New York Codes, Rules and Regulations › Title 2 - DEPARTMENT OF AUDIT AND CONTROL › Chapter IV - Miscellaneous Rules › Part 154 - State-administered Defined Contribution Service Award Programs For Volunteer Firefighters › Section 154.7 - Prior service contributions

Current through Register Vol. 46, No. 28, July 10, 2024
(a) In the event that a State-administered
				defined contribution service award program provides for prior service
				contributions, each volunteer fire company or volunteer fire department for
				which the program is adopted shall identify on the list prepared pursuant to
				section
				154.6(b) 
				of this Part those participants who are entitled to one or more prior service
				contributions and the number of years for which each participant is entitled to
				such prior service contributions. Any participant who is denied a prior service
				contribution for one or more years may appeal to the governing board at the
				same time, in the same manner, and with like effect as provided in section
				154.6(d) 
				of this Part. Except as provided in subdivision (b) or (d) of this section,
				prior service contributions shall be paid to the administrator in a single lump
				sum.
(b) In the case of a
				State-administered defined contribution volunteer firefighter service award
				program that is initially established as a State-administered defined
				contribution volunteer firefighter service award program, the governing board
				of the sponsor may elect to pay service contributions over the five-year period
				beginning with the calendar year in which the program first takes effect;
				provided, however, that if a volunteer firefighter first qualifies for a year
				of firefighting service for a calendar year later than the first calendar year
				in which the program first takes effect, and thereby becomes a participant
				entitled to prior service credit, then any prior service contribution
				attributable to such prior service credit shall be paid over the five-year
				period beginning with the calendar year for which the volunteer firefighter
				first qualified for a year of firefighting service. Where such an election is
				made, the first annual installment shall be paid to the administrator at the
				same time that the first contribution on behalf of a participant is made
				pursuant to section
				154.6 
				of this Part. Each subsequent annual installment shall be paid in each of the
				four years immediately succeeding the year in which the first installment is
				paid, together with interest at the rate determined pursuant to subdivision (c)
				of this section on the unpaid balance of the prior service contribution as of
				the date of such payment; provided, however, that in the event that the
				administrator notifies the sponsor that a participant has been determined
				eligible for a distribution of a service award prior to the payment of the
				fifth annual installment, the governing board of the sponsor shall cause
				payment to be made to the administrator of an unscheduled prior service
				contribution within 30 days of receiving such notice. The unscheduled prior
				service contribution shall equal the unpaid balance of the participant's prior
				service contribution plus interest at the rate determined pursuant to
				subdivision (c) of this section on such unpaid balance.
(c) On or before March 31st of each year the
				administrator shall determine the rate of interest to be paid on the unpaid
				balance of prior service contributions. The rate of interest shall equal the
				rate of return on program assets during the preceding calendar year. The
				administrator shall notify sponsors of the rate of interest by inclusion in, or
				enclosure with, the report required by section
				154.12(a) 
				of this Part.
(d) Notwithstanding
				the provisions of subdivisions (a) and (b) of this section, if, as of the
				effective date of the conversion of the locally-administered defined
				contribution volunteer firefighter service award program into a
				State-administered defined contribution volunteer firefighter service award
				program, the governing board of a sponsor has not approved a certified list of
				volunteer firefighters qualified for credit for a year of firefighting service
				rendered during the preceding calendar year which identifies those participants
				who, by virtue of earning such credit, became entitled to one or more prior
				service contributions in substantial compliance with the procedures referred to
				in subdivision (a) of this section, the list prepared pursuant to section
				154.6(g) 
				of this Part shall identify such participants and the number of years for which
				each participant is entitled to prior service contributions. A participant who
				is denied a prior service contribution for one or more years may appeal to the
				governing board of the sponsor at the same time, in the same manner, and with
				like effect as provided in section
				154.6(d) 
				of this Part. Payment of prior service contributions shall be made in a single
				lump sum or in installment payments as provided in subdivision (b) of this
				section.
(e) If, as of the
				effective date of the conversion of a locally administered defined contribution
				volunteer firefighter service award program into a State-administered defined
				contribution volunteer firefighter service award program, the governing board
				of a sponsor has approved a certified list of volunteer firefighters qualified
				for credit for a year of firefighting service rendered during the preceding
				calendar year which identifies those participants who, by virtue of earning
				such credit, became entitled to one or more prior service contributions in
				substantial compliance with the procedures referred to in subdivision (a) of
				this section, the sponsor shall pay such prior service contributions in a
				single lump sum or in installment payments as provided in subdivision (b) of
				this section.