STATE of NEW YORK

S.6735          A.9558

SENATE  -  ASSEMBLY

March 15, 2012

__________________________

                                   
         IN  SENATE  --  Introduced  by  COMMITTEE ON RULES -- (at request of the
         Governor) -- read twice and ordered printed, and when  printed  to  be
         committed to the Committee on Rules

       IN  ASSEMBLY  --  Introduced by COMMITTEE ON RULES -- (at request of the
         Governor) -- read once and referred to the Committee on Ways and Means

       AN ACT to amend the retirement and social security  law,  the  education
         law  and  the administrative code of the city of New York, in relation
         to persons joining the New York state and local employees'  retirement
         system,  the  New  York  state  and  local  police and fire retirement
         system, the New York state teachers' retirement system, the  New  York
         city employees' retirement system, the New York city teachers' retire-
         ment  system,  the New York city board of education retirement system,
         the New York city police pension fund,  or  the  New  York  city  fire
         pension fund on or after April 1, 2012; to amend the executive law, in
         relation to action by the people for illegal receipt or disposition of
         public funds or other property; and to amend the retirement and social
         security law, in relation to benefit enhancements

         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:

    1    Section 1. Legislative findings and intent. The legislature finds that
    2  the state's current pension system is financially unsustainable  result-
    3  ing  in  fiscal  instability for the state, local governments and school
    4  districts. Most alarmingly, the dramatic growth  in  pension  costs  has
    5  resulted in a greater stress on the already overburdened taxpayer.
    6    Moreover,  there is a significant state interest to reform the city of
    7  New York's pension system. Rapid and unsustainable growth of the city of
    8  New York's pension costs has a deleterious effect on the  city,  but  as
    9  importantly,  on  the  financial  security  of  the entire state. As the
   10  financial capital of the world, the entire state relies heavily  on  the
   11  fiscal stability and growth of the city of New York. The ever-increasing
   12  and  dramatic increases in pension costs in the city of New York, howev-
   13  er, are destabilizing the fiscal and economic stability of the  city  of
   14  New  York  and  therefore the state. Thus, rapidly growing New York city

        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD12119-06-2
       S. 6735                             2                            A. 9558

    1  pension costs are of substantial state  concern  and  must  be  remedied
    2  immediately.
    3    It  is  incumbent  on  the  state  to implement common sense long-term
    4  structural reform of the current pension system  for  future  employees.
    5  These  reforms  will not only protect the benefits of the public employ-
    6  ees, but will provide financial stability to the state government, local
    7  governments and school districts and taxpayers across this state.
    8    S 1-a.  Paragraph 1 of subdivision j of section 41 of  the  retirement
    9  and  social security law, as amended by chapter 397 of the laws of 2009,
   10  is amended to read as follows:
   11    1. In addition to any other service credit to which he or she is enti-
   12  tled, a member who meets the requirements set forth  in  paragraphs  two
   13  and  three  of  this  subdivision shall be granted one day of additional
   14  service credit for each day of accumulated unused sick leave which he or
   15  she has at time of retirement for service, but such credit shall not (a)
   16  exceed one hundred sixty-five days, (b) be  considered  in  meeting  any
   17  service  or  age  requirements  prescribed  in  this chapter, and (c) be
   18  considered in computing final average salary. However, for an  executive
   19  branch  member designated managerial or confidential pursuant to article
   20  fourteen of the civil service law or in the collective negotiating units
   21  established by article fourteen of the civil service law designated  the
   22  professional,  scientific  and  technical  services unit, the rent regu-
   23  lation services negotiating  unit,  the  security  services  negotiating
   24  unit,  the  security  supervisors negotiating unit, the state university
   25  professional services  negotiating  unit,  the  administrative  services
   26  negotiating unit, the institutional services negotiating unit, the oper-
   27  ational services negotiating unit and the division of military and naval
   28  affairs  negotiating  unit  such  service  credit limitation provided in
   29  subparagraph (a) of this paragraph shall not exceed  two  hundred  days.
   30  For a nonjudicial officer or employee of the unified court system not in
   31  a collective negotiating unit or in a collective negotiating unit speci-
   32  fied  in  section  one  of  chapter two hundred three of the laws of two
   33  thousand four, for employees of the New York state dormitory  authority,
   34  for  employees  of  the  New  York state thruway authority, the New York
   35  state canal corporation and the state university construction  fund  and
   36  for  employees  of  the  New York liquidation bureau such service credit
   37  limitation provided in subparagraph (a)  of  this  paragraph  shall  not
   38  exceed  two  hundred  days.  FOR  MEMBERS  WHO FIRST BECOME MEMBERS OF A
   39  PUBLIC RETIREMENT SYSTEM OF THE STATE ON OR AFTER APRIL FIRST, TWO THOU-
   40  SAND TWELVE, SUCH CREDIT SHALL NOT EXCEED ONE HUNDRED DAYS.
   41    S 2. Subdivisions a and b of section 376 of the retirement and  social
   42  security  law,  subdivision  a  as amended by chapter 389 of the laws of
   43  1998 and subdivision b as amended by chapter 371 of the  laws  of  1969,
   44  are amended to read as follows:
   45    a.  A  member  who discontinues service other than by death or retire-
   46  ment:
   47    1. who has credit for at least five years of total service, or
   48    2. who has credit for at least five years of total service,  including
   49  a  minimum  of  five  years  of  member  service during which the member
   50  contributed to the system and/or participated in an increased-take-home-
   51  pay or non-contributory plan, and who does not withdraw his or her accu-
   52  mulated contributions, shall be entitled to make application pursuant to
   53  section three hundred seventy of this article for  a  vested  retirement
   54  allowance to be effective on or after the first day of the month follow-
   55  ing his or her attainment of sixty years of age, OR SIXTY-THREE YEARS OF
   56  AGE  FOR  A  MEMBER WHO FIRST BECOMES A MEMBER OF THE NEW YORK STATE AND
       S. 6735                             3                            A. 9558

    1  LOCAL POLICE AND FIRE RETIREMENT SYSTEM ON OR  AFTER  APRIL  FIRST,  TWO
    2  THOUSAND  TWELVE.    The  retirement  allowance provided by this section
    3  shall vest automatically upon such discontinuance  of  service  by  such
    4  member.
    5    3. In the case of such a member who discontinues service other than by
    6  death  or  retirement  after March thirty-first, nineteen hundred sixty-
    7  six, who  had  been  contributing  toward  and/or  participating  in  an
    8  increased-take-home-pay  or  non-contributory  plan  for retirement on a
    9  basis other than retirement at age sixty for five years preceding his or
   10  her discontinuance of service, he or  she  shall  be  entitled  to  make
   11  application  for  a  vested  retirement  allowance to be effective on or
   12  after the first day of the month following  his  or  her  attainment  of
   13  fifty-five  years  of  age, OR SIXTY-THREE YEARS OF AGE FOR A MEMBER WHO
   14  FIRST BECOMES A MEMBER OF THE NEW YORK STATE AND LOCAL POLICE  AND  FIRE
   15  RETIREMENT SYSTEM ON OR AFTER APRIL FIRST, TWO THOUSAND TWELVE.
   16    b.  The  vested  retirement  allowance  shall  be computed and paid in
   17  accordance with the provisions of the plan of which the member had  been
   18  a  participant  provided,  however, that if the service fraction used to
   19  compute the retirement allowance  or  the  pension  provides  a  benefit
   20  greater  than  that which would have been provided had the service frac-
   21  tion one-sixtieth been used to compute the benefit, the service fraction
   22  one-sixtieth shall be used to compute the  vested  retirement  allowance
   23  unless  such  plan  shall specify another fraction to be used to compute
   24  the vested retirement allowance. The vested retirement  allowance  shall
   25  not  be  paid  before  the member attains age fifty-five, OR SIXTY-THREE
   26  YEARS OF AGE FOR A MEMBER WHO FIRST BECOMES A MEMBER  OF  THE  NEW  YORK
   27  STATE  AND  LOCAL  POLICE  AND  FIRE RETIREMENT SYSTEM ON OR AFTER APRIL
   28  FIRST, TWO THOUSAND TWELVE.
   29    S 3. Subdivision e of section 440 of the retirement and social securi-
   30  ty law, as added by chapter 285 of the laws of 1997, is amended to  read
   31  as follows:
   32    e.  Notwithstanding  any  other  provision of law to the contrary, the
   33  provisions and limitations of this article shall apply, as may be appro-
   34  priate, to all investigator members of  the  New  York  city  employees'
   35  retirement  system  who  last  joined such retirement system on or after
   36  July first, nineteen hundred seventy-six, AND  PRIOR  TO  THE  EFFECTIVE
   37  DATE  OF  THE  CHAPTER  OF THE LAWS OF TWO THOUSAND TWELVE WHICH AMENDED
   38  THIS SUBDIVISION.
   39    S 4. Subdivisions 5, 7, 12, 17 and 24 of section 501 of the retirement
   40  and social security law, subdivisions 5, 12 and 17 as added  by  chapter
   41  890  of the laws of 1976, subdivision 7 as amended by chapter 408 of the
   42  laws of 2000 and subdivision 24 as amended by section 1  of  part  B  of
   43  chapter 504 of the laws of 2009, are amended to read as follows:
   44    5.  "Early  retirement  age"  shall  mean  age fifty-five, for general
   45  members, and the age on which a member completes or would have completed
   46  twenty  years  of  service,  for  police/fire  members,  NEW  YORK  CITY
   47  UNIFORMED  CORRECTION/SANITATION  REVISED  PLAN MEMBERS AND INVESTIGATOR
   48  REVISED PLAN MEMBERS.
   49    7. "Eligible beneficiary" for the purposes  of  section  five  hundred
   50  nine  of  this  article  shall  mean the following persons or classes of
   51  persons in the order set forth: (a)  a  surviving  spouse  who  has  not
   52  renounced  survivorship  rights  in a separation agreement, until remar-
   53  riage, (b) surviving  children  until  age  twenty-five,  (c)  dependent
   54  parents,  determined  under  regulations promulgated by the comptroller,
   55  (d) any other person who qualified as a dependent on the  final  federal
   56  income  tax  return  of the member or the return filed in the year imme-
       S. 6735                             4                            A. 9558

    1  diately preceding the year of death, until such person  reaches  twenty-
    2  one  years  of  age and (e) with respect to members of the New York city
    3  employees' retirement system (OTHER  THAN  A  NEW  YORK  CITY  UNIFORMED
    4  CORRECTION/SANITATION  REVISED  PLAN  MEMBER  OR AN INVESTIGATOR REVISED
    5  PLAN MEMBER) and the board of education retirement system of the city of
    6  New York, a person whom the member shall have nominated in the form of a
    7  written designation, duly acknowledged and filed with the  head  of  the
    8  retirement  system for the purpose of section five hundred eight of this
    9  article. In the event that a class of eligible beneficiaries consists of
   10  more than one person,  benefits  shall  be  divided  equally  among  the
   11  persons in such class. For the purposes of section five hundred eight OF
   12  THIS  ARTICLE  the term "eligible beneficiary" shall mean such person as
   13  the member shall have nominated to receive the benefits provided in this
   14  article. To be effective, such a nomination must be in  the  form  of  a
   15  written  designation,  duly  acknowledged and filed with the head of the
   16  retirement system for this specific purpose. In the  event  such  desig-
   17  nated  beneficiary  does  not  survive  him,  or if he shall not have so
   18  designated a beneficiary, such benefits shall be payable to the deceased
   19  member's estate or as provided in section one thousand three hundred ten
   20  of the surrogate's court procedure act.
   21    12. "General member" shall mean a member subject to the provisions  of
   22  this  article who is not a police/fire member, A NEW YORK CITY UNIFORMED
   23  CORRECTION/SANITATION REVISED PLAN MEMBER  OR  AN  INVESTIGATOR  REVISED
   24  PLAN MEMBER.
   25    17.  "Normal  retirement  age"  shall  be  age  sixty-two, for general
   26  members, and the age at which a member completes or would have completed
   27  twenty-two years of service, for  police/fire  members,  NEW  YORK  CITY
   28  UNIFORMED  CORRECTION/SANITATION  REVISED  PLAN MEMBERS AND INVESTIGATOR
   29  REVISED PLAN MEMBERS.
   30    24. "Wages" shall mean regular compensation earned by and  paid  to  a
   31  member  by a public employer, except that for members who first join the
   32  state and local employees' retirement system on or after January  first,
   33  two  thousand  ten,  overtime compensation paid in any year in excess of
   34  the overtime ceiling, as defined  by  this  subdivision,  shall  not  be
   35  included in the definition of wages. "Overtime compensation" shall mean,
   36  for  purposes of this section, compensation paid under any law or policy
   37  under which employees are paid at a rate  greater  than  their  standard
   38  rate  for  additional  hours  worked  beyond  those  required, including
   39  compensation paid under section one hundred  thirty-four  of  the  civil
   40  service  law and section ninety of the general municipal law. The "over-
   41  time ceiling" shall mean fifteen thousand dollars per annum  on  January
   42  first,  two  thousand  ten, and shall be increased by three percent each
   43  year thereafter, PROVIDED, HOWEVER, THAT FOR MEMBERS  WHO  FIRST  BECOME
   44  MEMBERS  OF THE NEW YORK STATE AND LOCAL EMPLOYEES' RETIREMENT SYSTEM ON
   45  OR AFTER APRIL FIRST, TWO THOUSAND TWELVE, "OVERTIME CEILING" SHALL MEAN
   46  FIFTEEN THOUSAND DOLLARS PER ANNUM ON APRIL FIRST, TWO THOUSAND  TWELVE,
   47  AND SHALL BE INCREASED EACH YEAR THEREAFTER BY A PERCENTAGE TO BE DETER-
   48  MINED  ANNUALLY  BY  REFERENCE  TO  THE  CONSUMER PRICE INDEX (ALL URBAN
   49  CONSUMERS, CPI-U, U.S. CITY AVERAGE, ALL ITEMS, 1982-84=100),  PUBLISHED
   50  BY  THE  UNITED  STATES  BUREAU OF LABOR STATISTICS, FOR EACH APPLICABLE
   51  CALENDAR YEAR. SAID PERCENTAGE  SHALL  EQUAL  THE  ANNUAL  INFLATION  AS
   52  DETERMINED FROM THE INCREASE IN THE CONSUMER PRICE INDEX IN THE ONE YEAR
   53  PERIOD  ENDING  ON THE DECEMBER THIRTY-FIRST PRIOR TO THE COST-OF-LIVING
   54  ADJUSTMENT EFFECTIVE ON THE ENSUING APRIL FIRST.   For  the  purpose  of
   55  calculation  a  member's  primary  federal social security retirement or
   56  disability benefit, wages shall, in any calendar year, be limited to the
       S. 6735                             5                            A. 9558

    1  portion of the member's wages  which  would  be  subject  to  tax  under
    2  section  three  thousand  one hundred twenty-one of the internal revenue
    3  code of nineteen hundred fifty-four, or  any  predecessor  or  successor
    4  provision  relating  thereto,  if  such member was employed by a private
    5  employer.  FOR MEMBERS WHO FIRST BECOME MEMBERS OF THE  NEW  YORK  STATE
    6  AND LOCAL EMPLOYEES' RETIREMENT SYSTEM ON OR AFTER THE EFFECTIVE DATE OF
    7  THE CHAPTER OF THE LAWS OF TWO THOUSAND TWELVE WHICH AMENDED THIS SUBDI-
    8  VISION,  THE  FOLLOWING ITEMS SHALL NOT BE INCLUDED IN THE DEFINITION OF
    9  WAGES: (A) WAGES IN EXCESS OF THE ANNUAL SALARY  PAID  TO  THE  GOVERNOR
   10  PURSUANT TO SECTION THREE OF ARTICLE FOUR OF THE STATE CONSTITUTION, (B)
   11  LUMP  SUM  PAYMENTS  FOR  DEFERRED COMPENSATION, SICK LEAVE, ACCUMULATED
   12  VACATION OR OTHER CREDITS FOR TIME NOT WORKED, (C) ANY  FORM  OF  TERMI-
   13  NATION  PAY,  (D)  ANY  ADDITIONAL  COMPENSATION PAID IN ANTICIPATION OF
   14  RETIREMENT, AND (E) IN THE CASE OF  EMPLOYEES  WHO  RECEIVE  WAGES  FROM
   15  THREE  OR MORE EMPLOYERS IN A TWELVE MONTH PERIOD, THE WAGES PAID BY THE
   16  THIRD AND EACH SUCCESSIVE EMPLOYER.
   17    S 5.  Section 501 of the retirement and social security law is amended
   18  by adding three new subdivisions 25, 26 and 27 to read as follows:
   19    25.   "NEW YORK  CITY  UNIFORMED  CORRECTION/SANITATION  REVISED  PLAN
   20  MEMBER"  SHALL  MEAN  A  MEMBER WHO BECOMES SUBJECT TO THE PROVISIONS OF
   21  THIS ARTICLE ON OR AFTER APRIL FIRST, TWO THOUSAND TWELVE, AND WHO IS  A
   22  MEMBER  OF EITHER THE UNIFORMED FORCE OF THE NEW YORK CITY DEPARTMENT OF
   23  CORRECTION OR THE UNIFORMED FORCE OF THE NEW  YORK  CITY  DEPARTMENT  OF
   24  SANITATION.
   25    26.  "NEW  YORK  CITY  POLICE/FIRE  REVISED  PLAN MEMBER" SHALL MEAN A
   26  POLICE/FIRE MEMBER WHO BECOMES SUBJECT TO THE PROVISIONS OF THIS ARTICLE
   27  ON OR AFTER APRIL FIRST, TWO THOUSAND TWELVE, AND WHO  IS  A  MEMBER  OF
   28  EITHER  THE  NEW YORK CITY POLICE PENSION FUND OR THE NEW YORK CITY FIRE
   29  DEPARTMENT PENSION FUND.
   30    27. "INVESTIGATOR REVISED PLAN  MEMBER"  SHALL  MEAN  AN  INVESTIGATOR
   31  MEMBER OF THE NEW YORK CITY EMPLOYEES' RETIREMENT SYSTEM WHO IS A POLICE
   32  OFFICER  AS  DEFINED  IN  PARAGRAPH  (G)  OF  SUBDIVISION THIRTY-FOUR OF
   33  SECTION 1.20 OF THE CRIMINAL PROCEDURE LAW, AND WHO BECOMES  SUBJECT  TO
   34  THE  PROVISIONS  OF  THIS  ARTICLE ON OR AFTER APRIL FIRST, TWO THOUSAND
   35  TWELVE.
   36    S 6. Intentionally omitted.
   37    S 7. Subdivisions a, c and d of section  503  of  the  retirement  and
   38  social security law, subdivision a as amended by chapter 662 of the laws
   39  of  1988, subdivision c as amended by section 143 of subpart B of part C
   40  of chapter 62 of the laws of 2011 and subdivision d as added by  chapter
   41  890 of the laws of 1976, are amended to read as follows:
   42    a.  The  normal  service  retirement benefit specified in section five
   43  hundred four OF THIS ARTICLE shall be payable to general members,  other
   44  than  elective  members,  who  have met the minimum service requirements
   45  upon retirement and attainment of age sixty-two,  provided,  however,  a
   46  general  member  who  is  a  peace officer employed by the unified court
   47  system or a member of a teachers' retirement system may  retire  without
   48  reduction  of  his or her retirement benefit upon attainment of at least
   49  fifty-five years of age and  completion  of  thirty  or  more  years  of
   50  service.  FOR MEMBERS WHO BECOME MEMBERS OF THE NEW YORK STATE AND LOCAL
   51  EMPLOYEES' RETIREMENT SYSTEM ON  OR  AFTER  APRIL  FIRST,  TWO  THOUSAND
   52  TWELVE, THE NORMAL SERVICE RETIREMENT BENEFITS SPECIFIED IN SECTION FIVE
   53  HUNDRED  FOUR OF THIS ARTICLE SHALL BE PAYABLE TO GENERAL MEMBERS, OTHER
   54  THAN ELECTIVE MEMBERS, WHO HAVE MET  THE  MINIMUM  SERVICE  REQUIREMENTS
   55  UPON RETIREMENT AND ATTAINMENT OF AGE SIXTY-THREE.
       S. 6735                             6                            A. 9558

    1    c.  A general member shall be eligible for early service retirement at
    2  age fifty-five with five years of credited service. A general member  in
    3  the  uniformed  correction  force  of  the  New  York city department of
    4  correction, who is not eligible for early service retirement pursuant to
    5  subdivision c of section five hundred four-a of this article or subdivi-
    6  sion  c  of section five hundred four-b of this article or subdivision c
    7  of section five hundred four-d of this article, or a general  member  in
    8  the  uniformed  personnel  in institutions under the jurisdiction of the
    9  department of corrections  and  community  supervision,  as  defined  in
   10  subdivision  i  of  section  eighty-nine  of  this chapter or serving in
   11  institutions who is also in a title defined in such subdivision and  who
   12  has  made an election pursuant to the provisions of article seventeen of
   13  this chapter, shall also be eligible for early service retirement  after
   14  twenty-five  years  of  credited  service,  PROVIDED,  HOWEVER, THAT THE
   15  PROVISIONS OF THIS SUBDIVISION AND SUBDIVISION A OF THIS  SECTION  SHALL
   16  NOT  APPLY  TO  A  NEW YORK CITY UNIFORMED CORRECTION/SANITATION REVISED
   17  PLAN MEMBER OR AN INVESTIGATOR REVISED PLAN MEMBER.
   18    d. The normal service retirement benefit  specified  in  section  five
   19  hundred  five  OF THIS ARTICLE shall be paid to police/fire members, NEW
   20  YORK CITY  UNIFORMED  CORRECTION/SANITATION  REVISED  PLAN  MEMBERS  AND
   21  INVESTIGATOR  REVISED PLAN MEMBERS without regard to age upon retirement
   22  after twenty-two years of service. Early  service  retirement  shall  be
   23  permitted  upon  retirement  after  twenty  years of credited service or
   24  attainment of age sixty-two,  PROVIDED,  HOWEVER,  THAT  NEW  YORK  CITY
   25  POLICE/FIRE    REVISED   PLAN   MEMBERS,   NEW   YORK   CITY   UNIFORMED
   26  CORRECTION/SANITATION REVISED PLAN MEMBERS AND INVESTIGATOR REVISED PLAN
   27  MEMBERS SHALL NOT BE ELIGIBLE TO RETIRE FOR SERVICE PRIOR TO THE ATTAIN-
   28  MENT OF TWENTY YEARS OF CREDITED SERVICE.
   29    S 8. Subdivisions a, c and d of section  504  of  the  retirement  and
   30  social  security  law, subdivision a as added by chapter 890 of the laws
   31  of 1976, subdivision c as amended by section 3 of part B of chapter  504
   32  of  the  laws  of  2009  and  subdivision d as amended by section 144 of
   33  subpart B of part C of chapter 62 of the laws of 2011,  are  amended  to
   34  read as follows:
   35    a.  The  service  retirement  benefit  for  general  members at normal
   36  retirement age with twenty or more years of credited service shall be  a
   37  pension  equal  to  one-fiftieth  of final average salary times years of
   38  credited service, not in excess of thirty years, less fifty  percent  of
   39  the  primary  social  security retirement benefit as provided in section
   40  five hundred eleven OF THIS ARTICLE.  THE SERVICE RETIREMENT BENEFIT FOR
   41  GENERAL MEMBERS AT NORMAL RETIREMENT AGE WITH TWENTY OR  MORE  YEARS  OF
   42  SERVICE WHO FIRST BECOME MEMBERS OF THE NEW YORK STATE AND LOCAL EMPLOY-
   43  EES'  RETIREMENT  SYSTEM ON OR AFTER APRIL FIRST, TWO THOUSAND TWELVE AT
   44  NORMAL RETIREMENT AGE SHALL BE A PENSION EQUAL TO THE SUM OF THIRTY-FIVE
   45  PER CENTUM AND ONE-FIFTIETH OF FINAL AVERAGE SALARY  FOR  EACH  YEAR  OF
   46  SERVICE  IN  EXCESS  OF TWENTY, BUT NOT IN EXCESS OF THIRTY, TIMES FINAL
   47  AVERAGE SALARY TIMES YEARS OF CREDITED SERVICE.
   48    c. The early service retirement benefit for  general  members,  except
   49  for  general  members  whose  early  retirement  benefit is specified in
   50  subdivision d of this section, shall be the service  retirement  benefit
   51  specified  in  subdivision  a  or b of this section, as the case may be,
   52  without social security offset, reduced by one-fifteenth for each of the
   53  first two years by which early retirement precedes age sixty-two, plus a
   54  further reduction  of:  (1)  one-thirtieth;  or  (2)  one-twentieth  for
   55  members  who  first join the New York state and local employees' retire-
   56  ment system on or after January first, two thousand ten, for  each  year
       S. 6735                             7                            A. 9558

    1  by which early retirement precedes age sixty, PROVIDED HOWEVER, THAT FOR
    2  MEMBERS WHO FIRST BECOME MEMBERS OF THE NEW YORK STATE AND LOCAL EMPLOY-
    3  EES'  RETIREMENT SYSTEM ON OR AFTER THE EFFECTIVE DATE OF THE CHAPTER OF
    4  THE  LAWS  OF  TWO  THOUSAND  TWELVE WHICH AMENDED THIS SUBDIVISION, THE
    5  EARLY SERVICE RETIREMENT BENEFIT FOR GENERAL MEMBERS, EXCEPT FOR GENERAL
    6  MEMBERS WHOSE EARLY RETIREMENT BENEFIT IS SPECIFIED IN SUBDIVISION D  OF
    7  THIS  SECTION,  SHALL  BE  THE  SERVICE  RETIREMENT BENEFIT SPECIFIED IN
    8  SUBDIVISION A OR B OF THIS SECTION, AS THE CASE MAY BE,  WITHOUT  SOCIAL
    9  SECURITY OFFSET, REDUCED BY SIX AND ONE-HALF PER CENTUM FOR EACH YEAR BY
   10  WHICH  EARLY  RETIREMENT PRECEDES AGE SIXTY-THREE. At age sixty-two, the
   11  benefit shall be reduced by fifty percent of the primary social security
   12  retirement benefit, as provided in section five hundred eleven  of  this
   13  article.
   14    d.  The  early  service  retirement benefit for general members in the
   15  uniformed  correction  force  of  the  New  York  city   department   of
   16  correction,  who are not entitled to an early service retirement benefit
   17  pursuant to subdivision c of section five hundred four-a of this article
   18  or subdivision c of section five  hundred  four-b  of  this  article  or
   19  subdivision  c  of  section  five hundred four-d of this article, or for
   20  general members in the uniformed personnel  in  institutions  under  the
   21  jurisdiction of the department of corrections and community supervision,
   22  as  defined  in  subdivision  i  of section eighty-nine of this chapter,
   23  shall be a pension equal to one-fiftieth of final average  salary  times
   24  years  of  credited  service  at  the completion of twenty-five years of
   25  service, but not in excess of fifty percent  of  final  average  salary,
   26  PROVIDED,  HOWEVER,  THAT THE PROVISIONS OF THIS SECTION SHALL NOT APPLY
   27  TO A NEW YORK CITY UNIFORMED CORRECTION/SANITATION REVISED PLAN MEMBER.
   28    S 9. Subdivision b of section 504-a of the retirement and social secu-
   29  rity law is amended by adding a new paragraph 4-a to read as follows:
   30    4-A. NOTWITHSTANDING ANY OTHER PROVISION OF THIS  SUBDIVISION  OR  ANY
   31  OTHER PROVISION OF LAW TO THE CONTRARY, NO MEMBER OF THE UNIFORMED FORCE
   32  OF  THE  NEW  YORK  CITY DEPARTMENT OF CORRECTION WHO IS A NEW YORK CITY
   33  UNIFORMED CORRECTION/SANITATION REVISED PLAN MEMBER SHALL BE  A  PARTIC-
   34  IPANT IN THE TWENTY-YEAR RETIREMENT PROGRAM.
   35    S  10.  Subdivision  b  of  section 504-b of the retirement and social
   36  security law is amended by  adding  a  new  paragraph  4-a  to  read  as
   37  follows:
   38    4-A.  NOTWITHSTANDING  ANY  OTHER PROVISION OF THIS SUBDIVISION OR ANY
   39  OTHER PROVISION OF LAW TO THE CONTRARY, NO MEMBER OF THE UNIFORMED FORCE
   40  OF THE NEW YORK CITY DEPARTMENT OF CORRECTION WHO IS  A  NEW  YORK  CITY
   41  UNIFORMED  CORRECTION/SANITATION  REVISED PLAN MEMBER SHALL BE A PARTIC-
   42  IPANT IN THE TWENTY-YEAR RETIREMENT PROGRAM FOR CAPTAINS AND ABOVE.
   43    S 11. Subdivision b of section 504-d  of  the  retirement  and  social
   44  security  law  is  amended  by  adding  a  new  paragraph 1-a to read as
   45  follows:
   46    1-A. NOTWITHSTANDING ANY OTHER PROVISION OF THIS  SUBDIVISION  OR  ANY
   47  OTHER PROVISION OF LAW TO THE CONTRARY, NO MEMBER OF THE UNIFORMED FORCE
   48  OF  THE  NEW  YORK  CITY DEPARTMENT OF CORRECTION WHO IS A NEW YORK CITY
   49  UNIFORMED CORRECTION/SANITATION REVISED PLAN MEMBER SHALL BE  A  PARTIC-
   50  IPANT IN THE TWENTY-YEAR RETIREMENT PROGRAM.
   51    S  12. Section 505 of the retirement and social security law, as added
   52  by chapter 890 of the laws of 1976, is amended to read as follows:
   53    S 505. Service retirement benefits; police/fire members, NEW YORK CITY
   54  UNIFORMED CORRECTION/SANITATION REVISED PLAN  MEMBERS  AND  INVESTIGATOR
   55  REVISED  PLAN  MEMBERS.    a.  The normal service retirement benefit for
   56  police/fire  members,  NEW  YORK  CITY  UNIFORMED  CORRECTION/SANITATION
       S. 6735                             8                            A. 9558

    1  REVISED  PLAN  MEMBERS  AND  INVESTIGATOR REVISED PLAN MEMBERS at normal
    2  retirement age shall be a pension equal to fifty percent of final  aver-
    3  age salary, less fifty percent of the primary social security retirement
    4  benefit commencing at age sixty-two, as provided in section five hundred
    5  eleven OF THIS ARTICLE.
    6    b.  The  early service retirement benefit for police/fire members, NEW
    7  YORK CITY  UNIFORMED  CORRECTION/SANITATION  REVISED  PLAN  MEMBERS  AND
    8  INVESTIGATOR  REVISED  PLAN  MEMBERS shall be a pension equal to two and
    9  one-tenths percent of final  average  salary  times  years  of  credited
   10  service  at the completion of twenty years of service or upon attainment
   11  of age sixty-two, increased by one-third of one percent of final average
   12  salary for each month of service in excess of twenty years, but  not  in
   13  excess  of  fifty percent of final average salary, less fifty percent of
   14  the primary social security retirement benefit commencing at age  sixty-
   15  two  as  provided  in  section  five  hundred  eleven  OF  THIS ARTICLE,
   16  PROVIDED, HOWEVER, THAT NEW YORK CITY POLICE/FIRE REVISED PLAN  MEMBERS,
   17  NEW  YORK  CITY UNIFORMED CORRECTION/SANITATION REVISED PLAN MEMBERS AND
   18  INVESTIGATOR REVISED PLAN MEMBERS SHALL NOT BE ELIGIBLE  TO  RETIRE  FOR
   19  SERVICE PRIOR TO THE ATTAINMENT OF TWENTY YEARS OF CREDITED SERVICE.
   20    c.    A    police/fire    member,    A   NEW   YORK   CITY   UNIFORMED
   21  CORRECTION/SANITATION REVISED PLAN MEMBER  OR  AN  INVESTIGATOR  REVISED
   22  PLAN  MEMBER  who  retires  with twenty-two years of credited service or
   23  less may become eligible for annual escalation of the service retirement
   24  benefit if he elects to have the payment of his benefit commence on  the
   25  date  he  would have completed twenty-two years and one month or more of
   26  service. In such event, the service retirement benefit shall  equal  two
   27  percent  of final average salary for each year of credited service, less
   28  fifty percent of the primary social security retirement benefit commenc-
   29  ing at age sixty-two as provided in section five hundred eleven OF  THIS
   30  ARTICLE.
   31    S 13. Subdivisions b and c of section 507 of the retirement and social
   32  security  law,  subdivision  b  as amended by chapter 489 of the laws of
   33  2008 and subdivision c as amended by chapter 513 of the  laws  of  2010,
   34  are amended to read as follows:
   35    b.  A  police/fire member in active service, A NEW YORK CITY UNIFORMED
   36  CORRECTION/SANITATION REVISED PLAN MEMBER IN ACTIVE SERVICE OR AN INVES-
   37  TIGATOR REVISED PLAN MEMBER IN ACTIVE SERVICE, or a vested member  inca-
   38  pacitated  as the result of a qualifying World Trade Center condition as
   39  defined in section two of this chapter, who is not eligible for a normal
   40  service retirement benefit shall be eligible for the accidental disabil-
   41  ity benefit either as provided in subdivision a OF THIS  SECTION  or  if
   42  such  member  is physically or mentally incapacitated for performance of
   43  duty as the natural and proximate result of  an  accident  sustained  in
   44  such  active  service and not caused by such member's own willful negli-
   45  gence.
   46    c. In the case of a member of a retirement system other than  the  New
   47  York  state  and  local employees' retirement system, the New York state
   48  teachers' retirement system, the New  York  city  employees'  retirement
   49  system,  the  New  York city board of education retirement system or the
   50  New York city teachers' retirement system, OR IN THE CASE OF A MEMBER OF
   51  THE NEW YORK CITY EMPLOYEES' RETIREMENT SYSTEM WHO IS A  NEW  YORK  CITY
   52  UNIFORMED  CORRECTION/SANITATION  REVISED PLAN MEMBER OR AN INVESTIGATOR
   53  REVISED PLAN MEMBER, the accidental disability benefit  hereunder  shall
   54  be a pension equal to two percent of final average salary times years of
   55  credited service which such member would have attained if employment had
   56  continued until such member's full escalation date, not in excess of the
       S. 6735                             9                            A. 9558

    1  maximum  years  of  service creditable for the normal service retirement
    2  benefit, less (i) fifty percent of the primary social security disabili-
    3  ty benefit, if any, as provided in section five hundred eleven  of  this
    4  article, and (ii) one hundred percent of any workers' compensation bene-
    5  fits payable.
    6    In  the  case  of  a member of the New York state and local employees'
    7  retirement system, the New York state teachers' retirement  system,  the
    8  New  York  city employees' retirement system (OTHER THAN A NEW YORK CITY
    9  UNIFORMED CORRECTION/SANITATION REVISED PLAN MEMBER OR  AN  INVESTIGATOR
   10  REVISED  PLAN  MEMBER),  the New York city board of education retirement
   11  system or the New York city teachers' retirement system, the  accidental
   12  disability  benefit  hereunder shall be a pension equal to sixty percent
   13  of final average salary, less (i) fifty percent of  the  primary  social
   14  security disability benefit, if any, as provided in section five hundred
   15  eleven  of  this  article,  and (ii) one hundred percent of any workers'
   16  compensation benefits payable. In the event a  disability  retiree  from
   17  any  retirement  system  is not eligible for the primary social security
   18  disability benefit and continues to be eligible for disability  benefits
   19  hereunder,  such disability benefit shall be reduced by one-half of such
   20  retiree's primary social security retirement benefit, commencing at  age
   21  sixty-two,  in  the same manner as provided for service retirement bene-
   22  fits under section five hundred eleven of this article.
   23    S 14. The opening paragraph of subdivision a of section 507-a  of  the
   24  retirement and social security law, as amended by section 145 of subpart
   25  B  of  part  C  of chapter 62 of the laws of 2011, is amended to read as
   26  follows:
   27    [Application] SUBJECT TO THE  PROVISIONS  OF  SUBDIVISION  E  OF  THIS
   28  SECTION,  APPLICATION for a disability retirement allowance for a member
   29  in the uniformed personnel in institutions under the jurisdiction of the
   30  department of corrections and community supervision of New York state as
   31  defined in subdivision i of section eighty-nine of this chapter or for a
   32  member serving in institutions who is also in a title  defined  in  such
   33  subdivision  and  who has made an election pursuant to the provisions of
   34  article seventeen of this chapter or the New  York  city  department  of
   35  correction may be made by:
   36    S  15.  Section  507-a  of  the  retirement and social security law is
   37  amended by adding a new subdivision e to read as follows:
   38    E. NOTWITHSTANDING THE PRECEDING SUBDIVISIONS OF THIS SECTION  TO  THE
   39  CONTRARY,  THIS  SECTION  SHALL  NOT  APPLY TO A MEMBER OF THE UNIFORMED
   40  FORCE OF THE NEW YORK CITY DEPARTMENT OF CORRECTION WHO IS  A  NEW  YORK
   41  CITY UNIFORMED CORRECTION/SANITATION REVISED PLAN MEMBER.
   42    S  16.  Subdivision  a  of  section 507-c of the retirement and social
   43  security law, as added by chapter 622 of the laws of 1997, is amended to
   44  read as follows:
   45    a. Any member in the uniformed personnel  in  institutions  under  the
   46  jurisdiction  of the New York city department of correction, who becomes
   47  physically or mentally incapacitated for the performance  of  duties  as
   48  the natural and proximate result of an injury, sustained in the perform-
   49  ance or discharge of his or her duties by, or as a natural and proximate
   50  result of, an act of any inmate or any person confined in an institution
   51  under the jurisdiction of the department of correction or the department
   52  of  health,  or by any person who has been committed to such institution
   53  by any court shall be paid a performance of duty  disability  retirement
   54  allowance  equal  to  three-quarters of final average salary, subject to
   55  the provisions of section 13-176 of the administrative code of the  city
   56  of  New  York,  PROVIDED,  HOWEVER,  THAT THE PROVISIONS OF THIS SECTION
       S. 6735                            10                            A. 9558

    1  SHALL NOT APPLY TO A MEMBER OF THE UNIFORMED FORCE OF THE NEW YORK  CITY
    2  DEPARTMENT   OF   CORRECTION   WHO   IS   A   NEW  YORK  CITY  UNIFORMED
    3  CORRECTION/SANITATION REVISED PLAN MEMBER.
    4    S  17. Subdivision b of section 508 of the retirement and social secu-
    5  rity law, as amended by chapter 601 of the laws of 1997, is  amended  to
    6  read as follows:
    7    b.  A  member of a retirement system subject to the provisions of this
    8  article who is a policeman, fireman,  correction  officer,  INVESTIGATOR
    9  REVISED  PLAN  MEMBER  or  sanitation man and is in a plan which permits
   10  immediate retirement upon completion of a specified  period  of  service
   11  without  regard  to  age  or who is subject to the provisions of section
   12  five hundred four or five hundred  five  of  this  article,  shall  upon
   13  completion of ninety days of service be covered for financial protection
   14  in  the  event  of  death  in service pursuant to this subdivision. Such
   15  death benefit shall be equal to three times the member's  salary  raised
   16  to  the  next  highest multiple of one thousand dollars, but in no event
   17  shall it exceed three times the maximum salary specified in section  one
   18  hundred thirty of the civil service law or, in the case of a member of a
   19  retirement  system  other  than  the New York city employees' retirement
   20  system, OR IN THE CASE OF A MEMBER  OF  THE  NEW  YORK  CITY  EMPLOYEES'
   21  RETIREMENT SYSTEM WHO IS A NEW YORK CITY UNIFORMED CORRECTION/SANITATION
   22  REVISED PLAN MEMBER OR AN INVESTIGATOR REVISED PLAN MEMBER, the specific
   23  limitations  specified  for  age  of  entrance into service contained in
   24  subparagraphs (b), (c), (d), (e) and (f) of paragraph two of subdivision
   25  a of this section.
   26    S 18. Paragraph 2 of subdivision b of section 510  of  the  retirement
   27  and social security law, as added by chapter 890 of the laws of 1976, is
   28  amended to read as follows:
   29    2.  The  first  day  of the month following the date on which a member
   30  completes or would have completed twenty-five years of credited service,
   31  with respect to service retirement benefits for police/fire members  and
   32  their  beneficiaries,  NEW  YORK  CITY  UNIFORMED  CORRECTION/SANITATION
   33  REVISED PLAN MEMBERS AND THEIR  BENEFICIARIES  OR  INVESTIGATOR  REVISED
   34  PLAN MEMBERS AND THEIR BENEFICIARIES.
   35    S  19. Subdivision f of section 511 of the retirement and social secu-
   36  rity law, as amended by section 147 of subpart B of part C of chapter 62
   37  of the laws of 2011, is amended to read as follows:
   38    f. This section shall not apply to general members  in  the  uniformed
   39  correction  force  of  the  New York city department of correction or to
   40  uniformed personnel  in  institutions  under  the  jurisdiction  of  the
   41  department  of corrections and community supervision and security hospi-
   42  tal treatment assistants, as those terms are defined in subdivision i of
   43  section  eighty-nine  of  this  chapter,  PROVIDED,  HOWEVER,  THAT  THE
   44  PROVISIONS  OF  THIS  SECTION  SHALL  APPLY TO A NEW YORK CITY UNIFORMED
   45  CORRECTION/SANITATION REVISED PLAN MEMBER.
   46    S 20. Section 512 of  the  retirement  and  social  security  law,  as
   47  amended  by  chapter  379  of  the laws of 1986, subdivisions b and c as
   48  amended by chapter 286 of the laws of 2010 and subdivision d as added by
   49  chapter 749 of the laws of 1992, is amended to read as follows:
   50    S 512. Final average salary.  a. A member's final average salary shall
   51  be the average wages earned by such a member during  any  three  consec-
   52  utive  years  which provide the highest average wage; provided, however,
   53  if the wages earned during any year  included  in  the  period  used  to
   54  determine final average salary exceeds that of the average of the previ-
   55  ous  two  years  by  more  than ten percent, the amount in excess of ten
   56  percent shall be excluded from the computation of final average  salary.
       S. 6735                            11                            A. 9558

    1  [Where]  NOTWITHSTANDING THE PRECEDING PROVISIONS OF THIS SUBDIVISION TO
    2  THE CONTRARY, FOR A MEMBER WHO FIRST BECOMES A MEMBER OF  THE  NEW  YORK
    3  STATE  AND  LOCAL  EMPLOYEES' RETIREMENT SYSTEM ON OR AFTER APRIL FIRST,
    4  TWO  THOUSAND  TWELVE,  OR  FOR A NEW YORK CITY POLICE/FIRE REVISED PLAN
    5  MEMBER, A NEW YORK CITY  UNIFORMED  CORRECTION/SANITATION  REVISED  PLAN
    6  MEMBER  OR AN INVESTIGATOR REVISED PLAN MEMBER, A MEMBER'S FINAL AVERAGE
    7  SALARY SHALL BE THE AVERAGE WAGES EARNED BY SUCH  A  MEMBER  DURING  ANY
    8  FIVE CONSECUTIVE YEARS WHICH PROVIDE THE HIGHEST AVERAGE WAGE; PROVIDED,
    9  HOWEVER, IF THE WAGES EARNED DURING ANY YEAR INCLUDED IN THE PERIOD USED
   10  TO  DETERMINE  FINAL  AVERAGE  SALARY EXCEEDS THAT OF THE AVERAGE OF THE
   11  PREVIOUS FOUR YEARS BY MORE THAN TEN PERCENT, THE AMOUNT  IN  EXCESS  OF
   12  TEN  PERCENT  SHALL  BE  EXCLUDED  FROM THE COMPUTATION OF FINAL AVERAGE
   13  SALARY. IN DETERMINING FINAL AVERAGE SALARY PURSUANT TO ANY PROVISION OF
   14  THIS SUBDIVISION, WHERE THE PERIOD USED TO DETERMINE FINAL AVERAGE SALA-
   15  RY IS THE PERIOD WHICH IMMEDIATELY PRECEDES THE DATE OF RETIREMENT,  ANY
   16  MONTH  OR  MONTHS  (NOT  IN  EXCESS  OF TWELVE) WHICH WOULD OTHERWISE BE
   17  INCLUDED IN COMPUTING FINAL AVERAGE SALARY BUT DURING WHICH  THE  MEMBER
   18  WAS  ON  AUTHORIZED LEAVE OF ABSENCE AT PARTIAL PAY OR WITHOUT PAY SHALL
   19  BE EXCLUDED FROM THE COMPUTATION OF FINAL AVERAGE SALARY AND  THE  MONTH
   20  OR  AN EQUAL NUMBER OF MONTHS IMMEDIATELY PRECEDING SUCH PERIOD SHALL BE
   21  SUBSTITUTED IN LIEU THEREOF.
   22    b. Notwithstanding the provisions of subdivision a  of  this  section,
   23  with  respect  to  members  of  the New York state employees' retirement
   24  system WHO FIRST BECOME MEMBERS OF THE NEW YORK STATE AND LOCAL  EMPLOY-
   25  EES'  RETIREMENT SYSTEM BEFORE APRIL FIRST, TWO THOUSAND TWELVE, the New
   26  York state and local police and fire retirement system and the New  York
   27  city  teachers' retirement system, a member's final average salary shall
   28  be equal to one-third of the  highest  total  wages  earned  during  any
   29  continuous  period  of employment for which the member was credited with
   30  three years of service credit; provided, however, if  the  wages  earned
   31  during  any  year of credited service included the period used to deter-
   32  mine final average salary exceeds the average of the wages of the previ-
   33  ous two years of credited service by more than ten percent,  the  amount
   34  in excess of ten percent shall be excluded from the computation of final
   35  average  salary.  FOR  MEMBERS WHO FIRST BECOME A MEMBER OF THE NEW YORK
   36  STATE AND LOCAL EMPLOYEES' RETIREMENT SYSTEM ON OR  AFTER  APRIL  FIRST,
   37  TWO  THOUSAND  TWELVE, WITH RESPECT TO MEMBERS OF THE NEW YORK STATE AND
   38  LOCAL EMPLOYEES' RETIREMENT SYSTEM,  A  MEMBER'S  FINAL  AVERAGE  SALARY
   39  SHALL BE EQUAL TO ONE-FIFTH OF THE HIGHEST TOTAL WAGES EARNED DURING ANY
   40  CONTINUOUS  PERIOD  OF EMPLOYMENT FOR WHICH THE MEMBER WAS CREDITED WITH
   41  FIVE YEARS OF SERVICE CREDIT; PROVIDED, HOWEVER,  IF  THE  WAGES  EARNED
   42  DURING  ANY  YEAR OF CREDITED SERVICE INCLUDED THE PERIOD USED TO DETER-
   43  MINE FINAL AVERAGE SALARY EXCEEDS THE AVERAGE OF THE WAGES OF THE PREVI-
   44  OUS FOUR YEARS OF CREDITED SERVICE BY MORE THAN TEN PERCENT, THE  AMOUNT
   45  IN EXCESS OF TEN PERCENT SHALL BE EXCLUDED FROM THE COMPUTATION OF FINAL
   46  AVERAGE SALARY.
   47    c.  Notwithstanding  the  provisions  of  subdivisions a and b of this
   48  section, the final average salary of an employee who has been  a  member
   49  of the New York city employees' retirement system (OTHER THAN A NEW YORK
   50  CITY  CORRECTION/SANITATION  REVISED  PLAN  MEMBER  OR  AN  INVESTIGATOR
   51  REVISED PLAN MEMBER) or the New York city  teachers'  retirement  system
   52  for  less than one year shall be the projected one year salary, with the
   53  calculation based upon a twelve month projection of the sums  earned  in
   54  the  portion of the year worked.  If a member has been employed for more
   55  than one year but less than two years, then the member's  final  average
   56  salary  shall be the average of the first year and projected second year
       S. 6735                            12                            A. 9558

    1  earnings based upon the calculation above, and if more than  two  years,
    2  but  less  than  three  years, then one-third the total of the first two
    3  years of employment plus the projected third year's earnings, calculated
    4  as indicated above.
    5    d.  Subject  to  the  provisions of subdivision c of this section, and
    6  notwithstanding the provisions of subdivision a of  this  section,  with
    7  respect  to  members  of  the New York city employees' retirement system
    8  (OTHER THAN A NEW YORK CITY UNIFORMED CORRECTION/SANITATION REVISED PLAN
    9  MEMBER OR AN INVESTIGATOR REVISED PLAN MEMBER) and  the  New  York  city
   10  board  of  education retirement system who are subject to the provisions
   11  of this article, a member's final average  salary  shall  be  determined
   12  pursuant  to  the  provisions  of paragraph thirteen of subdivision e of
   13  section 13-638.4 of the administrative code of the city of New York.
   14    S 21. Subdivision h of section 513 of the retirement and social  secu-
   15  rity  law,  as  added  by chapter 477 of the laws of 2005, is amended to
   16  read as follows:
   17    h. Notwithstanding any other provision of this  section,  any  general
   18  member in the uniformed correction force of the New York city department
   19  of  [corrections]  CORRECTION who is absent without pay for a child care
   20  leave of absence pursuant to regulations of the New York city department
   21  of [corrections] CORRECTION shall be eligible for credit for such period
   22  of child care leave provided such member files a claim for such  service
   23  credit with the retirement system by December thirty-first, two thousand
   24  five  or  within ninety days of the termination of the child care leave,
   25  whichever is later, and contributes to the retirement system  an  amount
   26  which such member would have contributed during the period of such child
   27  care  leave,  together  with  interest  thereon. Service credit provided
   28  pursuant to this subdivision shall not exceed one  year  of  credit  for
   29  each  period  of  authorized  child  care leave. In the event there is a
   30  conflict between the provisions of this subdivision and  the  provisions
   31  of  any other law or code to the contrary, the provisions of this subdi-
   32  vision shall govern, PROVIDED, HOWEVER,  THAT  THE  PROVISIONS  OF  THIS
   33  SUBDIVISION  SHALL  NOT  APPLY TO A MEMBER OF THE UNIFORMED FORCE OF THE
   34  NEW YORK CITY DEPARTMENT OF CORRECTION WHO IS A NEW YORK CITY  UNIFORMED
   35  CORRECTION/SANITATION REVISED PLAN MEMBER.
   36    S 22. Intentionally omitted.
   37    S 23. Subdivisions c and d of section 516 of the retirement and social
   38  security  law, subdivision c as added by chapter 890 of the laws of 1976
   39  and subdivision d as amended by section 148 of subpart B of  part  C  of
   40  chapter  62  of the laws of 2011, are amended and a new subdivision e is
   41  added to read as follows:
   42    c.  The deferred vested benefit of police/fire members, NEW YORK  CITY
   43  POLICE/FIRE    REVISED   PLAN   MEMBERS,   NEW   YORK   CITY   UNIFORMED
   44  CORRECTION/SANITATION REVISED PLAN MEMBERS OR INVESTIGATOR REVISED  PLAN
   45  MEMBERS  shall  be a pension commencing at early retirement age equal to
   46  two and one-tenths percent of final average salary times years of  cred-
   47  ited  service, less fifty percent of the primary social security retire-
   48  ment benefit commencing at age sixty-two, as provided  in  section  five
   49  hundred  eleven  OF  THIS ARTICLE. A police/fire member, A NEW YORK CITY
   50  POLICE/FIRE  REVISED  PLAN   MEMBER,   A   NEW   YORK   CITY   UNIFORMED
   51  CORRECTION/SANITATION  REVISED  PLAN MEMBER OR INVESTIGATOR REVISED PLAN
   52  MEMBER may elect to receive  his  vested  benefit  commencing  at  early
   53  retirement age or age fifty-five. If the vested benefit commences before
   54  early  retirement age, the benefit shall be reduced by one-fifteenth for
   55  each year, if any, that the member's early retirement age is  in  excess
   56  of age sixty, and by one-thirtieth for each additional year by which the
       S. 6735                            13                            A. 9558

    1  vested  benefit  commences prior to early retirement age. If such vested
    2  benefit is deferred until after such member's normal retirement age, the
    3  benefit shall be computed and subject to annual escalation in  the  same
    4  manner  as provided for an early retirement benefit pursuant to subdivi-
    5  sion c of section five hundred five of this article.
    6    d. The deferred vested benefit of general  members  in  the  uniformed
    7  correction  force of the New York city department of correction, who are
    8  not entitled to a deferred vested benefit under subdivision d of section
    9  five hundred four-a of this article or under subdivision  d  of  section
   10  five  hundred  four-b  of this article or under subdivision d of section
   11  five hundred four-d of this  article,  or  of  general  members  in  the
   12  uniformed  personnel  in  institutions  under  the  jurisdiction  of the
   13  department of corrections  and  community  supervision,  as  defined  in
   14  subdivision  i  of  section  eighty-nine of this chapter, with twenty or
   15  more years of credited service shall be a pension commencing  at  normal
   16  retirement age equal to one-fiftieth of final average salary times years
   17  of  credited  service, not in excess of thirty years, OR FOR MEMBERS WHO
   18  FIRST BECOME MEMBERS OF THE NEW YORK STATE AND LOCAL EMPLOYEES'  RETIRE-
   19  MENT  SYSTEM  ON  OR  AFTER  APRIL FIRST, TWO THOUSAND TWELVE, A PENSION
   20  EQUAL TO THE SUM OF THIRTY-FIVE PER CENTUM  AND  ONE-FIFTIETH  OF  FINAL
   21  AVERAGE  SALARY FOR EACH YEAR OF SERVICE IN EXCESS OF TWENTY, BUT NOT IN
   22  EXCESS OF THIRTY, TIMES FINAL AVERAGE SALARY  TIMES  YEARS  OF  CREDITED
   23  SERVICE.    The  deferred  vested  benefit  of  general  members  in the
   24  uniformed  correction  force  of  the  New  York  city   department   of
   25  correction,  who  are  not  entitled  to a deferred vested benefit under
   26  subdivision d of section five hundred four-a of this  article  or  under
   27  subdivision  d  of  section five hundred four-b of this article or under
   28  subdivision d of section five hundred four-d  of  this  article,  or  of
   29  general  members in the uniformed personnel in institutions under juris-
   30  diction of the department of corrections and community  supervision,  as
   31  defined  in  subdivision  i of section eighty-nine of this chapter, with
   32  less than twenty years of credited service shall be a pension commencing
   33  at normal retirement age equal to one-sixtieth of final  average  salary
   34  times  years  of credited service.   Such deferred vested benefit may be
   35  paid in the form of an early service retirement benefit, or may be post-
   36  poned until after normal retirement age, in which event the benefit will
   37  be subject to reduction or escalation as provided in  subdivision  c  of
   38  section five hundred four of this article.
   39    E.  IN  NO EVENT SHALL THE VESTED RETIREMENT ALLOWANCE PAYABLE WITHOUT
   40  OPTIONAL MODIFICATION BE LESS THAN THE ACTUARIAL EQUIVALENT OF THE TOTAL
   41  WHICH RESULTS FROM THE MEMBER'S CONTRIBUTIONS ACCUMULATED WITH  INTEREST
   42  AT FIVE PERCENT PER ANNUM COMPOUNDED ANNUALLY TO THE DATE OF RETIREMENT.
   43    S  24. Subdivision a of section 517 of the retirement and social secu-
   44  rity law, as added by chapter 890 of the laws of  1976,  is  amended  to
   45  read as follows:
   46    a.  Members  shall  contribute  three  percent  of annual wages to the
   47  retirement system in which they  have  membership,  provided  that  such
   48  contributions  shall  not  be  required  for more than thirty years, for
   49  general members, or twenty-five years, for police/fire  members,  EXCEPT
   50  THAT  BEGINNING APRIL FIRST, TWO THOUSAND THIRTEEN FOR MEMBERS WHO FIRST
   51  BECOME MEMBERS OF THE NEW YORK STATE  AND  LOCAL  EMPLOYEES'  RETIREMENT
   52  SYSTEM  ON  OR AFTER APRIL FIRST, TWO THOUSAND TWELVE, THE RATE AT WHICH
   53  EACH SUCH MEMBER SHALL CONTRIBUTE IN ANY CURRENT PLAN YEAR (APRIL  FIRST
   54  TO  MARCH THIRTY-FIRST) SHALL BE DETERMINED BY REFERENCE TO THE WAGES OF
   55  SUCH MEMBER IN THE SECOND PLAN YEAR (APRIL FIRST TO MARCH  THIRTY-FIRST)
   56  PRECEDING SUCH CURRENT PLAN YEAR AS FOLLOWS:
       S. 6735                            14                            A. 9558

    1    1. MEMBERS WITH WAGES OF FORTY-FIVE THOUSAND DOLLARS PER ANNUM OR LESS
    2  SHALL CONTRIBUTE THREE PER CENTUM OF ANNUAL WAGES;
    3    2.  MEMBERS WITH WAGES GREATER THAN FORTY-FIVE THOUSAND PER ANNUM, BUT
    4  NOT MORE THAN FIFTY-FIVE THOUSAND PER ANNUM SHALL CONTRIBUTE  THREE  AND
    5  ONE-HALF PER CENTUM OF ANNUAL WAGES;
    6    3.  MEMBERS WITH WAGES GREATER THAN FIFTY-FIVE THOUSAND PER ANNUM, BUT
    7  NOT MORE THAN SEVENTY-FIVE THOUSAND PER ANNUM SHALL CONTRIBUTE FOUR  AND
    8  ONE-HALF PER CENTUM OF ANNUAL WAGES;
    9    4. MEMBERS WITH WAGES GREATER THAN SEVENTY-FIVE THOUSAND PER ANNUM BUT
   10  NOT  MORE  THAN ONE HUNDRED THOUSAND PER ANNUM SHALL CONTRIBUTE FIVE AND
   11  THREE-QUARTERS PER CENTUM OF ANNUAL WAGES; AND
   12    5. MEMBERS WITH WAGES GREATER THAN  ONE  HUNDRED  THOUSAND  PER  ANNUM
   13  SHALL CONTRIBUTE SIX PER CENTUM OF ANNUAL WAGES.
   14    NOTWITHSTANDING  THE  FOREGOING,  DURING  EACH OF THE FIRST THREE PLAN
   15  YEARS (APRIL FIRST TO MARCH  THIRTY-FIRST)  IN  WHICH  SUCH  MEMBER  HAS
   16  ESTABLISHED  MEMBERSHIP  IN  THE  NEW  YORK  STATE  AND LOCAL EMPLOYEES'
   17  RETIREMENT SYSTEM, SUCH MEMBER SHALL CONTRIBUTE A PERCENTAGE  OF  ANNUAL
   18  WAGES  IN ACCORDANCE WITH THE PRECEDING SCHEDULE BASED UPON A PROJECTION
   19  OF ANNUAL WAGES PROVIDED BY THE EMPLOYER.
   20    The head of each retirement system shall promulgate  such  regulations
   21  as  may  be  necessary  and appropriate with respect to the deduction of
   22  such contribution from members' wages and for  the  maintenance  of  any
   23  special fund or funds with respect to amounts so contributed.
   24    S  25.  Subdivision  b  of  section 517-c of the retirement and social
   25  security law, as amended by chapter 171 of the laws of 2011, is  amended
   26  to read as follows:
   27    b.  A  member  of  the  New York state and local employees' retirement
   28  system, the New York state and local police and fire retirement  system,
   29  the  New  York  city  employees'  retirement system or the New York city
   30  board of education retirement system in active service  who  has  credit
   31  for  at  least  one year of member service may borrow, no more than once
   32  during each twelve month period, an amount  not  exceeding  seventy-five
   33  percent of the total contributions made pursuant to section five hundred
   34  seventeen  OF  THIS ARTICLE (including interest credited at the rate set
   35  forth in subdivision c of such section five hundred seventeen compounded
   36  annually) and not less than one  thousand  dollars,  PROVIDED,  HOWEVER,
   37  THAT  THE  PROVISIONS OF THIS SECTION SHALL NOT APPLY TO A NEW YORK CITY
   38  UNIFORMED CORRECTION/SANITATION REVISED PLAN MEMBER OR  AN  INVESTIGATOR
   39  REVISED PLAN MEMBER.
   40    S 26. Intentionally omitted.
   41    S  27.  Paragraphs  4  and  5  of  subdivision a of section 600 of the
   42  retirement and social security law, as amended by  chapter  370  of  the
   43  laws  of  1996,  are  amended  and a new paragraph 6 is added to read as
   44  follows:
   45    4. Members qualified for participation in the uniformed transit police
   46  force plan or housing police force plan in the New York city  employees'
   47  retirement [systems] SYSTEM; [and]
   48    5.  Investigator  [member]  MEMBERS  of  the  New York city employees'
   49  retirement system[.]; AND
   50    6. MEMBERS OF THE UNIFORMED FORCE OF THE NEW YORK CITY  DEPARTMENT  OF
   51  SANITATION WHO JOIN OR REJOIN A PUBLIC RETIREMENT SYSTEM OF THE STATE ON
   52  OR AFTER APRIL FIRST, TWO THOUSAND TWELVE.
   53    S  28. Subdivision l of section 601 of the retirement and social secu-
   54  rity law, as amended by section 5 of part B of chapter 504 of  the  laws
   55  of 2009, is amended to read as follows:
       S. 6735                            15                            A. 9558

    1    l.  "Wages"  shall  mean  regular compensation earned by and paid to a
    2  member by a public employer, except that for members who first join  the
    3  New  York  state  and local employees' retirement system or the New York
    4  state teachers' retirement system on or after January first,  two  thou-
    5  sand  ten, overtime compensation paid in any year in excess of the over-
    6  time ceiling, as defined by this subdivision, shall not be  included  in
    7  the  definition  of  wages.  "Overtime  compensation"  shall  mean,  for
    8  purposes of this section, compensation paid  under  any  law  or  policy
    9  under  which  employees  are  paid at a rate greater than their standard
   10  rate for  additional  hours  worked  beyond  those  required,  including
   11  compensation  paid  under  section  one hundred thirty-four of the civil
   12  service law and section ninety of the general municipal law. The  "over-
   13  time  ceiling"  shall mean fifteen thousand dollars per annum on January
   14  first, two thousand ten, and shall be increased by three per  cent  each
   15  year  thereafter,  PROVIDED,  HOWEVER, THAT FOR MEMBERS WHO FIRST BECOME
   16  MEMBERS OF A PUBLIC RETIREMENT SYSTEM OF THE STATE  ON  OR  AFTER  APRIL
   17  FIRST,  TWO THOUSAND TWELVE, "OVERTIME CEILING" SHALL MEAN FIFTEEN THOU-
   18  SAND DOLLARS PER ANNUM ON APRIL FIRST, TWO THOUSAND TWELVE, AND SHALL BE
   19  INCREASED EACH YEAR THEREAFTER BY A PERCENTAGE TO BE DETERMINED ANNUALLY
   20  BY REFERENCE TO THE CONSUMER PRICE INDEX (ALL  URBAN  CONSUMERS,  CPI-U,
   21  U.S.  CITY  AVERAGE,  ALL  ITEMS,  1982-84=100), PUBLISHED BY THE UNITED
   22  STATES BUREAU OF LABOR STATISTICS, FOR EACH  APPLICABLE  CALENDAR  YEAR.
   23  SAID  PERCENTAGE SHALL EQUAL THE ANNUAL INFLATION AS DETERMINED FROM THE
   24  INCREASE IN THE CONSUMER PRICE INDEX IN THE ONE YEAR  PERIOD  ENDING  ON
   25  THE  DECEMBER THIRTY-FIRST PRIOR TO THE COST-OF-LIVING ADJUSTMENT EFFEC-
   26  TIVE ON THE ENSUING APRIL FIRST.  FOR MEMBERS WHO FIRST  JOIN  A  PUBLIC
   27  RETIREMENT  SYSTEM  OF  THE  STATE ON OR AFTER APRIL FIRST, TWO THOUSAND
   28  TWELVE, THE FOLLOWING ITEMS SHALL NOT BE INCLUDED IN THE  DEFINITION  OF
   29  WAGES:  1.    WAGES  IN EXCESS OF THE ANNUAL SALARY PAID TO THE GOVERNOR
   30  PURSUANT TO SECTION THREE OF ARTICLE FOUR OF THE STATE CONSTITUTION,  2.
   31  LUMP  SUM  PAYMENTS  FOR  DEFERRED COMPENSATION, SICK LEAVE, ACCUMULATED
   32  VACATION OR OTHER CREDITS FOR TIME NOT WORKED, 3.  ANY  FORM  OF  TERMI-
   33  NATION  PAY,  4.  ANY  ADDITIONAL  COMPENSATION  PAID IN ANTICIPATION OF
   34  RETIREMENT, AND 5. IN THE CASE OF EMPLOYEES WHO RECEIVE WAGES FROM THREE
   35  OR MORE EMPLOYERS IN A TWELVE MONTH PERIOD, THE WAGES PAID BY THE  THIRD
   36  AND EACH SUCCESSIVE EMPLOYER.
   37    S 29. Section 601 of the retirement and social security law is amended
   38  by adding a new subdivision m to read as follows:
   39    M.  "NEW YORK CITY REVISED PLAN MEMBER" SHALL MEAN A MEMBER OF THE NEW
   40  YORK CITY EMPLOYEES' RETIREMENT SYSTEM,  THE  NEW  YORK  CITY  TEACHERS'
   41  RETIREMENT  SYSTEM  OR  THE  BOARD OF EDUCATION RETIREMENT SYSTEM OF THE
   42  CITY OF NEW YORK WHO BECOMES SUBJECT TO THE PROVISIONS OF  THIS  ARTICLE
   43  ON OR AFTER APRIL FIRST, TWO THOUSAND TWELVE.
   44    S  29-a.  Subdivision  b-1 of section 602 of the retirement and social
   45  security law, as added by section 2 of part C of chapter 504 of the laws
   46  of 2009, is amended to read as follows:
   47    b-1. (1) Notwithstanding the provisions of subdivision a or b of  this
   48  section  or  any other provision of law to the contrary, (i) a member of
   49  the New York city teachers'  retirement  system  who  holds  a  position
   50  represented  by  the  recognized  teacher  organization  for  collective
   51  bargaining purposes, and who became subject to the  provisions  of  this
   52  article  after  the effective date of this subdivision, or (ii) a member
   53  of the New York city board of education retirement system  who  holds  a
   54  position  represented by the recognized teacher organization for collec-
   55  tive bargaining purposes, and who became subject to  the  provisions  of
   56  this  article after the effective date of this subdivision, shall not be
       S. 6735                            16                            A. 9558

    1  eligible for service retirement benefits hereunder until such member has
    2  rendered a minimum of ten years of credited service.
    3    (2)  NOTWITHSTANDING  THE  PROVISIONS  OF  SUBDIVISION  A OR B OF THIS
    4  SECTION OR ANY OTHER PROVISION OF LAW TO  THE  CONTRARY,  A  MEMBER  WHO
    5  FIRST  JOINS  A  PUBLIC RETIREMENT SYSTEM OF THE STATE ON OR AFTER APRIL
    6  FIRST, TWO THOUSAND TWELVE SHALL NOT BE ELIGIBLE FOR SERVICE  RETIREMENT
    7  BENEFITS HEREUNDER UNTIL SUCH MEMBER HAS RENDERED A MINIMUM OF TEN YEARS
    8  OF CREDITED SERVICE.
    9    S 30. Intentionally omitted.
   10    S  31. Subdivision a of section 603 of the retirement and social secu-
   11  rity law, as amended by section 7 of part B of chapter 504 of  the  laws
   12  of  2009,  is  amended  and  a  new  subdivision a-1 is added to read as
   13  follows:
   14    a.  The service retirement benefit specified in  section  six  hundred
   15  four  of this article shall be payable to members who have met the mini-
   16  mum service requirements upon retirement and attainment  of  age  sixty-
   17  two,  other  than  members who are eligible for early service retirement
   18  pursuant to subdivision c of section six hundred four-b of this article,
   19  subdivision c of section six hundred four-c of this article, subdivision
   20  d of section six hundred  four-d  of  this  article,  subdivision  c  of
   21  section six hundred four-e of this article, subdivision c of section six
   22  hundred  four-f  of  this  article, subdivision c of section six hundred
   23  four-g of this article, subdivision c of section six hundred  four-h  of
   24  this  article  or  subdivision  c  of section six hundred four-i of this
   25  article, provided, however, a member of a teachers' retirement system or
   26  the New York state and local  employees'  retirement  system  who  first
   27  joins such system before January first, two thousand ten or a member who
   28  is  a  uniformed  court officer or peace officer employed by the unified
   29  court system WHO FIRST BECOMES A MEMBER OF THE NEW YORK STATE AND  LOCAL
   30  EMPLOYEES' RETIREMENT SYSTEM BEFORE APRIL FIRST, TWO THOUSAND TWELVE may
   31  retire  without  reduction of his or her retirement benefit upon attain-
   32  ment of at least fifty-five years of age and  completion  of  thirty  or
   33  more years of service, provided, however, that a uniformed court officer
   34  or  peace officer employed by the unified court system who first becomes
   35  a member of the New York state and local employees' retirement system on
   36  or after January first, two thousand ten and retires  without  reduction
   37  of  his or her retirement benefit upon attainment of at least fifty-five
   38  years of age and completion of thirty or more years of service  pursuant
   39  to  this  section  shall  be  required  to make the member contributions
   40  required by subdivision f of section six hundred thirteen of this  arti-
   41  cle  for  all years of credited and creditable service, PROVIDED FURTHER
   42  THAT THE THE PRECEDING PROVISIONS OF THIS SUBDIVISION SHALL NOT APPLY TO
   43  A NEW YORK CITY REVISED PLAN MEMBER.
   44    A-1.  FOR MEMBERS WHO FIRST BECOME A MEMBER  OF  A  PUBLIC  RETIREMENT
   45  SYSTEM  OF  THE  STATE ON OR AFTER APRIL FIRST, TWO THOUSAND TWELVE, THE
   46  SERVICE RETIREMENT BENEFIT SPECIFIED IN SECTION SIX HUNDRED FOUR OF THIS
   47  ARTICLE SHALL BE PAYABLE TO MEMBERS WHO HAVE  MET  THE  MINIMUM  SERVICE
   48  REQUIREMENTS UPON RETIREMENT AND HAVE ATTAINED AGE SIXTY-THREE.
   49    S  32. Subdivision i of section 603 of the retirement and social secu-
   50  rity law, as amended by section 8 of part B of chapter 504 of  the  laws
   51  of 2009, is amended by adding a new paragraph 3 to read as follows:
   52    3. A MEMBER OF A PUBLIC RETIREMENT SYSTEM OF THE STATE WHO HAS MET THE
   53  MINIMUM  SERVICE  REQUIREMENT,  BUT  WHO  IS NOT A NEW YORK CITY TRANSIT
   54  AUTHORITY MEMBER, AS DEFINED  IN  PARAGRAPH  ONE  OF  SUBDIVISION  A  OF
   55  SECTION  SIX  HUNDRED FOUR-B OF THIS ARTICLE, MAY RETIRE PRIOR TO NORMAL
   56  RETIREMENT AGE, BUT NO EARLIER THAN ATTAINMENT  OF  AGE  FIFTY-FIVE,  IN
       S. 6735                            17                            A. 9558

    1  WHICH  EVENT, THE AMOUNT OF HIS OR HER RETIREMENT BENEFIT COMPUTED WITH-
    2  OUT OPTIONAL MODIFICATION SHALL BE  REDUCED  BY  SIX  AND  ONE-HALF  PER
    3  CENTUM FOR EACH YEAR BY WHICH EARLY RETIREMENT PRECEDES AGE SIXTY-THREE.
    4    S  33. Subdivision t of section 603 of the retirement and social secu-
    5  rity law, as added by section 8-a of part B of chapter 504 of  the  laws
    6  of 2009, is amended to read as follows:
    7    t.  Members who join the New York state teachers' retirement system on
    8  or after January first, two thousand ten, shall be  eligible  to  retire
    9  without reduction of his or her retirement benefit upon attainment of at
   10  least fifty-seven years of age and completion of thirty or more years of
   11  service.  Members who retire pursuant to the provisions of this subdivi-
   12  sion shall be required to make  the  member  contributions  required  by
   13  subdivision  g  of  section six hundred thirteen of this article for all
   14  years of credited and creditable service.  THE PROVISIONS OF THIS SUBDI-
   15  VISION SHALL NOT APPLY TO MEMBERS WHO FIRST BECOME A MEMBER OF  THE  NEW
   16  YORK  STATE  TEACHERS'  RETIREMENT  SYSTEM  ON OR AFTER APRIL FIRST, TWO
   17  THOUSAND TWELVE.
   18    S 33-a. Subdivision a of section 604  of  the  retirement  and  social
   19  security  law, as amended by section 8-b of part B of chapter 504 of the
   20  laws of 2009, is amended to read as follows:
   21    a. The service retirement benefit  at  normal  retirement  age  for  a
   22  member  with  less  than  twenty years of credited service, or less than
   23  twenty-five years credited service for a member who joins the  New  York
   24  state  teachers'  retirement system on or after January first, two thou-
   25  sand ten, shall be a retirement allowance equal to one-sixtieth of final
   26  average salary times years of credited service.  NORMAL  RETIREMENT  AGE
   27  FOR  MEMBERS  WHO  FIRST BECOME MEMBERS OF A PUBLIC RETIREMENT SYSTEM OF
   28  THE STATE ON OR AFTER APRIL FIRST, TWO  THOUSAND  TWELVE  SHALL  BE  AGE
   29  SIXTY-THREE.
   30    S 34. Section 604 of the retirement and social security law is amended
   31  by adding a new subdivision b-1 to read as follows:
   32    B-1.   NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, THE
   33  SERVICE RETIREMENT BENEFIT FOR MEMBERS WITH  TWENTY  OR  MORE  YEARS  OF
   34  CREDIT  SERVICE  WHO FIRST BECOME A MEMBER OF A PUBLIC RETIREMENT SYSTEM
   35  OF THE STATE ON OR AFTER APRIL FIRST, TWO THOUSAND TWELVE AT AGE  SIXTY-
   36  THREE  SHALL BE A PENSION EQUAL TO THE SUM OF THIRTY-FIVE PER CENTUM AND
   37  ONE-FIFTIETH OF FINAL AVERAGE SALARY FOR EACH YEAR OF SERVICE IN  EXCESS
   38  OF  TWENTY  TIMES  FINAL AVERAGE SALARY TIMES YEARS OF CREDITED SERVICE.
   39  IN NO EVENT  SHALL  ANY  RETIREMENT  BENEFIT  PAYABLE  WITHOUT  OPTIONAL
   40  MODIFICATION BE LESS THAN THE ACTUARIALLY EQUIVALENT ANNUITIZED VALUE OF
   41  THE MEMBER'S CONTRIBUTIONS ACCUMULATED WITH INTEREST AT FIVE PERCENT PER
   42  ANNUM COMPOUNDED ANNUALLY TO THE DATE OF RETIREMENT.
   43    S  35. Paragraph 1 of subdivision d of section 604-b of the retirement
   44  and social security law, as amended by chapter 10 of the laws  of  2000,
   45  is amended to read as follows:
   46    1. A participant in the twenty-five-year and age fifty-five retirement
   47  program who:
   48    (i)  discontinues city-service and service as a member of the New York
   49  city transit authority other than by death or retirement; and
   50    (ii) IN THE CASE OF A PARTICIPANT WHO IS NOT A NEW YORK  CITY  REVISED
   51  PLAN  MEMBER, prior to such discontinuance, completed five but less than
   52  twenty-five years of allowable service in the transit authority  OR,  IN
   53  THE  CASE  OF  A PARTICIPANT WHO IS A NEW YORK CITY REVISED PLAN MEMBER,
   54  HAS COMPLETED TEN BUT LESS THAN TWENTY-FIVE YEARS OF  ALLOWABLE  SERVICE
   55  IN THE TRANSIT AUTHORITY PRIOR TO SUCH DISCONTINUANCE; and
       S. 6735                            18                            A. 9558

    1    (iii)  has  paid,  prior to such discontinuance, all additional member
    2  contributions and interest, if any, required by subdivision  e  of  this
    3  section; and
    4    (iv)  does  not  withdraw  in  whole or in part his or her accumulated
    5  member contributions pursuant to section six hundred  thirteen  of  this
    6  article unless such participant thereafter returns to public service and
    7  repays  the  amounts  so  withdrawn, together with interest, pursuant to
    8  such section six hundred thirteen of this article; shall be entitled  to
    9  receive  a  deferred  vested  benefit as provided in section six hundred
   10  twelve of this article.
   11    S 36. Subparagraph (ii) of paragraph 3 of  subdivision  d  of  section
   12  604-b of the retirement and social security law, as added by chapter 352
   13  of the laws of 1997, is amended to read as follows:
   14    (ii)  [Such]  IN  THE CASE OF A PARTICIPANT WHO IS NOT A NEW YORK CITY
   15  REVISED PLAN MEMBER, SUCH vested benefit shall  become  payable  on  the
   16  earliest  date  on which such discontinued member could have retired for
   17  service if such discontinuance had not occurred OR, IN  THE  CASE  OF  A
   18  PARTICIPANT  WHO  IS  A  NEW  YORK CITY REVISED PLAN MEMBER, SUCH VESTED
   19  BENEFIT SHALL BECOME PAYABLE AT AGE SIXTY-THREE.
   20    S 37. Subdivision b of section 604-c  of  the  retirement  and  social
   21  security  law, as added by chapter 96 of the laws of 1995, is amended by
   22  adding a new paragraph 2-a to read as follows:
   23    2-A. NOTWITHSTANDING ANY OTHER PROVISION OF THIS  SUBDIVISION  OR  ANY
   24  OTHER PROVISION OF LAW TO THE CONTRARY, NO MEMBER WHO BECOMES SUBJECT TO
   25  THE  PROVISIONS  OF  THIS ARTICLE ON OR AFTER THE EFFECTIVE DATE OF THIS
   26  PARAGRAPH SHALL BE A PARTICIPANT IN THE TWENTY-FIVE-YEAR  EARLY  RETIRE-
   27  MENT PROGRAM.
   28    S  38. Paragraph 1 of subdivision d of section 604-c of the retirement
   29  and social security law, as amended by chapter 659 of the laws of  1999,
   30  is amended to read as follows:
   31    1. A participant in the twenty-year/age fifty retirement program who:
   32    (i)  discontinues  service  as  a Triborough bridge and tunnel member,
   33  other than by death or retirement; and
   34    (ii) IN THE CASE OF A PARTICIPANT WHO IS NOT A NEW YORK  CITY  REVISED
   35  PLAN  MEMBER, prior to such discontinuance, completed five but less than
   36  twenty years of credited service OR, IN THE CASE OF A PARTICIPANT WHO IS
   37  A NEW YORK CITY REVISED PLAN MEMBER, HAS COMPLETED  TEN  BUT  LESS  THAN
   38  TWENTY YEARS OF CREDITED SERVICE; and
   39    (iii)  has  paid,  prior to such discontinuance, all additional member
   40  contributions and interest (if any) required by subdivision  e  of  this
   41  section; and
   42    (iv)  does  not  withdraw  in  whole or in part his or her accumulated
   43  member contributions pursuant to section six hundred  thirteen  of  this
   44  article unless such participant thereafter returns to public service and
   45  repays  the  amounts  so  withdrawn, together with interest, pursuant to
   46  such section six hundred  thirteen;  shall  be  entitled  to  receive  a
   47  deferred vested benefit as provided in this subdivision.
   48    S  39.  Subparagraph  (ii)  of paragraph 2 of subdivision d of section
   49  604-c of the retirement and social security law, as added by chapter 472
   50  of the laws of 1995, is amended to read as follows:
   51    (ii) [Such] IN THE CASE OF A PARTICIPANT WHO IS NOT A  NEW  YORK  CITY
   52  REVISED  PLAN  MEMBER,  SUCH  vested benefit shall become payable on the
   53  earliest date on which such discontinued member could have  retired  for
   54  service  if  such  discontinuance  had not occurred OR, IN THE CASE OF A
   55  PARTICIPANT WHO IS A NEW YORK CITY  REVISED  PLAN  MEMBER,  SUCH  VESTED
   56  BENEFIT SHALL BECOME PAYABLE AT AGE SIXTY-THREE.
       S. 6735                            19                            A. 9558

    1    S  40.  Subdivision  c  of  section 604-d of the retirement and social
    2  security law is amended by  adding  a  new  paragraph  3-a  to  read  as
    3  follows:
    4    3-A.    NOTWITHSTANDING ANY OTHER PROVISION OF THIS SUBDIVISION OR ANY
    5  OTHER PROVISION OF LAW TO THE CONTRARY, NO MEMBER WHO BECOMES SUBJECT TO
    6  THE PROVISIONS OF THIS ARTICLE ON OR AFTER THE EFFECTIVE  DATE  OF  THIS
    7  PARAGRAPH  SHALL  BE  A  PARTICIPANT  IN  THE AGE FIFTY-SEVEN RETIREMENT
    8  PROGRAM.
    9    S 41. Paragraph 1 of subdivision d of section 604-e of the  retirement
   10  and social security law, as added by chapter 576 of the laws of 2000, is
   11  amended to read as follows:
   12    1. A participant in the twenty-five year retirement program:
   13    (i)  who  discontinues  service  as  such a participant, other than by
   14  death or retirement; and
   15    (ii) IN THE CASE OF A PARTICIPANT WHO IS NOT A NEW YORK  CITY  REVISED
   16  PLAN  MEMBER,  who prior to such discontinuance, completed five but less
   17  than twenty-five years of allowable service as a dispatcher  member  OR,
   18  IN THE CASE OF A PARTICIPANT WHO IS A NEW YORK CITY REVISED PLAN MEMBER,
   19  WHO   PRIOR   TO  SUCH  DISCONTINUANCE,  COMPLETED  TEN  BUT  LESS  THAN
   20  TWENTY-FIVE YEARS OF ALLOWABLE SERVICE AS A DISPATCHER MEMBER; and
   21    (iii) who, subject to the provisions of paragraph seven of subdivision
   22  e of this section, has paid, prior to  such  discontinuance,  all  addi-
   23  tional  member  contributions and interest (if any) required by subdivi-
   24  sion e of this section; and
   25    (iv) who does not withdraw in whole or in part his or her  accumulated
   26  member  contributions  pursuant  to section six hundred thirteen of this
   27  article unless such participant thereafter returns to public service and
   28  repays the amounts so withdrawn, together  with  interest,  pursuant  to
   29  such  section  six  hundred  thirteen;  shall  be  entitled to receive a
   30  deferred vested benefit as provided in this subdivision.
   31    S 42. Subparagraph (ii) of paragraph 2 of  subdivision  d  of  section
   32  604-e of the retirement and social security law, as added by chapter 576
   33  of the laws of 2000, is amended to read as follows:
   34    (ii)  [Such]  IN  THE CASE OF A PARTICIPANT WHO IS NOT A NEW YORK CITY
   35  REVISED PLAN MEMBER, SUCH vested benefit shall  become  payable  on  the
   36  earliest  date  on which such discontinued member could have retired for
   37  service if such discontinuance had not occurred OR, IN  THE  CASE  OF  A
   38  PARTICIPANT  WHO  IS  A  NEW  YORK CITY REVISED PLAN MEMBER, SUCH VESTED
   39  BENEFIT SHALL BECOME PAYABLE AT AGE SIXTY-THREE.
   40    S 43. Paragraph 1 of subdivision d of section 604-e of the  retirement
   41  and social security law, as added by chapter 577 of the laws of 2000, is
   42  amended to read as follows:
   43    1. A participant in the twenty-five year retirement program:
   44    (i)  who  discontinues  service  as  such a participant, other than by
   45  death or retirement; and
   46    (ii) IN THE CASE OF A PARTICIPANT WHO IS NOT A NEW YORK  CITY  REVISED
   47  PLAN  MEMBER,  who prior to such discontinuance, completed five but less
   48  than twenty-five years of allowable service as an EMT member OR, IN  THE
   49  CASE  OF  A  PARTICIPANT WHO IS A NEW YORK CITY REVISED PLAN MEMBER, WHO
   50  PRIOR TO SUCH DISCONTINUANCE, COMPLETED TEN BUT  LESS  THAN  TWENTY-FIVE
   51  YEARS OF ALLOWABLE SERVICE AS AN EMT MEMBER; and
   52    (iii) who, subject to the provisions of paragraph seven of subdivision
   53  e  of  this  section,  has paid, prior to such discontinuance, all addi-
   54  tional member contributions and interest (if any) required  by  subdivi-
   55  sion e of this section; and
       S. 6735                            20                            A. 9558

    1    (iv)  who does not withdraw in whole or in part his or her accumulated
    2  member contributions pursuant to section six hundred  thirteen  of  this
    3  article unless such participant thereafter returns to public service and
    4  repays  the  amounts  so  withdrawn, together with interest, pursuant to
    5  such  section  six  hundred  thirteen;  shall  be  entitled to receive a
    6  deferred vested benefit as provided in this subdivision.
    7    S 44. Subparagraph (ii) of paragraph 2 of  subdivision  d  of  section
    8  604-e of the retirement and social security law, as added by chapter 577
    9  of the laws of 2000, is amended to read as follows:
   10    (ii)  [Such]  IN  THE CASE OF A PARTICIPANT WHO IS NOT A NEW YORK CITY
   11  REVISED PLAN MEMBER, SUCH vested benefit shall  become  payable  on  the
   12  earliest  date  on which such discontinued member could have retired for
   13  service if such discontinuance had not occurred OR, IN  THE  CASE  OF  A
   14  PARTICIPANT  WHO  IS  A  NEW  YORK CITY REVISED PLAN MEMBER, SUCH VESTED
   15  BENEFIT SHALL BECOME PAYABLE AT AGE SIXTY-THREE.
   16    S 45. Paragraph 1 of subdivision d of section 604-f of the  retirement
   17  and social security law, as added by chapter 559 of the laws of 2001, is
   18  amended to read as follows:
   19    1. A participant in the twenty-five year retirement program:
   20    (i)  who  discontinues  service  as  such a participant, other than by
   21  death or retirement; and
   22    (ii) IN THE CASE OF A PARTICIPANT WHO IS NOT A NEW YORK  CITY  REVISED
   23  PLAN  MEMBER,  who prior to such discontinuance, completed five but less
   24  than twenty-five years of credited service OR, IN THE CASE OF A  PARTIC-
   25  IPANT  WHO  IS  A  NEW  YORK CITY REVISED PLAN MEMBER, WHO PRIOR TO SUCH
   26  DISCONTINUANCE, COMPLETED TEN BUT LESS THAN TWENTY-FIVE YEARS OF CREDIT-
   27  ED SERVICE; and
   28    (iii) who, subject to the provisions of paragraph seven of subdivision
   29  e of this section, has paid, prior to  such  discontinuance,  all  addi-
   30  tional  member  contributions and interest (if any) required by subdivi-
   31  sion e of this section; and
   32    (iv) who does not withdraw in whole or in part his or her  accumulated
   33  member  contributions  pursuant  to section six hundred thirteen of this
   34  article unless such participant thereafter returns to public service and
   35  repays the amounts so withdrawn, together  with  interest,  pursuant  to
   36  such  section  six  hundred  thirteen;  shall  be  entitled to receive a
   37  deferred vested benefit as provided in this subdivision.
   38    S 46. Subparagraph (ii) of paragraph 2 of  subdivision  d  of  section
   39  604-f of the retirement and social security law, as added by chapter 559
   40  of the laws of 2001, is amended to read as follows:
   41    (ii)  [Such]  IN  THE CASE OF A PARTICIPANT WHO IS NOT A NEW YORK CITY
   42  REVISED PLAN MEMBER, SUCH vested benefit shall  become  payable  on  the
   43  earliest  date  on which such discontinued member could have retired for
   44  service if such discontinuance had not occurred OR, IN  THE  CASE  OF  A
   45  PARTICIPANT  WHO  IS  A  NEW  YORK CITY REVISED PLAN MEMBER, SUCH VESTED
   46  BENEFIT SHALL BECOME PAYABLE AT AGE SIXTY-THREE.
   47    S 47. Paragraph 1 of subdivision d of section 604-f of the  retirement
   48  and social security law, as added by chapter 582 of the laws of 2001, is
   49  amended to read as follows:
   50    1. A participant in the twenty-five year retirement program:
   51    (i)  who  discontinues  service  as  such a participant, other than by
   52  death or retirement; and
   53    (ii) IN THE CASE OF A PARTICIPANT WHO IS NOT A NEW YORK  CITY  REVISED
   54  PLAN  MEMBER,  who prior to such discontinuance, completed five but less
   55  than twenty-five years of allowable service as a special officer,  park-
   56  ing  control  specialist,  school  safety agent, campus peace officer or
       S. 6735                            21                            A. 9558

    1  taxi and limousine inspector member OR, IN THE CASE OF A PARTICIPANT WHO
    2  IS A NEW YORK CITY REVISED PLAN MEMBER, WHO  PRIOR  TO  SUCH  DISCONTIN-
    3  UANCE,  COMPLETED  TEN  BUT  LESS  THAN  TWENTY-FIVE  YEARS OF ALLOWABLE
    4  SERVICE  AS A SPECIAL OFFICER, PARKING CONTROL SPECIALIST, SCHOOL SAFETY
    5  AGENT, CAMPUS PEACE OFFICER OR TAXI AND LIMOUSINE INSPECTOR MEMBER; and
    6    (iii) who, subject to the provisions of paragraph seven of subdivision
    7  e of this section, has paid, prior to  such  discontinuance,  all  addi-
    8  tional  member  contributions and interest, if any, required by subdivi-
    9  sion e of this section; and
   10    (iv) who does not withdraw in whole or in part his or her  accumulated
   11  member  contributions  pursuant  to section six hundred thirteen of this
   12  article unless such participant thereafter returns to public service and
   13  repays the amounts so withdrawn, together  with  interest,  pursuant  to
   14  such  section  six  hundred  thirteen;  shall  be  entitled to receive a
   15  deferred vested benefit as provided in this subdivision.
   16    S 48. Subparagraph (ii) of paragraph 2 of  subdivision  d  of  section
   17  604-f of the retirement and social security law, as added by chapter 582
   18  of the laws of 2001, is amended to read as follows:
   19    (ii)  [Such]  IN  THE CASE OF A PARTICIPANT WHO IS NOT A NEW YORK CITY
   20  REVISED PLAN MEMBER, SUCH vested benefit shall  become  payable  on  the
   21  earliest  date  on which such discontinued member could have retired for
   22  service if such discontinuance had not occurred OR, IN  THE  CASE  OF  A
   23  PARTICIPANT  WHO  IS  A  NEW  YORK CITY REVISED PLAN MEMBER, SUCH VESTED
   24  BENEFIT SHALL BECOME PAYABLE AT AGE SIXTY-THREE.
   25    S 49. Paragraph 1 of subdivision d of section 604-g of the  retirement
   26  and social security law, as added by chapter 414 of the laws of 2002, is
   27  amended to read as follows:
   28    1. A participant in the twenty-five year/age fifty retirement program:
   29    (i)  who  discontinues  service  as  such a participant, other than by
   30  death or retirement; and
   31    (ii) IN THE CASE OF A PARTICIPANT WHO IS NOT A NEW YORK  CITY  REVISED
   32  PLAN  MEMBER,  who prior to such discontinuance, completed five but less
   33  than twenty-five years of credited service OR, IN THE CASE OF A  PARTIC-
   34  IPANT  WHO  IS  A  NEW  YORK CITY REVISED PLAN MEMBER, WHO PRIOR TO SUCH
   35  DISCONTINUANCE, COMPLETED TEN BUT LESS THAN TWENTY-FIVE YEARS OF CREDIT-
   36  ED SERVICE; and
   37    (iii) who, subject to the provisions of paragraph seven of subdivision
   38  e of this section, has paid, prior to  such  discontinuance,  all  addi-
   39  tional  member  contributions and interest (if any) required by subdivi-
   40  sion e of this section; and
   41    (iv) who does not withdraw in whole or in part his or her  accumulated
   42  member  contributions  pursuant  to section six hundred thirteen of this
   43  article unless such participant thereafter returns to public service and
   44  repays the amounts so withdrawn, together  with  interest,  pursuant  to
   45  such  section  six  hundred  thirteen;  shall  be  entitled to receive a
   46  deferred vested benefit as provided in this subdivision.
   47    S 50. Subparagraph (ii) of paragraph 2 of  subdivision  d  of  section
   48  604-g of the retirement and social security law, as added by chapter 414
   49  of the laws of 2002, is amended to read as follows:
   50    (ii)  [Such]  IN  THE CASE OF A PARTICIPANT WHO IS NOT A NEW YORK CITY
   51  REVISED PLAN MEMBER, SUCH vested benefit shall  become  payable  on  the
   52  earliest  date  on which such discontinued member could have retired for
   53  service if such discontinuance had not occurred OR, IN  THE  CASE  OF  A
   54  PARTICIPANT  WHO  IS  A  NEW  YORK CITY REVISED PLAN MEMBER, SUCH VESTED
   55  BENEFIT SHALL BECOME PAYABLE AT AGE SIXTY-THREE.
       S. 6735                            22                            A. 9558

    1    S 51. Paragraph 1 of subdivision d of section 604-h of the  retirement
    2  and social security law, as added by chapter 682 of the laws of 2003, is
    3  amended to read as follows:
    4    1. A participant in the twenty-five year retirement program:
    5    (i)  who  discontinues  service  as  such a participant, other than by
    6  death or retirement; and
    7    (ii) IN THE CASE OF A PARTICIPANT WHO IS NOT A NEW YORK  CITY  REVISED
    8  PLAN  MEMBER,  who prior to such discontinuance, completed five but less
    9  than twenty-five years of credited service OR, IN THE CASE OF A  PARTIC-
   10  IPANT  WHO  IS  A  NEW  YORK CITY REVISED PLAN MEMBER, WHO PRIOR TO SUCH
   11  DISCONTINUANCE, COMPLETED TEN BUT LESS THAN TWENTY-FIVE YEARS OF CREDIT-
   12  ED SERVICE; and
   13    (iii) who, subject to the provisions of paragraph seven of subdivision
   14  e of this section, has paid, prior to  such  discontinuance,  all  addi-
   15  tional  member  contributions and interest (if any) required by subdivi-
   16  sion e of this section; and
   17    (iv) who does not withdraw in whole or in part his or her  accumulated
   18  member  contributions  pursuant  to section six hundred thirteen of this
   19  article unless such participant thereafter returns to public service and
   20  repays the amounts so withdrawn, together  with  interest,  pursuant  to
   21  such  section  six  hundred  thirteen;  shall  be  entitled to receive a
   22  deferred vested benefit as provided in this subdivision.
   23    S 52. Subparagraph (ii) of paragraph 2 of  subdivision  d  of  section
   24  604-h of the retirement and social security law, as added by chapter 682
   25  of the laws of 2003, is amended to read as follows:
   26    (ii)  [Such]  IN  THE CASE OF A PARTICIPANT WHO IS NOT A NEW YORK CITY
   27  REVISED PLAN MEMBER, SUCH vested benefit shall  become  payable  on  the
   28  earliest  date  on which such discontinued member could have retired for
   29  service if such discontinuance had not occurred OR, IN  THE  CASE  OF  A
   30  PARTICIPANT  WHO  IS  A  NEW  YORK CITY REVISED PLAN MEMBER, SUCH VESTED
   31  BENEFIT SHALL BECOME PAYABLE AT AGE SIXTY-THREE.
   32    S 53. Subdivision b of section 604-i  of  the  retirement  and  social
   33  security  law  is  amended  by  adding  a  new  paragraph 5-a to read as
   34  follows:
   35    5-A.  NOTWITHSTANDING ANY OTHER PROVISION OF THIS SUBDIVISION  OR  ANY
   36  OTHER PROVISION OF LAW TO THE CONTRARY, NO MEMBER WHO BECOMES SUBJECT TO
   37  THE  PROVISIONS  OF  THIS ARTICLE ON OR AFTER THE EFFECTIVE DATE OF THIS
   38  PARAGRAPH SHALL BE  A  PARTICIPANT  IN  THE  AGE  FIFTY-FIVE  RETIREMENT
   39  PROGRAM.
   40    S  54. Subdivisions a, b, c and d of section 608 of the retirement and
   41  social security law, subdivision a as amended by chapter 379 of the laws
   42  of 1986, subdivisions b and c as amended by chapter 286 of the  laws  of
   43  2010  and subdivision d as added by chapter 749 of the laws of 1992, are
   44  amended to read as follows:
   45    a. [A] FOR MEMBERS WHO FIRST BECOME MEMBERS  OF  A  PUBLIC  RETIREMENT
   46  SYSTEM  OF THE STATE BEFORE APRIL FIRST, TWO THOUSAND TWELVE, A member's
   47  final average salary shall be the average wages earned by such a  member
   48  during  any  three  consecutive  years which provide the highest average
   49  wage; provided, however, if the wages earned during any year included in
   50  the period used to determine final average salary exceeds  that  of  the
   51  average  of  the previous two years by more than ten percent, the amount
   52  in excess of ten percent shall be excluded from the computation of final
   53  average salary.  FOR MEMBERS WHO FIRST BECOME MEMBERS OF  THE  NEW  YORK
   54  STATE  AND  LOCAL  EMPLOYEES'  RETIREMENT  SYSTEM  OR THE NEW YORK STATE
   55  TEACHERS' RETIREMENT SYSTEM  ON  OR  AFTER  APRIL  FIRST,  TWO  THOUSAND
   56  TWELVE,  A  MEMBER'S  FINAL  AVERAGE  SALARY  SHALL BE THE AVERAGE WAGES
       S. 6735                            23                            A. 9558

    1  EARNED BY SUCH MEMBER DURING ANY FIVE CONSECUTIVE  YEARS  WHICH  PROVIDE
    2  THE  HIGHEST AVERAGE WAGE; PROVIDED, HOWEVER, IF THE WAGES EARNED DURING
    3  ANY YEAR INCLUDED IN THE PERIOD USED TO DETERMINE FINAL  AVERAGE  SALARY
    4  EXCEEDS  THAT OF THE AVERAGE OF THE PREVIOUS FOUR YEARS BY MORE THAN TEN
    5  PERCENT, THE AMOUNT IN EXCESS OF TEN PERCENT SHALL BE EXCLUDED FROM  THE
    6  COMPUTATION  OF FINAL AVERAGE SALARY. Where the period used to determine
    7  final average salary is the period which immediately precedes  the  date
    8  of retirement, any month or months (not in excess of twelve) which would
    9  otherwise be included in computing final average salary but during which
   10  the  member was on authorized leave of absence at partial pay or without
   11  pay shall be excluded from the computation of final average  salary  and
   12  the month or an equal number of months immediately preceding such period
   13  shall be substituted in lieu thereof.
   14    b.  Notwithstanding  the  provisions of subdivision a of this section,
   15  with respect to members WHO FIRST BECAME MEMBERS of the New  York  state
   16  AND  LOCAL  employees' retirement system and the New York city teachers'
   17  retirement system BEFORE APRIL FIRST, TWO THOUSAND  TWELVE,  a  member's
   18  final  average  salary  shall be equal to one-third of the highest total
   19  wages earned by such member during any continuous period  of  employment
   20  for  which  the  member was credited with three years of service credit;
   21  provided, however, if the wages  earned  during  any  year  of  credited
   22  service  included  in  the period used to determine final average salary
   23  exceeds the average of the wages of the previous two years  of  credited
   24  service  by  more  than ten percent, the amount in excess of ten percent
   25  shall be excluded from the computation of  final  average  salary.  WITH
   26  RESPECT  TO  MEMBERS  WHO FIRST BECOME MEMBERS OF THE NEW YORK STATE AND
   27  LOCAL EMPLOYEES' RETIREMENT SYSTEM  AND  THE  NEW  YORK  CITY  TEACHERS'
   28  RETIREMENT  SYSTEM  ON  OR  AFTER  APRIL  FIRST,  TWO THOUSAND TWELVE, A
   29  MEMBER'S FINAL AVERAGE SALARY SHALL BE EQUAL TO ONE-FIFTH OF THE HIGHEST
   30  TOTAL WAGES EARNED BY  SUCH  MEMBER  DURING  ANY  CONTINUOUS  PERIOD  OF
   31  EMPLOYMENT  FOR WHICH THE MEMBER WAS CREDITED WITH FIVE YEARS OF SERVICE
   32  CREDIT; PROVIDED, HOWEVER, IF THE WAGES EARNED DURING ANY YEAR OF  CRED-
   33  ITED  SERVICE  INCLUDED  IN  THE  PERIOD USED TO DETERMINE FINAL AVERAGE
   34  SALARY EXCEEDS THE AVERAGE OF THE WAGES OF THE PREVIOUS  FOUR  YEARS  OF
   35  CREDITED  SERVICE  BY MORE THAN TEN PERCENT, THE AMOUNT IN EXCESS OF TEN
   36  PERCENT SHALL BE EXCLUDED FROM THE COMPUTATION OF FINAL AVERAGE SALARY.
   37    c. Notwithstanding the provisions of subdivisions  a  and  b  of  this
   38  section,  the  final average salary of an employee who has been a member
   39  of the New York city employees' retirement system or the New  York  city
   40  teachers' retirement system for less than one year shall be the project-
   41  ed  one  year  salary,  with  the  calculation based upon a twelve month
   42  projection of the sums earned in the portion of the year worked.   If  a
   43  member has been employed for more than one year but less than two years,
   44  then the member's final average salary shall be the average of the first
   45  year  and  projected  second  year  earnings  based upon the calculation
   46  above, and if more than two years, but less than three years, then  one-
   47  third  the total of the first two years of employment plus the projected
   48  third year's earnings, calculated as indicated above, PROVIDED THAT THIS
   49  SUBDIVISION SHALL NOT APPLY TO A NEW YORK CITY REVISED  PLAN  MEMBER  OF
   50  THE  NEW  YORK  CITY  EMPLOYEES'  RETIREMENT  SYSTEM  OR A NEW YORK CITY
   51  REVISED PLAN MEMBER OF THE NEW YORK CITY TEACHERS' RETIREMENT SYSTEM.
   52    d. Subject to the provisions of subdivision c  of  this  section,  and
   53  notwithstanding  the  provisions  of subdivision a of this section, with
   54  respect to members of the New York city employees' retirement system and
   55  the New York city board of education retirement system who  are  subject
   56  to the provisions of this article, a member's final average salary shall
       S. 6735                            24                            A. 9558

    1  be determined pursuant to the provisions of paragraph fourteen of SUBDI-
    2  VISION  E  OF section 13-638.4 of the administrative code of the city of
    3  New York, PROVIDED, HOWEVER, THAT THE APPLICABLE PROVISIONS AND  LIMITA-
    4  TIONS  OF  THE  TERM "WAGES", AS DEFINED IN SUBDIVISION L OF SECTION SIX
    5  HUNDRED ONE OF THIS ARTICLE, SHALL APPLY TO SUCH DETERMINATIONS OF FINAL
    6  AVERAGE SALARY.
    7    S 55. Paragraph 2 of subdivision b of section 609  of  the  retirement
    8  and  social security law, as amended by section 8-c of part B of chapter
    9  504 of the laws of 2009, is amended to read as follows:
   10    2. Previous service credit shall not be  granted  unless  such  member
   11  applies  therefor  and repays the amount refunded by a public retirement
   12  system of the state for service  rendered  after  July  first,  nineteen
   13  hundred seventy-six together with interest through the date of repayment
   14  at  the  rate  of  five  percent per annum compounded annually and three
   15  percent of the wages earned for service prior to that date together with
   16  interest from July first, nineteen hundred seventy-six through the  date
   17  of payment at the rate of five percent per annum compounded annually and
   18  three percent of the wages earned for service which predates the date of
   19  entry  into  the retirement system together with interest at the rate of
   20  five percent per annum compounded annually from the date of such service
   21  until the date of payment. Anything in this paragraph  to  the  contrary
   22  notwithstanding, in order to obtain credit for previous service, members
   23  who  first  join  the  New  York state teachers' retirement system on or
   24  after January first, two thousand  ten  shall  pay  three  and  one-half
   25  percent  of  wages  earned  for service which predates the date of entry
   26  into the retirement system together with interest at the  rate  of  five
   27  percent  per  annum  compounded  annually  from the date of such service
   28  until the date of payment.  ANYTHING IN THIS PARAGRAPH TO  THE  CONTRARY
   29  NOTWITHSTANDING, IN ORDER TO OBTAIN CREDIT FOR PREVIOUS SERVICE, MEMBERS
   30  WHO FIRST JOIN A PUBLIC RETIREMENT SYSTEM OF THE STATE ON OR AFTER APRIL
   31  FIRST,  TWO  THOUSAND  TWELVE  SHALL PAY SIX PERCENT OF WAGES EARNED FOR
   32  SERVICE WHICH PREDATES THE DATE OF  ENTRY  INTO  THE  RETIREMENT  SYSTEM
   33  TOGETHER  WITH INTEREST AT THE RATE OF FIVE PERCENT PER ANNUM COMPOUNDED
   34  ANNUALLY FROM THE DATE OF SUCH SERVICE UNTIL THE DATE OF PAYMENT.
   35    S 56. Section 609 of the retirement and social security law is amended
   36  by adding a new subdivision h to read as follows:
   37    H.  NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, A  NEW
   38  YORK  CITY  REVISED PLAN MEMBER SHALL NOT RECEIVE SERVICE CREDIT FOR ANY
   39  UNDOCUMENTED SICK LEAVE THAT MAY BE CREDITED TOWARD TERMINAL LEAVE.
   40    S 57. Subdivisions a and a-1 of section  612  of  the  retirement  and
   41  social security law, subdivision a as separately amended by section 9 of
   42  part  B  and  section 3 of part C of chapter 504 of the laws of 2009 and
   43  subdivision a-1 as added by section 4 of part C of chapter  504  of  the
   44  laws of 2009, are amended to read as follows:
   45    a. Except as provided in subdivision a-1 of this section, a member who
   46  has  five  or  more  years  of credited service, or ten or more years of
   47  credited service for a member who first joined the New  York  state  and
   48  local  employees'  retirement  system  or  the  New York state teachers'
   49  retirement system on or after January  first,  two  thousand  ten,  upon
   50  termination  of  employment,  other  than  a member who is entitled to a
   51  deferred vested benefit pursuant to any other provision of this article,
   52  shall be entitled to a deferred vested benefit at normal retirement  age
   53  computed  in  accordance with the provisions of section six hundred four
   54  of this article. Except as provided in subdivision a-1 of this  section,
   55  a  member  of  a  teachers'  retirement system or the New York state and
   56  local employees' retirement system who has five or more years of credit-
       S. 6735                            25                            A. 9558

    1  ed service, or ten or more years of credited service for  a  member  who
    2  first  becomes  a  member  of  the  New  York state and local employees'
    3  retirement system or the New York state teachers' retirement  system  on
    4  or after January first, two thousand ten, upon termination of employment
    5  shall  be  entitled to a deferred vested benefit prior to normal retire-
    6  ment age, but no earlier than age  fifty-five,  computed  in  accordance
    7  with  the  provisions  of  subdivision i of section six hundred three of
    8  this article AS AMENDED BY SECTION EIGHT  OF  PART  B  OF  CHAPTER  FIVE
    9  HUNDRED FOUR OF THE LAWS OF TWO THOUSAND NINE.  ANYTHING TO THE CONTRARY
   10  NOTWITHSTANDING, A MEMBER OF A PUBLIC RETIREMENT SYSTEM OF THE STATE WHO
   11  FIRST  BECAME A MEMBER OF SUCH SYSTEM ON OR AFTER APRIL FIRST, TWO THOU-
   12  SAND TWELVE MUST HAVE AT LEAST TEN YEARS OF CREDITED SERVICE IN ORDER TO
   13  QUALIFY FOR A DEFERRED VESTED BENEFIT UNDER THIS  SECTION;  SUCH  MEMBER
   14  SHALL  NOT  BE ENTITLED TO SUCH BENEFIT PRIOR TO THE MEMBER'S ATTAINMENT
   15  OF AGE SIXTY-THREE; AND SUCH DEFERRED VESTED BENEFIT SHALL  BE  COMPUTED
   16  PURSUANT TO SUBDIVISION B-1 OF SECTION SIX HUNDRED FOUR OF THIS ARTICLE.
   17    a-1.  Notwithstanding  the provisions of subdivision a of this section
   18  or any other provision of law to the contrary, (i) a member of  the  New
   19  York  city  teachers' retirement system who holds a position represented
   20  by  the  recognized  teacher  organization  for  collective   bargaining
   21  purposes, who became subject to the provisions of this article after the
   22  effective  date  of  this  subdivision, and who has ten or more years of
   23  credited service, or (ii) a member of the New York city board of  educa-
   24  tion  retirement  system  who holds a position represented by the recog-
   25  nized teacher  organization  for  collective  bargaining  purposes,  who
   26  became  subject  to  the  provisions of this article after the effective
   27  date of this subdivision, and who has ten  or  more  years  of  credited
   28  service,  other  than such a member of either of such retirement systems
   29  who is entitled to a deferred  vested  benefit  pursuant  to  any  other
   30  provision  of  this  article,  shall, upon termination of employment, be
   31  entitled to a deferred vested benefit at normal retirement age  computed
   32  in  accordance  with  the provisions of section six hundred four of this
   33  article.   Notwithstanding the  provisions  of  subdivision  a  of  this
   34  section  or  any other provision of law to the contrary, a member of the
   35  New York city teachers' retirement system who holds a  position  repres-
   36  ented  by  the recognized teacher organization for collective bargaining
   37  purposes, who became subject to the provisions of this article after the
   38  effective date of this subdivision, and who has ten  or  more  years  of
   39  credited  service, shall, upon termination of employment, be entitled to
   40  a deferred vested benefit prior to normal retirement age, but no earlier
   41  than age fifty-five, computed  in  accordance  with  the  provisions  of
   42  subdivision  i  of  section six hundred three of this article, PROVIDED,
   43  HOWEVER, THAT ANY SUCH MEMBER OF EITHER OF SUCH RETIREMENT  SYSTEMS  WHO
   44  IS  A  NEW  YORK  CITY  REVISED PLAN MEMBER SHALL BE REQUIRED TO HAVE AT
   45  LEAST TEN YEARS OF CREDITED SERVICE  IN  ORDER  TO  BE  ELIGIBLE  FOR  A
   46  DEFERRED VESTED BENEFIT, SUCH MEMBER SHALL NOT BE ENTITLED TO PAYABILITY
   47  OF SUCH BENEFIT PRIOR TO ATTAINMENT OF AGE SIXTY-THREE AND SUCH DEFERRED
   48  VESTED  BENEFIT SHALL BE COMPUTED PURSUANT TO SUBDIVISION B-1 OF SECTION
   49  SIX HUNDRED FOUR OF THIS ARTICLE.
   50    S 58. Paragraphs 1 and 2 of subdivision a and subdivisions f and g  of
   51  section  613  of  the retirement and social security law, paragraph 1 of
   52  subdivision a as amended and paragraph 2 of subdivision a  as  added  by
   53  chapter 10 of the laws of 2000, subdivisions f and g as added by section
   54  9-a of part B of chapter 504 of the laws of 2009, are amended to read as
   55  follows:
       S. 6735                            26                            A. 9558

    1    1.  Except  as  provided by paragraph two of this subdivision, members
    2  shall contribute three percent of annual wages to the retirement  system
    3  in  which  they  have membership, EXCEPT THAT BEGINNING APRIL FIRST, TWO
    4  THOUSAND THIRTEEN FOR MEMBERS WHO  FIRST  BECOME  MEMBERS  OF  A  PUBLIC
    5  RETIREMENT  SYSTEM  OF  THE  STATE ON OR AFTER APRIL FIRST, TWO THOUSAND
    6  TWELVE, THE RATE AT WHICH EACH  SUCH  MEMBER  SHALL  CONTRIBUTE  IN  ANY
    7  CURRENT  PLAN  YEAR  (APRIL FIRST TO MARCH THIRTY-FIRST) SHALL BE DETER-
    8  MINED BY REFERENCE TO THE WAGES OF SUCH MEMBER IN THE SECOND  PLAN  YEAR
    9  (APRIL  FIRST TO MARCH THIRTY-FIRST) PRECEDING SUCH CURRENT PLAN YEAR AS
   10  FOLLOWS:
   11    (I) MEMBERS WITH WAGES OF FORTY-FIVE THOUSAND  DOLLARS  PER  ANNUM  OR
   12  LESS SHALL CONTRIBUTE THREE PER CENTUM OF ANNUAL WAGES;
   13    (II)  MEMBERS  WITH  WAGES GREATER THAN FORTY-FIVE THOUSAND PER ANNUM,
   14  BUT NOT MORE THAN FIFTY-FIVE THOUSAND PER ANNUM SHALL  CONTRIBUTE  THREE
   15  AND ONE-HALF PER CENTUM OF ANNUAL WAGES;
   16    (III)  MEMBERS  WITH WAGES GREATER THAN FIFTY-FIVE THOUSAND PER ANNUM,
   17  BUT NOT MORE THAN SEVENTY-FIVE THOUSAND PER ANNUM SHALL CONTRIBUTE  FOUR
   18  AND ONE-HALF PER CENTUM OF ANNUAL WAGES;
   19    (IV)  MEMBERS  WITH WAGES GREATER THAN SEVENTY-FIVE THOUSAND PER ANNUM
   20  BUT NOT MORE THAN ONE HUNDRED THOUSAND PER ANNUM SHALL  CONTRIBUTE  FIVE
   21  AND THREE-QUARTERS PER CENTUM OF ANNUAL WAGES; AND
   22    (V)  MEMBERS  WITH  WAGES  GREATER THAN ONE HUNDRED THOUSAND PER ANNUM
   23  SHALL CONTRIBUTE SIX PER CENTUM OF ANNUAL WAGES.
   24    NOTWITHSTANDING THE FOREGOING, DURING EACH OF  THE  FIRST  THREE  PLAN
   25  YEARS  (APRIL  FIRST  TO  MARCH  THIRTY-FIRST)  IN WHICH SUCH MEMBER HAS
   26  ESTABLISHED MEMBERSHIP IN A PUBLIC RETIREMENT SYSTEM OF THE STATE,  SUCH
   27  MEMBER  SHALL CONTRIBUTE A PERCENTAGE OF ANNUAL WAGES IN ACCORDANCE WITH
   28  THE PRECEDING SCHEDULE BASED UPON A PROJECTION OF ANNUAL WAGES  PROVIDED
   29  BY THE EMPLOYER.
   30    The  head  of each retirement system shall promulgate such regulations
   31  as may be necessary and appropriate with respect  to  the  deduction  of
   32  such  contribution  from  members'  wages and for the maintenance of any
   33  special fund or funds with respect to amounts so contributed.
   34    2. A member of the New York city employees' retirement system  who  is
   35  eligible  to be a participant in the twenty-five-year and age fifty-five
   36  retirement program, as defined by paragraph five  of  subdivision  a  of
   37  section  six hundred four-b of this article shall contribute two percent
   38  of annual wages to such system effective on the  starting  date  of  the
   39  elimination  of  additional  member  contributions,  as  defined  in  an
   40  election made pursuant to paragraph ten of subdivision e of section  six
   41  hundred  four-b  of this article, EXCEPT THAT BEGINNING APRIL FIRST, TWO
   42  THOUSAND THIRTEEN FOR MEMBERS WHO FIRST BECOME MEMBERS OF THE  NEW  YORK
   43  CITY  EMPLOYEES' RETIREMENT SYSTEM ON OR AFTER APRIL FIRST, TWO THOUSAND
   44  TWELVE, THE RATE AT WHICH EACH  SUCH  MEMBER  SHALL  CONTRIBUTE  IN  ANY
   45  CURRENT  PLAN  YEAR  (APRIL FIRST TO MARCH THIRTY-FIRST) SHALL BE DETER-
   46  MINED BY REFERENCE TO THE WAGES OF SUCH MEMBER IN THE SECOND  PLAN  YEAR
   47  (APRIL  FIRST TO MARCH THIRTY-FIRST) PRECEDING SUCH CURRENT PLAN YEAR AS
   48  FOLLOWS:
   49    (I) MEMBERS WITH WAGES OF FORTY-FIVE THOUSAND  DOLLARS  PER  ANNUM  OR
   50  LESS SHALL CONTRIBUTE THREE PER CENTUM OF ANNUAL WAGES;
   51    (II)  MEMBERS  WITH  WAGES GREATER THAN FORTY-FIVE THOUSAND PER ANNUM,
   52  BUT NOT MORE THAN FIFTY-FIVE THOUSAND PER ANNUM SHALL  CONTRIBUTE  THREE
   53  AND ONE-HALF PER CENTUM OF ANNUAL WAGES;
   54    (III)  MEMBERS  WITH WAGES GREATER THAN FIFTY-FIVE THOUSAND PER ANNUM,
   55  BUT NOT MORE THAN SEVENTY-FIVE THOUSAND PER ANNUM SHALL CONTRIBUTE  FOUR
   56  AND ONE-HALF PER CENTUM OF ANNUAL WAGES;
       S. 6735                            27                            A. 9558

    1    (IV)  MEMBERS  WITH WAGES GREATER THAN SEVENTY-FIVE THOUSAND PER ANNUM
    2  BUT NOT MORE THAN ONE HUNDRED THOUSAND PER ANNUM SHALL  CONTRIBUTE  FIVE
    3  AND THREE-QUARTERS PER CENTUM OF ANNUAL WAGES; AND
    4    (V)  MEMBERS  WITH  WAGES  GREATER THAN ONE HUNDRED THOUSAND PER ANNUM
    5  SHALL CONTRIBUTE SIX PER CENTUM OF ANNUAL WAGES.
    6    NOTWITHSTANDING THE FOREGOING, DURING EACH OF  THE  FIRST  THREE  PLAN
    7  YEARS  (APRIL  FIRST  TO  MARCH  THIRTY-FIRST)  IN WHICH SUCH MEMBER HAS
    8  ESTABLISHED MEMBERSHIP  IN  THE  NEW  YORK  CITY  EMPLOYEES'  RETIREMENT
    9  SYSTEM,  SUCH  MEMBER  SHALL  CONTRIBUTE A PERCENTAGE OF ANNUAL WAGES IN
   10  ACCORDANCE WITH THE PRECEDING SCHEDULE BASED UPON A PROJECTION OF ANNUAL
   11  WAGES PROVIDED BY THE EMPLOYER.
   12    f. Anything in subdivision a of this section to the contrary  notwith-
   13  standing a member employed as a uniformed court officer or peace officer
   14  in the unified court system who first joins the New York state and local
   15  employees' retirement system on or after January first, two thousand ten
   16  shall  contribute four percent of annual wages to the New York state and
   17  local employees' retirement system , EXCEPT THAT BEGINNING APRIL  FIRST,
   18  TWO  THOUSAND  THIRTEEN  FOR MEMBERS WHO FIRST BECOME MEMBERS OF THE NEW
   19  YORK STATE AND LOCAL EMPLOYEES' RETIREMENT  SYSTEM  ON  OR  AFTER  APRIL
   20  FIRST,  TWO  THOUSAND  TWELVE,  THE RATE AT WHICH EACH SUCH MEMBER SHALL
   21  CONTRIBUTE IN ANY CURRENT PLAN YEAR (APRIL FIRST TO MARCH  THIRTY-FIRST)
   22  SHALL  BE  DETERMINED  BY  REFERENCE  TO THE WAGES OF SUCH MEMBER IN THE
   23  SECOND PLAN YEAR (APRIL FIRST  TO  MARCH  THIRTY-FIRST)  PRECEDING  SUCH
   24  CURRENT PLAN YEAR AS FOLLOWS:
   25    1. MEMBERS WITH WAGES OF FORTY-FIVE THOUSAND DOLLARS PER ANNUM OR LESS
   26  SHALL CONTRIBUTE THREE PER CENTUM OF ANNUAL WAGES;
   27    2.  MEMBERS WITH WAGES GREATER THAN FORTY-FIVE THOUSAND PER ANNUM, BUT
   28  NOT MORE THAN FIFTY-FIVE THOUSAND PER ANNUM SHALL CONTRIBUTE  THREE  AND
   29  ONE-HALF PER CENTUM OF ANNUAL WAGES;
   30    3.  MEMBERS WITH WAGES GREATER THAN FIFTY-FIVE THOUSAND PER ANNUM, BUT
   31  NOT MORE THAN SEVENTY-FIVE THOUSAND PER ANNUM SHALL CONTRIBUTE FOUR  AND
   32  ONE-HALF PER CENTUM OF ANNUAL WAGES;
   33    4. MEMBERS WITH WAGES GREATER THAN SEVENTY-FIVE THOUSAND PER ANNUM BUT
   34  NOT  MORE  THAN ONE HUNDRED THOUSAND PER ANNUM SHALL CONTRIBUTE FIVE AND
   35  THREE-QUARTERS PER CENTUM OF ANNUAL WAGES; AND
   36    5. MEMBERS WITH WAGES GREATER THAN  ONE  HUNDRED  THOUSAND  PER  ANNUM
   37  SHALL CONTRIBUTE SIX PER CENTUM OF ANNUAL WAGES.
   38    NOTWITHSTANDING  THE  FOREGOING,  DURING  EACH OF THE FIRST THREE PLAN
   39  YEARS (APRIL FIRST TO MARCH  THIRTY-FIRST)  IN  WHICH  SUCH  MEMBER  HAS
   40  ESTABLISHED  MEMBERSHIP  IN  THE  NEW  YORK  STATE  AND LOCAL EMPLOYEES'
   41  RETIREMENT SYSTEM, SUCH MEMBER SHALL CONTRIBUTE A PERCENTAGE  OF  ANNUAL
   42  WAGES  IN ACCORDANCE WITH THE PRECEDING SCHEDULE BASED UPON A PROJECTION
   43  OF ANNUAL WAGES PROVIDED BY THE EMPLOYER.
   44    The head of the New York state and local employees' retirement  system
   45  shall  promulgate  such  regulations as may be necessary and appropriate
   46  with respect to the deduction of such contribution from  members'  wages
   47  and  for  the  maintenance  of any special fund or funds with respect to
   48  amounts so contributed.
   49    g. Members who first join the  New  York  state  teachers'  retirement
   50  system  on  or  after  January  first, two thousand ten shall contribute
   51  three and one-half percent of annual wages to the New York state  teach-
   52  ers'  retirement system, EXCEPT THAT BEGINNING APRIL FIRST, TWO THOUSAND
   53  THIRTEEN FOR MEMBERS WHO FIRST BECOME MEMBERS  OF  THE  NEW  YORK  STATE
   54  TEACHERS'  RETIREMENT  SYSTEM  ON  OR  AFTER  APRIL  FIRST, TWO THOUSAND
   55  TWELVE, THE RATE AT WHICH EACH  SUCH  MEMBER  SHALL  CONTRIBUTE  IN  ANY
   56  CURRENT  PLAN YEAR (JULY FIRST TO JUNE THIRTIETH) SHALL BE DETERMINED BY
       S. 6735                            28                            A. 9558

    1  REFERENCE TO THE WAGES OF SUCH MEMBER IN  THE  SECOND  PLAN  YEAR  (JULY
    2  FIRST TO JUNE THIRTIETH) PRECEDING SUCH CURRENT PLAN YEAR AS FOLLOWS:
    3    1. MEMBERS WITH WAGES OF FORTY-FIVE THOUSAND DOLLARS PER ANNUM OR LESS
    4  SHALL CONTRIBUTE THREE PER CENTUM OF ANNUAL WAGES;
    5    2.  MEMBERS WITH WAGES GREATER THAN FORTY-FIVE THOUSAND PER ANNUM, BUT
    6  NOT MORE THAN FIFTY-FIVE THOUSAND PER ANNUM SHALL CONTRIBUTE  THREE  AND
    7  ONE-HALF PER CENTUM OF ANNUAL WAGES;
    8    3.  MEMBERS WITH WAGES GREATER THAN FIFTY-FIVE THOUSAND PER ANNUM, BUT
    9  NOT MORE THAN SEVENTY-FIVE THOUSAND PER ANNUM SHALL CONTRIBUTE FOUR  AND
   10  ONE-HALF PER CENTUM OF ANNUAL WAGES;
   11    4. MEMBERS WITH WAGES GREATER THAN SEVENTY-FIVE THOUSAND PER ANNUM BUT
   12  NOT  MORE  THAN ONE HUNDRED THOUSAND PER ANNUM SHALL CONTRIBUTE FIVE AND
   13  THREE-QUARTERS PER CENTUM OF ANNUAL WAGES; AND
   14    5. MEMBERS WITH WAGES GREATER THAN  ONE  HUNDRED  THOUSAND  PER  ANNUM
   15  SHALL CONTRIBUTE SIX PER CENTUM OF ANNUAL WAGES.
   16    NOTWITHSTANDING  THE  FOREGOING,  DURING  EACH OF THE FIRST THREE PLAN
   17  YEARS (JULY FIRST TO JUNE THIRTIETH) IN WHICH  SUCH  MEMBER  HAS  ESTAB-
   18  LISHED  MEMBERSHIP  IN  THE  NEW YORK STATE TEACHERS' RETIREMENT SYSTEM,
   19  SUCH MEMBER SHALL CONTRIBUTE A PERCENTAGE OF ANNUAL WAGES IN  ACCORDANCE
   20  WITH  THE  PRECEDING  SCHEDULE  BASED  UPON A PROJECTION OF ANNUAL WAGES
   21  PROVIDED BY THE EMPLOYER.
   22    The head of the New  York  state  teachers'  retirement  system  shall
   23  promulgate  such  regulations  as  may be necessary and appropriate with
   24  respect to the deduction of such contribution from  members'  wages  and
   25  for the maintenance of any special fund or funds with respect to amounts
   26  so contributed.
   27    S 59. Intentionally omitted.
   28    S  60.  Section  650  of  the  retirement  and social security law, as
   29  amended by chapter 746 of the laws  of  1989,  is  amended  to  read  as
   30  follows:
   31    S  650. Application.   This article shall apply to a member of the New
   32  York city employees' retirement system (i) who  holds  the  position  of
   33  bridge  and  tunnel  officer, sergeant or lieutenant with the Triborough
   34  bridge and tunnel authority, and has received or receives an appointment
   35  to at least one such position from a competitive civil service list;  or
   36  (ii)  who  holds the position of assistant bridge and tunnel maintainer,
   37  bridge and tunnel maintainer, senior bridge  and  tunnel  maintainer  or
   38  laborer  with  the  Triborough  bridge  and  tunnel authority, PROVIDED,
   39  HOWEVER, THAT THIS ARTICLE SHALL NOT APPLY TO A NEW  YORK  CITY  REVISED
   40  PLAN  MEMBER  (AS DEFINED IN SUBDIVISION M OF SECTION SIX HUNDRED ONE OF
   41  THIS CHAPTER).
   42    S 61. Paragraphs 1 and 1-a of subdivision b  of  section  911  of  the
   43  retirement  and social security law, paragraph 1 as amended by section 5
   44  and paragraph 1-a as added by section 6 of part C of chapter 504 of  the
   45  laws of 2009, are amended to read as follows:
   46    1.  Subject  to the provisions of paragraph one-a of this subdivision,
   47  AND EXCEPT AS PROVIDED IN PARAGRAPH ONE-B OF THIS SUBDIVISION, an eligi-
   48  ble member (i) with a date of membership in a retirement  system  on  or
   49  after July twenty-seventh, nineteen hundred seventy-six and (ii) who has
   50  ten or more years of membership or ten or more years of credited service
   51  with  a  retirement  system  under the provisions of article fourteen or
   52  fifteen of this chapter shall not be required to contribute to a retire-
   53  ment system pursuant to section five hundred seventeen  or  six  hundred
   54  thirteen of this chapter as of the cessation date.
   55    1-a.  Notwithstanding the provisions of paragraph one of this subdivi-
   56  sion or any other provision of  law  to  the  contrary,  AND  EXCEPT  AS
       S. 6735                            29                            A. 9558

    1  PROVIDED  IN  PARAGRAPH  ONE-B  OF THIS SUBDIVISION, a member of the New
    2  York city teachers' retirement system or the  New  York  city  board  of
    3  education retirement system:
    4    (i)  who  is  a  twenty-seven  year  participant in the age fifty-five
    5  retirement program (as defined in paragraph twelve of subdivision  a  of
    6  section six hundred four-i of this chapter), and
    7    (ii)  who becomes subject to the provisions of article fifteen of this
    8  chapter after the effective date of this paragraph, shall contribute  to
    9  a  retirement  system  pursuant  to section six hundred thirteen of this
   10  chapter until he or she has completed  twenty-seven  years  of  credited
   11  service.
   12    S  62. Subdivision b of section 911 of the retirement and social secu-
   13  rity law is amended by adding a new paragraph 1-b to read as follows:
   14    1-B. THE PROVISIONS OF THIS SUBDIVISION SHALL NOT APPLY TO A NEW  YORK
   15  CITY  UNIFORMED CORRECTION/SANITATION REVISED PLAN MEMBER (AS DEFINED IN
   16  SUBDIVISION TWENTY-FIVE OF SECTION FIVE HUNDRED ONE OF THIS CHAPTER), AN
   17  INVESTIGATOR REVISED PLAN MEMBER (AS DEFINED IN SUBDIVISION TWENTY-SEVEN
   18  OF SECTION FIVE HUNDRED ONE OF THIS CHAPTER) OR A NEW YORK CITY  REVISED
   19  PLAN  MEMBER  (AS DEFINED IN SUBDIVISION M OF SECTION SIX HUNDRED ONE OF
   20  THIS CHAPTER).
   21    S 63. Section 1000 of  the  retirement  and  social  security  law  is
   22  amended by adding a new subdivision 10 to read as follows:
   23    10.  ANYTHING  TO  THE  CONTRARY  IN  SUBDIVISION FOUR OF THIS SECTION
   24  NOTWITHSTANDING, TO OBTAIN SUCH CREDIT,  A  MEMBER  WHO  FIRST  JOINS  A
   25  PUBLIC RETIREMENT SYSTEM OF THE STATE ON OR AFTER APRIL FIRST, TWO THOU-
   26  SAND  TWELVE  SHALL  PAY SUCH RETIREMENT SYSTEM, FOR DEPOSIT IN THE FUND
   27  USED TO ACCUMULATE EMPLOYER CONTRIBUTIONS, A SUM EQUAL TO THE PRODUCT OF
   28  THE NUMBER OF YEARS OF MILITARY SERVICE BEING CLAIMED AND SIX PERCENT OF
   29  SUCH MEMBER'S COMPENSATION EARNED DURING THE TWELVE MONTHS  OF  CREDITED
   30  SERVICE  IMMEDIATELY PRECEDING THE DATE THAT THE MEMBER MADE APPLICATION
   31  FOR CREDIT PURSUANT TO THIS SECTION.
   32    S 64. Section 1202 of  the  retirement  and  social  security  law  is
   33  amended by adding a new subdivision c to read as follows:
   34    C.  IN  NO EVENT SHALL THE VESTED RETIREMENT ALLOWANCE PAYABLE WITHOUT
   35  OPTIONAL MODIFICATION BE LESS THAN THE ACTUARIAL EQUIVALENT OF THE TOTAL
   36  WHICH RESULTS FROM THE MEMBER'S CONTRIBUTIONS ACCUMULATED WITH  INTEREST
   37  AT FIVE PERCENT PER ANNUM COMPOUNDED ANNUALLY TO THE DATE OF RETIREMENT.
   38    S 65. Section 1204 of the retirement and social security law, as added
   39  by section 1 of part A of chapter 504 of the laws of 2009, is amended to
   40  read as follows:
   41    S   1204.  Member  contributions.  Members  who  are  subject  to  the
   42  provisions of this article shall  contribute  three  percent  of  annual
   43  wages  to  the  retirement  system in which they have membership, EXCEPT
   44  THAT BEGINNING APRIL FIRST, TWO THOUSAND THIRTEEN FOR MEMBERS WHO  FIRST
   45  BECOME  MEMBERS  OF THE NEW YORK STATE AND LOCAL POLICE AND FIRE RETIRE-
   46  MENT SYSTEM ON OR AFTER APRIL FIRST, TWO THOUSAND TWELVE,  THE  RATE  AT
   47  WHICH  EACH SUCH MEMBER SHALL CONTRIBUTE IN ANY CURRENT PLAN YEAR (APRIL
   48  FIRST TO MARCH THIRTY-FIRST) SHALL BE DETERMINED  BY  REFERENCE  TO  THE
   49  WAGES OF SUCH MEMBER IN THE SECOND PLAN YEAR (APRIL FIRST TO MARCH THIR-
   50  TY-FIRST) PRECEDING SUCH CURRENT PLAN YEAR AS FOLLOWS:
   51    A. MEMBERS WITH WAGES OF FORTY-FIVE THOUSAND DOLLARS PER ANNUM OR LESS
   52  SHALL CONTRIBUTE THREE PER CENTUM OF ANNUAL WAGES;
   53    B.  MEMBERS WITH WAGES GREATER THAN FORTY-FIVE THOUSAND PER ANNUM, BUT
   54  NOT MORE THAN FIFTY-FIVE THOUSAND PER ANNUM SHALL CONTRIBUTE  THREE  AND
   55  ONE-HALF PER CENTUM OF ANNUAL WAGES;
       S. 6735                            30                            A. 9558

    1    C.  MEMBERS WITH WAGES GREATER THAN FIFTY-FIVE THOUSAND PER ANNUM, BUT
    2  NOT MORE THAN SEVENTY-FIVE THOUSAND PER ANNUM SHALL CONTRIBUTE FOUR  AND
    3  ONE-HALF PER CENTUM OF ANNUAL WAGES;
    4    D. MEMBERS WITH WAGES GREATER THAN SEVENTY-FIVE THOUSAND PER ANNUM BUT
    5  NOT  MORE  THAN ONE HUNDRED THOUSAND PER ANNUM SHALL CONTRIBUTE FIVE AND
    6  THREE-QUARTERS PER CENTUM OF ANNUAL WAGES; AND
    7    E. MEMBERS WITH WAGES GREATER THAN  ONE  HUNDRED  THOUSAND  PER  ANNUM
    8  SHALL CONTRIBUTE SIX PER CENTUM OF ANNUAL WAGES.
    9    NOTWITHSTANDING  THE  FOREGOING,  DURING  EACH OF THE FIRST THREE PLAN
   10  YEARS (APRIL FIRST TO MARCH  THIRTY-FIRST)  IN  WHICH  SUCH  MEMBER  HAS
   11  ESTABLISHED  MEMBERSHIP  IN THE NEW YORK STATE AND LOCAL POLICE AND FIRE
   12  RETIREMENT SYSTEM, SUCH MEMBER SHALL CONTRIBUTE A PERCENTAGE  OF  ANNUAL
   13  WAGES  IN ACCORDANCE WITH THE PRECEDING SCHEDULE BASED UPON A PROJECTION
   14  OF ANNUAL WAGES PROVIDED BY THE EMPLOYER.  EFFECTIVE  APRIL  FIRST,  TWO
   15  THOUSAND  TWELVE,  ALL MEMBERS SUBJECT TO THE PROVISIONS OF THIS ARTICLE
   16  SHALL NOT BE REQUIRED TO  MAKE  MEMBER  CONTRIBUTIONS  ON  ANNUAL  WAGES
   17  EXCLUDED  FROM  THE  CALCULATION  OF  FINAL  AVERAGE  SALARY PURSUANT TO
   18  SECTION 1203 OF THIS ARTICLE. NOTHING IN THIS SECTION, HOWEVER, SHALL BE
   19  CONSTRUED OR DEEMED TO ALLOW MEMBERS TO RECEIVE A REFUND OF  ANY  MEMBER
   20  CONTRIBUTIONS  ON  SUCH  WAGES  PAID  PRIOR TO APRIL FIRST, TWO THOUSAND
   21  TWELVE.
   22    Members who are enrolled in a retirement plan that limits  the  amount
   23  of  creditable service a member can accrue shall not be required to make
   24  contributions pursuant to this section after accruing the maximum amount
   25  of service credit allowed by the  retirement  plan  in  which  they  are
   26  enrolled. The state comptroller shall promulgate such regulations as may
   27  be  necessary  and  appropriate  with  respect  to the deduction of such
   28  contribution from members' wages and for the maintenance of any  special
   29  fund  or  funds  with respect to amounts so contributed. In no way shall
   30  the member contributions made  pursuant  to  this  section  be  used  to
   31  provide for pension increases or annuities of any kind.
   32    S 66. Intentionally omitted.
   33    S  67.  The  retirement and social security law is amended by adding a
   34  new section 1209 to read as follows:
   35    S 1209.  FINAL AVERAGE SALARY. FOR MEMBERS WHO FIRST BECOME MEMBERS OF
   36  THE NEW YORK STATE AND LOCAL POLICE AND FIRE  RETIREMENT  SYSTEM  ON  OR
   37  AFTER  APRIL FIRST, TWO THOUSAND TWELVE, A MEMBER'S FINAL AVERAGE SALARY
   38  SHALL BE EQUAL TO ONE-FIFTH OF THE HIGHEST TOTAL WAGES  EARNED  BY  SUCH
   39  MEMBER  DURING  ANY CONTINUOUS PERIOD OF EMPLOYMENT FOR WHICH THE MEMBER
   40  WAS CREDITED WITH FIVE YEARS OF SERVICE CREDIT;  PROVIDED,  HOWEVER,  IF
   41  THE  WAGES  EARNED  DURING  ANY YEAR OF CREDITED SERVICE INCLUDED IN THE
   42  PERIOD USED TO DETERMINE FINAL AVERAGE SALARY EXCEEDS THE AVERAGE OF THE
   43  WAGES OF THE PREVIOUS FOUR YEARS OF CREDITED SERVICE BY  MORE  THAN  TEN
   44  PERCENT,  THE AMOUNT IN EXCESS OF TEN PERCENT SHALL BE EXCLUDED FROM THE
   45  COMPUTATION OF FINAL AVERAGE SALARY. WAGES IN EXCESS OF THE ANNUAL SALA-
   46  RY PAID TO THE GOVERNOR PURSUANT TO SECTION THREE OF ARTICLE FOUR OF THE
   47  STATE CONSTITUTION SHALL BE EXCLUDED FROM THE COMPUTATION OF FINAL AVER-
   48  AGE SALARY FOR MEMBERS WHO FIRST BECOME MEMBERS OF THE  NEW  YORK  STATE
   49  AND LOCAL POLICE AND FIRE RETIREMENT SYSTEM ON OR AFTER APRIL FIRST, TWO
   50  THOUSAND TWELVE.
   51    S  68.  The  retirement and social security law is amended by adding a
   52  new section 1210 to read as follows:
   53    S 1210. WAGES.  FOR MEMBERS WHO FIRST BECOME MEMBERS OF THE  NEW  YORK
   54  STATE  AND  LOCAL  POLICE  AND  FIRE RETIREMENT SYSTEM ON OR AFTER APRIL
   55  FIRST, TWO THOUSAND TWELVE, THE FOLLOWING ITEMS SHALL NOT BE INCLUDED IN
   56  THE DEFINITION OF WAGES: A.  WAGES IN EXCESS OF THE ANNUAL  SALARY  PAID
       S. 6735                            31                            A. 9558

    1  TO  THE  GOVERNOR PURSUANT TO SECTION THREE OF ARTICLE FOUR OF THE STATE
    2  CONSTITUTION, B. LUMP  SUM  PAYMENTS  FOR  DEFERRED  COMPENSATION,  SICK
    3  LEAVE, ACCUMULATED VACATION OR OTHER CREDITS FOR TIME NOT WORKED, C. ANY
    4  FORM  OF  TERMINATION PAY, D. ANY ADDITIONAL COMPENSATION PAID IN ANTIC-
    5  IPATION OF RETIREMENT, AND E. IN THE CASE OF EMPLOYEES WHO RECEIVE WAGES
    6  FROM THREE OR MORE EMPLOYERS IN A TWELVE MONTH PERIOD, THE WAGES PAID BY
    7  THE THIRD AND EACH SUCCESSIVE EMPLOYER.
    8    S 69. Intentionally omitted.
    9    S 70. Intentionally omitted.
   10    S 71. Intentionally omitted.
   11    S 72. Subdivision 2 of section 182 of the education law, as  added  by
   12  chapter 1076 of the laws of 1968, is amended to read as follows:
   13    2.  Employee  contributions.  In  the  case  of any electing employee,
   14  contributions at the rate of three [percentum] PER CENTUM of  his  state
   15  salary  shall  be  deducted  by  the  state  comptroller as the employee
   16  contribution, provided however, that such employee contribution shall be
   17  made by the state in accordance with subdivision  one  of  this  section
   18  during such period as (a) either section seventy-a of the retirement and
   19  social  security law or section five hundred twenty-eight of [the educa-
   20  tion law] THIS TITLE provides that the contribution of  each  member  of
   21  the  New  York  state employees' retirement system or the New York state
   22  teachers' retirement system in the employ of the state shall be  reduced
   23  by  at  least  eight  [percentum] PER CENTUM of his compensation, or (b)
   24  employee contributions to either such system are no longer  required  by
   25  reason of such system becoming noncontributory for state employees.
   26    NOTWITHSTANDING  ANY OTHER LAW TO THE CONTRARY, BEGINNING APRIL FIRST,
   27  TWO THOUSAND THIRTEEN ANY ELECTING EMPLOYEE APPOINTED ON OR AFTER  APRIL
   28  FIRST,  TWO  THOUSAND TWELVE, THE RATE AT WHICH EACH SUCH EMPLOYEE SHALL
   29  CONTRIBUTE  IN  ANY  CURRENT  PLAN  YEAR  (JANUARY  FIRST  TO   DECEMBER
   30  THIRTY-FIRST)  SHALL  BE  DETERMINED  BY  REFERENCE TO THE WAGES OF SUCH
   31  MEMBER IN THE SECOND PLAN YEAR (JANUARY FIRST TO DECEMBER  THIRTY-FIRST)
   32  PRECEDING SUCH CURRENT PLAN YEAR AS FOLLOWS:
   33    (A)  MEMBERS  WITH  WAGES  OF FORTY-FIVE THOUSAND DOLLARS PER ANNUM OR
   34  LESS SHALL CONTRIBUTE THREE PER CENTUM OF ANNUAL WAGES;
   35    (B) MEMBERS WITH WAGES GREATER THAN FORTY-FIVE THOUSAND PER ANNUM, BUT
   36  NOT MORE THAN FIFTY-FIVE THOUSAND PER ANNUM SHALL CONTRIBUTE  THREE  AND
   37  ONE-HALF PER CENTUM OF ANNUAL WAGES;
   38    (C) MEMBERS WITH WAGES GREATER THAN FIFTY-FIVE THOUSAND PER ANNUM, BUT
   39  NOT  MORE THAN SEVENTY-FIVE THOUSAND PER ANNUM SHALL CONTRIBUTE FOUR AND
   40  ONE-HALF PER CENTUM OF ANNUAL WAGES;
   41    (D) MEMBERS WITH WAGES GREATER THAN SEVENTY-FIVE  THOUSAND  PER  ANNUM
   42  BUT  NOT  MORE THAN ONE HUNDRED THOUSAND PER ANNUM SHALL CONTRIBUTE FIVE
   43  AND THREE-QUARTERS PER CENTUM OF ANNUAL WAGES; AND
   44    (E) MEMBERS WITH WAGES GREATER THAN ONE  HUNDRED  THOUSAND  PER  ANNUM
   45  SHALL CONTRIBUTE SIX PER CENTUM OF ANNUAL WAGES.
   46    NOTWITHSTANDING  THE  FOREGOING,  DURING  EACH OF THE FIRST THREE PLAN
   47  YEARS (JANUARY FIRST TO DECEMBER THIRTY-FIRST) IN WHICH SUCH MEMBER  HAS
   48  ESTABLISHED  MEMBERSHIP  IN THE EDUCATION DEPARTMENT OPTIONAL RETIREMENT
   49  PROGRAM, SUCH EMPLOYEE SHALL CONTRIBUTE A PERCENT  OF  ANNUAL  WAGES  IN
   50  ACCORDANCE WITH THE PRECEDING SCHEDULE BASED UPON A PROJECTION OF ANNUAL
   51  WAGES PROVIDED BY THE EMPLOYER.
   52    S  72-a. Section 390 of the education law is amended by adding two new
   53  subdivisions 3-a and 8-a to read as follows:
   54    3-A. BEGINNING JULY FIRST, TWO THOUSAND THIRTEEN, THE  TERM  "ELIGIBLE
   55  EMPLOYEES"  SHALL  ALSO MEAN ANY PERSON EXCLUDED FROM OR NOT ENCOMPASSED
   56  WITHIN A NEGOTIATING UNIT WITHIN THE MEANING OF ARTICLE FOURTEEN OF  THE
       S. 6735                            32                            A. 9558

    1  CIVIL  SERVICE  LAW WHO WOULD OTHERWISE BE ENTITLED TO RECEIVE A BENEFIT
    2  UNDER THE RETIREMENT AND  SOCIAL  SECURITY  LAW  OR  THE  EDUCATION  LAW
    3  INITIALLY HIRED ON OR AFTER JULY FIRST, TWO THOUSAND THIRTEEN WITH ESTI-
    4  MATED  ANNUAL  WAGES OF SEVENTY-FIVE THOUSAND PER ANNUM OR GREATER. SUCH
    5  ESTIMATE OF ANNUAL WAGES TO DETERMINE ELIGIBILITY FOR  THE  PURPOSES  OF
    6  THIS  SUBDIVISION SHALL BE PROVIDED BY THE EMPLOYER. FOR THE PURPOSES OF
    7  THIS SUBDIVISION, A NEWLY HIRED STATE EMPLOYEE WHOSE IMMEDIATE PRECEDING
    8  EMPLOYMENT WAS WITH ANOTHER DEPARTMENT, DIVISION, OR AGENCY OF THE STATE
    9  SHALL NOT BE DEEMED TO BE AN ELIGIBLE EMPLOYEE.
   10    8-A. BEGINNING JULY FIRST, TWO THOUSAND THIRTEEN, THE  TERM  "ELECTING
   11  EMPLOYER"  SHALL  ALSO  MEAN ANY PUBLIC EMPLOYER WITHIN THE STATE OF NEW
   12  YORK THAT EMPLOYS ONE OR MORE EMPLOYEES WHO HAVE ELECTED TO  PARTICIPATE
   13  IN THE OPTIONAL RETIREMENT PROGRAM ESTABLISHED PURSUANT TO THIS ARTICLE.
   14    S  72-b.  Section  392 of the education law is amended by adding a new
   15  subdivision 1-a to read as follows:
   16    1-A. EMPLOYER CONTRIBUTIONS. IN THE  CASE  OF  ANY  ELECTING  EMPLOYEE
   17  EXCLUDED  FROM  OR  NOT ENCOMPASSED WITHIN A NEGOTIATING UNIT WITHIN THE
   18  MEANING OF ARTICLE FOURTEEN OF THE CIVIL SERVICE LAW INITIALLY HIRED  ON
   19  OR  AFTER  JULY FIRST, TWO THOUSAND THIRTEEN, THE STATE AND THE ELECTING
   20  EMPLOYER SHALL, DURING THE CONTINUANCE OF HIS OR  HER  EMPLOYMENT,  MAKE
   21  CONTRIBUTIONS AT THE RATE OF EIGHT PER CENTUM OF HIS OR HER SALARY.
   22    S  73.  Paragraph (c) of subdivision 2 of section 392 of the education
   23  law, as added by chapter 617 of the laws of 2007, is amended and  a  new
   24  paragraph (d) is added to read as follows:
   25    (c)  Notwithstanding  any other provision of this section or any other
   26  law to the contrary, (1) on and after April first,  two  thousand  eight
   27  for  a  member  who  joined  the optional retirement program established
   28  pursuant to this article BEFORE APRIL FIRST, TWO THOUSAND TWELVE and who
   29  has ten or more years of membership in such optional retirement program,
   30  the state shall contribute  one-third  of  the  three  percent  employee
   31  contribution  required  pursuant  to  the  provisions of this section on
   32  behalf of such employee; and (2) on and after April first, two  thousand
   33  nine for a member who joined the optional retirement program established
   34  pursuant to this article BEFORE APRIL FIRST, TWO THOUSAND TWELVE and who
   35  has ten or more years of membership in such optional retirement program,
   36  the  state  shall  contribute  two-thirds  of the three percent employee
   37  contribution required pursuant to the  provisions  of  this  section  on
   38  behalf  of such employee; and (3) on and after April first, two thousand
   39  ten for a member who joined the optional retirement program  established
   40  pursuant to this article BEFORE APRIL FIRST, TWO THOUSAND TWELVE and who
   41  has ten or more years of membership in such optional retirement program,
   42  the  state  shall  contribute  the  three  percent employee contribution
   43  required pursuant to the provisions of this section on  behalf  of  such
   44  employee.    THE  PROVISIONS  OF  THIS  PARAGRAPH SHALL NOT APPLY TO ANY
   45  ELECTING EMPLOYEE WHO  BECOMES  A  MEMBER  OF  THE  OPTIONAL  RETIREMENT
   46  PROGRAM ON OR AFTER APRIL FIRST, TWO THOUSAND TWELVE.
   47    (D)  NOTWITHSTANDING  ANY  OTHER  LAW TO THE CONTRARY, BEGINNING APRIL
   48  FIRST, TWO THOUSAND THIRTEEN ANY ELECTING EMPLOYEE APPOINTED ON OR AFTER
   49  APRIL FIRST, TWO THOUSAND TWELVE, THE RATE AT WHICH EACH  SUCH  EMPLOYEE
   50  SHALL  CONTRIBUTE  IN  ANY  CURRENT PLAN YEAR (JANUARY FIRST TO DECEMBER
   51  THIRTY-FIRST) SHALL BE DETERMINED BY REFERENCE  TO  THE  WAGES  OF  SUCH
   52  MEMBER  IN THE SECOND PLAN YEAR (JANUARY FIRST TO DECEMBER THIRTY-FIRST)
   53  PRECEDING SUCH CURRENT PLAN YEAR AS FOLLOWS:
   54    (I) MEMBERS WITH WAGES OF FORTY-FIVE THOUSAND  DOLLARS  PER  ANNUM  OR
   55  LESS SHALL CONTRIBUTE THREE PER CENTUM OF ANNUAL WAGES;
       S. 6735                            33                            A. 9558

    1    (II)  MEMBERS  WITH  WAGES GREATER THAN FORTY-FIVE THOUSAND PER ANNUM,
    2  BUT NOT MORE THAN FIFTY-FIVE THOUSAND PER ANNUM SHALL  CONTRIBUTE  THREE
    3  AND ONE-HALF PER CENTUM OF ANNUAL WAGES;
    4    (III)  MEMBERS  WITH WAGES GREATER THAN FIFTY-FIVE THOUSAND PER ANNUM,
    5  BUT NOT MORE THAN SEVENTY-FIVE THOUSAND PER ANNUM SHALL CONTRIBUTE  FOUR
    6  AND ONE-HALF PER CENTUM OF ANNUAL WAGES;
    7    (IV)  MEMBERS  WITH WAGES GREATER THAN SEVENTY-FIVE THOUSAND PER ANNUM
    8  BUT NOT MORE THAN ONE HUNDRED THOUSAND PER ANNUM SHALL  CONTRIBUTE  FIVE
    9  AND THREE-QUARTERS PER CENTUM OF ANNUAL WAGES; AND
   10    (V)  MEMBERS  WITH  WAGES  GREATER THAN ONE HUNDRED THOUSAND PER ANNUM
   11  SHALL CONTRIBUTE SIX PER CENTUM OF ANNUAL WAGES.
   12    NOTWITHSTANDING THE FOREGOING, DURING EACH OF  THE  FIRST  THREE  PLAN
   13  YEARS  (JANUARY FIRST TO DECEMBER THIRTY-FIRST) IN WHICH SUCH MEMBER HAS
   14  ESTABLISHED MEMBERSHIP  IN  THE  STATE  UNIVERSITY  OPTIONAL  RETIREMENT
   15  PROGRAM,  SUCH  EMPLOYEE  SHALL  CONTRIBUTE A PERCENT OF ANNUAL WAGES IN
   16  ACCORDANCE WITH THE PRECEDING SCHEDULE BASED UPON A PROJECTION OF ANNUAL
   17  WAGES PROVIDED BY THE EMPLOYER.
   18    S 74. Paragraph (c) of subdivision 2 of section 6252 of the  education
   19  law,  as  added by chapter 617 of the laws of 2007, is amended and a new
   20  paragraph (d) is added to read as follows:
   21    (c) Notwithstanding any other provision of this section or  any  other
   22  law  to  the  contrary, (1) on and after April first, two thousand eight
   23  for a member who joined  the  optional  retirement  program  established
   24  pursuant to this article BEFORE APRIL FIRST, TWO THOUSAND TWELVE and who
   25  has ten or more years of membership in such optional retirement program,
   26  the  city  shall  contribute  one-third  of  the  three percent employee
   27  contribution required pursuant to the  provisions  of  this  section  on
   28  behalf  of such employee; and (2) on and after April first, two thousand
   29  nine for a member who joined the optional retirement program established
   30  pursuant to this article BEFORE APRIL FIRST, TWO THOUSAND TWELVE and who
   31  has ten or more years of membership in such optional retirement program,
   32  the city shall contribute  two-thirds  of  the  three  percent  employee
   33  contribution  required  pursuant  to  the  provisions of this section on
   34  behalf of such employee; and (3) on and after April first, two  thousand
   35  ten  for a member who joined the optional retirement program established
   36  pursuant to this article BEFORE APRIL FIRST, TWO THOUSAND TWELVE and who
   37  has ten or more years of membership in such optional retirement program,
   38  the city  shall  contribute  the  three  percent  employee  contribution
   39  required  pursuant  to  the provisions of this section on behalf of such
   40  employee. THE PROVISIONS OF THIS PARAGRAPH SHALL NOT APPLY TO ANY ELECT-
   41  ING EMPLOYEE WHO BECOMES A MEMBER OF THE OPTIONAL RETIREMENT PROGRAM  ON
   42  OR AFTER APRIL FIRST, TWO THOUSAND TWELVE.
   43    (D)  NOTWITHSTANDING  ANY  OTHER  LAW TO THE CONTRARY, BEGINNING APRIL
   44  FIRST, TWO THOUSAND THIRTEEN ANY ELECTING EMPLOYEE APPOINTED ON OR AFTER
   45  APRIL FIRST, TWO THOUSAND TWELVE, THE RATE AT WHICH EACH  SUCH  EMPLOYEE
   46  SHALL  CONTRIBUTE  IN  ANY  CURRENT PLAN YEAR (JANUARY FIRST TO DECEMBER
   47  THIRTY-FIRST) SHALL BE DETERMINED BY REFERENCE  TO  THE  WAGES  OF  SUCH
   48  MEMBER  IN THE SECOND PLAN YEAR (JANUARY FIRST TO DECEMBER THIRTY-FIRST)
   49  PRECEDING SUCH CURRENT PLAN YEAR AS FOLLOWS:
   50    (1) MEMBERS WITH WAGES OF FORTY-FIVE THOUSAND  DOLLARS  PER  ANNUM  OR
   51  LESS SHALL CONTRIBUTE THREE PER CENTUM OF ANNUAL WAGES;
   52    (2) MEMBERS WITH WAGES GREATER THAN FORTY-FIVE THOUSAND PER ANNUM, BUT
   53  NOT  MORE  THAN FIFTY-FIVE THOUSAND PER ANNUM SHALL CONTRIBUTE THREE AND
   54  ONE-HALF PER CENTUM OF ANNUAL WAGES;
       S. 6735                            34                            A. 9558

    1    (3) MEMBERS WITH WAGES GREATER THAN FIFTY-FIVE THOUSAND PER ANNUM, BUT
    2  NOT MORE THAN SEVENTY-FIVE THOUSAND PER ANNUM SHALL CONTRIBUTE FOUR  AND
    3  ONE-HALF PER CENTUM OF ANNUAL WAGES;
    4    (4)  MEMBERS  WITH  WAGES GREATER THAN SEVENTY-FIVE THOUSAND PER ANNUM
    5  BUT NOT MORE THAN ONE HUNDRED THOUSAND PER ANNUM SHALL  CONTRIBUTE  FIVE
    6  AND THREE-QUARTERS PER CENTUM OF ANNUAL WAGES; AND
    7    (5)  MEMBERS  WITH  WAGES  GREATER THAN ONE HUNDRED THOUSAND PER ANNUM
    8  SHALL CONTRIBUTE SIX PER CENTUM OF ANNUAL WAGES.
    9    NOTWITHSTANDING THE FOREGOING, DURING EACH OF  THE  FIRST  THREE  PLAN
   10  YEARS  (JANUARY FIRST TO DECEMBER THIRTY-FIRST) IN WHICH SUCH MEMBER HAS
   11  ESTABLISHED MEMBERSHIP IN THE BOARD OF HIGHER EDUCATION OPTIONAL RETIRE-
   12  MENT PROGRAM, SUCH EMPLOYEE SHALL CONTRIBUTE A PERCENT OF  ANNUAL  WAGES
   13  IN  ACCORDANCE  WITH  THE  PRECEDING SCHEDULE BASED UPON A PROJECTION OF
   14  ANNUAL WAGES PROVIDED BY THE EMPLOYER.
   15    S 75. Paragraphs (b) and (c) of subdivision 86 of  section  13-101  of
   16  the administrative code of the city of New York, as added by chapter 114
   17  of the laws of 1989, are amended to read as follows:
   18    (b)  In  the  case  of a uniformed force member who is a member of the
   19  uniformed force of the department of sanitation and is not  a  TIER  III
   20  MEMBER  (AS  DEFINED  IN SUBDIVISION SEVENTY-THREE OF THIS SECTION) OR A
   21  Tier IV member (as defined in subdivision seventy-six of this  section),
   22  the term "normal rate of contribution as a uniformed force member" shall
   23  mean  the  proportion of such member's earnable compensation required to
   24  be deducted from his or her compensation by the applicable provisions of
   25  sections 13-125, 13-154, 13-159 and 13-160 of this chapter as his or her
   26  member contributions, exclusive of any increase  in  such  contributions
   27  pursuant to subdivision d, e, or f of section 13-125 of this chapter, or
   28  any  decrease  in  such  contributions  on  account  of  any program for
   29  increased-take-home-pay or pursuant to subdivision one  of  section  one
   30  hundred thirty-eight-b of the retirement and social security law (relat-
   31  ing to election to decrease member contributions by contributions due on
   32  account of social security coverage).
   33    (c) In the case of any uniformed force member (1) who is both a member
   34  of  the  uniformed correction force and a Tier III member, OR (2) WHO IS
   35  BOTH A MEMBER OF THE UNIFORMED FORCE OF THE DEPARTMENT OF SANITATION AND
   36  A TIER III MEMBER, the term "normal rate of contribution as a  uniformed
   37  force  member"  shall  mean  the  percentage of the annual wages of such
   38  member required to be deducted from such member's wages by subdivision a
   39  of section five hundred seventeen of the retirement and social  security
   40  law, as his or her member contributions.
   41    S  76. Paragraph (b) of subdivision 87 of section 13-101 of the admin-
   42  istrative code of the city of New York, as added by chapter 114  of  the
   43  laws of 1989, is amended to read as follows:
   44    (b)  a uniformed force member who is not required to contribute during
   45  such payroll period because he or she is a Tier III member  who,  having
   46  contributed  for  thirty  years,  OR WHO, IN THE CASE OF A NEW YORK CITY
   47  UNIFORMED CORRECTION/SANITATION  REVISED  PLAN  MEMBER  (AS  DEFINED  IN
   48  SUBDIVISION  TWENTY-FIVE  OF  SECTION FIVE HUNDRED ONE OF THE RETIREMENT
   49  AND SOCIAL SECURITY LAW), HAVING CONTRIBUTED FOR TWENTY-FIVE YEARS,  has
   50  discontinued  member  contributions pursuant to subdivision a of section
   51  five hundred seventeen of the retirement and social security law.
   52    S 77. Paragraph (c) of subdivision 89 of section 13-101 of the  admin-
   53  istrative  code  of the city of New York, as added by chapter 114 of the
   54  laws of 1989, is amended to read as follows:
   55    (c) In the case of any contributing uniformed force member who is both
   56  (1) a member of the uniformed correction force (as defined  in  subdivi-
       S. 6735                            35                            A. 9558

    1  sion  thirty-nine of this section) OR THE UNIFORMED FORCE OF THE DEPART-
    2  MENT OF SANITATION (AS DEFINED IN SUBDIVISION SIXTY-TWO OF THIS SECTION)
    3  and (2) a Tier III member (as defined in  subdivision  seventy-three  of
    4  this  section),  the term "uniformed force member contributions eligible
    5  for pick up by the employer" shall mean the amount which, in the absence
    6  of a pick up program applicable  to  such  member  pursuant  to  section
    7  13-125.1  of  this  chapter,  would  be required to be deducted from the
    8  wages of such member for such payroll period pursuant to  subdivision  a
    9  of  section five hundred seventeen of the retirement and social security
   10  law as his or her required member contributions for such payroll period.
   11    S 78. Paragraph 14 of subdivision e of section 13-638.4 of the  admin-
   12  istrative  code  of the city of New York, as added by chapter 749 of the
   13  laws of 1992, is amended to read as follows:
   14    (14) (I) Subject to the provisions of subdivision f  of  this  section
   15  and  the provisions of subdivision c of section six hundred eight of the
   16  RSSL, where those provisions are  applicable,  and  notwithstanding  the
   17  provisions  of  subdivision  a of section six hundred eight of the RSSL,
   18  for a tier IV member of NYCERS WHO IS NOT A NEW YORK CITY  REVISED  PLAN
   19  MEMBER  (AS  DEFINED  IN SUBDIVISION M OF SECTION SIX HUNDRED ONE OF THE
   20  RSSL) or FOR A TIER IV MEMBER OF BERS WHO IS NOT A NEW YORK CITY REVISED
   21  PLAN MEMBER, the term "final average salary", as used in article fifteen
   22  of the RSSL, shall be equal to the greater of:
   23    [(i)] (A) one-third of the highest total wages earned by  such  member
   24  during  any  continuous  period  of  employment for which the member was
   25  credited with three years of service credit; provided that if the  wages
   26  earned  during  any year of credited service included in the period used
   27  to determine final average salary exceeds the average of  the  wages  of
   28  the previous two years of credited service by more than ten percent, the
   29  amount  in  excess of ten percent shall be excluded from the computation
   30  of final average salary; or
   31    [(ii)] (B) the total wages earned during  any  six  consecutive  years
   32  from service for which the member received service credit divided by the
   33  amount  of  such  service  credit  earned  during  that six-year period,
   34  PROVIDED, HOWEVER, THAT "WAGES", AS USED IN THIS PARAGRAPH,  SHALL  MEAN
   35  THE  APPLICABLE  PROVISIONS  AND  LIMITATIONS  OF  THE  TERM "WAGES", AS
   36  DEFINED IN SUBDIVISION 1 OF SECTION SIX HUNDRED ONE OF THE RSSL.
   37    (II) SUBJECT TO THE PROVISIONS OF SUBDIVISION F OF THIS SECTION  WHERE
   38  THOSE  PROVISIONS  ARE APPLICABLE, AND NOTWITHSTANDING THE PROVISIONS OF
   39  SUBDIVISIONS A AND C OF SECTION SIX HUNDRED EIGHT OF  THE  RSSL,  FOR  A
   40  TIER  IV MEMBER OF NYCERS WHO IS A NEW YORK CITY REVISED PLAN MEMBER (AS
   41  DEFINED IN SUBDIVISION M OF SECTION SIX HUNDRED ONE OF THE  RSSL)  OR  A
   42  TIER  IV  MEMBER OF BERS WHO IS A NEW YORK CITY REVISED PLAN MEMBER, THE
   43  TERM "FINAL AVERAGE SALARY", AS USED IN ARTICLE  FIFTEEN  OF  THE  RSSL,
   44  SHALL  BE  EQUAL  TO ONE-FIFTH OF THE HIGHEST TOTAL WAGES EARNED BY SUCH
   45  MEMBER DURING ANY CONTINUOUS PERIOD OF EMPLOYMENT FOR WHICH  THE  MEMBER
   46  WAS  CREDITED  WITH  FIVE  YEARS OF SERVICE CREDIT; PROVIDED THAT IF THE
   47  WAGES EARNED DURING ANY YEAR OF CREDITED SERVICE INCLUDED IN THE  PERIOD
   48  USED  TO DETERMINE FINAL AVERAGE SALARY EXCEEDS THE AVERAGE OF THE WAGES
   49  OF THE PREVIOUS FOUR YEARS OF CREDITED SERVICE BY MORE THAN TEN PERCENT,
   50  THE AMOUNT IN EXCESS OF TEN PERCENT SHALL BE EXCLUDED FROM THE  COMPUTA-
   51  TION  OF FINAL AVERAGE SALARY, PROVIDED FURTHER THAT "WAGES", AS USED IN
   52  THIS PARAGRAPH, SHALL MEAN THE APPLICABLE PROVISIONS AND LIMITATIONS  OF
   53  THE TERM "WAGES", AS DEFINED IN SUBDIVISION L OF SECTION SIX HUNDRED ONE
   54  OF THE RSSL.
   55    S  78-a.  Section 63-c of the executive law is amended by adding a new
   56  subdivision 5 to read as follows:
       S. 6735                            36                            A. 9558

    1    5. NOTWITHSTANDING ANY OTHER LAW TO THE  CONTRARY,  INCLUDING  WITHOUT
    2  LIMITATION;  SECTION  SIXTY-FOUR OF THIS ARTICLE; THE EDUCATION LAW; THE
    3  RETIREMENT AND SOCIAL SECURITY LAW AND THE ADMINISTRATIVE  CODE  OF  THE
    4  CITY  OF  NEW  YORK,  THE  PORTION OF ALL MONEY RECEIVED BY THE ATTORNEY
    5  GENERAL  IN  CONNECTION  WITH THE SETTLEMENT OF AN ACTION ARISING OUT OF
    6  THE MANAGEMENT, OPERATION, INVESTMENTS OF  OR  OTHERWISE  IN  CONNECTION
    7  WITH  A  RETIREMENT  OR OTHER FUND ESTABLISHED PURSUANT TO THE EDUCATION
    8  LAW, THE RETIREMENT AND SOCIAL SECURITY LAW OR THE  ADMINISTRATIVE  CODE
    9  OF  THE  CITY OF NEW YORK ATTRIBUTABLE TO THE HARM SUFFERED BY SUCH FUND
   10  SHALL BE DEPOSITED INTO SUCH FUND.
   11    S 79. Nothing contained  in  sections  seventy-five,  seventy-six  and
   12  seventy-seven  of  this act shall be construed to create any contractual
   13  right  with  respect  to  members  to  whom  such  sections  apply.  The
   14  provisions  of  such  sections are intended to afford members the advan-
   15  tages of certain benefits contained in the internal  revenue  code,  and
   16  the  effectiveness  and  existence  of  such  sections and benefits they
   17  confer are completely contingent thereon.
   18    S 80. Notwithstanding any provision of law to the contrary, nothing in
   19  this act shall limit the rights accruing  to  employees  pursuant  to  a
   20  collective bargaining agreement for the unexpired term of such agreement
   21  or  the  eligibility of any member of an employee organization to join a
   22  special retirement plan open to him or her pursuant  to  a  collectively
   23  negotiated  agreement with any state or local government employer, where
   24  such agreement is in effect on the effective date of  this  act  and  so
   25  long  as such agreement remains in effect thereafter; provided, however,
   26  that any such eligibility shall  not  apply  upon  termination  of  such
   27  agreement  for  employees otherwise subject to the provisions of article
   28  22 of the retirement and social security law, provided further that this
   29  section shall not be construed as authorizing any member who first joins
   30  a public retirement system of the state (as defined in subdivision 23 of
   31  section 501 of the retirement and social security law) on or after April
   32  1, 2012 to become a participant in any of the special plans  established
   33  by  section 504-a, 504-b, 504-d, 604-a, 604-c (as added by chapter 96 of
   34  the laws of 1995), 604-d or 604-i of the retirement and social  security
   35  law  or  section  13-157.1 or 13-157.4 of the administrative code of the
   36  city of New York.
   37    S 81. No enhancement, increase or other alteration or  change  in  the
   38  benefit structure provided herein shall be authorized.
   39    S  81-a. The retirement and social security law is amended by adding a
   40  new section 25 to read as follows:
   41    S 25. APPROPRIATIONS IN RETIREMENT  BILLS.  THE  STATE  SHALL  MAKE  A
   42  PAYMENT  TO THE RETIREMENT SYSTEM IN AN AMOUNT EQUAL TO THE VALUE OF THE
   43  BENEFITS ASSOCIATED WITH PRIOR SERVICE UPON  THE  ENACTMENT  OF  A  BILL
   44  WHICH  ENACTS  OR  AMENDS  ANY PROVISION OF LAW RELATING TO A RETIREMENT
   45  SYSTEM OR PLAN OF THE STATE OF NEW YORK  OR  OF  ANY  OF  ITS  POLITICAL
   46  SUBDIVISIONS. THE STATE MAY AMORTIZE SUCH PAYMENT OVER A FIVE YEAR PERI-
   47  OD AT A RATE OF INTEREST TO BE DETERMINED BY THE RETIREMENT SYSTEM. SUCH
   48  BILL  SHALL  CONTAIN  AN ITEMIZED APPROPRIATION FROM THE STATE'S GENERAL
   49  FUND BEGINNING FOR THE FISCAL  YEAR  IN  WHICH  SUCH  AMENDMENT  BECOMES
   50  EFFECTIVE  AND WHICH SHALL NOT BE USED FOR ANY OTHER PURPOSE, SUFFICIENT
   51  TO DISBURSE A MINIMUM OF THE FIRST OF FIVE  SUCH  AMORTIZATION  PAYMENTS
   52  PLUS  THE  PRESENT  VALUE  OF  THE BENEFITS PROVIDED TO EMPLOYEES OF THE
   53  STATE OR ITS POLITICAL SUBDIVISIONS BY THE BILL FOR THE  CURRENT  FISCAL
   54  YEAR.  THE  STATE  SHALL CONTINUE TO PAY FOR THE COST OF THE BENEFITS AS
   55  PROVIDED BY THE BILL TO THE STATE AND ITS POLITICAL SUBDIVISIONS  ON  AN
   56  ONGOING  BASIS.  SUCH  APPROPRIATION FROM THE STATE'S GENERAL FUND SHALL
       S. 6735                            37                            A. 9558

    1  ONLY BE REQUIRED WHEN A BILL IS ENACTED ON A STATEWIDE BASIS.  IN  ADDI-
    2  TION,  SUCH  APPROPRIATION  FROM  THE  STATE'S GENERAL FUND SHALL NOT BE
    3  REQUIRED WHEN THE BENEFITS PROVIDED BY A PARTICULAR BILL MUST BE ELECTED
    4  BY A PARTICIPATING EMPLOYER, LOCAL GOVERNMENT, OR SCHOOL DISTRICT.
    5    S  81-b.  The  retirement and social security law is amended by adding
    6  three new articles 23, 24, and 25 to read as follows:
    7                                 ARTICLE 23
    8                            BENEFIT ENHANCEMENTS
    9  SECTION 1300. DEFINITIONS.
   10          1301. ELECTION OF BENEFIT ENHANCEMENTS.
   11          1302. BENEFIT ENHANCEMENTS.
   12          1303. ADDITIONAL MEMBER CONTRIBUTIONS.
   13          1304. ELECTION NOT COLLECTIVELY BARGAINED.
   14    S 1300. DEFINITIONS. THE FOLLOWING WORDS AND PHRASES AS USED  IN  THIS
   15  ARTICLE  SHALL HAVE THE FOLLOWING MEANINGS UNLESS A DIFFERENT MEANING IS
   16  PLAINLY REQUIRED BY THE CONTEXT:
   17    A. "RETIREMENT SYSTEM" SHALL MEAN THE NEW YORK STATE AND LOCAL EMPLOY-
   18  EES' RETIREMENT SYSTEM AND  THE  NEW  YORK  STATE  TEACHERS'  RETIREMENT
   19  SYSTEM.
   20    B. "ELIGIBLE EMPLOYEE", SUBJECT TO THE LIMITATIONS OF SECTION THIRTEEN
   21  HUNDRED  TWO OF THIS ARTICLE, SHALL MEAN A STATE EMPLOYEE THAT BECOMES A
   22  MEMBER OF A RETIREMENT SYSTEM WHO FIRST BECAME A MEMBER OF  SUCH  SYSTEM
   23  ON OR AFTER APRIL FIRST, TWO THOUSAND TWELVE WHO IS IDENTIFIED AS ELIGI-
   24  BLE  TO  RECEIVE  THE  BENEFIT ENHANCEMENTS PROVIDED FOR IN THIS ARTICLE
   25  UPON ELECTION BY THE STATE OF NEW  YORK  PURSUANT  TO  SECTION  THIRTEEN
   26  HUNDRED ONE OF THIS ARTICLE.
   27    S 1301. ELECTION OF BENEFIT ENHANCEMENTS. A. THE STATE OF NEW YORK MAY
   28  ELECT  TO PROVIDE ITS EMPLOYEES THE BENEFIT ENHANCEMENTS PROVIDED FOR IN
   29  SECTION THIRTEEN HUNDRED TWO OF THIS ARTICLE.
   30    B. A SEPARATE ELECTION TO PROVIDE  BENEFIT  ENHANCEMENTS  PURSUANT  TO
   31  SUBDIVISION  A OF THIS SECTION MUST BE MADE FOR EACH SPECIFIC COLLECTIVE
   32  BARGAINING ORGANIZATION, RECOGNIZED OR  CERTIFIED  PURSUANT  TO  ARTICLE
   33  FOURTEEN OF THE CIVIL SERVICE LAW.
   34    C. SUCH ELECTION IS MADE BY THE GOVERNOR TO THE RETIREMENT SYSTEM UPON
   35  RECEIPT OF A REQUEST FROM THE COLLECTIVE BARGAINING ORGANIZATION, RECOG-
   36  NIZED OR CERTIFIED PURSUANT TO ARTICLE FOURTEEN OF THE CIVIL SERVICE LAW
   37  TO  REPRESENT  SUCH  ELIGIBLE  EMPLOYEES.    NO  SUCH  PETITION SHALL BE
   38  REQUIRED FOR EMPLOYEES WHO ARE  NOT  REPRESENTED  FOR  THE  PURPOSES  OF
   39  COLLECTIVE BARGAINING SUBJECT TO THE LIMITATION PROVIDED IN SECTION NINE
   40  HUNDRED TWO OF THIS CHAPTER.
   41    S  1302.  BENEFIT  ENHANCEMENTS.  NOTWITHSTANDING ANY OTHER LAW TO THE
   42  CONTRARY, ELIGIBLE EMPLOYEES  SHALL  BE  PERMITTED  TO  RETIRE,  WITHOUT
   43  PENALTY,  UPON  REACHING  AGE FIFTY-SEVEN AND COMPLETING AT LEAST THIRTY
   44  YEARS OF CREDITED SERVICE. EMPLOYEES RETIRING PURSUANT TO  THIS  SECTION
   45  SHALL  RECEIVE  A  PENSION ALLOWANCE EQUAL TO THE SUM OF THIRTY-FIVE PER
   46  CENTUM AND ONE-FIFTIETH OF FINAL AVERAGE SALARY FOR EACH YEAR OF SERVICE
   47  IN EXCESS OF TWENTY TIMES FINAL AVERAGE SALARY TIMES YEARS  OF  CREDITED
   48  SERVICE.
   49    S 1303. ADDITIONAL MEMBER CONTRIBUTIONS. UPON ELECTION BY THE STATE OF
   50  NEW YORK, THE RETIREMENT SYSTEM SHALL REQUIRE ADDITIONAL MEMBER CONTRIB-
   51  UTIONS  TO  BE  PAID  BY  ALL  ELIGIBLE EMPLOYEES. THE ADDITIONAL MEMBER
   52  CONTRIBUTIONS TO BE PAID BY ELIGIBLE EMPLOYEES SHALL BE OF  A  LEVEL  SO
   53  THAT NO ADDITIONAL CONTRIBUTIONS SHALL BE PAID BY THE STATE TO COVER THE
   54  COST  OF  SUCH ADDITIONAL BENEFITS. ADDITIONAL MEMBER CONTRIBUTIONS MADE
   55  PURSUANT TO THIS SECTION SHALL BE IN ADDITION  TO  MEMBER  CONTRIBUTIONS
   56  MADE PURSUANT TO OTHER PROVISIONS OF THIS CHAPTER.
       S. 6735                            38                            A. 9558

    1    S  1304.  ELECTION  NOT COLLECTIVELY BARGAINED.   THE DETERMINATION TO
    2  MAKE AN ELECTION IN ACCORDANCE WITH THIS ARTICLE SHALL NOT BE DEEMED  TO
    3  BE, OR TO RELATE TO OR AFFECT, A TERM AND CONDITION OF EMPLOYMENT WITHIN
    4  THE  MEANING  OF  ARTICLE FOURTEEN OF THE CIVIL SERVICE LAW OR ANY LOCAL
    5  LAW ENACTED IN FURTHERANCE THEREOF.
    6                                 ARTICLE 24
    7                            BENEFIT ENHANCEMENTS
    8  SECTION 1310. DEFINITIONS.
    9          1311. ELECTION OF BENEFIT ENHANCEMENTS.
   10          1312. BENEFIT ENHANCEMENTS.
   11          1313. ADDITIONAL MEMBER CONTRIBUTIONS.
   12          1314. ELECTION NOT COLLECTIVELY BARGAINED.
   13    S  1310. DEFINITIONS.  THE FOLLOWING WORDS AND PHRASES AS USED IN THIS
   14  ARTICLE SHALL HAVE THE FOLLOWING MEANINGS UNLESS A DIFFERENT MEANING  IS
   15  PLAINLY REQUIRED BY THE CONTEXT:
   16    A. "RETIREMENT SYSTEM" SHALL MEAN THE NEW YORK STATE AND LOCAL EMPLOY-
   17  EES'  RETIREMENT  SYSTEM  AND  THE  NEW  YORK STATE TEACHERS' RETIREMENT
   18  SYSTEM.
   19    B. "ELIGIBLE EMPLOYEE", SUBJECT TO THE LIMITATIONS OF SECTION THIRTEEN
   20  HUNDRED TWELVE OF THIS ARTICLE, SHALL MEAN  A  MEMBER  OF  A  RETIREMENT
   21  SYSTEM WHO FIRST BECAME A MEMBER OF SUCH SYSTEM ON OR AFTER APRIL FIRST,
   22  TWO THOUSAND TWELVE WHO IS IDENTIFIED AS ELIGIBLE TO RECEIVE THE BENEFIT
   23  ENHANCEMENTS  PROVIDED FOR IN THIS ARTICLE UPON ELECTION BY THE STATE OF
   24  NEW YORK PURSUANT TO SECTION THIRTEEN HUNDRED ELEVEN OF THIS ARTICLE.
   25    S 1311. ELECTION OF BENEFIT ENHANCEMENTS. A. THE STATE OF NEW YORK MAY
   26  ELECT TO PROVIDE EMPLOYEES WHO HOLD A POSITION REPRESENTED BY THE RECOG-
   27  NIZED COLLECTIVE BARGAINING UNITS AFFILIATED WITH  THE  NEW  YORK  STATE
   28  UNITED TEACHERS EMPLOYEE ORGANIZATION AS CERTIFIED BY HIS OR HER EMPLOY-
   29  ER  THE  BENEFIT  ENHANCEMENTS  PROVIDED FOR IN SECTION THIRTEEN HUNDRED
   30  TWELVE OF THIS ARTICLE.
   31    B. SUCH ELECTION IS MADE BY THE GOVERNOR TO THE RETIREMENT SYSTEM UPON
   32  RECEIPT OF A REQUEST BY THE NEW  YORK  STATE  UNITED  TEACHERS  EMPLOYEE
   33  ORGANIZATION.
   34    S  1312.  BENEFIT  ENHANCEMENTS.  NOTWITHSTANDING ANY OTHER LAW TO THE
   35  CONTRARY, ELIGIBLE EMPLOYEES  SHALL  BE  PERMITTED  TO  RETIRE,  WITHOUT
   36  PENALTY,  UPON  REACHING  AGE FIFTY-SEVEN AND COMPLETING AT LEAST THIRTY
   37  YEARS OF CREDITED SERVICE. EMPLOYEES RETIRING PURSUANT TO  THIS  SECTION
   38  SHALL  RECEIVE  A  PENSION ALLOWANCE EQUAL TO THE SUM OF THIRTY-FIVE PER
   39  CENTUM AND ONE-FIFTIETH OF FINAL AVERAGE SALARY FOR EACH YEAR OF SERVICE
   40  IN EXCESS OF TWENTY TIMES FINAL AVERAGE SALARY TIMES YEARS  OF  CREDITED
   41  SERVICE.
   42    S 1313. ADDITIONAL MEMBER CONTRIBUTIONS. UPON ELECTION BY THE STATE OF
   43  NEW YORK, THE RETIREMENT SYSTEM SHALL REQUIRE ADDITIONAL MEMBER CONTRIB-
   44  UTIONS  TO  BE  PAID  BY  ALL  ELIGIBLE EMPLOYEES. THE ADDITIONAL MEMBER
   45  CONTRIBUTIONS TO BE PAID BY ELIGIBLE EMPLOYEES SHALL BE OF  A  LEVEL  SO
   46  THAT  NO  ADDITIONAL CONTRIBUTIONS SHALL BE PAID BY THE STATE OR PARTIC-
   47  IPATING EMPLOYERS IN THE RETIREMENT SYSTEM TO COVER  THE  COST  OF  SUCH
   48  ADDITIONAL  BENEFITS.  ADDITIONAL  MEMBER CONTRIBUTIONS MADE PURSUANT TO
   49  THIS SECTION SHALL BE IN ADDITION TO MEMBER CONTRIBUTIONS MADE  PURSUANT
   50  TO OTHER PROVISIONS OF THIS CHAPTER.
   51    S  1314.  ELECTION  NOT COLLECTIVELY BARGAINED.   THE DETERMINATION TO
   52  MAKE AN ELECTION IN ACCORDANCE WITH THIS ARTICLE SHALL NOT BE DEEMED  TO
   53  BE, OR TO RELATE TO OR AFFECT, A TERM AND CONDITION OF EMPLOYMENT WITHIN
   54  THE  MEANING  OF  ARTICLE FOURTEEN OF THE CIVIL SERVICE LAW OR ANY LOCAL
   55  LAW ENACTED IN FURTHERANCE THEREOF.
       S. 6735                            39                            A. 9558

    1                                 ARTICLE 25
    2                            BENEFIT ENHANCEMENTS
    3  SECTION 1320. DEFINITIONS.
    4          1321. ELECTION OF BENEFIT ENHANCEMENTS.
    5          1322. BENEFIT ENHANCEMENTS.
    6          1323. ADDITIONAL MEMBER CONTRIBUTIONS.
    7          1324. ELECTION NOT COLLECTIVELY BARGAINED.
    8    S  1320.  DEFINITIONS. THE FOLLOWING WORDS AND PHRASES AS USED IN THIS
    9  ARTICLE SHALL HAVE THE FOLLOWING MEANINGS UNLESS A DIFFERENT MEANING  IS
   10  PLAINLY REQUIRED BY THE CONTEXT:
   11    A. "RETIREMENT SYSTEM" SHALL MEAN THE NEW YORK CITY EMPLOYEES' RETIRE-
   12  MENT  SYSTEM, THE NEW YORK CITY TEACHERS' RETIREMENT SYSTEM, AND THE NEW
   13  YORK CITY BOARD OF EDUCATION RETIREMENT SYSTEM.
   14    B. "ELIGIBLE EMPLOYEE", SUBJECT TO THE LIMITATIONS OF SECTION THIRTEEN
   15  HUNDRED TWENTY-TWO OF THIS ARTICLE, SHALL MEAN A MEMBER OF A  RETIREMENT
   16  SYSTEM WHO FIRST BECAME A MEMBER OF SUCH SYSTEM ON OR AFTER APRIL FIRST,
   17  TWO THOUSAND TWELVE WHO IS IDENTIFIED AS ELIGIBLE TO RECEIVE THE BENEFIT
   18  ENHANCEMENTS  PROVIDED  FOR IN THIS ARTICLE UPON ELECTION BY THE CITY OF
   19  NEW YORK PURSUANT TO SECTION THIRTEEN HUNDRED TWENTY-ONE OF  THIS  ARTI-
   20  CLE.
   21    S  1321. ELECTION OF BENEFIT ENHANCEMENTS. A. THE CITY OF NEW YORK MAY
   22  ELECT TO PROVIDE ITS EMPLOYEES THE BENEFIT ENHANCEMENTS PROVIDED FOR  IN
   23  SECTION THIRTEEN HUNDRED TWENTY-TWO OF THIS ARTICLE.
   24    B.  A  SEPARATE  ELECTION  TO PROVIDE BENEFIT ENHANCEMENTS PURSUANT TO
   25  SUBDIVISION A OF THIS SECTION MUST BE MADE FOR EACH SPECIFIC  COLLECTIVE
   26  BARGAINING  ORGANIZATION,  RECOGNIZED  OR  CERTIFIED PURSUANT TO ARTICLE
   27  FOURTEEN OF THE CIVIL SERVICE LAW.
   28    C. SUCH ELECTION MAY BE MADE AT THE SOLE DISCRETION OF  THE  MAYOR  OF
   29  THE CITY OF NEW YORK TO THE RETIREMENT SYSTEMS UPON RECEIPT OF A REQUEST
   30  FROM  THE  COLLECTIVE  BARGAINING  ORGANIZATION, RECOGNIZED OR CERTIFIED
   31  PURSUANT TO ARTICLE FOURTEEN OF THE CIVIL SERVICE LAW TO REPRESENT  SUCH
   32  ELIGIBLE EMPLOYEES. NO SUCH PETITION SHALL BE REQUIRED FOR EMPLOYEES WHO
   33  ARE NOT REPRESENTED FOR THE PURPOSES OF COLLECTIVE BARGAINING SUBJECT TO
   34  THE LIMITATION PROVIDED IN SECTION NINE HUNDRED TWO OF THIS CHAPTER.
   35    S  1322.  BENEFIT  ENHANCEMENTS.  NOTWITHSTANDING ANY OTHER LAW TO THE
   36  CONTRARY, ELIGIBLE EMPLOYEES SHALL BE ELIGIBLE TO RECEIVE BENEFITS SPEC-
   37  IFIED BY THE MAYOR OF THE CITY OF NEW YORK, PROVIDED THAT  THE  PETITION
   38  PROVIDED   PURSUANT   TO  SUBDIVISION  C  OF  SECTION  THIRTEEN  HUNDRED
   39  TWENTY-ONE OF THIS ARTICLE REQUESTED THE ELECTION OF SUCH BENEFITS.
   40    S 1323. ADDITIONAL MEMBER CONTRIBUTIONS. UPON ELECTION BY THE CITY  OF
   41  NEW YORK, THE RETIREMENT SYSTEM SHALL REQUIRE ADDITIONAL MEMBER CONTRIB-
   42  UTIONS  TO  BE  PAID  BY  ALL  ELIGIBLE EMPLOYEES. THE ADDITIONAL MEMBER
   43  CONTRIBUTIONS TO BE PAID BY ELIGIBLE EMPLOYEES SHALL BE OF  A  LEVEL  SO
   44  THAT  NO  ADDITIONAL CONTRIBUTIONS SHALL BE PAID BY THE CITY OF NEW YORK
   45  TO COVER  THE  COST  OF  SUCH  ADDITIONAL  BENEFITS.  ADDITIONAL  MEMBER
   46  CONTRIBUTIONS  MADE  PURSUANT  TO  THIS  SECTION SHALL BE IN ADDITION TO
   47  MEMBER CONTRIBUTIONS PAID PURSUANT TO OTHER PROVISIONS OF THIS CHAPTER.
   48    S 1324. ELECTION NOT COLLECTIVELY BARGAINED.    THE  DETERMINATION  TO
   49  MAKE  AN ELECTION IN ACCORDANCE WITH THIS ARTICLE SHALL NOT BE DEEMED TO
   50  BE, OR TO RELATE TO OR AFFECT, A TERM AND CONDITION OF EMPLOYMENT WITHIN
   51  THE MEANING OF ARTICLE FOURTEEN OF THE CIVIL SERVICE LAW  OR  ANY  LOCAL
   52  LAW ENACTED IN FURTHERANCE THEREOF.
   53    S  82. Severability clause. If any clause, sentence, paragraph, subdi-
   54  vision, section or part of this act shall be adjudged by  any  court  of
   55  competent  jurisdiction  to  be invalid, such judgment shall not affect,
   56  impair, or invalidate the remainder thereof, but shall  be  confined  in
       S. 6735                            40                            A. 9558

    1  its  operation  to the clause, sentence, paragraph, subdivision, section
    2  or part thereof directly involved in the controversy in which such judg-
    3  ment shall have been rendered. It is hereby declared to be the intent of
    4  the  legislature  that  this  act  would  have been enacted even if such
    5  invalid provisions had not been included herein.
    6    S 83. This act shall take effect April  1,  2012,  provided  that  the
    7  amendments  to subdivision a of section 603 of the retirement and social
    8  security law made by section thirty-one of this act shall be subject  to
    9  the  expiration and reversion of such subdivision pursuant to section 13
   10  of chapter 682 of the laws of 2003, as amended, provided,  further  that
   11  the  amendments  to  subdivisions 86, 87 and 89 of section 13-101 of the
   12  administrative code of the city of New York made  by  sections  seventy-
   13  five,  seventy-six  and  seventy-seven  of this act shall not affect the
   14  expiration of such subdivisions and shall be deemed to expire therewith.
         FISCAL NOTE.--Pursuant to Section  50  of  the  Legislative  Law,  the
       fiscal note that must be appended in its entirety to this bill is:
         This  bill  would  amend  various  sections  of the Education Law, the
       Retirement and Social Security Law, and the Administrative Code  of  the
       City  of  New  York  to implement a new retirement benefit structure for
       members who first join a public retirement system of the  state  or  New
       York  City  on or after April 1, 2012. The following provisions are with
       respect to members of the New York State  Teachers'  Retirement  System.
       Members  would  be  eligible  for  an  unreduced retirement benefit upon
       attainment of age 63. Benefits would be vested after ten years of  cred-
       ited service. Members would be permitted to receive a reduced retirement
       benefit  as  early  as age 55 with a reduction of 6.5% per year for each
       year that commencement precedes age 63.  The retirement benefit  formula
       for  members  whose  years of service are less than 20 would be equal to
       one-sixtieth of final average  salary  times  years  of  service.    The
       retirement  benefit  formula for those members whose years of service is
       20 or more would be equal to 1.75% times years of service up to 20,  and
       2.0%  times years of service in excess of 20. Final average salary would
       be determined as the average of the highest five  consecutive  years  of
       salary.  Salary  in  excess  of ten percent over the average of the four
       previous years would not  be  included  in  the  final  average  salary.
       Members would be required to contribute between three and six percent of
       annual  salary  each  year  based upon their earnings in the second plan
       year preceding the current year in accordance with the schedule below:
       WAGES EARNED                                      MEMBER CONTRIBUTION RAT
       $45,000 or less                                        3.00%
       Greater than $45,000 but not greater than $55,000      3.50%
       Greater than $55,000 but not greater than $75,000      4.50%
       Greater than $75,000 but not greater than $100,000     5.75%
       Greater than $100,000                                  6.00%
       Wages in excess of the annual salary paid to the  Governor  pursuant  to
       the  state  constitution are not includable. Additionally in the case of
       members who work for multiple employers, only salary received  from  two
       employers is includable.
         In  Article  23-a  of the bill, if NYSUT petitions the Governor to add
       the provisions of this section, and the Governor so elects, then a 57/30
       benefit enhancement is added in which eligible members may  retire  with
       an  unreduced  benefit upon reaching age 57 provided they have completed
       at least 30 years of credited service. Upon election  of  this  section,
       NYSTRS  shall  determine  the  cost  of  this  provision, and the member
       contribution rate shall be increased by this amount, such that there  is
       no additional cost to employers due to the provisions of this section.
       S. 6735                            41                            A. 9558

         The current required employer contribution rate for the New York State
       Teachers'  Retirement  System  is  11.11% of pay, applicable to 7/1/11 -
       6/30/12 member salaries and to be collected in the fall  of  2012.  This
       rate  is estimated to increase to 11.84% for the 7/1/12 - 6/30/13 fiscal
       year. This rate is applicable to the salaries of all members, regardless
       of  tier.  In that this proposed benefit structure is only applicable to
       members joining on or after April 1, 2012,  it  will  be  several  years
       before it has a noticeable impact on the employer contribution rate. The
       cost  savings  impact  of  this change will become more significant with
       time as the number of post-4/1/12 members grows as a percentage  of  the
       total membership.
         Our "new entrant rate", a hypothetical employer contribution rate that
       would occur if we started a new Retirement System without any assets, is
       equal to 10.9% of pay under the Tier 4 benefit structure and 7.9% of pay
       under  the  Tier  5  benefit structure, in accordance with the actuarial
       assumptions adopted by the Retirement Board on October  27,  2011.  This
       can  be  thought of as the long-term expected cost of the benefit struc-
       ture, based on current actuarial assumptions. For the proposed new bene-
       fit structure as described above, this new entrant rate would  be  equal
       to 4.6% of pay.
         With respect to the breakdown of the total plan cost into employer and
       employee  portions,  the  long-term  expected  total cost of the benefit
       structure   for   Tier   4   breaks   down   approximately   as    89/11
       employer/employee,  for Tier 5 the split is 69/31 employer/employee, and
       for the Tier 6 benefit structure proposed here the split would be  49/51
       employer/employee, based on current actuarial assumptions. Of course the
       employee  contribution  rate  is  fixed, while the employer contribution
       rate is variable as employers are responsible for  overall  funding  and
       assume all risks and benefits associated with investment performance and
       demographic  experience.  The actual employer cost in a given year could
       be higher or lower than the cost projected above depending on how actual
       investment returns  and  demographic  experience  differ  from  what  is
       projected.
         The  source  of  this  estimate is Fiscal Note 2012-23 dated March 14,
       2012 prepared by the Actuary of the New York State Teachers'  Retirement
       System and is intended for use only during the 2012 Legislative Session.
       I,  Richard  A.  Young,  am the Actuary for the New York State Teachers'
       Retirement System. I am a member of the American  Academy  of  Actuaries
       and  I meet the Qualification Standards of the American Academy of Actu-
       aries to render the actuarial opinion contained herein.
         FISCAL NOTE.--This bill would  require  new  members  who  first  join
       public retirement systems in New York State on or after April 1, 2012 to
       become  covered  under the provisions of a new defined benefit plan. New
       non-unionized members who first join public retirement  systems  in  New
       York  State on or after July 1, 2013 would have the option of joining an
       existing defined contribution plan.
         Insofar as this bill would affect the New York State and Local Employ-
       ees Retirement System (ERS),  the  significant  design  changes  to  the
       current defined benefit plan include:
         1.  Beginning  April  1, 2013, employee contributions of X% of pay for
       all years of service, (except members enrolled in a plan that limits the
       amount of creditable service that may be accrued would not  be  required
       to  contribute  after  accruing the maximum amount of creditable service
       under such plan), where the X% applies for a fiscal year and  is  deter-
       mined as follows:
                 Annual Pensionable salary                 X%
       S. 6735                            42                            A. 9558

                 as of 3/31/two fiscal years prior
                 up to $45,000.00                        3.00%
                 $45,000.01 to $55,000.00                3.50%
                 $55,000.01 to $75,000.00                4.50%
                 $75,000.01 to $100,000.00               5.75%
                 $100,000.01 or more                     6.00%
         2. The service retirement benefit would be one-sixtieth (1.67%) of FAS
       for  less  than  20  years  of  creditable  service, OR, when creditable
       service is 20 years or more, 35% plus one-fiftieth (2.00%)  of  FAS  for
       service credit in excess of 20 years,
         3. Members in regular plans (where retirement eligibility requires the
       attainment  of  a  certain  age as well as the accumulation of a certain
       amount of service credit) must attain age 63 before they may receive  an
       unreduced  service  retirement benefit.   Retirement with reductions can
       commence at age 55 with the application of an early age reduction factor
       at a rate of 6.5% per year.
         4. Final average salary (FAS) would be based on a 5 year average, with
       no year's salary permitted to exceed 10% of the average of the  previous
       4 year's salary,
         5.  Reportable salary (for a fiscal year) may not exceed the salary of
       the Governor of the state of New York, which currently is set in law  to
       be  $179,000  (the  reportable  salary  would change when the Governor's
       salary does) and pensionable salary applies on salary from no more  than
       two employers per fiscal year,
         6.  Lump  sum vacation pay, any form of termination pay and additional
       compensation paid in anticipation  of  retirement  would  no  longer  be
       included in a member's final average salary,
         7. Service credit for unused sick leave time is capped at 100 days,
         8.  An  early  age  retirement starting at age 57 for those with 30 or
       more years of creditable service is potentially provided to  petitioning
       bargaining units subject to approval by the Governor of the state of New
       York  with  the  enhanced  benefit  paid  for  by an additional employee
       contribution yet to be determined.
         If this bill is enacted, NYSLRS would calculate new plan rates for all
       ERS members who first enter on or after April 1,  2012.  The  long  term
       expected  annual  employer  normal  contribution  rate  for  new general
       members would be approximately 5.7% of payroll. The long  term  expected
       annual   employer  total  contribution  rate  for  new  general  members
       (includes Group Term Life Insurance and the administrative  rate)  would
       be approximately 6.4% of payroll.
         For  fiscal  year  2013,  the  total contribution rate for new general
       members (includes Group Term Life Insurance and the administrative rate)
       would be approximately 10.0%  of  payroll.  The  FY  2013  contributions
       assume  that  the  new  tier will be added to the existing ERS plan, and
       does not become its own, independent plan.
         For ERS members in retirement  plans  that  allow  retirement  without
       regard  to  age,  the long term expected and FY 2013 contributions would
       vary by plan with a representative set of the larger plans given in  the
       table below (with the general plan for tiers 5 and 6 included for refer-
       ence):
               Plan                       Long Term Expected         FY 2013
                                          Total Contribution       Contribution
            Tier 5 General                      9.4%                  14.9%
            Tier 6 General                      6.4%                  10.0%
            Tier 5 Non-State COs               10.6%                  17.5%
            Tier 6 Non-State COs                7.2%                  11.5%
       S. 6735                            43                            A. 9558

            Tier 5 State COs                   12.1%                  19.8%
            Tier 6 State COs                    8.8%                  14.2%
            Tier 5 Sheriffs (553)              16.2%                  26.5%
            Tier 6 Sheriffs (553)              12.9%                  20.9%
         Insofar  as this bill would affect the New York State and Local Police
       and Fire Retirement System (PFRS), the significant design changes to the
       defined benefit plan include:
         1. Beginning April 1, 2013, employee contributions of X%  of  pay  for
       all years of service, (except members enrolled in a plan that limits the
       amount  of  creditable service that may be accrued would not be required
       to contribute after accruing the maximum amount  of  creditable  service
       under  such  plan), where the X% applies for a fiscal year and is deter-
       mined as follows:
                 Annual Pensionable salary                 X%
                 as of 3/31/two fiscal years prior
                 up to $45,000.00                        3.00%
                 $45,000.01 to $55,000.00                3.50%
                 $55,000.01 to $75,000.00                4.50%
                 $75,000.01 to $100,000.00               5.75%
                 $100,000.01 or more                     6.00%
         2. Final average salary (FAS) would be based on a 5 year average, with
       no year's salary permitted to exceed 10% of the average of the  previous
       4 year's salary,
         3.  Reportable salary (for a fiscal year) may not exceed the salary of
       the Governor of the state of New York, which currently is set in law  to
       be  $179,000  (the  reportable  salary  would change when the Governor's
       salary does) and pensionable salary applies on salary from no more  than
       two employers per fiscal year,
         4.  Any  form  of  termination pay and additional compensation paid in
       anticipation of retirement would no longer be  included  in  a  member's
       final average salary,
         5. Members in regular plans (where retirement eligibility requires the
       attainment  of  a  certain  age as well as the accumulation of a certain
       amount of service credit) must attain age 63 before they may  receive  a
       service retirement benefit,
         6. Service credit for unused sick leave time is capped at 100 days, If
       this bill is enacted, NYSLRS would calculate new plan rates for all PFRS
       members  who  first enter on or after April 1, 2012. For PFRS members in
       retirement plans that allow retirement without regard to age,  the  long
       term expected and FY 2013 contributions would vary by plan with a repre-
       sentative  set of the larger plans given in the table below. The FY 2013
       contributions assume that the new tier will be  added  to  the  existing
       PFRS plan, and does not become its own, independent plan.
               Plan                       Long Term Expected         FY 2013
                                          Total Contribution       Contribution
            Tier 5 384D                         14.8%                 20.1%
            Tier 6 384D                         10.5%                 14.1%
            Tier 5 384E                         15.1%                 20.5%
            Tier 6 384E                         10.8%                 14.5%
            T5 State Police                     16.2%                 22.1%
            T6 State Police                     11.1%                 15.0%
         There  would  also  be  additional  administrative  expenses to inform
       employers and new members of the new plan provisions and to modify auto-
       mated systems.  Employee contributions would now be a function  of  base
       salary  instead  of one fixed rate. To implement these employee contrib-
       ution rate changes the modification of NYSLRS automated systems would be
       S. 6735                            44                            A. 9558

       substantial with an associated implementation expense estimated at $3 to
       5 million. The more complicated system  would  be  more  challenging  to
       maintain,  apply,  and  explain,  resulting  in estimated annual ongoing
       expenses  in the millions of dollars. The state and each of the approxi-
       mately 3,000 participating employers would have to modify their  methods
       for  withholding  employee contributions, which could also lead to total
       expenses in the millions of dollars. Lastly, the bill contains no appro-
       priation to support the additional payroll administrative expense to the
       Office of the  State  Comptroller  or  the  implementation  and  ongoing
       expenses of NYSLRS related to the new tier.
         This  bill  would provide new members who first join public retirement
       systems in New York State on or after July 1, 2013 the option to  become
       covered  under  an  existing  defined  contribution  plan in lieu of the
       defined benefit plan.
         There would be additional NYSLRS  administrative  expenses  to  inform
       employers  and new members of the option. These expenses are expected to
       be small.
         Summary of relevant resources:
         Data: March 31, 2011 Actuarial Year End  File  with  distributions  of
       membership  and  other  statistics  displayed  in the 2011 Report of the
       Actuary and 2011 Comprehensive Annual Financial Report.
         Assumptions and Methods: 2010 and 2011  Annual  Report  to  the  Comp-
       troller  on  Actuarial  Assumptions,  Codes Rules and Regulations of the
       State of New York:  Audit and Control.
         Market Assets and GASB Disclosures: March 31, 2011 New York State  and
       Local  Retirement System Financial Statements and Supplementary Informa-
       tion.
         Valuations of Benefit Liabilities and Actuarial Assets: summarized  in
       the 2011 Actuarial Valuations report.
         I am a member of the American Academy of Actuaries and meet the Quali-
       fication Standards to render the actuarial opinion contained herein.
         This  estimate, dated March 14, 2012, and intended for use only during
       the 2012 Legislative Session, is Fiscal Note No. 2012-117,  prepared  by
       the Actuary for the ERS and PFRS.
         FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
         This bill would require new members who first join any of the five New
       York  City  pension  systems on or after April 1, 2012 to become covered
       under the provisions of a new defined benefit plan, Tier 6. The  signif-
       icant design elements of the plan are:
         For non-uniformed employees:
         1. Retirement age 63.
         2. Benefit formula:
         - 1.75% for each year of service up to 20 years
         - 2.0% for each year of service from 20 years to 30 years
         - 2.0% for each year of service beyond 30 years
         3. Employee Contributions:
                 Employee Salaries             Contribution %
                 Less than $45,000                   3%
                 $45,000-55,000                      3.5%
                 $55,000-75,000                      4.5%
                 $75,000-100,000                     5.75%
                 $100,000+                           6%
         4. Vesting after 10 years of service
         5.  Final  Average  Salary (FAS) computed on a 5-year average with a 4
       year look-back for years in excess of 10% above the preceding years.
         6. Cap maximum pensionable earnings at the Governor's salary.
       S. 6735                            45                            A. 9558

         7. An early retirement option for employees  under  63  years  of  age
       which  allows them to retire as young as age 55 with a 6.5% reduction in
       the benefit per year for each year below age 63.
         For employees who are members of the uniformed forces:
         All  employees  covered  by these provisions would receive benefits as
       described under the section  of  the  law  that  sets  out  the  Tier  3
       provisions.  Additionally, the Final Average Salary (FAS) is computed on
       a 5-year average with a 4 year look-back for  years  in  excess  of  10%
       above the preceding years.
         The  impact  of this legislation on City's Fiscal Year 2015 would be a
       savings of approximately $49 million. The total  impact  on  the  City's
       budget  over  the  next 30 years would be a savings of approximately $21
       billion.
         This estimate, dated March 14, 2012, and intended for use only  during
       the  2012  Legislative  Session,  was  prepared  by the city of New York
       office of management and budget.
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