2023 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; and
5.  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. Notwithstanding the foregoing,
  when  determining the rate at which each such member who became a member
  of the New York state and local employees' retirement system on or after
  April first, two thousand twelve shall  contribute  for  any  plan  year
  (April  first  to  March thirty-first) between April first, two thousand
  twenty-two and April first, two thousand twenty-six, such rate shall  be
  determined by reference to employees annual base wages of such member in
  the  second plan year (April first to March thirty-first) preceding such
  current  plan  year.  Base  wages  shall  include  regular  pay,   shift
  differential  pay,  location pay, and any increased hiring rate pay, but
  shall not include any overtime payments.
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 §22
2. 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 § 8
g. 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.