NY Educ L § 114 (2021)
2021 New York Laws EDN - Education Title 1 - General Provisions Article 3 - Education Department Part 1 - General Provisions 114 - Reduction of Salaries for Investment in Custodial Accounts.

§ 114. Reduction  of salaries for investment in custodial accounts. 1.   The department, in its discretion, may enter into  a  written  agreement   with  any  employee to reduce the annual salary otherwise payable by law   to such employee for the purpose of investing in a custodial account, as   permitted by paragraph seven of subdivision (b) of section four  hundred   three  of  the  United States internal revenue code, as amended, or in a   tax deferred annuity, as permitted by subdivision (b)  of  section  four   hundred  three  of  the United States internal revenue code, as amended,   for such employee. Any such agreement shall be subject to  approval  and   filing  by  the  comptroller,  and  shall  specify  the  amount  of such   reduction and the effective date thereof.  Any  such  agreement  may  be   terminated  at  any  time upon written notice by either such employee or   the department. Such termination shall take effect at the  beginning  of   the  payroll  period  the first day of which is nearest to the thirtieth   day following the day on which such notification of termination was  (a)   received  by  the department, in the event such termination is initiated   by the employee, or  (b)  sent  to  the  employee,  in  the  event  such   termination  is  initiated  by  the  department.  No  more than one such   agreement shall be entered into  in  any  period  of  twelve  successive   calendar months.2.  Upon  approval and filing by the comptroller of any such agreement   the comptroller shall reduce  an  employee's  salary  pursuant  to  said   agreement  and  pay  an  amount equal to the amount agreed upon for such   salary reduction as an employer contribution to the designated custodian   of the employee's account or  the  issuer  of  the  employee's  annuity.   Notwithstanding the reductions of salary authorized by this section, (a)   the  amount of employer and employee contributions otherwise required on   behalf of an employee electing the optional retirement program  pursuant   to  part  five of this article shall continue to be made on the basis of   the salary of such employee without regard to such reduction, or (b)  in   the event a member of a public retirement system in this state agrees to   a reduction of salary pursuant to this section, such agreement shall not   cause  the  employee  to  lose any benefits under such public retirement   system to which such employee would otherwise be entitled had he or  she   not  agreed  to  a reduction in salary for the purpose of establishing a   custodial account or purchasing a tax-deferred annuity, and any required   employer and employee contributions shall continue to  be  made  on  the   basis  of  the salary of such employee without regard to such reduction.   Any  survivor's  benefit  payable  pursuant  to  sections  one   hundred   fifty-four  and  one hundred fifty-four-a of the civil service law shall   be based upon  the  salary  of  such  employee  without  regard  to  the   reduction authorized by this section.3.  Any  payroll  deduction,  other  than  income  tax withholdings as   required by law, which may be required or authorized  pursuant  to  law,   contract,  agreement,  or  any  other instrument, the amount of which is   determined in relation to an employee's earnings, shall be based on  the   salary  of such employee without regard to reduction thereof pursuant to   any agreement authorized by this section.4. Payments for custodial accounts or tax deferred annuities shall  be   made  by  the  comptroller  to the designated custodian or custodians of   such accounts or the issuers of such annuities out of  moneys  otherwise   available  in accordance with law for salaries of the employees who have   entered into agreements pursuant to this section.5. Nothing contained in this section shall be construed to diminish or   impair any benefits to which such employee or his legal  representatives   or  beneficiaries  would be otherwise entitled had such salary reduction   agreement not been entered into in accordance  with  the  provisions  of   this section.