senate Bill S6735

Signed by Governor

Relates to persons joining certain public retirement systems after April 1, 2012

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed by Governor
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actions

  • 14 / Mar / 2012
    • REFERRED TO RULES
  • 14 / Mar / 2012
    • ORDERED TO THIRD READING CAL.368
  • 14 / Mar / 2012
    • MESSAGE OF NECESSITY - 3 DAY MESSAGE
  • 14 / Mar / 2012
    • PASSED SENATE
  • 14 / Mar / 2012
    • DELIVERED TO ASSEMBLY
  • 15 / Mar / 2012
    • REFERRED TO WAYS AND MEANS
  • 15 / Mar / 2012
    • SUBSTITUTED FOR A9558
  • 15 / Mar / 2012
    • ORDERED TO THIRD READING RULES CAL.20
  • 15 / Mar / 2012
    • MESSAGE OF NECESSITY - 3 DAY MESSAGE
  • 15 / Mar / 2012
    • PASSED ASSEMBLY
  • 15 / Mar / 2012
    • RETURNED TO SENATE
  • 15 / Mar / 2012
    • DELIVERED TO GOVERNOR
  • 16 / Mar / 2012
    • SIGNED CHAP.18

Summary

Relates to persons joining certain public retirement systems after April 1, 2012.

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Bill Details

See Assembly Version of this Bill:
A9558
Versions:
S6735
Legislative Cycle:
2011-2012
Law Section:
Retirement and Social Security Law
Laws Affected:
Amd R & SS L, generally; amd §§182, 390, 392 & 6252, Ed L; amd §§13-101 & 13-638.4, NYC Ad Cd; amd §63-c, Exec L

Sponsor Memo

BILL NUMBER:S6735

TITLE OF BILL:

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' retirement 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

PURPOSE:

This bill would establish a Tier VI retirement benefit for new
employees of the State and local governments thereby providing
billions of dollars of fiscal relief to taxpayers, local governments
and the State.

SUMMARY OF PROVISIONS:

The following bill sections would impact members who first become
members of the New York State and Local Employees' Retirement System
("ERS"), the New York State and Local Police and Fire Retirement
System ("PFRS"), the New York State Teachers' Retirement System
("TRS"), the New York City Employees' Retirement System ("NYCERS"),
the New York City Teachers' Retirement System ("NYCTRS"), the New
York City Board of Education Retirement System ("NYCBERS"), New York
City Police Pension Fund, the New York City Fire Pension Fund or
other optional retirement systems established under the Education
Law, on or after April 1, 2012:

Section 1 of the bill would amend Retirement and Social Security Law
("RSSL") § 41 so that such members of the ERS or TRS would not be
granted any additional service credit for unused sick leave.

Section 2 of the bill would amend RSSL § 376 so that members of the
PFRS with less than 20 years of service would need to reach the age
of 63 before receiving the vested retirement allowance. Tier 6 PFRS
members would retain the right to retire upon the completion of 20 or
25 years of service, regardless of age.

Section 3 of the bill would amend RSSL § 440 to close Tier 2 to new
investigator members of NYCERS in order to give them modified Tier 3
police/fire benefits.

Sections 4 and 5 of the bill would amend RSSL § 501 to give new NYC
uniformed correction, uniformed sanitation and investigator members
modified Tier 3 police/fire benefits. Also, Section 4 would amend
RSSL § 501 (24) so that wages upon which retirement benefits are
based for such members of the ERS and NYCERS would not include
overtime, wages in excess of the annual salary paid to the Governor
pursuant to joint resolution of both houses of the Legislature
($179,000), and lump sum payments for deferred compensation, sick
leave, accumulated vacation time or other credits for time not
worked, as well as any termination pay and any additional
compensation paid in anticipation of retirement and to exclude
overtime compensation and certain lump sum and terminal leave
payments from pensionable earnings. In addition, where wages were
earned from three or more public employers in a 12-month period, the
wages paid by the third and each consecutive employer would not be
included in the base for determining retirement benefits.

Section 6 of the bill is intentionally omitted.

Section 7 of the bill would amend RSSL § 503 so that members of the
ERS would need to reach the age of 63 before becoming eligible to
receive the normal service retirement benefit. It would also give new
NYCERS uniformed correction members modified Tier 3 police/fire
service retirement benefits rather than current Tier 3 uniformed
correction service retirement benefits.

Section 8 of the bill would amend RSSL § 504 so that members of the
ERS, at normal retirement age would receive a pension equal to 1/60
of the final average salary multiplied by years of credited service
with less than 20 years of service. Employees with more than twenty
years of service would receive 1.75 percent of final average salary
for the first 20 years of service and 1/50 of final average salary
for each year in excess of 20 years (not in excess of 30 years). In
addition, employees may retire at age 55 with a reduction of 6.5
percent per year for each year before age 63.

Sections 9, 10 and 11 of the bill would amend RSSL §§ 504-a, 504-b and
504-d, respectively, so that new NYC uniformed correction members
would get the benefits of a modified Tier 3 police/fire plan rather
than the current uniformed correction plans.

Section 12 of the bill would amend RSSL § 505 to give new NYC
uniformed correction, uniformed sanitation and investigator members
modified police/fire service retirement benefits.

Section 13 of the bill would amend RSSL § 507 to give new NYC
uniformed correction, uniformed sanitation and investigator members
modified police/fire accident disability retirement benefits.

Sections 14 and 15 of the bill would amend RSSL § 507-a and section
16 would amend RSSL § 507-c to give new NYC uniformed correction
members Tier 3 police/fire disability benefits.

Section 17 of the bill would amend RSSL § 508 to give new NYC
uniformed correction, uniformed sanitation and investigator members
police/fire ordinary death benefits.

Section 18 of the bill would amend RSSL § 510 to give new NYC
uniformed correction, uniformed sanitation and investigator members
who receive a service retirement benefit after 25 years full
escalation of benefits currently applicable to Tier 3 police/fire
members.

Section 19 of the bill would amend RSSL § 511 to give new NYC
uniformed correction members the same coordination with Social
Security benefits that is applicable to current Tier 3 police/fire
members, and which also would be applicable to new NYC uniformed
sanitation and investigator members.

Section 20 of the bill would amend RSSL § 512 so that affected members
would have their final average salary based on the average wages
earned by such member during five consecutive years which provide the
highest average wage. If wages in any one such year exceed the
average of the previous four years by more than 10%, the amount in
excess of 10% would be excluded from the computation of the final
average salary.

Section 21 of the bill would amend RSSL § 513 to make new NYC Tier 3
uniformed correction members ineligible to obtain service credit for
child care leave in order to equate their benefits with Tier 3
police/fire benefits.

Section 22 of the bill is intentionally omitted.

Section 23 of the bill would amend RSSL § 516 so that affected
employees will be entitled to a "deferred vested benefit" equal to
1/60 of their final average salary multiplied by years of credited
service.

Section 24 of the bill would amend RSSL § 517 so that affected
members of ERS, NYCERS, the New York City Police Pension Fund, and
the New York City Fire Pension Fund would be required to contribute
3%, 3.5%, 4.5%, 5.75% or 6% of annual wages, depending on income
levels, as their employee contribution. These contributions would
take effect April first, two thousand thirteen. Prior to such date,
affected employees would be required to contribute 3% of annual wages.

Section 25 of the bill would amend RSSL § 517-c to prohibit new NYC
uniformed correction, uniformed sanitation and investigator members
from borrowing on their member contributions in order to equate their
benefits with Tier 3 police/fire benefits.

Section 26 of the bill is intentionally omitted.

Section 27 of the bill would amend RSSL § 600 to put new NYC uniformed
sanitation members in Tier 3 in order to give them modified Tier 3
police/fire benefits.

Section 28 of the bill would amend RSSL § 601 so that wages upon which
retirement benefits are based for affected employees would not
include overtime, wages in excess of the annual salary paid to the
Governor, and lump sum payments for deferred compensation, sick
leave, accumulated vacation time or other credits for time not
worked, as well as any termination pay and any additional
compensation paid in anticipation of retirement. In addition, where
wages were earned from three or more public employers in a 12-month
period, the wages paid by the third and each consecutive employer
would not be included in the base for determining retirement benefits.

Section 29 of the bill would amend RSSL § 601 to define members who
join the NYCERS, NYCTRS or NYCBERS on or after April 1, 2012 as "New
York City revised plan members".

Section 29-a of the bill would amend RSSL § 602 so that ten years of
credited service is required for vesting.

Section 30 of the bill is intentionally omitted.

Section 31 of the bill would amend RSSL § 603 (a) so that affected
employees would need to reach the age of 63 before becoming eligible
to receive the normal service retirement benefit.

Section 32 of the bill would amend RSSL § 603 (i) by making
conforming changes and limiting retirement benefits available under
Tier 5 to New York City transit employees who joined such systems
before April 1, 2012.

Section 33 of the bill would amend RSSL § 603 (t) so that members of
the TRS would not be eligible for the early retirement benefit
provided in Ch. 504, L. 2009 to members who retire at age 57 with at
least 30 years of creditable service.

Section 33-a of the bill would amend RSSL § 604 so that affected
employees would need to reach the age of 63 before becoming eligible
for the normal service retirement benefit.

Section 34 of the bill would amend RSSL § 604 by adding a new
subdivision b-1 so that affected employees with less than twenty
years of credit service would be entitled to a pension equal to 1/60
of their final average salary multiplied by years of credited
service. Employees with more than twenty years of service would
receive 1.75 percent of final average salary for the first 20 years
of service and 1/50 of final average salary for each year of service
in excess of 20 years. In

addition, employees may retire at age 55 with a reduction of 6.5
percent per year for each year before age 63.

Sections 35 and 36 of the bill would amend RSSL § 604-b (transit
operating age 55/25-year plan); sections 37 and 38 would amend RSSL
604-c, as added by Chapter 472 of the Laws of 1995 (TBTA 20-year/age
50 plan); sections 41 and 42 would amend RSSL § 604-e, as amended by
Chapter 576 of the Laws of 2000 (dispatchers 25-year plan); sections
43 and 44 would amend RSSL § 604-e, as added by Chapter 577 of the
Laws of 2000 (EMT 25-year plan); sections 45 and 46 would amend RSSL
§ 604-f, as added by Chapter 559 of the Laws of 2001 (deputy sheriff
25-year plan); sections 47 and 48 would amend RSSL § 604-f, as
added by Chapter 582 of the Laws of 2001 (special officers 25-year
plan); sections 49 and 50 would amend RSSL § 604-g (automotive
members 25-year/age 50 plan); and sections 51 and 52 would amend RSSL
§ 604-h (police communications members 25-year plan) to provide
benefits, payable at age 63, for new members of such special plans
who do not reach the required service thresholds of their retirement
plan.

Section 39 of the bill would amend RSSL § 604-c, as added by Chapter
472 of the Laws of 1995, to make the age 55/25-year plan inapplicable
to new members of NYCERS and BERS; section 40 would amend RSSL
604-d to make the age 57/5-year plan inapplicable to new members of
NYCERS and BERS; and section 53 would amend RSSL § 604-i to make the
age 55/27-year plan inapplicable to new members of NYCTRS and BERS.
It is necessary to make new members ineligible for those special
plans so that new non-uniformed members (other than those eligible
for the other special plans discussed above) will have payability of
service retirement and vested benefits at age 63. The only benefit of
such special plans is to permit participants to retire early with an
unreduced benefit.

Section 54 of the bill would amend RSSL § 608 so that affected
employees would have their final average salary based on the average
wages earned during the five consecutive years which provide the
highest average wage. If wages in any one such year exceed the
average of the previous 4 years by more than 10%, the amount in
excess of 10% would be excluded from the computation of the final
average salary.

Section 55 of the bill would amend RSSL § 609 so that affected
employees could obtain credit for previous service in Tier VI by
paying 6% of wages earned for service which predate entry into the
system with interest at the rate of 5% per annum compounded annually.

Section 56 of the bill would amend RSSL § 609 to prohibit new NYCERS
non-uniformed members from receiving service credit for undocumented
sick leave used as terminal leave.

Section 57 of the bill would amend RSSL § 612 so that affected
employees would be entitled to a "deferred vested benefit" after

reaching the age of 63 pursuant to the benefit set forth in new RSSL
§ 604.

Section 58 of the bill would amend RSSL § 613 so that affected members
of ERS, TRS, NYCERS, NYCTERS, and NYCBERS would be required to
contribute 3%, 3.5%, 4.5%, 5.75% or
6% of annual wages, depending on income levels, as their employee
contribution. These contributions would take effect April first, two
thousand thirteen. Prior to such date, affected employees would be
required to contribute 3% of annual wages.

Section 59 of the bill is intentionally omitted.

Section 60 of the bill would amend RSSL § 650 to make new Triborough
Bridge and Tunnel Authority ("TBTA") members ineligible for early
retirement with immediate payability. This amendment does not affect
the right of new TBTA members to participate in the 20-year/age 50
TBTA plan discussed above.

Sections 61 and 62 of the bill would amend RSSL § 911 to eliminate the
10-year cutoff of basic member contributions for new non-uniformed
members of NYCERS, NYCTRS and BERS, so that such new members would be
required to contribute 3%, 3.5%, 4.5%, 5.75% or 6% of annual wages,
depending on income levels, as their employee contribution. These
contributions would take effect April first, two thousand thirteen.
Prior to such date, affected employees would be required to
contribute 3% of annual wages.

Section 63 of the bill would amend RSSL § 1000 by adding a new
subdivision (10) so that affected employees could obtain credit for
military service by paying into such funds a sum equal to the product
of the number of years of military service being claimed and 6% of
such member's contribution earned during the 12 months of credited
service immediately preceding the date that the member applied for
credit pursuant to this section.

Section 64 of the bill would amend RSSL § 1202 so that the vested
retirement allowance payable without modification could not be less
than the actuarial equivalent of the total of the member's
contributions accumulated with interest at 5% per annum, compounded
annually.

Section 65 of the bill would amend RSSL § 1204 so that PFRS members
would be required to contribute 3%, 3.5%, 4.5%, 5.75% or 6% of annual
wages, depending on income levels, as their employee contribution.
These contributions would take effect April first, two thousand
thirteen. Prior to such date, affected employees would be required to
contribute 3% of annual wages.

Section 66 of the bill is intentionally omitted.

Section 67 of the bill would amend the RSSL by adding a new § 1209 so
that such members of the PFRS would have their final average salary
based on 1/5 of the highest total wages during any continuous period
of employment for which the member was credited with 5 years of
service credit. If wages in any one such year exceed the average of
the previous 4 years by more than 10%, the amount in excess of 10%
would be excluded from the computation of the final average salary.
Moreover, any wages in excess of the annual salary paid to the
Governor would be excluded from the computation of final average
salary.

Section 68 of the bill would amend the RSSL by adding a new § 1210 so
that wages upon which retirement benefits are based for such members
of the PFRS would not include overtime,
wages in excess of the annual salary paid to the Governor, and lump
sum payments for deferred compensation, sick leave, accumulated
vacation time or other credits for time not worked, as well as any
termination pay and any additional compensation paid in anticipation
of retirement. In addition, where wages were earned from three or
more public employers in a 12-month period, the wages paid by the
third and each consecutive employer would not be included in the base
for determining retirement benefits.

Sections 69, 70 and 71 of the bill are intentionally omitted.

Section 72 of the bill would amend Education Law ("Ed. L.") § 182 so
that members of the Education Department Optional Retirement Program
(ORP), would make contributions at the rate of 3%, 3.5%, 4.5%, 5.75%
or 6% of annual wages, depending on income levels. These
contributions would take effect April first, two thousand thirteen.
Prior to such date, affected employees would be required to
contribute 3% of annual wages.

Sections 72-a and 72-b of the bill would amend Ed. L. §§ 390 and 392 to
broaden the eligibility of "eligible employees," as newly defined in
statute, to participate in the optional retirement program
administered by SUNY and established under the Education Law.

Section 73 of the bill would amend Ed. L. § 392 with respect to such
employees who would be eligible for membership in the Optional
Retirement Program established pursuant to Article 8-B of the Ed. L.
("State University Optional Retirement Program"), and would require
employees to make contributions at the rate of 3%, 3.5%, 4.5%, 5.75%
or 6% of salary earned. Employers would contribute 8% of salary for
the first seven years of service and 10% of salary for all years
thereafter. These contributions would take effect April first, two
thousand thirteen. Prior to such date, affected employees would be
required to contribute 3% of annual wages.

Section 74 of the bill would amend Ed. L. § 6252 with respect to such
employees who would be eligible for membership in the Optional
Retirement Program established pursuant to Article 125-A of the Ed.

L. ("Board of Higher Education Optional Retirement Program"), and
would require employees of the colleges administered by the Board of
Higher Education of the City of New York to make contributions at the
rate of 3%, 3.5%, 4.5%, 5.75% or 6% of salary earned. Employers would
contribute 8% of salary for the first seven years of service and 10%
of salary for all years thereafter. These contributions would take
effect April first, two thousand thirteen. Prior to such date,
affected employees would be required to contribute 3% of annual wages.

Sections 75, 76 and 77 of the bill would amend New York City ("NYC")
Administrative Code § 13-101 subdivisions 86, 87 and 89 to make
conforming amendments to permit new uniformed sanitation members, who
will be in Tier 3 under the bill, to pay their member contributions
on a pre-tax basis in accordance with section 414 (h) of the Internal
Revenue Code.

Section 78 of the bill would amend NYC Administrative Code § 13-638.4
(e)(14) to provide a 5-year final average salary for new members of
NYCERS and BERS.

Section 78-a of the bill would amend the Executive Law § 63-c to require
the Attorney General to deposit into the public pension fund impacted
all monies received in connection with the investigation,
commencement or settlement of an action involving that fund arising
out of its management, operation, investments or otherwise. This
would include all actions commenced under New York's Martin Act.

Section 79 of the bill would provide that the benefits conferred by
sections 75, 76 and 77 of the bill, if enacted, are completely
contingent upon the existence of benefits contained in the Internal
Revenue Code.

Section 80 of the bill would provide that rights accruing to employees
pursuant to a collective bargaining agreement for the unexpired term
of such agreement would not be limited by this bill and members of an
employee organization who are eligible to join a special retirement
plan pursuant to a collectively negotiated agreement with any State
or local employer, would be able to continue to enroll in that
special plan after the enactment of this bill, until the date on
which such agreement terminates.

Section 81 of the bill provides that no enhancements, increases, or
changes to the bill's benefit structure shall be authorized.

Section 81-a of the bill would mandate that the State prepay the
costs of any so-called pension "sweeteners." Such mandate shall not
apply to bills which provide benefits to a specific public employer.
It shall also not apply to benefits that must be elected by a public
employer.

Section 81-b of the bill would add new Articles 23, 24, and 25 to
permit members of the various retirement systems to request from the

public employer an early retirement incentive funded by additional
member contributions.

Section 82 of the bill is the severability clause.

Section 83 of the bill provides for an effective date.

STATEMENT IN SUPPORT:

Pension costs are one of the fastest growing expenses for both State
and local governments. This bill would stabilize local property taxes
and provide significant mandate relief to public employers -
including school districts, counties, cities, towns and villages -
saving billions to taxpayers over time.

The proposed Tier VI for new employees includes fair and equitable
reform by: increasing employee contributions in a progressive fashion
based on salary, raising the retirement age, decreasing the pension
multiplier, excluding overtime and other payments from the formula
used to calculate final average salary for pension allowances, and by
broadening participation in the SUNY Optional Retirement Program. In
addition, the intent of this legislation confirms that uniformed
members covered by Article 14 of the RSSL are not covered by an
Increased Take Home Pay program.

These reforms would save billions of dollars and keep pension costs
affordable for the State and local governments, school districts, and
other public employers by lessening this onerous burden, help drive
down property taxes, reward hardworking government employees and
maintain the fiscal integrity of localities and the State.

BUDGET IMPLICATIONS:

The enactment of this bill would significantly reduce the long-term
expected annual employer contribution rate in the ERS from 11.6%
under Tier 4 and 9.4% under Tier 5 to 6.4%. This proposal will also
cause a similar reduction in the long-term expected annual employer
contribution rate for most employers in the PFRS from 18.5%-19.0%
under Tier 4, 14.8%-15.1% under Tier 5 to 10.5% to 11.1%. For newly
hired members of the NYSTRS, the long-term expected cost will fall
significantly below the 11.8% rate for Tier 4 employees, and the 8.9%
rate for Tier 5 employees to 4.6%.

This bill would save the State and public employers outside of New
York City more than $60 billion in pension costs over a 30-year
period. Furthermore, New York City would realize additional savings
over a 30-year period.

EFFECTIVE DATE:

This bill takes effect on April 1, 2012, and would apply to
individuals who become members of an impacted retirement system on or
after that date.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

    S. 6735                                                  A. 9558

                      S E N A T E - A S S E M B L Y

                             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:

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

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

S. 6735                             3                            A. 9558

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

S. 6735                             4                            A. 9558

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

S. 6735                             5                            A. 9558

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

S. 6735                             6                            A. 9558

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

S. 6735                             7                            A. 9558

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

S. 6735                             8                            A. 9558

REVISED  PLAN  MEMBERS  AND  INVESTIGATOR REVISED PLAN MEMBERS at normal
retirement age shall be a pension equal to fifty percent of final  aver-
age salary, less fifty percent of the primary social security retirement
benefit commencing at age sixty-two, as provided in section five hundred
eleven OF THIS ARTICLE.
  b.  The  early service retirement benefit for police/fire members, NEW
YORK CITY  UNIFORMED  CORRECTION/SANITATION  REVISED  PLAN  MEMBERS  AND
INVESTIGATOR  REVISED  PLAN  MEMBERS shall be a pension equal to two and
one-tenths percent of final  average  salary  times  years  of  credited
service  at the completion of twenty years of service or upon attainment
of age sixty-two, increased by one-third of one percent of final average
salary for each month of service in excess of twenty years, but  not  in
excess  of  fifty percent of final average salary, less fifty percent of
the primary social security retirement benefit commencing at age  sixty-
two  as  provided  in  section  five  hundred  eleven  OF  THIS ARTICLE,
PROVIDED, HOWEVER, THAT NEW YORK CITY POLICE/FIRE REVISED PLAN  MEMBERS,
NEW  YORK  CITY UNIFORMED CORRECTION/SANITATION REVISED PLAN MEMBERS AND
INVESTIGATOR REVISED PLAN MEMBERS SHALL NOT BE ELIGIBLE  TO  RETIRE  FOR
SERVICE PRIOR TO THE ATTAINMENT OF TWENTY YEARS OF CREDITED SERVICE.
  c.    A    police/fire    member,    A   NEW   YORK   CITY   UNIFORMED
CORRECTION/SANITATION REVISED PLAN MEMBER  OR  AN  INVESTIGATOR  REVISED
PLAN  MEMBER  who  retires  with twenty-two years of credited service or
less may become eligible for annual escalation of the service retirement
benefit if he elects to have the payment of his benefit commence on  the
date  he  would have completed twenty-two years and one month or more of
service. In such event, the service retirement benefit shall  equal  two
percent  of final average salary for each year of credited service, less
fifty percent of the primary social security retirement benefit commenc-
ing at age sixty-two as provided in section five hundred eleven OF  THIS
ARTICLE.
  S 13. Subdivisions b and c of section 507 of the retirement and social
security  law,  subdivision  b  as amended by chapter 489 of the laws of
2008 and subdivision c as amended by chapter 513 of the  laws  of  2010,
are amended to read as follows:
  b.  A  police/fire member in active service, A NEW YORK CITY UNIFORMED
CORRECTION/SANITATION REVISED PLAN MEMBER IN ACTIVE SERVICE OR AN INVES-
TIGATOR REVISED PLAN MEMBER IN ACTIVE SERVICE, or a vested member  inca-
pacitated  as the result of a qualifying World Trade Center condition as
defined in section two of this chapter, who is not eligible for a normal
service retirement benefit shall be eligible for the accidental disabil-
ity benefit either as provided in subdivision a OF THIS  SECTION  or  if
such  member  is physically or mentally incapacitated for performance of
duty as the natural and proximate result of  an  accident  sustained  in
such  active  service and not caused by such member's own willful negli-
gence.
  c. In the case of a member of a retirement system other than  the  New
York  state  and  local employees' retirement system, the New York state
teachers' retirement system, the New  York  city  employees'  retirement
system,  the  New  York city board of education retirement system or the
New York city teachers' retirement system, OR IN THE CASE OF A MEMBER OF
THE NEW YORK CITY EMPLOYEES' RETIREMENT SYSTEM WHO IS A  NEW  YORK  CITY
UNIFORMED  CORRECTION/SANITATION  REVISED PLAN MEMBER OR AN INVESTIGATOR
REVISED PLAN MEMBER, the accidental disability benefit  hereunder  shall
be a pension equal to two percent of final average salary times years of
credited service which such member would have attained if employment had
continued until such member's full escalation date, not in excess of the

S. 6735                             9                            A. 9558

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

S. 6735                            10                            A. 9558

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

S. 6735                            11                            A. 9558

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

S. 6735                            12                            A. 9558

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

S. 6735                            13                            A. 9558

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

S. 6735                            14                            A. 9558

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

S. 6735                            15                            A. 9558

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

S. 6735                            16                            A. 9558

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

S. 6735                            17                            A. 9558

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

S. 6735                            18                            A. 9558

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

S. 6735                            19                            A. 9558

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

S. 6735                            20                            A. 9558

  (iv)  who does not withdraw in whole or in part his or her accumulated
member contributions pursuant to section six hundred  thirteen  of  this
article unless such participant thereafter returns to public service and
repays  the  amounts  so  withdrawn, together with interest, pursuant to
such  section  six  hundred  thirteen;  shall  be  entitled to receive a
deferred vested benefit as provided in this subdivision.
  S 44. Subparagraph (ii) of paragraph 2 of  subdivision  d  of  section
604-e of the retirement and social security law, as added by chapter 577
of the laws of 2000, is amended to read as follows:
  (ii)  [Such]  IN  THE CASE OF A PARTICIPANT WHO IS NOT A NEW YORK CITY
REVISED PLAN MEMBER, SUCH vested benefit shall  become  payable  on  the
earliest  date  on which such discontinued member could have retired for
service if such discontinuance had not occurred OR, IN  THE  CASE  OF  A
PARTICIPANT  WHO  IS  A  NEW  YORK CITY REVISED PLAN MEMBER, SUCH VESTED
BENEFIT SHALL BECOME PAYABLE AT AGE SIXTY-THREE.
  S 45. Paragraph 1 of subdivision d of section 604-f of the  retirement
and social security law, as added by chapter 559 of the laws of 2001, is
amended to read as follows:
  1. A participant in the twenty-five year retirement program:
  (i)  who  discontinues  service  as  such a participant, other than by
death or retirement; and
  (ii) IN THE CASE OF A PARTICIPANT WHO IS NOT A NEW YORK  CITY  REVISED
PLAN  MEMBER,  who prior to such discontinuance, completed five but less
than twenty-five years of credited service OR, IN THE CASE OF A  PARTIC-
IPANT  WHO  IS  A  NEW  YORK CITY REVISED PLAN MEMBER, WHO PRIOR TO SUCH
DISCONTINUANCE, COMPLETED TEN BUT LESS THAN TWENTY-FIVE YEARS OF CREDIT-
ED SERVICE; and
  (iii) who, subject to the provisions of paragraph seven of subdivision
e of this section, has paid, prior to  such  discontinuance,  all  addi-
tional  member  contributions and interest (if any) required by subdivi-
sion e of this section; and
  (iv) who does not withdraw in whole or in part his or her  accumulated
member  contributions  pursuant  to section six hundred thirteen of this
article unless such participant thereafter returns to public service and
repays the amounts so withdrawn, together  with  interest,  pursuant  to
such  section  six  hundred  thirteen;  shall  be  entitled to receive a
deferred vested benefit as provided in this subdivision.
  S 46. Subparagraph (ii) of paragraph 2 of  subdivision  d  of  section
604-f of the retirement and social security law, as added by chapter 559
of the laws of 2001, is amended to read as follows:
  (ii)  [Such]  IN  THE CASE OF A PARTICIPANT WHO IS NOT A NEW YORK CITY
REVISED PLAN MEMBER, SUCH vested benefit shall  become  payable  on  the
earliest  date  on which such discontinued member could have retired for
service if such discontinuance had not occurred OR, IN  THE  CASE  OF  A
PARTICIPANT  WHO  IS  A  NEW  YORK CITY REVISED PLAN MEMBER, SUCH VESTED
BENEFIT SHALL BECOME PAYABLE AT AGE SIXTY-THREE.
  S 47. Paragraph 1 of subdivision d of section 604-f of the  retirement
and social security law, as added by chapter 582 of the laws of 2001, is
amended to read as follows:
  1. A participant in the twenty-five year retirement program:
  (i)  who  discontinues  service  as  such a participant, other than by
death or retirement; and
  (ii) IN THE CASE OF A PARTICIPANT WHO IS NOT A NEW YORK  CITY  REVISED
PLAN  MEMBER,  who prior to such discontinuance, completed five but less
than twenty-five years of allowable service as a special officer,  park-
ing  control  specialist,  school  safety agent, campus peace officer or

S. 6735                            21                            A. 9558

taxi and limousine inspector member OR, IN THE CASE OF A PARTICIPANT WHO
IS A NEW YORK CITY REVISED PLAN MEMBER, WHO  PRIOR  TO  SUCH  DISCONTIN-
UANCE,  COMPLETED  TEN  BUT  LESS  THAN  TWENTY-FIVE  YEARS OF ALLOWABLE
SERVICE  AS A SPECIAL OFFICER, PARKING CONTROL SPECIALIST, SCHOOL SAFETY
AGENT, CAMPUS PEACE OFFICER OR TAXI AND LIMOUSINE INSPECTOR MEMBER; and
  (iii) who, subject to the provisions of paragraph seven of subdivision
e of this section, has paid, prior to  such  discontinuance,  all  addi-
tional  member  contributions and interest, if any, required by subdivi-
sion e of this section; and
  (iv) who does not withdraw in whole or in part his or her  accumulated
member  contributions  pursuant  to section six hundred thirteen of this
article unless such participant thereafter returns to public service and
repays the amounts so withdrawn, together  with  interest,  pursuant  to
such  section  six  hundred  thirteen;  shall  be  entitled to receive a
deferred vested benefit as provided in this subdivision.
  S 48. Subparagraph (ii) of paragraph 2 of  subdivision  d  of  section
604-f of the retirement and social security law, as added by chapter 582
of the laws of 2001, is amended to read as follows:
  (ii)  [Such]  IN  THE CASE OF A PARTICIPANT WHO IS NOT A NEW YORK CITY
REVISED PLAN MEMBER, SUCH vested benefit shall  become  payable  on  the
earliest  date  on which such discontinued member could have retired for
service if such discontinuance had not occurred OR, IN  THE  CASE  OF  A
PARTICIPANT  WHO  IS  A  NEW  YORK CITY REVISED PLAN MEMBER, SUCH VESTED
BENEFIT SHALL BECOME PAYABLE AT AGE SIXTY-THREE.
  S 49. Paragraph 1 of subdivision d of section 604-g of the  retirement
and social security law, as added by chapter 414 of the laws of 2002, is
amended to read as follows:
  1. A participant in the twenty-five year/age fifty retirement program:
  (i)  who  discontinues  service  as  such a participant, other than by
death or retirement; and
  (ii) IN THE CASE OF A PARTICIPANT WHO IS NOT A NEW YORK  CITY  REVISED
PLAN  MEMBER,  who prior to such discontinuance, completed five but less
than twenty-five years of credited service OR, IN THE CASE OF A  PARTIC-
IPANT  WHO  IS  A  NEW  YORK CITY REVISED PLAN MEMBER, WHO PRIOR TO SUCH
DISCONTINUANCE, COMPLETED TEN BUT LESS THAN TWENTY-FIVE YEARS OF CREDIT-
ED SERVICE; and
  (iii) who, subject to the provisions of paragraph seven of subdivision
e of this section, has paid, prior to  such  discontinuance,  all  addi-
tional  member  contributions and interest (if any) required by subdivi-
sion e of this section; and
  (iv) who does not withdraw in whole or in part his or her  accumulated
member  contributions  pursuant  to section six hundred thirteen of this
article unless such participant thereafter returns to public service and
repays the amounts so withdrawn, together  with  interest,  pursuant  to
such  section  six  hundred  thirteen;  shall  be  entitled to receive a
deferred vested benefit as provided in this subdivision.
  S 50. Subparagraph (ii) of paragraph 2 of  subdivision  d  of  section
604-g of the retirement and social security law, as added by chapter 414
of the laws of 2002, is amended to read as follows:
  (ii)  [Such]  IN  THE CASE OF A PARTICIPANT WHO IS NOT A NEW YORK CITY
REVISED PLAN MEMBER, SUCH vested benefit shall  become  payable  on  the
earliest  date  on which such discontinued member could have retired for
service if such discontinuance had not occurred OR, IN  THE  CASE  OF  A
PARTICIPANT  WHO  IS  A  NEW  YORK CITY REVISED PLAN MEMBER, SUCH VESTED
BENEFIT SHALL BECOME PAYABLE AT AGE SIXTY-THREE.

S. 6735                            22                            A. 9558

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

S. 6735                            23                            A. 9558

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

S. 6735                            24                            A. 9558

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

S. 6735                            25                            A. 9558

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

S. 6735                            26                            A. 9558

  1.  Except  as  provided by paragraph two of this subdivision, members
shall contribute three percent of annual wages to the retirement  system
in  which  they  have membership, EXCEPT THAT BEGINNING APRIL FIRST, TWO
THOUSAND THIRTEEN FOR MEMBERS WHO  FIRST  BECOME  MEMBERS  OF  A  PUBLIC
RETIREMENT  SYSTEM  OF  THE  STATE ON OR AFTER APRIL FIRST, TWO THOUSAND
TWELVE, THE RATE AT WHICH EACH  SUCH  MEMBER  SHALL  CONTRIBUTE  IN  ANY
CURRENT  PLAN  YEAR  (APRIL FIRST TO MARCH THIRTY-FIRST) SHALL BE DETER-
MINED BY REFERENCE TO THE WAGES OF SUCH MEMBER IN THE SECOND  PLAN  YEAR
(APRIL  FIRST TO MARCH THIRTY-FIRST) PRECEDING SUCH CURRENT PLAN YEAR AS
FOLLOWS:
  (I) MEMBERS WITH WAGES OF FORTY-FIVE THOUSAND  DOLLARS  PER  ANNUM  OR
LESS SHALL CONTRIBUTE THREE PER CENTUM OF ANNUAL WAGES;
  (II)  MEMBERS  WITH  WAGES GREATER THAN FORTY-FIVE THOUSAND PER ANNUM,
BUT NOT MORE THAN FIFTY-FIVE THOUSAND PER ANNUM SHALL  CONTRIBUTE  THREE
AND ONE-HALF PER CENTUM OF ANNUAL WAGES;
  (III)  MEMBERS  WITH WAGES GREATER THAN FIFTY-FIVE THOUSAND PER ANNUM,
BUT NOT MORE THAN SEVENTY-FIVE THOUSAND PER ANNUM SHALL CONTRIBUTE  FOUR
AND ONE-HALF PER CENTUM OF ANNUAL WAGES;
  (IV)  MEMBERS  WITH WAGES GREATER THAN SEVENTY-FIVE THOUSAND PER ANNUM
BUT NOT MORE THAN ONE HUNDRED THOUSAND PER ANNUM SHALL  CONTRIBUTE  FIVE
AND THREE-QUARTERS PER CENTUM OF ANNUAL WAGES; AND
  (V)  MEMBERS  WITH  WAGES  GREATER THAN ONE HUNDRED THOUSAND PER ANNUM
SHALL CONTRIBUTE SIX PER CENTUM OF ANNUAL WAGES.
  NOTWITHSTANDING THE FOREGOING, DURING EACH OF  THE  FIRST  THREE  PLAN
YEARS  (APRIL  FIRST  TO  MARCH  THIRTY-FIRST)  IN WHICH SUCH MEMBER HAS
ESTABLISHED MEMBERSHIP IN A PUBLIC RETIREMENT SYSTEM OF THE STATE,  SUCH
MEMBER  SHALL CONTRIBUTE A PERCENTAGE OF ANNUAL WAGES IN ACCORDANCE WITH
THE PRECEDING SCHEDULE BASED UPON A PROJECTION OF ANNUAL WAGES  PROVIDED
BY THE EMPLOYER.
  The  head  of each retirement system shall promulgate such regulations
as may be necessary and appropriate with respect  to  the  deduction  of
such  contribution  from  members'  wages and for the maintenance of any
special fund or funds with respect to amounts so contributed.
  2. A member of the New York city employees' retirement system  who  is
eligible  to be a participant in the twenty-five-year and age fifty-five
retirement program, as defined by paragraph five  of  subdivision  a  of
section  six hundred four-b of this article shall contribute two percent
of annual wages to such system effective on the  starting  date  of  the
elimination  of  additional  member  contributions,  as  defined  in  an
election made pursuant to paragraph ten of subdivision e of section  six
hundred  four-b  of this article, EXCEPT THAT BEGINNING APRIL FIRST, TWO
THOUSAND THIRTEEN FOR MEMBERS WHO FIRST BECOME MEMBERS OF THE  NEW  YORK
CITY  EMPLOYEES' RETIREMENT SYSTEM ON OR AFTER APRIL FIRST, TWO THOUSAND
TWELVE, THE RATE AT WHICH EACH  SUCH  MEMBER  SHALL  CONTRIBUTE  IN  ANY
CURRENT  PLAN  YEAR  (APRIL FIRST TO MARCH THIRTY-FIRST) SHALL BE DETER-
MINED BY REFERENCE TO THE WAGES OF SUCH MEMBER IN THE SECOND  PLAN  YEAR
(APRIL  FIRST TO MARCH THIRTY-FIRST) PRECEDING SUCH CURRENT PLAN YEAR AS
FOLLOWS:
  (I) MEMBERS WITH WAGES OF FORTY-FIVE THOUSAND  DOLLARS  PER  ANNUM  OR
LESS SHALL CONTRIBUTE THREE PER CENTUM OF ANNUAL WAGES;
  (II)  MEMBERS  WITH  WAGES GREATER THAN FORTY-FIVE THOUSAND PER ANNUM,
BUT NOT MORE THAN FIFTY-FIVE THOUSAND PER ANNUM SHALL  CONTRIBUTE  THREE
AND ONE-HALF PER CENTUM OF ANNUAL WAGES;
  (III)  MEMBERS  WITH WAGES GREATER THAN FIFTY-FIVE THOUSAND PER ANNUM,
BUT NOT MORE THAN SEVENTY-FIVE THOUSAND PER ANNUM SHALL CONTRIBUTE  FOUR
AND ONE-HALF PER CENTUM OF ANNUAL WAGES;

S. 6735                            27                            A. 9558

  (IV)  MEMBERS  WITH WAGES GREATER THAN SEVENTY-FIVE THOUSAND PER ANNUM
BUT NOT MORE THAN ONE HUNDRED THOUSAND PER ANNUM SHALL  CONTRIBUTE  FIVE
AND THREE-QUARTERS PER CENTUM OF ANNUAL WAGES; AND
  (V)  MEMBERS  WITH  WAGES  GREATER THAN ONE HUNDRED THOUSAND PER ANNUM
SHALL CONTRIBUTE SIX PER CENTUM OF ANNUAL WAGES.
  NOTWITHSTANDING THE FOREGOING, DURING EACH OF  THE  FIRST  THREE  PLAN
YEARS  (APRIL  FIRST  TO  MARCH  THIRTY-FIRST)  IN WHICH SUCH MEMBER HAS
ESTABLISHED MEMBERSHIP  IN  THE  NEW  YORK  CITY  EMPLOYEES'  RETIREMENT
SYSTEM,  SUCH  MEMBER  SHALL  CONTRIBUTE A PERCENTAGE OF ANNUAL WAGES IN
ACCORDANCE WITH THE PRECEDING SCHEDULE BASED UPON A PROJECTION OF ANNUAL
WAGES PROVIDED BY THE EMPLOYER.
  f. Anything in subdivision a of this section to the contrary  notwith-
standing a member employed as a uniformed court officer or peace officer
in the unified court system who first joins the New York state and local
employees' retirement system on or after January first, two thousand ten
shall  contribute four percent of annual wages to the New York state and
local employees' retirement system , EXCEPT THAT BEGINNING APRIL  FIRST,
TWO  THOUSAND  THIRTEEN  FOR MEMBERS WHO FIRST BECOME MEMBERS OF THE NEW
YORK STATE AND LOCAL EMPLOYEES' RETIREMENT  SYSTEM  ON  OR  AFTER  APRIL
FIRST,  TWO  THOUSAND  TWELVE,  THE RATE AT WHICH EACH SUCH MEMBER SHALL
CONTRIBUTE IN ANY CURRENT PLAN YEAR (APRIL FIRST TO MARCH  THIRTY-FIRST)
SHALL  BE  DETERMINED  BY  REFERENCE  TO THE WAGES OF SUCH MEMBER IN THE
SECOND PLAN YEAR (APRIL FIRST  TO  MARCH  THIRTY-FIRST)  PRECEDING  SUCH
CURRENT PLAN YEAR AS FOLLOWS:
  1. MEMBERS WITH WAGES OF FORTY-FIVE THOUSAND DOLLARS PER ANNUM OR LESS
SHALL CONTRIBUTE THREE PER CENTUM OF ANNUAL WAGES;
  2.  MEMBERS WITH WAGES GREATER THAN FORTY-FIVE THOUSAND PER ANNUM, BUT
NOT MORE THAN FIFTY-FIVE THOUSAND PER ANNUM SHALL CONTRIBUTE  THREE  AND
ONE-HALF PER CENTUM OF ANNUAL WAGES;
  3.  MEMBERS WITH WAGES GREATER THAN FIFTY-FIVE THOUSAND PER ANNUM, BUT
NOT MORE THAN SEVENTY-FIVE THOUSAND PER ANNUM SHALL CONTRIBUTE FOUR  AND
ONE-HALF PER CENTUM OF ANNUAL WAGES;
  4. MEMBERS WITH WAGES GREATER THAN SEVENTY-FIVE THOUSAND PER ANNUM BUT
NOT  MORE  THAN ONE HUNDRED THOUSAND PER ANNUM SHALL CONTRIBUTE FIVE AND
THREE-QUARTERS PER CENTUM OF ANNUAL WAGES; AND
  5. MEMBERS WITH WAGES GREATER THAN  ONE  HUNDRED  THOUSAND  PER  ANNUM
SHALL CONTRIBUTE SIX PER CENTUM OF ANNUAL WAGES.
  NOTWITHSTANDING  THE  FOREGOING,  DURING  EACH OF THE FIRST THREE PLAN
YEARS (APRIL FIRST TO MARCH  THIRTY-FIRST)  IN  WHICH  SUCH  MEMBER  HAS
ESTABLISHED  MEMBERSHIP  IN  THE  NEW  YORK  STATE  AND LOCAL EMPLOYEES'
RETIREMENT SYSTEM, SUCH MEMBER SHALL CONTRIBUTE A PERCENTAGE  OF  ANNUAL
WAGES  IN ACCORDANCE WITH THE PRECEDING SCHEDULE BASED UPON A PROJECTION
OF ANNUAL WAGES PROVIDED BY THE EMPLOYER.
  The head of the New York state and local employees' retirement  system
shall  promulgate  such  regulations as may be necessary and appropriate
with respect to the deduction of such contribution from  members'  wages
and  for  the  maintenance  of any special fund or funds with respect to
amounts so contributed.
  g. Members who first join the  New  York  state  teachers'  retirement
system  on  or  after  January  first, two thousand ten shall contribute
three and one-half percent of annual wages to the New York state  teach-
ers'  retirement system, EXCEPT THAT BEGINNING APRIL FIRST, TWO THOUSAND
THIRTEEN FOR MEMBERS WHO FIRST BECOME MEMBERS  OF  THE  NEW  YORK  STATE
TEACHERS'  RETIREMENT  SYSTEM  ON  OR  AFTER  APRIL  FIRST, TWO THOUSAND
TWELVE, THE RATE AT WHICH EACH  SUCH  MEMBER  SHALL  CONTRIBUTE  IN  ANY
CURRENT  PLAN YEAR (JULY FIRST TO JUNE THIRTIETH) SHALL BE DETERMINED BY

S. 6735                            28                            A. 9558

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

S. 6735                            29                            A. 9558

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

S. 6735                            30                            A. 9558

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

S. 6735                            31                            A. 9558

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

S. 6735                            32                            A. 9558

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

S. 6735                            33                            A. 9558

  (II)  MEMBERS  WITH  WAGES GREATER THAN FORTY-FIVE THOUSAND PER ANNUM,
BUT NOT MORE THAN FIFTY-FIVE THOUSAND PER ANNUM SHALL  CONTRIBUTE  THREE
AND ONE-HALF PER CENTUM OF ANNUAL WAGES;
  (III)  MEMBERS  WITH WAGES GREATER THAN FIFTY-FIVE THOUSAND PER ANNUM,
BUT NOT MORE THAN SEVENTY-FIVE THOUSAND PER ANNUM SHALL CONTRIBUTE  FOUR
AND ONE-HALF PER CENTUM OF ANNUAL WAGES;
  (IV)  MEMBERS  WITH WAGES GREATER THAN SEVENTY-FIVE THOUSAND PER ANNUM
BUT NOT MORE THAN ONE HUNDRED THOUSAND PER ANNUM SHALL  CONTRIBUTE  FIVE
AND THREE-QUARTERS PER CENTUM OF ANNUAL WAGES; AND
  (V)  MEMBERS  WITH  WAGES  GREATER THAN ONE HUNDRED THOUSAND PER ANNUM
SHALL CONTRIBUTE SIX PER CENTUM OF ANNUAL WAGES.
  NOTWITHSTANDING THE FOREGOING, DURING EACH OF  THE  FIRST  THREE  PLAN
YEARS  (JANUARY FIRST TO DECEMBER THIRTY-FIRST) IN WHICH SUCH MEMBER HAS
ESTABLISHED MEMBERSHIP  IN  THE  STATE  UNIVERSITY  OPTIONAL  RETIREMENT
PROGRAM,  SUCH  EMPLOYEE  SHALL  CONTRIBUTE A PERCENT OF ANNUAL WAGES IN
ACCORDANCE WITH THE PRECEDING SCHEDULE BASED UPON A PROJECTION OF ANNUAL
WAGES PROVIDED BY THE EMPLOYER.
  S 74. Paragraph (c) of subdivision 2 of section 6252 of the  education
law,  as  added by chapter 617 of the laws of 2007, is amended and a new
paragraph (d) is added to read as follows:
  (c) Notwithstanding any other provision of this section or  any  other
law  to  the  contrary, (1) on and after April first, two thousand eight
for a member who joined  the  optional  retirement  program  established
pursuant to this article BEFORE APRIL FIRST, TWO THOUSAND TWELVE and who
has ten or more years of membership in such optional retirement program,
the  city  shall  contribute  one-third  of  the  three percent employee
contribution required pursuant to the  provisions  of  this  section  on
behalf  of such employee; and (2) on and after April first, two thousand
nine for a member who joined the optional retirement program established
pursuant to this article BEFORE APRIL FIRST, TWO THOUSAND TWELVE and who
has ten or more years of membership in such optional retirement program,
the city shall contribute  two-thirds  of  the  three  percent  employee
contribution  required  pursuant  to  the  provisions of this section on
behalf of such employee; and (3) on and after April first, two  thousand
ten  for a member who joined the optional retirement program established
pursuant to this article BEFORE APRIL FIRST, TWO THOUSAND TWELVE and who
has ten or more years of membership in such optional retirement program,
the city  shall  contribute  the  three  percent  employee  contribution
required  pursuant  to  the provisions of this section on behalf of such
employee. THE PROVISIONS OF THIS PARAGRAPH SHALL NOT APPLY TO ANY ELECT-
ING EMPLOYEE WHO BECOMES A MEMBER OF THE OPTIONAL RETIREMENT PROGRAM  ON
OR AFTER APRIL FIRST, TWO THOUSAND TWELVE.
  (D)  NOTWITHSTANDING  ANY  OTHER  LAW TO THE CONTRARY, BEGINNING APRIL
FIRST, TWO THOUSAND THIRTEEN ANY ELECTING EMPLOYEE APPOINTED ON OR AFTER
APRIL FIRST, TWO THOUSAND TWELVE, THE RATE AT WHICH EACH  SUCH  EMPLOYEE
SHALL  CONTRIBUTE  IN  ANY  CURRENT PLAN YEAR (JANUARY FIRST TO DECEMBER
THIRTY-FIRST) SHALL BE DETERMINED BY REFERENCE  TO  THE  WAGES  OF  SUCH
MEMBER  IN THE SECOND PLAN YEAR (JANUARY FIRST TO DECEMBER THIRTY-FIRST)
PRECEDING SUCH CURRENT PLAN YEAR AS FOLLOWS:
  (1) MEMBERS WITH WAGES OF FORTY-FIVE THOUSAND  DOLLARS  PER  ANNUM  OR
LESS SHALL CONTRIBUTE THREE PER CENTUM OF ANNUAL WAGES;
  (2) MEMBERS WITH WAGES GREATER THAN FORTY-FIVE THOUSAND PER ANNUM, BUT
NOT  MORE  THAN FIFTY-FIVE THOUSAND PER ANNUM SHALL CONTRIBUTE THREE AND
ONE-HALF PER CENTUM OF ANNUAL WAGES;

S. 6735                            34                            A. 9558

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

S. 6735                            35                            A. 9558

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

S. 6735                            36                            A. 9558

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

S. 6735                            37                            A. 9558

ONLY BE REQUIRED WHEN A BILL IS ENACTED ON A STATEWIDE BASIS.  IN  ADDI-
TION,  SUCH  APPROPRIATION  FROM  THE  STATE'S GENERAL FUND SHALL NOT BE
REQUIRED WHEN THE BENEFITS PROVIDED BY A PARTICULAR BILL MUST BE ELECTED
BY A PARTICIPATING EMPLOYER, LOCAL GOVERNMENT, OR SCHOOL DISTRICT.
  S  81-b.  The  retirement and social security law is amended by adding
three new articles 23, 24, and 25 to read as follows:
                               ARTICLE 23
                          BENEFIT ENHANCEMENTS
SECTION 1300. DEFINITIONS.
        1301. ELECTION OF BENEFIT ENHANCEMENTS.
        1302. BENEFIT ENHANCEMENTS.
        1303. ADDITIONAL MEMBER CONTRIBUTIONS.
        1304. ELECTION NOT COLLECTIVELY BARGAINED.
  S 1300. DEFINITIONS. THE FOLLOWING WORDS AND PHRASES AS USED  IN  THIS
ARTICLE  SHALL HAVE THE FOLLOWING MEANINGS UNLESS A DIFFERENT MEANING IS
PLAINLY REQUIRED BY THE CONTEXT:
  A. "RETIREMENT SYSTEM" SHALL MEAN THE NEW YORK STATE AND LOCAL EMPLOY-
EES' RETIREMENT SYSTEM AND  THE  NEW  YORK  STATE  TEACHERS'  RETIREMENT
SYSTEM.
  B. "ELIGIBLE EMPLOYEE", SUBJECT TO THE LIMITATIONS OF SECTION THIRTEEN
HUNDRED  TWO OF THIS ARTICLE, SHALL MEAN A STATE EMPLOYEE THAT BECOMES A
MEMBER OF A RETIREMENT SYSTEM WHO FIRST BECAME A MEMBER OF  SUCH  SYSTEM
ON OR AFTER APRIL FIRST, TWO THOUSAND TWELVE WHO IS IDENTIFIED AS ELIGI-
BLE  TO  RECEIVE  THE  BENEFIT ENHANCEMENTS PROVIDED FOR IN THIS ARTICLE
UPON ELECTION BY THE STATE OF NEW  YORK  PURSUANT  TO  SECTION  THIRTEEN
HUNDRED ONE OF THIS ARTICLE.
  S 1301. ELECTION OF BENEFIT ENHANCEMENTS. A. THE STATE OF NEW YORK MAY
ELECT  TO PROVIDE ITS EMPLOYEES THE BENEFIT ENHANCEMENTS PROVIDED FOR IN
SECTION THIRTEEN HUNDRED TWO OF THIS ARTICLE.
  B. A SEPARATE ELECTION TO PROVIDE  BENEFIT  ENHANCEMENTS  PURSUANT  TO
SUBDIVISION  A OF THIS SECTION MUST BE MADE FOR EACH SPECIFIC COLLECTIVE
BARGAINING ORGANIZATION, RECOGNIZED OR  CERTIFIED  PURSUANT  TO  ARTICLE
FOURTEEN OF THE CIVIL SERVICE LAW.
  C. SUCH ELECTION IS MADE BY THE GOVERNOR TO THE RETIREMENT SYSTEM UPON
RECEIPT OF A REQUEST FROM THE COLLECTIVE BARGAINING ORGANIZATION, RECOG-
NIZED OR CERTIFIED PURSUANT TO ARTICLE FOURTEEN OF THE CIVIL SERVICE LAW
TO  REPRESENT  SUCH  ELIGIBLE  EMPLOYEES.    NO  SUCH  PETITION SHALL BE
REQUIRED FOR EMPLOYEES WHO ARE  NOT  REPRESENTED  FOR  THE  PURPOSES  OF
COLLECTIVE BARGAINING SUBJECT TO THE LIMITATION PROVIDED IN SECTION NINE
HUNDRED TWO OF THIS CHAPTER.
  S  1302.  BENEFIT  ENHANCEMENTS.  NOTWITHSTANDING ANY OTHER LAW TO THE
CONTRARY, ELIGIBLE EMPLOYEES  SHALL  BE  PERMITTED  TO  RETIRE,  WITHOUT
PENALTY,  UPON  REACHING  AGE FIFTY-SEVEN AND COMPLETING AT LEAST THIRTY
YEARS OF CREDITED SERVICE. EMPLOYEES RETIRING PURSUANT TO  THIS  SECTION
SHALL  RECEIVE  A  PENSION ALLOWANCE EQUAL TO THE SUM OF THIRTY-FIVE PER
CENTUM AND ONE-FIFTIETH OF FINAL AVERAGE SALARY FOR EACH YEAR OF SERVICE
IN EXCESS OF TWENTY TIMES FINAL AVERAGE SALARY TIMES YEARS  OF  CREDITED
SERVICE.
  S 1303. ADDITIONAL MEMBER CONTRIBUTIONS. UPON ELECTION BY THE STATE OF
NEW YORK, THE RETIREMENT SYSTEM SHALL REQUIRE ADDITIONAL MEMBER CONTRIB-
UTIONS  TO  BE  PAID  BY  ALL  ELIGIBLE EMPLOYEES. THE ADDITIONAL MEMBER
CONTRIBUTIONS TO BE PAID BY ELIGIBLE EMPLOYEES SHALL BE OF  A  LEVEL  SO
THAT NO ADDITIONAL CONTRIBUTIONS SHALL BE PAID BY THE STATE TO COVER THE
COST  OF  SUCH ADDITIONAL BENEFITS. ADDITIONAL MEMBER CONTRIBUTIONS MADE
PURSUANT TO THIS SECTION SHALL BE IN ADDITION  TO  MEMBER  CONTRIBUTIONS
MADE PURSUANT TO OTHER PROVISIONS OF THIS CHAPTER.

S. 6735                            38                            A. 9558

  S  1304.  ELECTION  NOT COLLECTIVELY BARGAINED.   THE DETERMINATION TO
MAKE AN ELECTION IN ACCORDANCE WITH THIS ARTICLE SHALL NOT BE DEEMED  TO
BE, OR TO RELATE TO OR AFFECT, A TERM AND CONDITION OF EMPLOYMENT WITHIN
THE  MEANING  OF  ARTICLE FOURTEEN OF THE CIVIL SERVICE LAW OR ANY LOCAL
LAW ENACTED IN FURTHERANCE THEREOF.
                               ARTICLE 24
                          BENEFIT ENHANCEMENTS
SECTION 1310. DEFINITIONS.
        1311. ELECTION OF BENEFIT ENHANCEMENTS.
        1312. BENEFIT ENHANCEMENTS.
        1313. ADDITIONAL MEMBER CONTRIBUTIONS.
        1314. ELECTION NOT COLLECTIVELY BARGAINED.
  S  1310. DEFINITIONS.  THE FOLLOWING WORDS AND PHRASES AS USED IN THIS
ARTICLE SHALL HAVE THE FOLLOWING MEANINGS UNLESS A DIFFERENT MEANING  IS
PLAINLY REQUIRED BY THE CONTEXT:
  A. "RETIREMENT SYSTEM" SHALL MEAN THE NEW YORK STATE AND LOCAL EMPLOY-
EES'  RETIREMENT  SYSTEM  AND  THE  NEW  YORK STATE TEACHERS' RETIREMENT
SYSTEM.
  B. "ELIGIBLE EMPLOYEE", SUBJECT TO THE LIMITATIONS OF SECTION THIRTEEN
HUNDRED TWELVE OF THIS ARTICLE, SHALL MEAN  A  MEMBER  OF  A  RETIREMENT
SYSTEM WHO FIRST BECAME A MEMBER OF SUCH SYSTEM ON OR AFTER APRIL FIRST,
TWO THOUSAND TWELVE WHO IS IDENTIFIED AS ELIGIBLE TO RECEIVE THE BENEFIT
ENHANCEMENTS  PROVIDED FOR IN THIS ARTICLE UPON ELECTION BY THE STATE OF
NEW YORK PURSUANT TO SECTION THIRTEEN HUNDRED ELEVEN OF THIS ARTICLE.
  S 1311. ELECTION OF BENEFIT ENHANCEMENTS. A. THE STATE OF NEW YORK MAY
ELECT TO PROVIDE EMPLOYEES WHO HOLD A POSITION REPRESENTED BY THE RECOG-
NIZED COLLECTIVE BARGAINING UNITS AFFILIATED WITH  THE  NEW  YORK  STATE
UNITED TEACHERS EMPLOYEE ORGANIZATION AS CERTIFIED BY HIS OR HER EMPLOY-
ER  THE  BENEFIT  ENHANCEMENTS  PROVIDED FOR IN SECTION THIRTEEN HUNDRED
TWELVE OF THIS ARTICLE.
  B. SUCH ELECTION IS MADE BY THE GOVERNOR TO THE RETIREMENT SYSTEM UPON
RECEIPT OF A REQUEST BY THE NEW  YORK  STATE  UNITED  TEACHERS  EMPLOYEE
ORGANIZATION.
  S  1312.  BENEFIT  ENHANCEMENTS.  NOTWITHSTANDING ANY OTHER LAW TO THE
CONTRARY, ELIGIBLE EMPLOYEES  SHALL  BE  PERMITTED  TO  RETIRE,  WITHOUT
PENALTY,  UPON  REACHING  AGE FIFTY-SEVEN AND COMPLETING AT LEAST THIRTY
YEARS OF CREDITED SERVICE. EMPLOYEES RETIRING PURSUANT TO  THIS  SECTION
SHALL  RECEIVE  A  PENSION ALLOWANCE EQUAL TO THE SUM OF THIRTY-FIVE PER
CENTUM AND ONE-FIFTIETH OF FINAL AVERAGE SALARY FOR EACH YEAR OF SERVICE
IN EXCESS OF TWENTY TIMES FINAL AVERAGE SALARY TIMES YEARS  OF  CREDITED
SERVICE.
  S 1313. ADDITIONAL MEMBER CONTRIBUTIONS. UPON ELECTION BY THE STATE OF
NEW YORK, THE RETIREMENT SYSTEM SHALL REQUIRE ADDITIONAL MEMBER CONTRIB-
UTIONS  TO  BE  PAID  BY  ALL  ELIGIBLE EMPLOYEES. THE ADDITIONAL MEMBER
CONTRIBUTIONS TO BE PAID BY ELIGIBLE EMPLOYEES SHALL BE OF  A  LEVEL  SO
THAT  NO  ADDITIONAL CONTRIBUTIONS SHALL BE PAID BY THE STATE OR PARTIC-
IPATING EMPLOYERS IN THE RETIREMENT SYSTEM TO COVER  THE  COST  OF  SUCH
ADDITIONAL  BENEFITS.  ADDITIONAL  MEMBER CONTRIBUTIONS MADE PURSUANT TO
THIS SECTION SHALL BE IN ADDITION TO MEMBER CONTRIBUTIONS MADE  PURSUANT
TO OTHER PROVISIONS OF THIS CHAPTER.
  S  1314.  ELECTION  NOT COLLECTIVELY BARGAINED.   THE DETERMINATION TO
MAKE AN ELECTION IN ACCORDANCE WITH THIS ARTICLE SHALL NOT BE DEEMED  TO
BE, OR TO RELATE TO OR AFFECT, A TERM AND CONDITION OF EMPLOYMENT WITHIN
THE  MEANING  OF  ARTICLE FOURTEEN OF THE CIVIL SERVICE LAW OR ANY LOCAL
LAW ENACTED IN FURTHERANCE THEREOF.

S. 6735                            39                            A. 9558

                               ARTICLE 25
                          BENEFIT ENHANCEMENTS
SECTION 1320. DEFINITIONS.
        1321. ELECTION OF BENEFIT ENHANCEMENTS.
        1322. BENEFIT ENHANCEMENTS.
        1323. ADDITIONAL MEMBER CONTRIBUTIONS.
        1324. ELECTION NOT COLLECTIVELY BARGAINED.
  S  1320.  DEFINITIONS. THE FOLLOWING WORDS AND PHRASES AS USED IN THIS
ARTICLE SHALL HAVE THE FOLLOWING MEANINGS UNLESS A DIFFERENT MEANING  IS
PLAINLY REQUIRED BY THE CONTEXT:
  A. "RETIREMENT SYSTEM" SHALL MEAN THE NEW YORK CITY EMPLOYEES' RETIRE-
MENT  SYSTEM, THE NEW YORK CITY TEACHERS' RETIREMENT SYSTEM, AND THE NEW
YORK CITY BOARD OF EDUCATION RETIREMENT SYSTEM.
  B. "ELIGIBLE EMPLOYEE", SUBJECT TO THE LIMITATIONS OF SECTION THIRTEEN
HUNDRED TWENTY-TWO OF THIS ARTICLE, SHALL MEAN A MEMBER OF A  RETIREMENT
SYSTEM WHO FIRST BECAME A MEMBER OF SUCH SYSTEM ON OR AFTER APRIL FIRST,
TWO THOUSAND TWELVE WHO IS IDENTIFIED AS ELIGIBLE TO RECEIVE THE BENEFIT
ENHANCEMENTS  PROVIDED  FOR IN THIS ARTICLE UPON ELECTION BY THE CITY OF
NEW YORK PURSUANT TO SECTION THIRTEEN HUNDRED TWENTY-ONE OF  THIS  ARTI-
CLE.
  S  1321. ELECTION OF BENEFIT ENHANCEMENTS. A. THE CITY OF NEW YORK MAY
ELECT TO PROVIDE ITS EMPLOYEES THE BENEFIT ENHANCEMENTS PROVIDED FOR  IN
SECTION THIRTEEN HUNDRED TWENTY-TWO OF THIS ARTICLE.
  B.  A  SEPARATE  ELECTION  TO PROVIDE BENEFIT ENHANCEMENTS PURSUANT TO
SUBDIVISION A OF THIS SECTION MUST BE MADE FOR EACH SPECIFIC  COLLECTIVE
BARGAINING  ORGANIZATION,  RECOGNIZED  OR  CERTIFIED PURSUANT TO ARTICLE
FOURTEEN OF THE CIVIL SERVICE LAW.
  C. SUCH ELECTION MAY BE MADE AT THE SOLE DISCRETION OF  THE  MAYOR  OF
THE CITY OF NEW YORK TO THE RETIREMENT SYSTEMS UPON RECEIPT OF A REQUEST
FROM  THE  COLLECTIVE  BARGAINING  ORGANIZATION, RECOGNIZED OR CERTIFIED
PURSUANT TO ARTICLE FOURTEEN OF THE CIVIL SERVICE LAW TO REPRESENT  SUCH
ELIGIBLE EMPLOYEES. NO SUCH PETITION SHALL BE REQUIRED FOR EMPLOYEES WHO
ARE NOT REPRESENTED FOR THE PURPOSES OF COLLECTIVE BARGAINING SUBJECT TO
THE LIMITATION PROVIDED IN SECTION NINE HUNDRED TWO OF THIS CHAPTER.
  S  1322.  BENEFIT  ENHANCEMENTS.  NOTWITHSTANDING ANY OTHER LAW TO THE
CONTRARY, ELIGIBLE EMPLOYEES SHALL BE ELIGIBLE TO RECEIVE BENEFITS SPEC-
IFIED BY THE MAYOR OF THE CITY OF NEW YORK, PROVIDED THAT  THE  PETITION
PROVIDED   PURSUANT   TO  SUBDIVISION  C  OF  SECTION  THIRTEEN  HUNDRED
TWENTY-ONE OF THIS ARTICLE REQUESTED THE ELECTION OF SUCH BENEFITS.
  S 1323. ADDITIONAL MEMBER CONTRIBUTIONS. UPON ELECTION BY THE CITY  OF
NEW YORK, THE RETIREMENT SYSTEM SHALL REQUIRE ADDITIONAL MEMBER CONTRIB-
UTIONS  TO  BE  PAID  BY  ALL  ELIGIBLE EMPLOYEES. THE ADDITIONAL MEMBER
CONTRIBUTIONS TO BE PAID BY ELIGIBLE EMPLOYEES SHALL BE OF  A  LEVEL  SO
THAT  NO  ADDITIONAL CONTRIBUTIONS SHALL BE PAID BY THE CITY OF NEW YORK
TO COVER  THE  COST  OF  SUCH  ADDITIONAL  BENEFITS.  ADDITIONAL  MEMBER
CONTRIBUTIONS  MADE  PURSUANT  TO  THIS  SECTION SHALL BE IN ADDITION TO
MEMBER CONTRIBUTIONS PAID PURSUANT TO OTHER PROVISIONS OF THIS CHAPTER.
  S 1324. ELECTION NOT COLLECTIVELY BARGAINED.    THE  DETERMINATION  TO
MAKE  AN ELECTION IN ACCORDANCE WITH THIS ARTICLE SHALL NOT BE DEEMED TO
BE, OR TO RELATE TO OR AFFECT, A TERM AND CONDITION OF EMPLOYMENT WITHIN
THE MEANING OF ARTICLE FOURTEEN OF THE CIVIL SERVICE LAW  OR  ANY  LOCAL
LAW ENACTED IN FURTHERANCE THEREOF.
  S  82. Severability clause. If any clause, sentence, paragraph, subdi-
vision, section or part of this act shall be adjudged by  any  court  of
competent  jurisdiction  to  be invalid, such judgment shall not affect,
impair, or invalidate the remainder thereof, but shall  be  confined  in

S. 6735                            40                            A. 9558

its  operation  to the clause, sentence, paragraph, subdivision, section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the  legislature  that  this  act  would  have been enacted even if such
invalid provisions had not been included herein.
  S 83. This act shall take effect April  1,  2012,  provided  that  the
amendments  to subdivision a of section 603 of the retirement and social
security law made by section thirty-one of this act shall be subject  to
the  expiration and reversion of such subdivision pursuant to section 13
of chapter 682 of the laws of 2003, as amended, provided,  further  that
the  amendments  to  subdivisions 86, 87 and 89 of section 13-101 of the
administrative code of the city of New York made  by  sections  seventy-
five,  seventy-six  and  seventy-seven  of this act shall not affect the
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 RATE
$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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