  of  time  pursuant to other provisions of law.   7. Subject to the provisions of paragraph three of this subdivision no application for credit pursuant to the provisions  of  this  subdivision shall  be  honored  if  made  on  or after April first, nineteen hundred seventy-two.   8. A member may direct, upon a form prepared by the comptroller,  that his  excess contributions be applied toward the payment required by this subdivision.  The  term  excess  contributions  shall  mean  accumulated contributions  in  excess  of  the  amount thereof required to provide a pension or retirement allowance. Appropriate transfers  and  credits  to the  annuity savings fund and the pension accumulation fund will be made in the manner set forth  in  the  official  regulation  adopted  by  the comptroller for such purpose.   * l.  Employer pick-up of contributions in respect of previous service or military service. Notwithstanding any other  provision  of  law,  any member  eligible  to  purchase credit for previous service with a public employer pursuant to this section or section three hundred forty-two  of this  title  or  to  purchase  credit  for  military service pursuant to article twenty of this chapter, may elect to purchase any or all of such service by executing a periodic payroll deduction agreement where and to the extent such elections are permitted by the retirement system by rule or regulation. Such agreement shall set forth  the  amount  of  previous service or military service being purchased, the estimated total cost of such  service  credit,  and  the number of payroll periods in which such periodic payments shall be made. Such agreement  shall  be  irrevocable, shall  not  be  subject  to amendment or modification in any manner, and shall  expire  only  upon  completion  of  payroll  deductions  required therein.  Notwithstanding the foregoing, any member who has entered into such a payroll deduction agreement and who terminates  employment  prior to  the  completion  of  the payments required therein shall be credited with  any  service  as  to  which  such  members  shall  have  paid  the contributions required under the terms of the agreement.    * NB Takes effect upon notice of ruling by Internal Revenue Service -- expires per ch. 627/2007 §22