2023 New York Laws › RSS - Retirement and Social Security › Article 8 - New York State and Local Police and Fire Retirement System › Title 12 - Provisions Relating to Retired Members › 402 - Recovery of Disability Beneficiaries.

§  402.  Recovery  of  disability beneficiaries. a. Once each year the
  comptroller may, and, upon his application, shall require a retiree on a
  disability allowance, under  the  minimum  age  or  period  for  service
  retirement  elected  by  him,  to  undergo  a  medical examination. Such
  examination shall be made at the place of residence of such beneficiary,
  or at any other place mutually agreed upon by the comptroller  and  such
  beneficiary.  In  the  event  that any such disability beneficiary shall
  refuse to submit to a medical examination, the pension  portion  of  his
  retirement              allowance,             including             the
  pension-providing-for-increased-take-home-pay,  shall  be   discontinued
  until his withdrawal of such refusal. If such refusal shall continue for
  one year, all his rights in and to his pension shall be forfeited.
b.            The           pension,           including           the
  pension-providing-for-increased-take-home-pay,    of    a     disability
  beneficiary  shall  be  reduced  in  the  event that any such disability
  beneficiary is engaged in a gainful  occupation  paying  more  than  the
  difference  between  his  retirement  allowance,  as it would be without
  optional modification and if not reduced by the actuarial equivalent  of
  any outstanding loan and if not increased by the actuarial equivalent of
  any  additional  contributions,  and  his  final salary. Such reductions
  shall be to a sum which, when added to an annuity, as so computed,  plus
  the  amount  so  earnable  by  him, shall equal his final salary. If his
  earning capacity thereafter changes, his pension may be further altered.
  Any such altered pension shall not exceed:
1.           The           pension,           including            the
  pension-providing-for-increased-take-home-pay,   originally  granted  to
  such beneficiary, nor
2. An amount which, when added to an annuity, as so computed, plus the
  sum earned by him or her, shall equal his or her final salary.
In the  case  where  an  optional  benefit  has  been  selected,  such
  reduction  shall  be  the  same as the reduction would have been without
  optional modification. Where such reduction is greater than the pension,
  including  the  pension-providing-for-increased-take-home-pay,   payable
  under  the option selected, the excess may be paid by the pensioner into
  the funds of the police and fire retirement system, in  which  case  the
  benefit  due  under  the  option  shall  be  paid as if no reduction had
  occurred. If such excess is not  paid  by  the  pensioner,  the  benefit
  otherwise  due  under  the  option  shall  be  reduced  by the actuarial
  equivalent of such excess. In no event shall the payment to the funds be
  greater  than  the  difference  between  the  pension,   including   the
  pension-providing-for-increased-take-home-pay,      without     optional
  modification      and       the       pension,       including       the
  pension-providing-for-increased-take-home-pay,    under    the    option
  selected.          The          pension,          including          the
  pension-providing-for-increased-take-home-pay of a disability pensioner,
  shall  not  be  reduced  after  he  or  she  has  attained the mandatory
  retirement age applicable to him or her or shall have attained  the  age
  or  performed  the  period  of  service  specified by applicable law for
  eligibility for a service retirement benefit.
c. In the event that the comptroller shall determine that a disability
  beneficiary is able to engage in a gainful occupation, he or she  shall,
  if such beneficiary so requires, certify the name of such beneficiary to
  the   state  civil  service  department  or  appropriate  civil  service
  commission.  The  state  civil  service  department  or  such  municipal
  commission  shall  place  the  name  of such beneficiary, as a preferred
  eligible, on the appropriate eligible lists prepared by it for positions
  for which such beneficiary is stated to be qualified in a  salary  grade
  not  exceeding  that  from which he or she was last retired. If any such

  beneficiary shall be offered a position as a result of  the  placing  of
  his or her name on any such civil service list, the amount of his or her
  disability              pension,              including              the
  pension-providing-for-increased-take-home-pay,  shall  be  reduced. Such
  reduction shall be to an amount which, when added to the  amount  earned
  or  earnable by him or her in such position, shall not exceed his or her
  final salary. A disability beneficiary restored to active service  shall
  not  be  eligible to membership in the police and fire retirement system
  so  long  as  he  or   she   receives   any   pension,   including   the
  pension-providing-for-increased-take-home-pay.
d.  In  the  event that a disability beneficiary is restored to active
  service of an employer, at a salary equal to or in excess of his or  her
  final  salary,  his or her retirement allowance shall cease. Such person
  thereupon again shall become a member of the police and fire  retirement
  system.  He  or  she  thereafter shall contribute to the police and fire
  retirement system in the same manner as and at the same rate that he  or
  she  paid  prior  to his or her disability retirement. The total service
  credit, to which he or she was entitled at the time of such  retirement,
  again  shall  be  credited  to  him  or  her. Upon his or her subsequent
  retirement, he or she shall be credited, in addition,  with  all  member
  service  earned  by him or her subsequent to his or her last restoration
  to membership.
e. In the event that  a  disability  retiree  is  restored  to  active
  service  of  an  employer, at a salary less than his or her final salary
  but equal to or in excess of the current minimum salary for the position
  from which he or she was last retired for disability, such person, if he
  or she so elects, shall again become a member of  the  police  and  fire
  retirement system and his or her retirement allowance shall cease. He or
  she thereafter shall contribute to the police and fire retirement system
  in  the same manner as and at the same rate that he or she paid prior to
  his or her disability retirement. The total service credit, to which  he
  or  she  was  entitled  at  the  time of such retirement, again shall be
  credited to him or her. Upon his subsequent retirement, he or she  shall
  be  credited,  in addition, with all member service earned by him or her
  subsequent to his or her last restoration to membership.
f. In the case  of  members  who  have  changed  plans  prior  to  the
  effective  date  of  this  subdivision,  the plan providing the earliest
  minimum age or period of service shall be applied.
f-1. Notwithstanding any other provision of this section or any  other
  provision  of  law,  a  retiree  of  any  New  York state police or fire
  retirement system on a  disability  allowance  who  returns  to  gainful
  employment  as  an elected public official shall continue to receive the
  full  amount  of  his  or  her  retirement  allowance,   including   the
  pension-providing-for-increased-take-home-pay.
g.  Notwithstanding  any  other  provision  of  this article, the term
  "final salary", as used in this section, shall mean the  maximum  salary
  or compensation which the retired member currently would be receiving in
  the  position next higher from which he was last retired for disability,
  if he had not been so retired, provided, however, that if  the  position
  from  which  he was so retired has been abolished, the comptroller, upon
  the basis of salary  or  compensation  currently  paid  by  the  retired
  member's  last  employer  to persons in similar or comparable positions,
  shall determine, for the purposes of this section, the maximum amount of
  salary or compensation which such  retired  member  currently  would  be
  receiving in such position.