2023 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.