| Date of Action |
Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
|---|---|
| Jan 12, 2012 |
print number 4524a |
| Jan 12, 2012 |
amend and recommit to civil service and pensions |
| Jan 04, 2012 |
referred to civil service and pensions |
| Apr 11, 2011 |
referred to civil service and pensions |
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Senate Bill S4524A
2011-2012 Legislative Session
Authorizes optional retirement programs for municipalities, local governments and school districts
download bill text pdfShare this bill
Sponsored By
(R, C, IP) Senate District
Archive: Last Bill Status - In Senate Committee Civil Service And Pensions Committee
- Introduced
-
- In Committee Assembly
- In Committee Senate
-
- On Floor Calendar Assembly
- On Floor Calendar Senate
-
- Passed Assembly
- Passed Senate
- Delivered to Governor
- Signed By Governor
Actions
Bill Amendments
co-Sponsors
(R, C) Senate District
2011-S4524 - Details
- Current Committee:
- Senate Civil Service And Pensions
- Law Section:
- General Municipal Law
- Laws Affected:
- Add Art 8-A §§170 - 177, Gen Muni L; add Art 9-A §§430 - 437, Ed L; amd §30, R & SS L
2011-S4524 - Sponsor Memo
BILL NUMBER:S4524
TITLE OF BILL:
An act
to amend the general municipal law, the education law
and the retirement and social security law, in relation
to establishing an optional retirement program for employees of
municipalities, local governments and schools
PURPOSE OR GENERAL IDEA OF BILL:
To reduce unfunded mandates and offer
new options for municipalities, local governments and schools.
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 - adds a new Article 8-A to
the General Municipal Law. This article would authorize local
governments and municipalities to offer an optional retirement
program to new employees hired after the enactment of a local law. A
municipality could choose to offer a choice to new employees of
either the current defined benefit retirement program or the defined
contribution retirement program, as SUNY currently does, or choose to
only offer the defined contribution, or Optional Retirement Program.
This program would not include police and firefighter positions that
are covered under the Volunteer Ambulance Workers Benefit Law, the
Volunteer Firefighters Benefit Law or Title 9 of Article 2, Article
8, Article 14-B, Article 15 and Article 22 of the Retirement and
Social Security Law. Section 2 - adds a new Article 9-A to the Education Law authorizing local school districts, after public hearing and resolution, to offer an optional retirement program to new employees hired after the enactment of the resolution. A school district could choose to offer a choice to new employees of either the current defined benefit retirement program or the defined contribution retirement program, as SUNY currently does, or choose to only offer the defined contribution, or Optional Retirement Program. Section 3 - amends subdivision a of section 30 of the Retirement and Social Security Law to provide that a municipality may elect to participate in an optional retirement plan pursuant to Article 8-A of the General Municipal Law and Article 9-A of the Education Law . Section 4 - provides that this act shall take effect immediately. JUSTIFICATION: Local governments and school districts are under tremendous financial stress because of the increasing costs of contributions to the state retirement system. Because the amount to be contributed varies from year to year, officials are unable to effectively plan for future costs. In some years, municipalities made no pension contributions. Today, some are predicting that public employer contributions may reach thirty percent of payroll. Clearly, such costs are unsustainable, and the uncertainty that this system creates does not allow municipalities to forecast future cost effectively. This bill is not another unfunded mandate on local governments, but an effort to provide another choice. Municipalities may choose to continue to participate in the current defined benefit program, offer a choice to employees of either a defined benefit program or a fully portable defined contribution program, or elect to offer only the defined contribution program. Employers will still be required to make contributions to each employees retirement account, but they will know that this contribution will be fixed, allowing more accurate budget planning for future years, PRIOR LEGISLATIVE HISTORY: New bill. FISCAL IMPLICATIONS: None to State. EFFECTIVE DATE: This act shall take effect immediately.
2011-S4524 - Bill Text download pdf
S T A T E O F N E W Y O R K
________________________________________________________________________
4524
2011-2012 Regular Sessions
I N S E N A T E
April 11, 2011
___________
Introduced by Sens. RANZENHOFER, LARKIN -- read twice and ordered print-
ed, and when printed to be committed to the Committee on Civil Service
and Pensions
AN ACT to amend the general municipal law, the education law and the
retirement and social security law, in relation to establishing an
optional retirement program for employees of municipalities, local
governments and schools
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The general municipal law is amended by adding a new arti-
cle 8-A to read as follows:
ARTICLE 8-A
AUTHORIZATION OF OPTIONAL RETIREMENT SYSTEMS FOR MUNICIPALITIES
AND LOCAL GOVERNMENT
SECTION 170. DEFINITIONS.
171. OPTIONAL RETIREMENT PROGRAM AUTHORIZED.
172. RATES OF CONTRIBUTION.
173. ELECTION.
174. SURVIVOR'S BENEFITS.
175. SOCIAL SECURITY.
176. EMPLOYER NOT LIABLE FOR PAYMENT OF BENEFITS.
177. INCONSISTENT PROVISIONS OF OTHER ACTS SUPERSEDED.
S 170. DEFINITIONS. FOR THE PURPOSES OF THIS ARTICLE:
1. THE TERM "ELECTING EMPLOYEE" SHALL MEAN ANY ELIGIBLE EMPLOYEE WHO
EXERCISES HIS OR HER ELECTION PURSUANT TO THIS ARTICLE TO COME UNDER THE
OPTIONAL RETIREMENT PROGRAM BY APPLYING FOR SUCH PROGRAM BUT WHO AWAITS
THE APPROVAL OF THE ELECTING EMPLOYER.
2. THE TERM "ELECTING EMPLOYER" SHALL MEAN A MUNICIPALITY WHICH ELECTS
TO OFFER THE OPTIONAL RETIREMENT PROGRAM AUTHORIZED BY THIS ARTICLE BY,
AFTER A PUBLIC HEARING, ENACTING A LOCAL LAW SETTING FORTH SUCH PROGRAM.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09098-06-1
S. 4524 2
3. THE TERM "ELIGIBLE EMPLOYEES" SHALL MEAN THOSE EMPLOYEES WHO BEGIN
TO WORK FOR ANY ELECTING EMPLOYER AFTER THE ENACTMENT OF A LOCAL LAW
SETTING FORTH AN OPTIONAL RETIREMENT PROGRAM AS AUTHORIZED BY THIS ARTI-
CLE. NO PERSON RECEIVING A BENEFIT BY REASON OF HIS OR HER RETIREMENT
FROM ANY RETIREMENT OR PENSION SYSTEM OF NEW YORK STATE OR ANY POLITICAL
SUBDIVISION THEREOF SHALL BE ELIGIBLE TO ELECT THE OPTIONAL RETIREMENT
PROGRAM PURSUANT TO THIS ARTICLE. NO PERSON OTHERWISE ELIGIBLE UNDER
THIS ARTICLE, WHO IS COVERED UNDER THE VOLUNTEER AMBULANCE WORKERS'
BENEFIT LAW, THE VOLUNTEER FIREFIGHTERS' BENEFIT LAW, ARTICLES EIGHT,
FOURTEEN-B, FIFTEEN, TWENTY-TWO, OR TITLE NINE OF ARTICLE TWO OF THE
RETIREMENT AND SOCIAL SECURITY LAW, SHALL BE ELIGIBLE UNDER THIS ARTI-
CLE.
4. THE TERM "ENROLLED EMPLOYEES" SHALL MEAN ANY ELECTING EMPLOYEE WHO
HAS BEEN APPROVED OR ACCEPTED INTO THE OPTIONAL RETIREMENT SYSTEM BY THE
ELECTING EMPLOYER PURSUANT TO PARAGRAPH (B) OF SUBDIVISION ONE OF
SECTION ONE HUNDRED SEVENTY-THREE OF THIS ARTICLE.
5. THE TERM "INSURER" SHALL MEAN A LIFE INSURANCE CORPORATION, OR
OTHER CORPORATION SUBJECT TO INSURANCE DEPARTMENT SUPERVISION.
6. THE TERM "MUNICIPALITY" SHALL MEAN ANY MUNICIPAL CORPORATION AS
DEFINED IN SECTION TWO OF THIS CHAPTER.
7. THE TERM "OPTIONAL RETIREMENT PROGRAM" SHALL MEAN THE RETIREMENT
PROGRAM ESTABLISHED PURSUANT TO THIS ARTICLE.
8. THE TERM "SALARY" SHALL MEAN ALL AMOUNTS PAID BY OR FOR THE ELECT-
ING EMPLOYER AS COMPENSATION FOR SERVICES RENDERED BY AN ELIGIBLE
EMPLOYEE HOLDING A POSITION WITH THE ELECTING EMPLOYER.
S 171. OPTIONAL RETIREMENT PROGRAM AUTHORIZED. 1. AUTHORIZATION OF
PROGRAM. THERE IS HEREBY AUTHORIZED AN OPTIONAL RETIREMENT PROGRAM WHICH
SHALL PROVIDE FOR THE PURCHASE OF CONTRACTS PROVIDING RETIREMENT AND
DEATH BENEFITS FOR OR ON BEHALF OF ENROLLED EMPLOYEES. UNDER SUCH
PROGRAM AN ELECTING EMPLOYER AND SUCH EMPLOYEES SHALL CONTRIBUTE, TO THE
EXTENT AUTHORIZED OR REQUIRED, TOWARDS THE PURCHASE OF SUCH CONTRACTS,
WHICH SHALL BE ISSUED TO, AND BECOME THE PROPERTY OF, SUCH EMPLOYEES.
THE MUNICIPALITY, AFTER A PUBLIC HEARING AND BY THE ENACTMENT OF A LOCAL
LAW WHICH SHALL BECOME EFFECTIVE UPON THE DATE SUCH LOCAL LAW SHALL HAVE
BECOME A LAW, MAY ELECT TO OFFER: (A) ONLY THE OPTIONAL RETIREMENT
PROGRAM TO ELIGIBLE EMPLOYEES OF SUCH MUNICIPALITY, OR (B) BOTH THE
OPTIONAL RETIREMENT PROGRAM AND THE EXISTING PUBLIC RETIREMENT SYSTEM.
2. DESIGNATION OF INSURERS. THE MUNICIPALITY SHALL DESIGNATE THE
INSURER OR INSURERS TO WHICH PAYMENT OF SUCH CONTRIBUTIONS MAY BE MADE
AND SHALL APPROVE THE FORM AND CONTENT OF SUCH CONTRACTS. IN MAKING SUCH
DESIGNATION AND GIVING SUCH APPROVAL SUCH MUNICIPALITY SHALL GIVE DUE
CONSIDERATION TO (A) THE NATURE AND EXTENT OF THE RIGHTS AND BENEFITS TO
BE PROVIDED BY SUCH CONTRACTS FOR ELECTING EMPLOYEES AND THEIR BENEFICI-
ARIES, (B) THE RELATION OF SUCH RIGHTS AND BENEFITS TO THE AMOUNT OF
CONTRIBUTIONS TO BE MADE UNDER THIS ARTICLE, (C) THE SUITABILITY OF SUCH
RIGHTS AND BENEFITS TO THE NEEDS AND INTERESTS OF ELECTING EMPLOYEES AND
TO THE INTERESTS OF THE MUNICIPALITY AND OF ELECTING EMPLOYERS IN THE
EMPLOYMENT AND RETENTION OF ELIGIBLE EMPLOYEES, AND (D) THE AUTHORITY
AND ABILITY OF THE DESIGNATED INSURER OR INSURERS TO PROVIDE RIGHTS AND
BENEFITS UNDER SUCH CONTRACTS.
3. ADMINISTRATION OF PROGRAM. THE MUNICIPALITY IS HEREBY AUTHORIZED TO
PROVIDE FOR, BY THE ENACTMENT OF A LOCAL LAW, THE ADMINISTRATION OF SUCH
OPTIONAL RETIREMENT PROGRAM AND TO PERFORM OR AUTHORIZE THE PERFORMANCE
OF SUCH FUNCTIONS AS MAY BE NECESSARY FOR SUCH PURPOSES IN ACCORDANCE
WITH THIS ARTICLE.
S. 4524 3
S 172. RATES OF CONTRIBUTION. 1. EMPLOYER CONTRIBUTIONS. THE ELECTING
EMPLOYER SHALL, DURING CONTINUANCE OF AN ENROLLED EMPLOYEE'S EMPLOYMENT,
MAKE CONTRIBUTIONS AT THE RATE OF EIGHT PERCENT OF HIS OR HER SALARY
DURING THE FIRST SEVEN YEARS OF SUCH EMPLOYMENT AND AT THE RATE OF TEN
PERCENT OF HIS OR HER SALARY THEREAFTER, OUT OF MONIES WHICH SHALL BE
AVAILABLE TO THE ELECTING EMPLOYER FOR SUCH PURPOSE. FOR PURPOSES OF
THIS SUBDIVISION, THAT PORTION OF THE EMPLOYEE'S SALARY UPON WHICH
CONTRIBUTIONS ARE OR MAY THEREAFTER BE PAID TO THE SECRETARY OF THE
TREASURY OF THE UNITED STATES PURSUANT TO ARTICLE THREE OF THE RETIRE-
MENT AND SOCIAL SECURITY LAW SHALL BE DEEMED NOT TO EXCEED SIXTEEN THOU-
SAND FIVE HUNDRED DOLLARS.
2. EMPLOYEE CONTRIBUTIONS. IN THE CASE OF ANY ENROLLED EMPLOYEE,
CONTRIBUTIONS AT THE RATE OF THREE PER CENTUM OF HIS OR HER SALARY SHALL
BE DEDUCTED AS THE EMPLOYEE CONTRIBUTION BY THE APPROPRIATE FISCAL OFFI-
CER WITH RESPECT TO AN ELECTING EMPLOYER, PROVIDED HOWEVER, THAT SUCH
EMPLOYEE CONTRIBUTION SHALL BE MADE BY THE ELECTING EMPLOYER IN ACCORD-
ANCE WITH SUBDIVISION ONE OF THIS SECTION DURING SUCH PERIOD AS THE (A)
CONTRIBUTIONS OF ANY MEMBERS OF ANY OTHER PUBLIC RETIREMENT SYSTEM IN
THIS STATE IN ITS EMPLOY SHALL BE REDUCED BY AT LEAST EIGHT PERCENT OF
THEIR COMPENSATION IN ACCORDANCE WITH SECTION SEVENTY-A OF THE RETIRE-
MENT AND SOCIAL SECURITY LAW, OR (B) EMPLOYEE CONTRIBUTIONS TO ANY SUCH
SYSTEM OF WHICH ANY OF ITS EMPLOYEES ARE MEMBERS ARE NO LONGER REQUIRED
BY REASONS OF SUCH SYSTEM BECOMING NON-CONTRIBUTORY FOR SUCH EMPLOYEES.
3. FISCAL OFFICER TO MAKE PAYMENTS. PAYMENT OF CONTRIBUTIONS BY ELECT-
ING EMPLOYERS PURSUANT TO SUBDIVISIONS ONE AND TWO OF THIS SECTION SHALL
BE MADE TO THE DESIGNATED INSURER OR INSURERS BY THE APPROPRIATE FISCAL
OFFICER FOR EMPLOYEES OF SUCH ELECTING EMPLOYER.
4. CONTRIBUTIONS DURING THE FIRST YEAR OF SERVICE. NO CONTRIBUTIONS
PURSUANT TO SUBDIVISIONS ONE AND TWO OF THIS SECTION FOR ENROLLED
EMPLOYEES SHALL BE MADE BY THE ELECTING EMPLOYER UNTIL HIS OR HER
COMPLETION OF ONE YEAR OF SERVICE AND CONTINUANCE IN SERVICE THEREAFTER.
EMPLOYEE CONTRIBUTIONS, IF ANY, REQUIRED DURING THIS INITIAL YEAR OF
SERVICE SHALL BE DEDUCTED AND HELD BY THE APPROPRIATE FISCAL OFFICER OF
AN ELECTING EMPLOYER. AT THE END OF HIS OR HER INITIAL YEAR OF SERVICE,
A SINGLE CONTRIBUTION IN AN AMOUNT DETERMINED PURSUANT TO SUBDIVISIONS
ONE AND TWO OF THIS SECTION, WITH INTEREST AT THE RATE OF FOUR PERCENT
PER ANNUM, SHALL BE MADE BY THE APPROPRIATE FISCAL OFFICER FOR AN ELECT-
ING EMPLOYER, TO THE DESIGNATED INSURER OR INSURERS, ON BEHALF OF SUCH
EMPLOYEE CONTINUED IN SERVICE. IN THE CASE OF AN ENROLLED EMPLOYEE WHO
DOES NOT CONTINUE IN SERVICE WITH AN ELECTING EMPLOYER BEYOND HIS OR HER
INITIAL YEAR OF SERVICE, THE AMOUNT OF EMPLOYEE CONTRIBUTION, IF ANY,
DEDUCTED FROM HIS OR HER SALARY SHALL BE REFUNDED TO HIM OR HER, WITH
INTEREST AT THE RATE OF FOUR PERCENT PER ANNUM.
5. EXCEPTIONS. THE PROVISIONS OF SUBDIVISION FOUR OF THIS SECTION
SHALL NOT APPLY TO ANY ENROLLED EMPLOYEE OTHER THAN AN EMPLOYEE
APPOINTED FOR A SPECIFIED PERIOD OF LESS THAN THREE MONTHS WHO, AT THE
TIME OF INITIAL APPOINTMENT, OWNS A CONTRACT DETERMINED BY THE ELECTING
EMPLOYER TO BE SIMILAR TO THOSE CONTRACTS TO BE PURCHASED UNDER THE
OPTIONAL RETIREMENT PROGRAM AND ISSUED BY THE DESIGNATED INSURER OR
INSURERS.
S 173. ELECTION. 1. ELECTION OF THE OPTIONAL RETIREMENT PROGRAM. (A)
THIS SECTION SHALL NOT APPLY IN ANY MUNICIPALITY WHICH DOES NOT ELECT TO
OFFER BOTH THE OPTIONAL RETIREMENT PROGRAM AND THE EXISTING PUBLIC
RETIREMENT SYSTEM.
(B) EACH ELIGIBLE EMPLOYEE, WITHIN THIRTY DAYS OF HIS OR HER ENTRY
INTO SERVICE, SHALL ELECT (I) TO JOIN A PUBLIC RETIREMENT SYSTEM IN THIS
S. 4524 4
STATE IN ACCORDANCE WITH THE PROVISIONS OF LAW APPLICABLE THERETO OR
(II) THE OPTIONAL RETIREMENT PROGRAM ESTABLISHED PURSUANT TO THIS ARTI-
CLE; PROVIDED HOWEVER, THAT UPON ELECTION BY THE ELIGIBLE EMPLOYEE, THE
ELECTING EMPLOYER SHALL MAKE THE FINAL APPROVAL OR DISAPPROVAL AS TO THE
ENROLLMENT OF THE ELECTING EMPLOYEE IN THE OPTIONAL RETIREMENT PROGRAM
ESTABLISHED PURSUANT TO THIS ARTICLE.
(C) IN THE EVENT AN ELIGIBLE EMPLOYEE FAILS TO MAKE AN ELECTION AS
PROVIDED IN PARAGRAPH (B) OF THIS SUBDIVISION OR THE ELECTING EMPLOYER
DECIDES THE ELECTING EMPLOYEE SHALL NOT ENROLL IN THE OPTIONAL RETIRE-
MENT PROGRAM PURSUANT TO PARAGRAPH (B) OF THIS SUBDIVISION, HE OR SHE
SHALL BE DEEMED TO HAVE ELECTED MEMBERSHIP IN SUCH PUBLIC RETIREMENT
SYSTEM IN THIS STATE IN WHICH HIS OR HER MEMBERSHIP MAY BE OTHERWISE
REQUIRED IN ACCORDANCE WITH LAW. SUCH MEMBERSHIP SHALL BE EFFECTIVE AS
OF THE DATE OF ENTRY INTO SERVICE OR AT THE TIME OTHERWISE REQUIRED BY
LAW.
(D) THE AMOUNT, IF ANY, REQUIRED TO HAVE BEEN CONTRIBUTED BY ANY
ENROLLED EMPLOYEE IN ACCORDANCE WITH AN ENROLLMENT OR FAILURE TO ELECT
PURSUANT TO PARAGRAPH (B) OR PARAGRAPH (C) OF THIS SUBDIVISION SHALL BE
COLLECTED BY PAYROLL DEDUCTIONS IN SUCH MANNER AS MAY BE PROVIDED BY THE
APPROPRIATE FISCAL OFFICER FOR EMPLOYEES OF AN ELECTING EMPLOYER, OR IN
THE CASE OF MEMBERSHIP IN OTHER PUBLIC RETIREMENT SYSTEMS IN THIS STATE,
BY THE RETIREMENT SYSTEM CONCERNED.
(E) ANY EMPLOYEE OF AN ELECTING EMPLOYER WHO BECOMES ELIGIBLE TO ELECT
THE OPTIONAL RETIREMENT PROGRAM BY REASON OF HIS OR HER APPOINTMENT,
PROMOTION, TRANSFER OR RECLASSIFICATION TO A POSITION PREVIOUSLY SO
ELIGIBLE, MAY ELECT THE OPTIONAL RETIREMENT PROGRAM ESTABLISHED PURSUANT
TO THIS ARTICLE PURSUANT TO PARAGRAPH (B) OF THIS SUBDIVISION. SUCH
ELECTION SHALL BE MADE WITHIN THIRTY DAYS AFTER NOTICE IN WRITING TO
SUCH EMPLOYEE OF HIS OR HER ELIGIBILITY, AND SHALL BECOME EFFECTIVE ON
THE DATE OF SUCH ENROLLMENT SHOULD THE ELECTION OF SUCH ELIGIBLE EMPLOY-
EE BE APPROVED BY THE ELECTING EMPLOYER.
(F) NO ELECTION BY AN ELIGIBLE EMPLOYEE OF THE OPTIONAL RETIREMENT
PROGRAM SHALL BE EFFECTIVE UNLESS IT SHALL BE ACCOMPANIED BY AN APPRO-
PRIATE APPLICATION, WHERE REQUIRED, FOR THE ISSUANCE OF A CONTRACT OR
CONTRACTS UNDER THE PROGRAM AND NO ELECTION SHALL BECOME AN ENROLLMENT
WITHOUT THE APPROVAL OF THE ELECTING EMPLOYER PURSUANT TO PARAGRAPH (B)
OF THIS SUBDIVISION.
2. INELIGIBILITY FOR OTHER RETIREMENT SYSTEM MEMBERSHIP. ANY EMPLOYEE
WHO ENROLLS IN THE OPTIONAL RETIREMENT PROGRAM SHALL BE INELIGIBLE FOR
MEMBERSHIP IN THE NEW YORK STATE AND LOCAL EMPLOYEES' RETIREMENT SYSTEM,
THE NEW YORK STATE TEACHERS' RETIREMENT SYSTEM OR ANY OTHER PUBLIC
RETIREMENT SYSTEM IN THIS STATE SO LONG AS HE OR SHE SHALL REMAIN
CONTINUOUSLY EMPLOYED IN ANY POSITION BY AN ELECTING EMPLOYER AND SHALL
CONTINUE IN THE OPTIONAL RETIREMENT PROGRAM.
3. DISCONTINUANCE OF SERVICE FOR NEW YORK STATE RETIREMENT SYSTEMS.
(A) ANY ELIGIBLE EMPLOYEE WHO IS A MEMBER OF EITHER THE NEW YORK STATE
AND LOCAL EMPLOYEES' RETIREMENT SYSTEM OR THE NEW YORK STATE TEACHERS'
RETIREMENT SYSTEM AT THE TIME HE OR SHE ENROLLS IN THE OPTIONAL RETIRE-
MENT PROGRAM ESTABLISHED PURSUANT TO THIS ARTICLE, SHALL BE DEEMED TO BE
A PERSON WHO DISCONTINUES SERVICE ON THE EFFECTIVE DATE OF SUCH ENROLL-
MENT, FOR THE PURPOSE OF DETERMINING HIS OR HER ELIGIBILITY FOR RIGHTS
AND BENEFITS IN EITHER SUCH SYSTEM; PROVIDED HOWEVER, THAT IF HE OR SHE
DOES NOT WITHDRAW HIS OR HER ACCUMULATED CONTRIBUTIONS, THE AMOUNT OF
ANY SUCH BENEFIT TO WHICH HE OR SHE OR HIS OR HER ESTATE OR PERSON
DESIGNATED BY HIM OR HER MAY BECOME ENTITLED UNDER EITHER SUCH SYSTEM
S. 4524 5
SHALL BE COMPUTED ONLY ON THE BASIS OF SERVICE OTHERWISE CREDITABLE TO
HIM OR HER THEREIN AND HIS OR HER COMPENSATION DURING SUCH SERVICE.
(B) ENROLLED EMPLOYEES AND THEIR BENEFICIARIES SHALL NOT BE ENTITLED
TO ANY RIGHT OR BENEFIT UNDER EITHER THE NEW YORK STATE AND LOCAL
EMPLOYEES' RETIREMENT SYSTEM OR THE NEW YORK STATE TEACHERS' RETIREMENT
SYSTEM OTHER THAN A VESTED RETIREMENT ALLOWANCE, RETIREMENT ALLOWANCE OR
ORDINARY DEATH BENEFIT TO THE EXTENT EXPRESSLY PROVIDED FOR IN THIS
SECTION.
4. DISCONTINUANCE OF SERVICE FOR NEW YORK CITY RETIREMENT SYSTEMS. (A)
ANY ELIGIBLE EMPLOYEE OF AN ELECTING EMPLOYER WHO IS A MEMBER OR TRANS-
FERRED CONTRIBUTOR OF EITHER THE NEW YORK CITY TEACHERS' RETIREMENT
SYSTEM OR THE NEW YORK CITY EMPLOYEES' RETIREMENT SYSTEM AT THE TIME HE
OR SHE ENROLLS IN THE OPTIONAL RETIREMENT PROGRAM OFFERED BY AN ELECTING
EMPLOYER PURSUANT TO THIS ARTICLE SHALL BE DEEMED TO BE A PERSON WHO
TERMINATES MEMBERSHIP ON THE EFFECTIVE DATE OF SUCH ENROLLMENT, FOR THE
PURPOSE OF DETERMINING HIS OR HER ELIGIBILITY FOR RIGHTS AND BENEFITS IN
EITHER SUCH SYSTEM; PROVIDED HOWEVER, THAT IF HE OR SHE DOES NOT WITH-
DRAW HIS OR HER ACCUMULATED CONTRIBUTIONS, (I) HIS OR HER CONTINUED
SERVICE AT A COMMUNITY COLLEGE WHOSE EMPLOYEES ARE OTHERWISE ELIGIBLE
FOR THE NEW YORK CITY TEACHERS' RETIREMENT SYSTEM OR THE NEW YORK CITY
EMPLOYEES' RETIREMENT SYSTEM SHALL BE DEEMED TO BE MEMBER SERVICE IN
EITHER THE NEW YORK CITY TEACHERS' RETIREMENT SYSTEM OR THE NEW YORK
CITY EMPLOYEES' RETIREMENT SYSTEM FOR THE PURPOSE OF DETERMINING HIS OR
HER ELIGIBILITY FOR ANY RETIREMENT ALLOWANCE OR ORDINARY DEATH BENEFIT
UNDER EITHER SUCH SYSTEM DEPENDENT UPON A SPECIFIED PERIOD OF TOTAL
SERVICE OR UPON ATTAINMENT OF A SPECIFIED AGE WHILE IN SERVICE OR UPON
DEATH WHILE IN SERVICE; AND (II) THE AMOUNT OF ANY SUCH BENEFIT TO WHICH
HE OR SHE OR HIS OR HER ESTATE OR PERSON DESIGNATED BY HIM OR HER MAY
BECOME ENTITLED UNDER EITHER SUCH SYSTEM SHALL BE COMPUTED ONLY ON THE
BASIS OF SERVICE OTHERWISE CREDITABLE TO HIM OR HER THEREIN AND HIS OR
HER COMPENSATION DURING SUCH SERVICE.
(B) ENROLLED EMPLOYEES AND THEIR BENEFICIARIES SHALL NOT BE ENTITLED
TO ANY RIGHT OR BENEFIT UNDER EITHER THE NEW YORK CITY TEACHERS' RETIRE-
MENT SYSTEM OR THE NEW YORK CITY EMPLOYEES' RETIREMENT SYSTEM OTHER THAN
A RETIREMENT ALLOWANCE OR ORDINARY DEATH BENEFIT TO THE EXTENT EXPRESSLY
PROVIDED FOR IN THIS SECTION. SUCH EMPLOYEE SHALL NOT BE ELIGIBLE FOR
ANY BENEFIT PURSUANT TO SECTION TWO HUNDRED FORTY-FIVE OF THE MILITARY
LAW.
5. NEW YORK STATE TEACHERS' RETIREMENT SYSTEM EXCEPTIONS. (A) SUBDIVI-
SION TWO OF THIS SECTION SHALL NOT APPLY TO ANY ENROLLED EMPLOYEE WHO
RENDERS SERVICE WHICH IS CREDITABLE IN THE NEW YORK STATE TEACHERS'
RETIREMENT SYSTEM, OTHER THAN SERVICE FOR WHICH A CONTRIBUTION IS MADE
TO THE OPTIONAL RETIREMENT PROGRAM PURSUANT TO THIS ARTICLE.
(B) SUBDIVISION THREE OF THIS SECTION SHALL NOT APPLY TO ANY MEMBER OF
THE NEW YORK STATE TEACHERS' RETIREMENT SYSTEM WHO, AFTER JOINING SUCH
SYSTEM, ENROLLS IN THE OPTIONAL RETIREMENT PROGRAM PURSUANT TO THIS
ARTICLE.
(C) SUBDIVISION THREE OF THIS SECTION NOTWITHSTANDING, ANY ENROLLED
EMPLOYEE WHO IS A MEMBER OF THE NEW YORK STATE TEACHERS' RETIREMENT
SYSTEM MAY OBTAIN CREDIT FOR SERVICE, OTHER THAN SERVICE FOR WHICH A
CONTRIBUTION IS MADE TO THE OPTIONAL RETIREMENT PROGRAM, WHICH IS CRED-
ITABLE IN SUCH SYSTEM AND WAS RENDERED AFTER SUCH MEMBER HAD ENROLLED IN
THE OPTIONAL RETIREMENT PROGRAM, PROVIDED (I) SUCH MEMBER HAS RENDERED
AT LEAST FIVE YEARS OF SERVICE CREDITED WITH THE NEW YORK STATE TEACH-
ERS' RETIREMENT SYSTEM AT THE TIME SUCH SERVICE IS CREDITED, AND (II) IN
THE CASE OF SUCH MEMBER SUBJECT TO THE PROVISIONS OF ARTICLE FOURTEEN OR
S. 4524 6
FIFTEEN OF THE RETIREMENT AND SOCIAL SECURITY LAW, THE MEMBER CONTRIB-
UTES THREE PERCENT OF THE WAGES EARNED FOR SUCH SERVICE TOGETHER WITH
INTEREST AT THE RATE OF FIVE PERCENT PER ANNUM COMPOUNDED ANNUALLY FROM
THE DATE OF SUCH SERVICE UNTIL PAYMENT IS MADE.
(D) ANYTHING IN THIS SUBDIVISION NOTWITHSTANDING, SERVICE AS AN
ENROLLED EMPLOYEE FOR WHICH A CONTRIBUTION IS MADE TO THE OPTIONAL
RETIREMENT PROGRAM SHALL NEITHER ENTITLE ANY ENROLLED EMPLOYEE TO JOIN
OR REJOIN THE NEW YORK STATE TEACHERS' RETIREMENT SYSTEM NOR BE CREDITA-
BLE IN SUCH SYSTEM.
S 174. SURVIVOR'S BENEFITS. IN THE CASE OF THE DEATH OF ANY ENROLLED
EMPLOYEE, AFTER THE EFFECTIVE DATE OF SUCH ENROLLMENT AND BEFORE RETIRE-
MENT, THE VALUE OF THE DEATH BENEFITS PROVIDED BY THE CONTRACT OR
CONTRACTS PURCHASED UNDER THE OPTIONAL RETIREMENT PROGRAM WHICH IS
ATTRIBUTABLE TO THE STATE'S CONTRIBUTION AS DETERMINED BY THE LOCAL
LEGISLATIVE BODY, SHALL BE DEEMED TO BE AN ORDINARY DEATH BENEFIT
PROVIDED UNDER A PUBLIC PENSION PLAN WITHIN THE MEANING OF SECTION SIX
HUNDRED FIFTY-FIVE OF THE RETIREMENT AND SOCIAL SECURITY LAW. NOTWITH-
STANDING THE PROVISIONS OF SUCH SECTION OF THE RETIREMENT AND SOCIAL
SECURITY LAW, A SURVIVOR'S BENEFIT PAYABLE THEREUNDER ON ACCOUNT OF THE
DEATH OF ANY ENROLLED EMPLOYEE WHILE IN THE EMPLOY OF AN ELECTING
EMPLOYER, AFTER THE EFFECTIVE DATE OF SUCH ENROLLMENT AND BEFORE RETIRE-
MENT, INCLUDING AN EMPLOYEE SUBJECT TO THE PROVISIONS OF SUBDIVISION
THREE OF SECTION ONE HUNDRED SEVENTY-THREE OF THIS ARTICLE, SHALL BE
PAID TO SUCH PERSON OR PERSONS AS SUCH EMPLOYEE SHALL HAVE NOMINATED TO
RECEIVE THE DEATH BENEFITS PROVIDED BY THE CONTRACT OR CONTRACTS
PURCHASED UNDER THE OPTIONAL RETIREMENT PROGRAM. IN THE EVENT SUCH
DESIGNATED BENEFICIARY OR BENEFICIARIES DO NOT SURVIVE THE EMPLOYEE, OR
IF A BENEFICIARY WAS NOT SO DESIGNATED, THE SURVIVOR'S BENEFIT SHALL BE
PAID TO THE DECEASED EMPLOYEE'S ESTATE OR AS PROVIDED IN SECTION THIR-
TEEN HUNDRED TEN OF THE SURROGATE'S COURT PROCEDURE ACT.
S 175. SOCIAL SECURITY. EVERY ENROLLED EMPLOYEE SHALL HAVE OLD-AGE,
SURVIVOR'S, AND DISABILITY INSURANCE COVERAGE PROVIDED BY THE FEDERAL
SOCIAL SECURITY ACT IN ACCORDANCE WITH THE PROVISIONS OF ARTICLE THREE
OF THE RETIREMENT AND SOCIAL SECURITY LAW.
S 176. EMPLOYER NOT LIABLE FOR PAYMENT OF BENEFITS. NO ELECTING
EMPLOYER SHALL BE A PARTY TO ANY CONTRACT PURCHASED IN WHOLE OR IN PART
WITH CONTRIBUTIONS MADE UNDER THE OPTIONAL RETIREMENT PROGRAM ESTAB-
LISHED AND ADMINISTERED PURSUANT TO THIS ARTICLE. NO RETIREMENT, DEATH,
OR OTHER BENEFITS SHALL BE PAYABLE BY ANY ELECTING EMPLOYER UNDER SUCH
OPTIONAL RETIREMENT PROGRAM. SUCH BENEFITS SHALL BE PAID TO ENROLLED
EMPLOYEES OR THEIR BENEFICIARIES BY THE DESIGNATED INSURER OR INSURERS
IN ACCORDANCE WITH THE TERMS OF THEIR CONTRACTS.
S 177. INCONSISTENT PROVISIONS OF OTHER ACTS SUPERSEDED. INSOFAR AS
THE PROVISIONS OF THIS ARTICLE ARE INCONSISTENT WITH THE PROVISIONS OF
ANY OTHER ACT, GENERAL OR SPECIAL, THE PROVISIONS OF THIS ARTICLE SHALL
BE CONTROLLING.
S 2. The education law is amended by adding a new article 9-A to read
as follows:
ARTICLE 9-A
AUTHORIZATION OF OPTIONAL RETIREMENT PROGRAMS FOR SCHOOL
DISTRICTS
SECTION 430. DEFINITIONS.
431. OPTIONAL RETIREMENT PROGRAM AUTHORIZED.
432. RATES OF CONTRIBUTION.
433. ELECTION.
434. SURVIVOR'S BENEFITS.
S. 4524 7
435. SOCIAL SECURITY.
436. EMPLOYER NOT LIABLE FOR PAYMENT OF BENEFITS.
437. INCONSISTENT PROVISIONS OF OTHER ACTS SUPERSEDED.
S 430. DEFINITIONS. FOR THE PURPOSES OF THIS ARTICLE:
1. THE TERM "ELECTING EMPLOYEE" SHALL MEAN ANY ELIGIBLE EMPLOYEE WHO
EXERCISES HIS OR HER ELECTION PURSUANT TO THIS ARTICLE TO COME UNDER THE
OPTIONAL RETIREMENT PROGRAM BY APPLYING FOR SUCH PROGRAM BUT WHO AWAITS
THE APPROVAL OF THE ELECTING EMPLOYER.
2. THE TERM "ELECTING EMPLOYER" SHALL MEAN A SCHOOL DISTRICT WHICH
ELECTS TO OFFER THE OPTIONAL RETIREMENT PROGRAM AUTHORIZED BY THIS ARTI-
CLE BY, AFTER A PUBLIC MEETING, ADOPTING A RESOLUTION SETTING FORTH SUCH
PROGRAM.
3. THE TERM "ELIGIBLE EMPLOYEES" SHALL MEAN THOSE EMPLOYEES WHO BEGIN
TO WORK FOR ANY ELECTING EMPLOYER AFTER THE ADOPTION OF A RESOLUTION
SETTING FORTH AN OPTIONAL RETIREMENT PROGRAM AS AUTHORIZED BY THIS ARTI-
CLE. NO PERSON RECEIVING A BENEFIT BY REASON OF HIS OR HER RETIREMENT
FROM ANY RETIREMENT OR PENSION SYSTEM OF NEW YORK STATE OR ANY POLITICAL
SUBDIVISION THEREOF SHALL BE ELIGIBLE TO ELECT THE OPTIONAL RETIREMENT
PROGRAM PURSUANT TO THIS ARTICLE.
4. THE TERM "ENROLLED EMPLOYEES" SHALL MEAN ANY ELECTING EMPLOYEE WHO
HAS BEEN APPROVED OR ACCEPTED INTO THE OPTIONAL RETIREMENT SYSTEM BY THE
ELECTING EMPLOYER PURSUANT TO PARAGRAPH (B) OF SUBDIVISION ONE OF
SECTION FOUR HUNDRED THIRTY-THREE OF THIS ARTICLE.
5. THE TERM "INSURER" SHALL MEAN A LIFE INSURANCE CORPORATION, OR
OTHER CORPORATION SUBJECT TO INSURANCE DEPARTMENT SUPERVISION.
6. THE TERM "MUNICIPALITY" SHALL MEAN ANY MUNICIPAL CORPORATION AS
DEFINED IN SECTION TWO OF THE GENERAL MUNICIPAL LAW.
7. THE TERM "OPTIONAL RETIREMENT PROGRAM" SHALL MEAN THE RETIREMENT
PROGRAM ESTABLISHED PURSUANT TO THIS ARTICLE.
8. THE TERM "SALARY" SHALL MEAN ALL AMOUNTS PAID BY OR FOR THE ELECT-
ING EMPLOYER AS COMPENSATION FOR SERVICES RENDERED BY AN ELIGIBLE
EMPLOYEE HOLDING A POSITION WITH THE ELECTING EMPLOYER.
9. THE TERM "SCHOOL DISTRICT" SHALL MEAN ANY COMMON SCHOOL DISTRICT,
UNION FREE SCHOOL DISTRICT, CENTRAL SCHOOL DISTRICT, CENTRAL HIGH SCHOOL
DISTRICT AND BOARDS OF COOPERATIVE EDUCATIONAL SERVICES.
S 431. OPTIONAL RETIREMENT PROGRAM AUTHORIZED. 1. AUTHORIZATION OF
PROGRAM. THERE IS HEREBY AUTHORIZED AN OPTIONAL RETIREMENT PROGRAM WHICH
SHALL PROVIDE FOR THE PURCHASE OF CONTRACTS PROVIDING RETIREMENT AND
DEATH BENEFITS FOR OR ON BEHALF OF ENROLLED EMPLOYEES. UNDER SUCH
PROGRAM AN ELECTING EMPLOYER AND SUCH EMPLOYEES SHALL CONTRIBUTE, TO THE
EXTENT AUTHORIZED OR REQUIRED, TOWARDS THE PURCHASE OF SUCH CONTRACTS,
WHICH SHALL BE ISSUED TO, AND BECOME THE PROPERTY OF, SUCH EMPLOYEES.
ANY SCHOOL DISTRICT, IF THE BOARD OF EDUCATION OF SUCH SCHOOL DISTRICT
SO AUTHORIZES, AFTER A PUBLIC MEETING, BY THE ADOPTION OF A RESOLUTION
WHICH SHALL BECOME EFFECTIVE UPON THE DATE SUCH RESOLUTION SHALL HAVE
BEEN ADOPTED, MAY ELECT TO OFFER: (A) ONLY THE OPTIONAL RETIREMENT
PROGRAM TO ELIGIBLE EMPLOYEES OF SUCH SCHOOL DISTRICT, OR (B) BOTH THE
OPTIONAL RETIREMENT PROGRAM AND THE EXISTING NEW YORK STATE TEACHERS'
RETIREMENT SYSTEM.
2. DESIGNATION OF INSURERS. THE SCHOOL DISTRICT SHALL DESIGNATE THE
INSURER OR INSURERS TO WHICH PAYMENT OF SUCH CONTRIBUTIONS MAY BE MADE
AND SHALL APPROVE THE FORM AND CONTENT OF SUCH CONTRACTS. IN MAKING SUCH
DESIGNATION AND GIVING SUCH APPROVAL SUCH SCHOOL DISTRICT SHALL GIVE DUE
CONSIDERATION TO (A) THE NATURE AND EXTENT OF THE RIGHTS AND BENEFITS TO
BE PROVIDED BY SUCH CONTRACTS FOR ELECTING EMPLOYEES AND THEIR BENEFICI-
ARIES, (B) THE RELATION OF SUCH RIGHTS AND BENEFITS TO THE AMOUNT OF
S. 4524 8
CONTRIBUTIONS TO BE MADE UNDER THIS ARTICLE, (C) THE SUITABILITY OF SUCH
RIGHTS AND BENEFITS TO THE NEEDS AND INTERESTS OF ELECTING EMPLOYEES AND
TO THE INTERESTS OF THE SCHOOL DISTRICT AND OF ELECTING EMPLOYERS IN THE
EMPLOYMENT AND RETENTION OF ELIGIBLE EMPLOYEES, AND (D) THE AUTHORITY
AND ABILITY OF THE DESIGNATED INSURER OR INSURERS TO PROVIDE RIGHTS AND
BENEFITS UNDER SUCH CONTRACTS.
3. ADMINISTRATION OF PROGRAM. THE APPROPRIATE BOARD OF EDUCATION IS
HEREBY AUTHORIZED TO PROVIDE FOR, BY THE ADOPTION OF A RESOLUTION, THE
SCHOOL DISTRICT TO ADMINISTER SUCH OPTIONAL RETIREMENT PROGRAM AND TO
PERFORM SUCH FUNCTIONS AS MAY BE NECESSARY FOR SUCH PURPOSES IN ACCORD-
ANCE WITH THIS ARTICLE.
S 432. RATES OF CONTRIBUTION. 1. EMPLOYER CONTRIBUTIONS. THE ELECTING
EMPLOYER SHALL, DURING CONTINUANCE OF AN ENROLLED EMPLOYEE'S EMPLOYMENT,
MAKE CONTRIBUTIONS AT THE RATE OF EIGHT PERCENT OF HIS OR HER SALARY
DURING THE FIRST SEVEN YEARS OF SUCH EMPLOYMENT AND AT THE RATE OF TEN
PERCENT OF HIS OR HER SALARY THEREAFTER, OUT OF MONIES WHICH SHALL BE
AVAILABLE TO THE ELECTING EMPLOYER FOR SUCH PURPOSE. FOR PURPOSES OF
THIS SUBDIVISION, THAT PORTION OF THE EMPLOYEE'S SALARY UPON WHICH
CONTRIBUTIONS ARE OR MAY THEREAFTER BE PAID TO THE SECRETARY OF THE
TREASURY OF THE UNITED STATES PURSUANT TO ARTICLE THREE OF THE RETIRE-
MENT AND SOCIAL SECURITY LAW SHALL BE DEEMED NOT TO EXCEED SIXTEEN THOU-
SAND FIVE HUNDRED DOLLARS.
2. EMPLOYEE CONTRIBUTIONS. IN THE CASE OF ANY ENROLLED EMPLOYEE,
CONTRIBUTIONS AT THE RATE OF THREE PERCENT OF HIS OR HER SALARY SHALL BE
DEDUCTED AS THE EMPLOYEE CONTRIBUTION BY THE APPROPRIATE FISCAL OFFICER
WITH RESPECT TO AN ELECTING EMPLOYER, PROVIDED HOWEVER, THAT SUCH
EMPLOYEE CONTRIBUTION SHALL BE MADE BY THE ELECTING EMPLOYER IN ACCORD-
ANCE WITH SUBDIVISION ONE OF THIS SECTION DURING SUCH PERIOD AS THE (A)
CONTRIBUTIONS OF ANY MEMBERS OF ANY OTHER PUBLIC RETIREMENT SYSTEM IN
THIS STATE IN ITS EMPLOY SHALL BE REDUCED BY AT LEAST EIGHT PERCENT OF
THEIR COMPENSATION IN ACCORDANCE WITH SECTION SEVENTY-A OF THE RETIRE-
MENT AND SOCIAL SECURITY LAW, OR (B) EMPLOYEE CONTRIBUTIONS TO ANY SUCH
SYSTEM OF WHICH ANY OF ITS EMPLOYEES ARE MEMBERS ARE NO LONGER REQUIRED
BY REASONS OF SUCH SYSTEM BECOMING NON-CONTRIBUTORY FOR SUCH EMPLOYEES.
3. FISCAL OFFICER TO MAKE PAYMENTS. PAYMENT OF CONTRIBUTIONS BY ELECT-
ING EMPLOYERS PURSUANT TO SUBDIVISIONS ONE AND TWO OF THIS SECTION SHALL
BE MADE TO THE DESIGNATED INSURER OR INSURERS BY THE APPROPRIATE FISCAL
OFFICER FOR EMPLOYEES OF SUCH ELECTING EMPLOYER.
4. CONTRIBUTIONS DURING THE FIRST YEAR OF SERVICE. NO CONTRIBUTIONS
PURSUANT TO SUBDIVISIONS ONE AND TWO OF THIS SECTION FOR ENROLLED
EMPLOYEES SHALL BE MADE BY THE ELECTING EMPLOYER UNTIL HIS OR HER
COMPLETION OF ONE YEAR OF SERVICE AND CONTINUANCE IN SERVICE THEREAFTER.
EMPLOYEE CONTRIBUTIONS, IF ANY, REQUIRED DURING THIS INITIAL YEAR OF
SERVICE SHALL BE DEDUCTED AND HELD BY THE APPROPRIATE FISCAL OFFICER OF
AN ELECTING EMPLOYER. AT THE END OF HIS OR HER INITIAL YEAR OF SERVICE,
A SINGLE CONTRIBUTION IN AN AMOUNT DETERMINED PURSUANT TO SUBDIVISIONS
ONE AND TWO OF THIS SECTION, WITH INTEREST AT THE RATE OF FOUR PERCENT
PER ANNUM, SHALL BE MADE BY THE APPROPRIATE FISCAL OFFICER FOR AN ELECT-
ING EMPLOYER, TO THE DESIGNATED INSURER OR INSURERS, ON BEHALF OF SUCH
EMPLOYEE CONTINUED IN SERVICE. IN THE CASE OF AN ENROLLED EMPLOYEE WHO
DOES NOT CONTINUE IN SERVICE WITH AN ELECTING EMPLOYER BEYOND HIS OR HER
INITIAL YEAR OF SERVICE, THE AMOUNT OF EMPLOYEE CONTRIBUTION, IF ANY,
DEDUCTED FROM HIS OR HER SALARY SHALL BE REFUNDED TO HIM OR HER, WITH
INTEREST AT THE RATE OF FOUR PERCENT PER ANNUM.
5. EXCEPTIONS. THE PROVISIONS OF SUBDIVISION FOUR OF THIS SECTION
SHALL NOT APPLY TO ANY ENROLLED EMPLOYEE OTHER THAN AN EMPLOYEE
S. 4524 9
APPOINTED FOR A SPECIFIED PERIOD OF LESS THAN THREE MONTHS WHO, AT THE
TIME OF INITIAL APPOINTMENT, OWNS A CONTRACT DETERMINED BY THE ELECTING
EMPLOYER TO BE SIMILAR TO THOSE CONTRACTS TO BE PURCHASED UNDER THE
OPTIONAL RETIREMENT PROGRAM AND ISSUED BY THE DESIGNATED INSURER OR
INSURERS.
S 433. ELECTION. 1. ELECTION OF THE OPTIONAL RETIREMENT PROGRAM. (A)
THIS SECTION SHALL NOT APPLY TO ANY SCHOOL DISTRICT WHICH DOES NOT ELECT
TO OFFER BOTH THE OPTIONAL RETIREMENT PROGRAM AND THE EXISTING NEW YORK
STATE TEACHERS' RETIREMENT SYSTEM.
(B) EACH ELIGIBLE EMPLOYEE, WITHIN THIRTY DAYS OF HIS OR HER ENTRY
INTO SERVICE, SHALL ELECT (I) TO JOIN A PUBLIC RETIREMENT SYSTEM IN THIS
STATE IN ACCORDANCE WITH THE PROVISIONS OF LAW APPLICABLE THERETO OR
(II) THE OPTIONAL RETIREMENT PROGRAM ESTABLISHED PURSUANT TO THIS ARTI-
CLE; PROVIDED HOWEVER, THAT UPON ELECTION BY THE ELIGIBLE EMPLOYEE, THE
ELECTING EMPLOYER SHALL MAKE THE FINAL APPROVAL OR DISAPPROVAL AS TO THE
ENROLLMENT OF THE ELECTING EMPLOYEE IN THE OPTIONAL RETIREMENT PROGRAM
ESTABLISHED PURSUANT TO THIS ARTICLE.
(C) IN THE EVENT AN ELIGIBLE EMPLOYEE FAILS TO MAKE AN ELECTION AS
PROVIDED IN PARAGRAPH (B) OF THIS SUBDIVISION OR THE ELECTING EMPLOYER
DECIDES THE ELECTING EMPLOYEE SHALL NOT ENROLL IN THE OPTIONAL RETIRE-
MENT PROGRAM PURSUANT TO PARAGRAPH (B) OF THIS SUBDIVISION, HE OR SHE
SHALL BE DEEMED TO HAVE ELECTED MEMBERSHIP IN SUCH PUBLIC RETIREMENT
SYSTEM IN THIS STATE IN WHICH HIS OR HER MEMBERSHIP MAY BE OTHERWISE
REQUIRED IN ACCORDANCE WITH LAW. SUCH MEMBERSHIP SHALL BE EFFECTIVE AS
OF THE DATE OF ENTRY INTO SERVICE OR AT THE TIME OTHERWISE REQUIRED BY
LAW.
(D) THE AMOUNT, IF ANY, REQUIRED TO HAVE BEEN CONTRIBUTED BY ANY
ENROLLED EMPLOYEE IN ACCORDANCE WITH AN ENROLLMENT OR FAILURE TO ELECT
PURSUANT TO PARAGRAPH (B) OR PARAGRAPH (C) OF THIS SUBDIVISION SHALL BE
COLLECTED BY PAYROLL DEDUCTIONS IN SUCH MANNER AS MAY BE PROVIDED BY THE
APPROPRIATE FISCAL OFFICER FOR EMPLOYEES OF AN ELECTING EMPLOYER, OR IN
THE CASE OF MEMBERSHIP IN OTHER PUBLIC RETIREMENT SYSTEMS IN THIS STATE,
BY THE RETIREMENT SYSTEM CONCERNED.
(E) ANY EMPLOYEE OF AN ELECTING EMPLOYER WHO BECOMES ELIGIBLE TO ELECT
THE OPTIONAL RETIREMENT PROGRAM BY REASON OF HIS OR HER APPOINTMENT,
PROMOTION, TRANSFER OR RECLASSIFICATION TO A POSITION PREVIOUSLY SO
ELIGIBLE, MAY ELECT THE OPTIONAL RETIREMENT PROGRAM ESTABLISHED PURSUANT
TO THIS ARTICLE PURSUANT TO PARAGRAPH (B) OF THIS SUBDIVISION. SUCH
ELECTION SHALL BE MADE WITHIN THIRTY DAYS AFTER NOTICE IN WRITING TO
SUCH EMPLOYEE OF HIS OR HER ELIGIBILITY, AND SHALL BECOME EFFECTIVE ON
THE DATE OF SUCH ENROLLMENT SHOULD THE ELECTION OF SUCH ELIGIBLE EMPLOY-
EE BE APPROVED BY THE ELECTING EMPLOYER.
(F) NO ELECTION BY AN ELIGIBLE EMPLOYEE OF THE OPTIONAL RETIREMENT
PROGRAM SHALL BE EFFECTIVE UNLESS IT SHALL BE ACCOMPANIED BY AN APPRO-
PRIATE APPLICATION, WHERE REQUIRED, FOR THE ISSUANCE OF CONTRACT OR
CONTRACTS UNDER THE PROGRAM AND NO ELECTION SHALL BECOME AN ENROLLMENT
WITHOUT THE APPROVAL OF THE ELECTING EMPLOYER PURSUANT TO PARAGRAPH (B)
OF THIS SUBDIVISION.
2. INELIGIBILITY FOR OTHER RETIREMENT SYSTEM MEMBERSHIP. ANY EMPLOYEE
WHO ENROLLS IN THE OPTIONAL RETIREMENT PROGRAM SHALL BE INELIGIBLE FOR
MEMBERSHIP IN THE NEW YORK STATE AND LOCAL EMPLOYEES' RETIREMENT SYSTEM,
THE NEW YORK STATE TEACHERS' RETIREMENT SYSTEM OR ANY OTHER PUBLIC
RETIREMENT SYSTEM IN THIS STATE SO LONG AS HE OR SHE SHALL REMAIN
CONTINUOUSLY EMPLOYED IN ANY POSITION BY AN ELECTING EMPLOYER AND SHALL
CONTINUE IN THE OPTIONAL RETIREMENT PROGRAM.
S. 4524 10
3. DISCONTINUANCE OF SERVICE FOR NEW YORK STATE RETIREMENT SYSTEMS.
(A) ANY ELIGIBLE EMPLOYEE WHO IS A MEMBER OF EITHER THE NEW YORK STATE
AND LOCAL EMPLOYEES' RETIREMENT SYSTEM OR THE NEW YORK STATE TEACHERS'
RETIREMENT SYSTEM AT THE TIME HE OR SHE ENROLLS IN THE OPTIONAL RETIRE-
MENT PROGRAM ESTABLISHED PURSUANT TO THIS ARTICLE, SHALL BE DEEMED TO BE
A PERSON WHO DISCONTINUES SERVICE ON THE EFFECTIVE DATE OF SUCH ENROLL-
MENT, FOR THE PURPOSE OF DETERMINING HIS OR HER ELIGIBILITY FOR RIGHTS
AND BENEFITS IN EITHER SUCH SYSTEM; PROVIDED HOWEVER, THAT IF HE OR SHE
DOES NOT WITHDRAW HIS OR HER ACCUMULATED CONTRIBUTIONS, THE AMOUNT OF
ANY SUCH BENEFIT TO WHICH HE OR SHE OR HIS OR HER ESTATE OR PERSON
DESIGNATED BY HIM OR HER MAY BECOME ENTITLED UNDER EITHER SUCH SYSTEM
SHALL BE COMPUTED ONLY ON THE BASIS OF SERVICE OTHERWISE CREDITABLE TO
HIM OR HER THEREIN AND HIS OR HER COMPENSATION DURING SUCH SERVICE.
(B) ENROLLED EMPLOYEES AND THEIR BENEFICIARIES SHALL NOT BE ENTITLED
TO ANY RIGHT OR BENEFIT UNDER EITHER THE NEW YORK STATE AND LOCAL
EMPLOYEES' RETIREMENT SYSTEM OR THE NEW YORK STATE TEACHERS' RETIREMENT
SYSTEM OTHER THAN A VESTED RETIREMENT ALLOWANCE, RETIREMENT ALLOWANCE OR
ORDINARY DEATH BENEFIT TO THE EXTENT EXPRESSLY PROVIDED FOR IN THIS
SECTION.
4. DISCONTINUANCE OF SERVICE FOR NEW YORK CITY RETIREMENT SYSTEMS. (A)
ANY ELIGIBLE EMPLOYEE OF AN ELECTING EMPLOYER WHO IS A MEMBER OR TRANS-
FERRED CONTRIBUTOR OF EITHER THE NEW YORK CITY TEACHERS' RETIREMENT
SYSTEM OR THE NEW YORK CITY EMPLOYEES' RETIREMENT SYSTEM AT THE TIME HE
OR SHE ENROLLS IN THE OPTIONAL RETIREMENT PROGRAM OFFERED BY AN ELECTING
EMPLOYER PURSUANT TO THIS ARTICLE SHALL BE DEEMED TO BE A PERSON WHO
TERMINATES MEMBERSHIP ON THE EFFECTIVE DATE OF SUCH ENROLLMENT, FOR THE
PURPOSE OF DETERMINING HIS OR HER ELIGIBILITY FOR RIGHTS AND BENEFITS IN
EITHER SUCH SYSTEM; PROVIDED HOWEVER, THAT IF HE OR SHE DOES NOT WITH-
DRAW HIS OR HER ACCUMULATED CONTRIBUTIONS, (I) HIS OR HER CONTINUED
SERVICE AT A COMMUNITY COLLEGE WHOSE EMPLOYEES ARE OTHERWISE ELIGIBLE
FOR THE NEW YORK CITY TEACHERS' RETIREMENT SYSTEM OR THE NEW YORK CITY
EMPLOYEES' RETIREMENT SYSTEM SHALL BE DEEMED TO BE MEMBER SERVICE IN
EITHER THE NEW YORK CITY TEACHERS' RETIREMENT SYSTEM OR THE NEW YORK
CITY EMPLOYEES' RETIREMENT SYSTEM FOR THE PURPOSE OF DETERMINING HIS OR
HER ELIGIBILITY FOR ANY RETIREMENT ALLOWANCE OR ORDINARY DEATH BENEFIT
UNDER EITHER SUCH SYSTEM DEPENDENT UPON A SPECIFIED PERIOD OF TOTAL
SERVICE OR UPON ATTAINMENT OF A SPECIFIED AGE WHILE IN SERVICE OR UPON
DEATH WHILE IN SERVICE; AND (II) THE AMOUNT OF ANY SUCH BENEFIT TO WHICH
HE OR SHE OR HIS OR HER ESTATE OR PERSON DESIGNATED BY HIM OR HER MAY
BECOME ENTITLED UNDER EITHER SUCH SYSTEM SHALL BE COMPUTED ONLY ON THE
BASIS OF SERVICE OTHERWISE CREDITABLE TO HIM OR HER THEREIN AND HIS OR
HER COMPENSATION DURING SUCH SERVICE.
(B) ENROLLED EMPLOYEES AND THEIR BENEFICIARIES SHALL NOT BE ENTITLED
TO ANY RIGHT OR BENEFIT UNDER EITHER THE NEW YORK CITY TEACHERS' RETIRE-
MENT SYSTEM OR THE NEW YORK CITY EMPLOYEES' RETIREMENT SYSTEM OTHER THAN
A RETIREMENT ALLOWANCE OR ORDINARY DEATH BENEFIT TO THE EXTENT EXPRESSLY
PROVIDED FOR IN THIS SECTION. SUCH EMPLOYEE SHALL NOT BE ELIGIBLE FOR
ANY BENEFIT PURSUANT TO SECTION TWO HUNDRED FORTY-FIVE OF THE MILITARY
LAW.
5. NEW YORK STATE TEACHERS' RETIREMENT SYSTEM EXCEPTIONS. (A) SUBDIVI-
SION TWO OF THIS SECTION SHALL NOT APPLY TO ANY ENROLLED EMPLOYEE WHO
RENDERS SERVICE WHICH IS CREDITABLE IN THE NEW YORK STATE TEACHERS'
RETIREMENT SYSTEM, OTHER THAN SERVICE FOR WHICH A CONTRIBUTION IS MADE
TO THE OPTIONAL RETIREMENT PROGRAM PURSUANT TO THIS ARTICLE.
(B) SUBDIVISION THREE OF THIS SECTION SHALL NOT APPLY TO ANY MEMBER OF
THE NEW YORK STATE TEACHERS' RETIREMENT SYSTEM WHO, AFTER JOINING SUCH
S. 4524 11
SYSTEM, ENROLLS IN THE OPTIONAL RETIREMENT PROGRAM PURSUANT TO THIS
ARTICLE.
(C) SUBDIVISION THREE OF THIS SECTION NOTWITHSTANDING, ANY ENROLLED
EMPLOYEE WHO IS A MEMBER OF THE NEW YORK STATE TEACHERS' RETIREMENT
SYSTEM MAY OBTAIN CREDIT FOR SERVICE, OTHER THAN SERVICE FOR WHICH A
CONTRIBUTION IS MADE TO THE OPTIONAL RETIREMENT PROGRAM, WHICH IS CRED-
ITABLE IN SUCH SYSTEM AND WAS RENDERED AFTER SUCH MEMBER HAD ENROLLED IN
THE OPTIONAL RETIREMENT PROGRAM, PROVIDED (I) SUCH MEMBER HAS RENDERED
AT LEAST FIVE YEARS OF SERVICE CREDITED WITH THE NEW YORK STATE TEACH-
ERS' RETIREMENT SYSTEM AT THE TIME SUCH SERVICE IS CREDITED, AND (II) IN
THE CASE OF SUCH MEMBER SUBJECT TO THE PROVISIONS OF ARTICLE FOURTEEN OR
FIFTEEN OF THE RETIREMENT AND SOCIAL SECURITY LAW, THE MEMBER CONTRIB-
UTES THREE PERCENT OF THE WAGES EARNED FOR SUCH SERVICE TOGETHER WITH
INTEREST AT THE RATE OF FIVE PERCENT PER ANNUM COMPOUNDED ANNUALLY FROM
THE DATE OF SUCH SERVICE UNTIL PAYMENT IS MADE.
(D) ANYTHING IN THIS SUBDIVISION NOTWITHSTANDING, SERVICE AS AN
ENROLLED EMPLOYEE FOR WHICH A CONTRIBUTION IS MADE TO THE OPTIONAL
RETIREMENT PROGRAM SHALL NEITHER ENTITLE ANY ENROLLED EMPLOYEE TO JOIN
OR REJOIN THE NEW YORK STATE TEACHERS' RETIREMENT SYSTEM NOR BE CREDITA-
BLE IN SUCH SYSTEM.
S 434. SURVIVOR'S BENEFITS. IN THE CASE OF THE DEATH OF ANY ENROLLED
EMPLOYEE, AFTER THE EFFECTIVE DATE OF SUCH ENROLLMENT AND BEFORE RETIRE-
MENT, THE VALUE OF THE DEATH BENEFITS PROVIDED BY THE CONTRACT OR
CONTRACTS PURCHASED UNDER THE OPTIONAL RETIREMENT PROGRAM WHICH IS
ATTRIBUTABLE TO THE STATE'S CONTRIBUTION AS DETERMINED BY THE APPROPRI-
ATE BOARD OF EDUCATION, SHALL BE DEEMED TO BE AN ORDINARY DEATH BENEFIT
PROVIDED UNDER A PUBLIC PENSION PLAN WITHIN THE MEANING OF SECTION SIX
HUNDRED FIFTY-FIVE OF THE RETIREMENT AND SOCIAL SECURITY LAW. NOTWITH-
STANDING THE PROVISIONS OF SUCH SECTION OF THE RETIREMENT AND SOCIAL
SECURITY LAW, A SURVIVOR'S BENEFIT PAYABLE THEREUNDER ON ACCOUNT OF THE
DEATH OF ANY ENROLLED EMPLOYEE WHILE IN THE EMPLOY OF AN ELECTING
EMPLOYER, AFTER THE EFFECTIVE DATE OF SUCH ENROLLMENT AND BEFORE RETIRE-
MENT, INCLUDING AN EMPLOYEE SUBJECT TO THE PROVISIONS OF SUBDIVISION
THREE OF SECTION FOUR HUNDRED THIRTY-THREE OF THIS ARTICLE, SHALL BE
PAID TO SUCH PERSON OR PERSONS AS SUCH EMPLOYEE SHALL HAVE NOMINATED TO
RECEIVE THE DEATH BENEFITS PROVIDED BY THE CONTRACT OR CONTRACTS
PURCHASED UNDER THE OPTIONAL RETIREMENT PROGRAM. IN THE EVENT SUCH
DESIGNATED BENEFICIARY OR BENEFICIARIES DO NOT SURVIVE THE EMPLOYEE, OR
IF A BENEFICIARY WAS NOT SO DESIGNATED, THE SURVIVOR'S BENEFIT SHALL BE
PAID TO THE DECEASED EMPLOYEE'S ESTATE OR AS PROVIDED IN SECTION THIR-
TEEN HUNDRED TEN OF THE SURROGATE'S COURT PROCEDURE ACT.
S 435. SOCIAL SECURITY. EVERY ENROLLED EMPLOYEE SHALL HAVE OLD-AGE,
SURVIVOR'S, AND DISABILITY INSURANCE COVERAGE PROVIDED BY THE FEDERAL
SOCIAL SECURITY ACT IN ACCORDANCE WITH THE PROVISIONS OF ARTICLE THREE
OF THE RETIREMENT AND SOCIAL SECURITY LAW.
S 436. EMPLOYER NOT LIABLE FOR PAYMENT OF BENEFITS. NO ELECTING
EMPLOYER SHALL BE A PARTY TO ANY CONTRACT PURCHASED IN WHOLE OR IN PART
WITH CONTRIBUTIONS MADE UNDER THE OPTIONAL RETIREMENT PROGRAM ESTAB-
LISHED AND ADMINISTERED PURSUANT TO THIS ARTICLE. NO RETIREMENT, DEATH,
OR OTHER BENEFITS SHALL BE PAYABLE BY ANY ELECTING EMPLOYER UNDER SUCH
OPTIONAL RETIREMENT PROGRAM. SUCH BENEFITS SHALL BE PAID TO ENROLLED
EMPLOYEES OR THEIR BENEFICIARIES BY THE DESIGNATED INSURER OR INSURERS
IN ACCORDANCE WITH THE TERMS OF THEIR CONTRACTS.
S 437. INCONSISTENT PROVISIONS OF OTHER ACTS SUPERSEDED. INSOFAR AS
THE PROVISIONS OF THIS ARTICLE ARE INCONSISTENT WITH THE PROVISIONS OF
S. 4524 12
ANY OTHER ACT, GENERAL OR SPECIAL, THE PROVISIONS OF THIS ARTICLE SHALL
BE CONTROLLING.
S 3. The opening paragraph of subdivision a of section 30 of the
retirement and social security law is amended to read as follows:
A municipality may elect to participate in the retirement system.
Such election shall be exercised by the adoption of a resolution
approved by its local legislative body and any other body or officer
required by law to approve resolution of such local legislative body.
Upon the filing of a certified copy of such resolution with the comp-
troller, EXCEPT FOR MUNICIPALITIES THAT ELECT TO PARTICIPATE IN THE
OPTIONAL RETIREMENT SYSTEMS AUTHORIZED PURSUANT TO ARTICLE EIGHT-A OF
THE GENERAL MUNICIPAL LAW AND ARTICLE NINE-A OF THE EDUCATION LAW, such
election shall be irrevocable, and the municipality shall become a
participating employer, subject, however, to the conditions provided in
this subdivision.
S 4. This act shall take effect immediately.
co-Sponsors
(R, C) Senate District
2011-S4524A (ACTIVE) - Details
- Current Committee:
- Senate Civil Service And Pensions
- Law Section:
- General Municipal Law
- Laws Affected:
- Add Art 8-A §§170 - 177, Gen Muni L; add Art 9-A §§430 - 437, Ed L; amd §30, R & SS L
2011-S4524A (ACTIVE) - Sponsor Memo
BILL NUMBER:S4524A
TITLE OF BILL:
An act
to amend the general municipal law, the education law
and the retirement and social security law, in relation
to establishing an optional retirement program for employees of
municipalities, local governments and schools
PURPOSE OR GENERAL IDEA OF BILL:
To reduce unfunded mandates and offer
new options for municipalities, local governments and schools.
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 - adds a new Article 8-A to
the General Municipal Law. This article would authorize local
governments and municipalities to offer an optional retirement
program to new employees hired after the enactment of a local law. A
municipality could choose to offer a choice to new employees of
either the current defined benefit retirement program or the defined
contribution retirement program, as SUNY currently does, or choose to
only offer the defined contribution, or Optional Retirement Program.
This program would not include police and firefighter positions
that are covered under the Volunteer Ambulance Workers Benefit Law,
the Volunteer Firefighters Benefit Law or Title 9 of Article 2,
Article 8, Article 14-B, Article 15 and Article 22 of the Retirement
and Social Security Law. Section 2 - adds a new Article 9-A to the Education Law authorizing local school districts, after public hearing and resolution, to offer an optional retirement program to new employees hired after the enactment of the resolution. A school district could choose to offer a choice to new employees of either the current defined benefit retirement program or the defined contribution retirement program, as SUNY currently does, or choose to only offer the defined contribution, or Optional Retirement Program. Section 3 - amends subdivision a of section 30 of the Retirement and Social Security Law to provide that a municipality may elect to participate in an optional retirement plan pursuant to Article 8-A of the General Municipal Law and Article 9-A of the Education Law. Section 4 - provides that this act shall take effect immediately. JUSTIFICATION: Local governments and school districts are under tremendous financial stress because of the increasing costs of contributions to the state retirement system. Because the amount to be contributed varies from year to year, officials are unable to effectively plan for future costs. In some years, municipalities made no pension contributions. Today, some are predicting that public employer contributions may reach thirty percent of payroll. Clearly, such costs are unsustainable, and the uncertainty that this system creates does not allow municipalities to forecast future cost effectively. This bill is not another unfunded mandate on local governments, but an effort to provide another choice. Municipalities may choose to continue to participate in the current defined benefit program, offer a choice to employees of either a defined benefit program or a fully portable defined contribution program, or elect to offer only the defined contribution program. Employers will still be required to make contributions to each employees retirement account, but they will know that this contribution will be fixed, allowing more accurate budget planning for future years. PRIOR LEGISLATIVE HISTORY: 2011 -- Civil Service FISCAL IMPLICATIONS: None to State. EFFECTIVE DATE: This act shall take effect immediately.
2011-S4524A (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K
________________________________________________________________________
4524--A
2011-2012 Regular Sessions
I N S E N A T E
April 11, 2011
___________
Introduced by Sens. RANZENHOFER, LARKIN -- read twice and ordered print-
ed, and when printed to be committed to the Committee on Civil Service
and Pensions -- recommitted to the Committee on Civil Service and
Pensions in accordance with Senate Rule 6, sec. 8 -- committee
discharged, bill amended, ordered reprinted as amended and recommitted
to said committee
AN ACT to amend the general municipal law, the education law and the
retirement and social security law, in relation to establishing an
optional retirement program for employees of municipalities, local
governments and schools
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The general municipal law is amended by adding a new arti-
cle 8-A to read as follows:
ARTICLE 8-A
AUTHORIZATION OF OPTIONAL RETIREMENT SYSTEMS FOR MUNICIPALITIES
AND LOCAL GOVERNMENT
SECTION 170. DEFINITIONS.
171. OPTIONAL RETIREMENT PROGRAM AUTHORIZED.
172. RATES OF CONTRIBUTION.
173. ELECTION.
174. SURVIVOR'S BENEFITS.
175. SOCIAL SECURITY.
176. EMPLOYER NOT LIABLE FOR PAYMENT OF BENEFITS.
177. INCONSISTENT PROVISIONS OF OTHER ACTS SUPERSEDED.
S 170. DEFINITIONS. FOR THE PURPOSES OF THIS ARTICLE:
1. THE TERM "ELECTING EMPLOYEE" SHALL MEAN ANY ELIGIBLE EMPLOYEE WHO
EXERCISES HIS OR HER ELECTION PURSUANT TO THIS ARTICLE TO COME UNDER THE
OPTIONAL RETIREMENT PROGRAM BY APPLYING FOR SUCH PROGRAM BUT WHO AWAITS
THE APPROVAL OF THE ELECTING EMPLOYER.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09098-07-1
S. 4524--A 2
2. THE TERM "ELECTING EMPLOYER" SHALL MEAN A MUNICIPALITY WHICH ELECTS
TO OFFER THE OPTIONAL RETIREMENT PROGRAM AUTHORIZED BY THIS ARTICLE BY,
AFTER A PUBLIC HEARING, ENACTING A LOCAL LAW SETTING FORTH SUCH PROGRAM.
3. THE TERM "ELIGIBLE EMPLOYEES" SHALL MEAN THOSE EMPLOYEES WHO BEGIN
TO WORK FOR ANY ELECTING EMPLOYER AFTER THE ENACTMENT OF A LOCAL LAW
SETTING FORTH AN OPTIONAL RETIREMENT PROGRAM AS AUTHORIZED BY THIS ARTI-
CLE. NO PERSON RECEIVING A BENEFIT BY REASON OF HIS OR HER RETIREMENT
FROM ANY RETIREMENT OR PENSION SYSTEM OF NEW YORK STATE OR ANY POLITICAL
SUBDIVISION THEREOF SHALL BE ELIGIBLE TO ELECT THE OPTIONAL RETIREMENT
PROGRAM PURSUANT TO THIS ARTICLE. NO PERSON OTHERWISE ELIGIBLE UNDER
THIS ARTICLE, WHO IS COVERED UNDER THE VOLUNTEER AMBULANCE WORKERS'
BENEFIT LAW, THE VOLUNTEER FIREFIGHTERS' BENEFIT LAW, ARTICLES EIGHT,
FOURTEEN-B, FIFTEEN, TWENTY-TWO, OR TITLE NINE OF ARTICLE TWO OF THE
RETIREMENT AND SOCIAL SECURITY LAW, SHALL BE ELIGIBLE UNDER THIS ARTI-
CLE.
4. THE TERM "ENROLLED EMPLOYEES" SHALL MEAN ANY ELECTING EMPLOYEE WHO
HAS BEEN APPROVED OR ACCEPTED INTO THE OPTIONAL RETIREMENT SYSTEM BY THE
ELECTING EMPLOYER PURSUANT TO PARAGRAPH (B) OF SUBDIVISION ONE OF
SECTION ONE HUNDRED SEVENTY-THREE OF THIS ARTICLE.
5. THE TERM "INSURER" SHALL MEAN A LIFE INSURANCE CORPORATION, OR
OTHER CORPORATION SUBJECT TO INSURANCE DEPARTMENT SUPERVISION.
6. THE TERM "MUNICIPALITY" SHALL MEAN ANY MUNICIPAL CORPORATION AS
DEFINED IN SECTION TWO OF THIS CHAPTER.
7. THE TERM "OPTIONAL RETIREMENT PROGRAM" SHALL MEAN THE RETIREMENT
PROGRAM ESTABLISHED PURSUANT TO THIS ARTICLE.
8. THE TERM "SALARY" SHALL MEAN ALL AMOUNTS PAID BY OR FOR THE ELECT-
ING EMPLOYER AS COMPENSATION FOR SERVICES RENDERED BY AN ELIGIBLE
EMPLOYEE HOLDING A POSITION WITH THE ELECTING EMPLOYER.
S 171. OPTIONAL RETIREMENT PROGRAM AUTHORIZED. 1. AUTHORIZATION OF
PROGRAM. THERE IS HEREBY AUTHORIZED AN OPTIONAL RETIREMENT PROGRAM WHICH
SHALL PROVIDE FOR THE PURCHASE OF CONTRACTS PROVIDING RETIREMENT AND
DEATH BENEFITS FOR OR ON BEHALF OF ENROLLED EMPLOYEES. UNDER SUCH
PROGRAM AN ELECTING EMPLOYER AND SUCH EMPLOYEES SHALL CONTRIBUTE, TO THE
EXTENT AUTHORIZED OR REQUIRED, TOWARDS THE PURCHASE OF SUCH CONTRACTS,
WHICH SHALL BE ISSUED TO, AND BECOME THE PROPERTY OF, SUCH EMPLOYEES.
THE MUNICIPALITY, AFTER A PUBLIC HEARING AND BY THE ENACTMENT OF A LOCAL
LAW WHICH SHALL BECOME EFFECTIVE UPON THE DATE SUCH LOCAL LAW SHALL HAVE
BECOME A LAW, MAY ELECT TO OFFER: (A) ONLY THE OPTIONAL RETIREMENT
PROGRAM TO ELIGIBLE EMPLOYEES OF SUCH MUNICIPALITY, OR (B) BOTH THE
OPTIONAL RETIREMENT PROGRAM AND THE EXISTING PUBLIC RETIREMENT SYSTEM.
2. DESIGNATION OF INSURERS. THE MUNICIPALITY SHALL DESIGNATE THE
INSURER OR INSURERS TO WHICH PAYMENT OF SUCH CONTRIBUTIONS MAY BE MADE
AND SHALL APPROVE THE FORM AND CONTENT OF SUCH CONTRACTS. IN MAKING SUCH
DESIGNATION AND GIVING SUCH APPROVAL SUCH MUNICIPALITY SHALL GIVE DUE
CONSIDERATION TO (A) THE NATURE AND EXTENT OF THE RIGHTS AND BENEFITS TO
BE PROVIDED BY SUCH CONTRACTS FOR ELECTING EMPLOYEES AND THEIR BENEFICI-
ARIES, (B) THE RELATION OF SUCH RIGHTS AND BENEFITS TO THE AMOUNT OF
CONTRIBUTIONS TO BE MADE UNDER THIS ARTICLE, (C) THE SUITABILITY OF SUCH
RIGHTS AND BENEFITS TO THE NEEDS AND INTERESTS OF ELECTING EMPLOYEES AND
TO THE INTERESTS OF THE MUNICIPALITY AND OF ELECTING EMPLOYERS IN THE
EMPLOYMENT AND RETENTION OF ELIGIBLE EMPLOYEES, AND (D) THE AUTHORITY
AND ABILITY OF THE DESIGNATED INSURER OR INSURERS TO PROVIDE RIGHTS AND
BENEFITS UNDER SUCH CONTRACTS.
3. ADMINISTRATION OF PROGRAM. THE MUNICIPALITY IS HEREBY AUTHORIZED TO
PROVIDE FOR, BY THE ENACTMENT OF A LOCAL LAW, THE ADMINISTRATION OF SUCH
OPTIONAL RETIREMENT PROGRAM AND TO PERFORM OR AUTHORIZE THE PERFORMANCE
S. 4524--A 3
OF SUCH FUNCTIONS AS MAY BE NECESSARY FOR SUCH PURPOSES IN ACCORDANCE
WITH THIS ARTICLE. SUCH PROGRAM MAY BE ADMINISTERED BY THE MUNICIPALITY,
BY THE OFFICE OF THE COMPTROLLER IF IT SHALL OFFER SUCH A PLAN, OR BY
THE PENSION ADMINISTRATOR OF THE STATE UNIVERSITY OF NEW YORK, AT THE
OPTION OF THE MUNICIPALITY.
S 172. RATES OF CONTRIBUTION. 1. EMPLOYER CONTRIBUTIONS. THE ELECTING
EMPLOYER SHALL, DURING CONTINUANCE OF AN ENROLLED EMPLOYEE'S EMPLOYMENT,
MAKE CONTRIBUTIONS AT THE RATE OF EIGHT PERCENT OF HIS OR HER SALARY,
OUT OF MONIES WHICH SHALL BE AVAILABLE TO THE ELECTING EMPLOYER FOR SUCH
PURPOSE. FOR PURPOSES OF THIS SUBDIVISION, THAT PORTION OF THE EMPLOY-
EE'S SALARY UPON WHICH CONTRIBUTIONS ARE OR MAY THEREAFTER BE PAID TO
THE SECRETARY OF THE TREASURY OF THE UNITED STATES PURSUANT TO ARTICLE
THREE OF THE RETIREMENT AND SOCIAL SECURITY LAW SHALL BE DEEMED NOT TO
EXCEED SIXTEEN THOUSAND FIVE HUNDRED DOLLARS.
2. EMPLOYEE CONTRIBUTIONS. IN THE CASE OF ANY ENROLLED EMPLOYEE,
CONTRIBUTIONS AT THE RATE OF THREE PER CENTUM OF HIS OR HER SALARY SHALL
BE DEDUCTED AS THE EMPLOYEE CONTRIBUTION BY THE APPROPRIATE FISCAL OFFI-
CER WITH RESPECT TO AN ELECTING EMPLOYER, PROVIDED HOWEVER, THAT SUCH
EMPLOYEE CONTRIBUTION SHALL BE MADE BY THE ELECTING EMPLOYER IN ACCORD-
ANCE WITH SUBDIVISION ONE OF THIS SECTION DURING SUCH PERIOD AS THE (A)
CONTRIBUTIONS OF ANY MEMBERS OF ANY OTHER PUBLIC RETIREMENT SYSTEM IN
THIS STATE IN ITS EMPLOY SHALL BE REDUCED BY AT LEAST EIGHT PERCENT OF
THEIR COMPENSATION IN ACCORDANCE WITH SECTION SEVENTY-A OF THE RETIRE-
MENT AND SOCIAL SECURITY LAW, OR (B) EMPLOYEE CONTRIBUTIONS TO ANY SUCH
SYSTEM OF WHICH ANY OF ITS EMPLOYEES ARE MEMBERS ARE NO LONGER REQUIRED
BY REASONS OF SUCH SYSTEM BECOMING NON-CONTRIBUTORY FOR SUCH EMPLOYEES.
3. FISCAL OFFICER TO MAKE PAYMENTS. PAYMENT OF CONTRIBUTIONS BY ELECT-
ING EMPLOYERS PURSUANT TO SUBDIVISIONS ONE AND TWO OF THIS SECTION SHALL
BE MADE TO THE DESIGNATED INSURER OR INSURERS BY THE APPROPRIATE FISCAL
OFFICER FOR EMPLOYEES OF SUCH ELECTING EMPLOYER.
4. CONTRIBUTIONS DURING THE FIRST YEAR OF SERVICE. NO CONTRIBUTIONS
PURSUANT TO SUBDIVISIONS ONE AND TWO OF THIS SECTION FOR ENROLLED
EMPLOYEES SHALL BE MADE BY THE ELECTING EMPLOYER UNTIL HIS OR HER
COMPLETION OF ONE YEAR OF SERVICE AND CONTINUANCE IN SERVICE THEREAFTER.
EMPLOYEE CONTRIBUTIONS, IF ANY, REQUIRED DURING THIS INITIAL YEAR OF
SERVICE SHALL BE DEDUCTED AND HELD BY THE APPROPRIATE FISCAL OFFICER OF
AN ELECTING EMPLOYER. AT THE END OF HIS OR HER INITIAL YEAR OF SERVICE,
A SINGLE CONTRIBUTION IN AN AMOUNT DETERMINED PURSUANT TO SUBDIVISIONS
ONE AND TWO OF THIS SECTION, WITH INTEREST AT THE RATE OF FOUR PERCENT
PER ANNUM, SHALL BE MADE BY THE APPROPRIATE FISCAL OFFICER FOR AN ELECT-
ING EMPLOYER, TO THE DESIGNATED INSURER OR INSURERS, ON BEHALF OF SUCH
EMPLOYEE CONTINUED IN SERVICE. IN THE CASE OF AN ENROLLED EMPLOYEE WHO
DOES NOT CONTINUE IN SERVICE WITH AN ELECTING EMPLOYER BEYOND HIS OR HER
INITIAL YEAR OF SERVICE, THE AMOUNT OF EMPLOYEE CONTRIBUTION, IF ANY,
DEDUCTED FROM HIS OR HER SALARY SHALL BE REFUNDED TO HIM OR HER, WITH
INTEREST AT THE RATE OF FOUR PERCENT PER ANNUM.
5. EXCEPTIONS. THE PROVISIONS OF SUBDIVISION FOUR OF THIS SECTION
SHALL NOT APPLY TO ANY ENROLLED EMPLOYEE OTHER THAN AN EMPLOYEE
APPOINTED FOR A SPECIFIED PERIOD OF LESS THAN THREE MONTHS WHO, AT THE
TIME OF INITIAL APPOINTMENT, OWNS A CONTRACT DETERMINED BY THE ELECTING
EMPLOYER TO BE SIMILAR TO THOSE CONTRACTS TO BE PURCHASED UNDER THE
OPTIONAL RETIREMENT PROGRAM AND ISSUED BY THE DESIGNATED INSURER OR
INSURERS.
S 173. ELECTION. 1. ELECTION OF THE OPTIONAL RETIREMENT PROGRAM. (A)
THIS SECTION SHALL NOT APPLY IN ANY MUNICIPALITY WHICH DOES NOT ELECT TO
S. 4524--A 4
OFFER BOTH THE OPTIONAL RETIREMENT PROGRAM AND THE EXISTING PUBLIC
RETIREMENT SYSTEM.
(B) EACH ELIGIBLE EMPLOYEE, WITHIN THIRTY DAYS OF HIS OR HER ENTRY
INTO SERVICE, SHALL ELECT (I) TO JOIN A PUBLIC RETIREMENT SYSTEM IN THIS
STATE IN ACCORDANCE WITH THE PROVISIONS OF LAW APPLICABLE THERETO OR
(II) THE OPTIONAL RETIREMENT PROGRAM ESTABLISHED PURSUANT TO THIS ARTI-
CLE; PROVIDED HOWEVER, THAT UPON ELECTION BY THE ELIGIBLE EMPLOYEE, THE
ELECTING EMPLOYER SHALL MAKE THE FINAL APPROVAL OR DISAPPROVAL AS TO THE
ENROLLMENT OF THE ELECTING EMPLOYEE IN THE OPTIONAL RETIREMENT PROGRAM
ESTABLISHED PURSUANT TO THIS ARTICLE.
(C) IN THE EVENT AN ELIGIBLE EMPLOYEE FAILS TO MAKE AN ELECTION AS
PROVIDED IN PARAGRAPH (B) OF THIS SUBDIVISION OR THE ELECTING EMPLOYER
DECIDES THE ELECTING EMPLOYEE SHALL NOT ENROLL IN THE OPTIONAL RETIRE-
MENT PROGRAM PURSUANT TO PARAGRAPH (B) OF THIS SUBDIVISION, HE OR SHE
SHALL BE DEEMED TO HAVE ELECTED MEMBERSHIP IN SUCH PUBLIC RETIREMENT
SYSTEM IN THIS STATE IN WHICH HIS OR HER MEMBERSHIP MAY BE OTHERWISE
REQUIRED IN ACCORDANCE WITH LAW. SUCH MEMBERSHIP SHALL BE EFFECTIVE AS
OF THE DATE OF ENTRY INTO SERVICE OR AT THE TIME OTHERWISE REQUIRED BY
LAW.
(D) THE AMOUNT, IF ANY, REQUIRED TO HAVE BEEN CONTRIBUTED BY ANY
ENROLLED EMPLOYEE IN ACCORDANCE WITH AN ENROLLMENT OR FAILURE TO ELECT
PURSUANT TO PARAGRAPH (B) OR PARAGRAPH (C) OF THIS SUBDIVISION SHALL BE
COLLECTED BY PAYROLL DEDUCTIONS IN SUCH MANNER AS MAY BE PROVIDED BY THE
APPROPRIATE FISCAL OFFICER FOR EMPLOYEES OF AN ELECTING EMPLOYER, OR IN
THE CASE OF MEMBERSHIP IN OTHER PUBLIC RETIREMENT SYSTEMS IN THIS STATE,
BY THE RETIREMENT SYSTEM CONCERNED.
(E) ANY EMPLOYEE OF AN ELECTING EMPLOYER WHO BECOMES ELIGIBLE TO ELECT
THE OPTIONAL RETIREMENT PROGRAM BY REASON OF HIS OR HER APPOINTMENT,
PROMOTION, TRANSFER OR RECLASSIFICATION TO A POSITION PREVIOUSLY SO
ELIGIBLE, MAY ELECT THE OPTIONAL RETIREMENT PROGRAM ESTABLISHED PURSUANT
TO THIS ARTICLE PURSUANT TO PARAGRAPH (B) OF THIS SUBDIVISION. SUCH
ELECTION SHALL BE MADE WITHIN THIRTY DAYS AFTER NOTICE IN WRITING TO
SUCH EMPLOYEE OF HIS OR HER ELIGIBILITY, AND SHALL BECOME EFFECTIVE ON
THE DATE OF SUCH ENROLLMENT SHOULD THE ELECTION OF SUCH ELIGIBLE EMPLOY-
EE BE APPROVED BY THE ELECTING EMPLOYER.
(F) NO ELECTION BY AN ELIGIBLE EMPLOYEE OF THE OPTIONAL RETIREMENT
PROGRAM SHALL BE EFFECTIVE UNLESS IT SHALL BE ACCOMPANIED BY AN APPRO-
PRIATE APPLICATION, WHERE REQUIRED, FOR THE ISSUANCE OF A CONTRACT OR
CONTRACTS UNDER THE PROGRAM AND NO ELECTION SHALL BECOME AN ENROLLMENT
WITHOUT THE APPROVAL OF THE ELECTING EMPLOYER PURSUANT TO PARAGRAPH (B)
OF THIS SUBDIVISION.
2. INELIGIBILITY FOR OTHER RETIREMENT SYSTEM MEMBERSHIP. ANY EMPLOYEE
WHO ENROLLS IN THE OPTIONAL RETIREMENT PROGRAM SHALL BE INELIGIBLE FOR
MEMBERSHIP IN THE NEW YORK STATE AND LOCAL EMPLOYEES' RETIREMENT SYSTEM,
THE NEW YORK STATE TEACHERS' RETIREMENT SYSTEM OR ANY OTHER PUBLIC
RETIREMENT SYSTEM IN THIS STATE SO LONG AS HE OR SHE SHALL REMAIN
CONTINUOUSLY EMPLOYED IN ANY POSITION BY AN ELECTING EMPLOYER AND SHALL
CONTINUE IN THE OPTIONAL RETIREMENT PROGRAM.
3. DISCONTINUANCE OF SERVICE FOR NEW YORK STATE RETIREMENT SYSTEMS.
(A) ANY ELIGIBLE EMPLOYEE WHO IS A MEMBER OF EITHER THE NEW YORK STATE
AND LOCAL EMPLOYEES' RETIREMENT SYSTEM OR THE NEW YORK STATE TEACHERS'
RETIREMENT SYSTEM AT THE TIME HE OR SHE ENROLLS IN THE OPTIONAL RETIRE-
MENT PROGRAM ESTABLISHED PURSUANT TO THIS ARTICLE, SHALL BE DEEMED TO BE
A PERSON WHO DISCONTINUES SERVICE ON THE EFFECTIVE DATE OF SUCH ENROLL-
MENT, FOR THE PURPOSE OF DETERMINING HIS OR HER ELIGIBILITY FOR RIGHTS
AND BENEFITS IN EITHER SUCH SYSTEM; PROVIDED HOWEVER, THAT IF HE OR SHE
S. 4524--A 5
DOES NOT WITHDRAW HIS OR HER ACCUMULATED CONTRIBUTIONS, THE AMOUNT OF
ANY SUCH BENEFIT TO WHICH HE OR SHE OR HIS OR HER ESTATE OR PERSON
DESIGNATED BY HIM OR HER MAY BECOME ENTITLED UNDER EITHER SUCH SYSTEM
SHALL BE COMPUTED ONLY ON THE BASIS OF SERVICE OTHERWISE CREDITABLE TO
HIM OR HER THEREIN AND HIS OR HER COMPENSATION DURING SUCH SERVICE.
(B) ENROLLED EMPLOYEES AND THEIR BENEFICIARIES SHALL NOT BE ENTITLED
TO ANY RIGHT OR BENEFIT UNDER EITHER THE NEW YORK STATE AND LOCAL
EMPLOYEES' RETIREMENT SYSTEM OR THE NEW YORK STATE TEACHERS' RETIREMENT
SYSTEM OTHER THAN A VESTED RETIREMENT ALLOWANCE, RETIREMENT ALLOWANCE OR
ORDINARY DEATH BENEFIT TO THE EXTENT EXPRESSLY PROVIDED FOR IN THIS
SECTION.
4. DISCONTINUANCE OF SERVICE FOR NEW YORK CITY RETIREMENT SYSTEMS. (A)
ANY ELIGIBLE EMPLOYEE OF AN ELECTING EMPLOYER WHO IS A MEMBER OR TRANS-
FERRED CONTRIBUTOR OF EITHER THE NEW YORK CITY TEACHERS' RETIREMENT
SYSTEM OR THE NEW YORK CITY EMPLOYEES' RETIREMENT SYSTEM AT THE TIME HE
OR SHE ENROLLS IN THE OPTIONAL RETIREMENT PROGRAM OFFERED BY AN ELECTING
EMPLOYER PURSUANT TO THIS ARTICLE SHALL BE DEEMED TO BE A PERSON WHO
TERMINATES MEMBERSHIP ON THE EFFECTIVE DATE OF SUCH ENROLLMENT, FOR THE
PURPOSE OF DETERMINING HIS OR HER ELIGIBILITY FOR RIGHTS AND BENEFITS IN
EITHER SUCH SYSTEM; PROVIDED HOWEVER, THAT IF HE OR SHE DOES NOT WITH-
DRAW HIS OR HER ACCUMULATED CONTRIBUTIONS, (I) HIS OR HER CONTINUED
SERVICE AT A COMMUNITY COLLEGE WHOSE EMPLOYEES ARE OTHERWISE ELIGIBLE
FOR THE NEW YORK CITY TEACHERS' RETIREMENT SYSTEM OR THE NEW YORK CITY
EMPLOYEES' RETIREMENT SYSTEM SHALL BE DEEMED TO BE MEMBER SERVICE IN
EITHER THE NEW YORK CITY TEACHERS' RETIREMENT SYSTEM OR THE NEW YORK
CITY EMPLOYEES' RETIREMENT SYSTEM FOR THE PURPOSE OF DETERMINING HIS OR
HER ELIGIBILITY FOR ANY RETIREMENT ALLOWANCE OR ORDINARY DEATH BENEFIT
UNDER EITHER SUCH SYSTEM DEPENDENT UPON A SPECIFIED PERIOD OF TOTAL
SERVICE OR UPON ATTAINMENT OF A SPECIFIED AGE WHILE IN SERVICE OR UPON
DEATH WHILE IN SERVICE; AND (II) THE AMOUNT OF ANY SUCH BENEFIT TO WHICH
HE OR SHE OR HIS OR HER ESTATE OR PERSON DESIGNATED BY HIM OR HER MAY
BECOME ENTITLED UNDER EITHER SUCH SYSTEM SHALL BE COMPUTED ONLY ON THE
BASIS OF SERVICE OTHERWISE CREDITABLE TO HIM OR HER THEREIN AND HIS OR
HER COMPENSATION DURING SUCH SERVICE.
(B) ENROLLED EMPLOYEES AND THEIR BENEFICIARIES SHALL NOT BE ENTITLED
TO ANY RIGHT OR BENEFIT UNDER EITHER THE NEW YORK CITY TEACHERS' RETIRE-
MENT SYSTEM OR THE NEW YORK CITY EMPLOYEES' RETIREMENT SYSTEM OTHER THAN
A RETIREMENT ALLOWANCE OR ORDINARY DEATH BENEFIT TO THE EXTENT EXPRESSLY
PROVIDED FOR IN THIS SECTION. SUCH EMPLOYEE SHALL NOT BE ELIGIBLE FOR
ANY BENEFIT PURSUANT TO SECTION TWO HUNDRED FORTY-FIVE OF THE MILITARY
LAW.
5. NEW YORK STATE TEACHERS' RETIREMENT SYSTEM EXCEPTIONS. (A) SUBDIVI-
SION TWO OF THIS SECTION SHALL NOT APPLY TO ANY ENROLLED EMPLOYEE WHO
RENDERS SERVICE WHICH IS CREDITABLE IN THE NEW YORK STATE TEACHERS'
RETIREMENT SYSTEM, OTHER THAN SERVICE FOR WHICH A CONTRIBUTION IS MADE
TO THE OPTIONAL RETIREMENT PROGRAM PURSUANT TO THIS ARTICLE.
(B) SUBDIVISION THREE OF THIS SECTION SHALL NOT APPLY TO ANY MEMBER OF
THE NEW YORK STATE TEACHERS' RETIREMENT SYSTEM WHO, AFTER JOINING SUCH
SYSTEM, ENROLLS IN THE OPTIONAL RETIREMENT PROGRAM PURSUANT TO THIS
ARTICLE.
(C) SUBDIVISION THREE OF THIS SECTION NOTWITHSTANDING, ANY ENROLLED
EMPLOYEE WHO IS A MEMBER OF THE NEW YORK STATE TEACHERS' RETIREMENT
SYSTEM MAY OBTAIN CREDIT FOR SERVICE, OTHER THAN SERVICE FOR WHICH A
CONTRIBUTION IS MADE TO THE OPTIONAL RETIREMENT PROGRAM, WHICH IS CRED-
ITABLE IN SUCH SYSTEM AND WAS RENDERED AFTER SUCH MEMBER HAD ENROLLED IN
THE OPTIONAL RETIREMENT PROGRAM, PROVIDED (I) SUCH MEMBER HAS RENDERED
S. 4524--A 6
AT LEAST FIVE YEARS OF SERVICE CREDITED WITH THE NEW YORK STATE TEACH-
ERS' RETIREMENT SYSTEM AT THE TIME SUCH SERVICE IS CREDITED, AND (II) IN
THE CASE OF SUCH MEMBER SUBJECT TO THE PROVISIONS OF ARTICLE FOURTEEN OR
FIFTEEN OF THE RETIREMENT AND SOCIAL SECURITY LAW, THE MEMBER CONTRIB-
UTES THREE PERCENT OF THE WAGES EARNED FOR SUCH SERVICE TOGETHER WITH
INTEREST AT THE RATE OF FIVE PERCENT PER ANNUM COMPOUNDED ANNUALLY FROM
THE DATE OF SUCH SERVICE UNTIL PAYMENT IS MADE.
(D) ANYTHING IN THIS SUBDIVISION NOTWITHSTANDING, SERVICE AS AN
ENROLLED EMPLOYEE FOR WHICH A CONTRIBUTION IS MADE TO THE OPTIONAL
RETIREMENT PROGRAM SHALL NEITHER ENTITLE ANY ENROLLED EMPLOYEE TO JOIN
OR REJOIN THE NEW YORK STATE TEACHERS' RETIREMENT SYSTEM NOR BE CREDITA-
BLE IN SUCH SYSTEM.
S 174. SURVIVOR'S BENEFITS. IN THE CASE OF THE DEATH OF ANY ENROLLED
EMPLOYEE, AFTER THE EFFECTIVE DATE OF SUCH ENROLLMENT AND BEFORE RETIRE-
MENT, THE VALUE OF THE DEATH BENEFITS PROVIDED BY THE CONTRACT OR
CONTRACTS PURCHASED UNDER THE OPTIONAL RETIREMENT PROGRAM WHICH IS
ATTRIBUTABLE TO THE STATE'S CONTRIBUTION AS DETERMINED BY THE LOCAL
LEGISLATIVE BODY, SHALL BE DEEMED TO BE AN ORDINARY DEATH BENEFIT
PROVIDED UNDER A PUBLIC PENSION PLAN WITHIN THE MEANING OF SECTION SIX
HUNDRED FIFTY-FIVE OF THE RETIREMENT AND SOCIAL SECURITY LAW. NOTWITH-
STANDING THE PROVISIONS OF SUCH SECTION OF THE RETIREMENT AND SOCIAL
SECURITY LAW, A SURVIVOR'S BENEFIT PAYABLE THEREUNDER ON ACCOUNT OF THE
DEATH OF ANY ENROLLED EMPLOYEE WHILE IN THE EMPLOY OF AN ELECTING
EMPLOYER, AFTER THE EFFECTIVE DATE OF SUCH ENROLLMENT AND BEFORE RETIRE-
MENT, INCLUDING AN EMPLOYEE SUBJECT TO THE PROVISIONS OF SUBDIVISION
THREE OF SECTION ONE HUNDRED SEVENTY-THREE OF THIS ARTICLE, SHALL BE
PAID TO SUCH PERSON OR PERSONS AS SUCH EMPLOYEE SHALL HAVE NOMINATED TO
RECEIVE THE DEATH BENEFITS PROVIDED BY THE CONTRACT OR CONTRACTS
PURCHASED UNDER THE OPTIONAL RETIREMENT PROGRAM. IN THE EVENT SUCH
DESIGNATED BENEFICIARY OR BENEFICIARIES DO NOT SURVIVE THE EMPLOYEE, OR
IF A BENEFICIARY WAS NOT SO DESIGNATED, THE SURVIVOR'S BENEFIT SHALL BE
PAID TO THE DECEASED EMPLOYEE'S ESTATE OR AS PROVIDED IN SECTION THIR-
TEEN HUNDRED TEN OF THE SURROGATE'S COURT PROCEDURE ACT.
S 175. SOCIAL SECURITY. EVERY ENROLLED EMPLOYEE SHALL HAVE OLD-AGE,
SURVIVOR'S, AND DISABILITY INSURANCE COVERAGE PROVIDED BY THE FEDERAL
SOCIAL SECURITY ACT IN ACCORDANCE WITH THE PROVISIONS OF ARTICLE THREE
OF THE RETIREMENT AND SOCIAL SECURITY LAW.
S 176. EMPLOYER NOT LIABLE FOR PAYMENT OF BENEFITS. NO ELECTING
EMPLOYER SHALL BE A PARTY TO ANY CONTRACT PURCHASED IN WHOLE OR IN PART
WITH CONTRIBUTIONS MADE UNDER THE OPTIONAL RETIREMENT PROGRAM ESTAB-
LISHED AND ADMINISTERED PURSUANT TO THIS ARTICLE. NO RETIREMENT, DEATH,
OR OTHER BENEFITS SHALL BE PAYABLE BY ANY ELECTING EMPLOYER UNDER SUCH
OPTIONAL RETIREMENT PROGRAM. SUCH BENEFITS SHALL BE PAID TO ENROLLED
EMPLOYEES OR THEIR BENEFICIARIES BY THE DESIGNATED INSURER OR INSURERS
IN ACCORDANCE WITH THE TERMS OF THEIR CONTRACTS.
S 177. INCONSISTENT PROVISIONS OF OTHER ACTS SUPERSEDED. INSOFAR AS
THE PROVISIONS OF THIS ARTICLE ARE INCONSISTENT WITH THE PROVISIONS OF
ANY OTHER ACT, GENERAL OR SPECIAL, THE PROVISIONS OF THIS ARTICLE SHALL
BE CONTROLLING.
S 2. The education law is amended by adding a new article 9-A to read
as follows:
ARTICLE 9-A
AUTHORIZATION OF OPTIONAL RETIREMENT PROGRAMS FOR SCHOOL
DISTRICTS
SECTION 430. DEFINITIONS.
431. OPTIONAL RETIREMENT PROGRAM AUTHORIZED.
S. 4524--A 7
432. RATES OF CONTRIBUTION.
433. ELECTION.
434. SURVIVOR'S BENEFITS.
435. SOCIAL SECURITY.
436. EMPLOYER NOT LIABLE FOR PAYMENT OF BENEFITS.
437. INCONSISTENT PROVISIONS OF OTHER ACTS SUPERSEDED.
S 430. DEFINITIONS. FOR THE PURPOSES OF THIS ARTICLE:
1. THE TERM "ELECTING EMPLOYEE" SHALL MEAN ANY ELIGIBLE EMPLOYEE WHO
EXERCISES HIS OR HER ELECTION PURSUANT TO THIS ARTICLE TO COME UNDER THE
OPTIONAL RETIREMENT PROGRAM BY APPLYING FOR SUCH PROGRAM BUT WHO AWAITS
THE APPROVAL OF THE ELECTING EMPLOYER.
2. THE TERM "ELECTING EMPLOYER" SHALL MEAN A SCHOOL DISTRICT WHICH
ELECTS TO OFFER THE OPTIONAL RETIREMENT PROGRAM AUTHORIZED BY THIS ARTI-
CLE BY, AFTER A PUBLIC MEETING, ADOPTING A RESOLUTION SETTING FORTH SUCH
PROGRAM.
3. THE TERM "ELIGIBLE EMPLOYEES" SHALL MEAN THOSE EMPLOYEES WHO BEGIN
TO WORK FOR ANY ELECTING EMPLOYER AFTER THE ADOPTION OF A RESOLUTION
SETTING FORTH AN OPTIONAL RETIREMENT PROGRAM AS AUTHORIZED BY THIS ARTI-
CLE. NO PERSON RECEIVING A BENEFIT BY REASON OF HIS OR HER RETIREMENT
FROM ANY RETIREMENT OR PENSION SYSTEM OF NEW YORK STATE OR ANY POLITICAL
SUBDIVISION THEREOF SHALL BE ELIGIBLE TO ELECT THE OPTIONAL RETIREMENT
PROGRAM PURSUANT TO THIS ARTICLE.
4. THE TERM "ENROLLED EMPLOYEES" SHALL MEAN ANY ELECTING EMPLOYEE WHO
HAS BEEN APPROVED OR ACCEPTED INTO THE OPTIONAL RETIREMENT SYSTEM BY THE
ELECTING EMPLOYER PURSUANT TO PARAGRAPH (B) OF SUBDIVISION ONE OF
SECTION FOUR HUNDRED THIRTY-THREE OF THIS ARTICLE.
5. THE TERM "INSURER" SHALL MEAN A LIFE INSURANCE CORPORATION, OR
OTHER CORPORATION SUBJECT TO INSURANCE DEPARTMENT SUPERVISION.
6. THE TERM "MUNICIPALITY" SHALL MEAN ANY MUNICIPAL CORPORATION AS
DEFINED IN SECTION TWO OF THE GENERAL MUNICIPAL LAW.
7. THE TERM "OPTIONAL RETIREMENT PROGRAM" SHALL MEAN THE RETIREMENT
PROGRAM ESTABLISHED PURSUANT TO THIS ARTICLE.
8. THE TERM "SALARY" SHALL MEAN ALL AMOUNTS PAID BY OR FOR THE ELECT-
ING EMPLOYER AS COMPENSATION FOR SERVICES RENDERED BY AN ELIGIBLE
EMPLOYEE HOLDING A POSITION WITH THE ELECTING EMPLOYER.
9. THE TERM "SCHOOL DISTRICT" SHALL MEAN ANY COMMON SCHOOL DISTRICT,
UNION FREE SCHOOL DISTRICT, CENTRAL SCHOOL DISTRICT, CENTRAL HIGH SCHOOL
DISTRICT AND BOARDS OF COOPERATIVE EDUCATIONAL SERVICES.
S 431. OPTIONAL RETIREMENT PROGRAM AUTHORIZED. 1. AUTHORIZATION OF
PROGRAM. THERE IS HEREBY AUTHORIZED AN OPTIONAL RETIREMENT PROGRAM WHICH
SHALL PROVIDE FOR THE PURCHASE OF CONTRACTS PROVIDING RETIREMENT AND
DEATH BENEFITS FOR OR ON BEHALF OF ENROLLED EMPLOYEES. UNDER SUCH
PROGRAM AN ELECTING EMPLOYER AND SUCH EMPLOYEES SHALL CONTRIBUTE, TO THE
EXTENT AUTHORIZED OR REQUIRED, TOWARDS THE PURCHASE OF SUCH CONTRACTS,
WHICH SHALL BE ISSUED TO, AND BECOME THE PROPERTY OF, SUCH EMPLOYEES.
ANY SCHOOL DISTRICT, IF THE BOARD OF EDUCATION OF SUCH SCHOOL DISTRICT
SO AUTHORIZES, AFTER A PUBLIC MEETING, BY THE ADOPTION OF A RESOLUTION
WHICH SHALL BECOME EFFECTIVE UPON THE DATE SUCH RESOLUTION SHALL HAVE
BEEN ADOPTED, MAY ELECT TO OFFER: (A) ONLY THE OPTIONAL RETIREMENT
PROGRAM TO ELIGIBLE EMPLOYEES OF SUCH SCHOOL DISTRICT, OR (B) BOTH THE
OPTIONAL RETIREMENT PROGRAM AND THE EXISTING NEW YORK STATE TEACHERS'
RETIREMENT SYSTEM.
2. DESIGNATION OF INSURERS. THE SCHOOL DISTRICT SHALL DESIGNATE THE
INSURER OR INSURERS TO WHICH PAYMENT OF SUCH CONTRIBUTIONS MAY BE MADE
AND SHALL APPROVE THE FORM AND CONTENT OF SUCH CONTRACTS. IN MAKING SUCH
DESIGNATION AND GIVING SUCH APPROVAL SUCH SCHOOL DISTRICT SHALL GIVE DUE
S. 4524--A 8
CONSIDERATION TO (A) THE NATURE AND EXTENT OF THE RIGHTS AND BENEFITS TO
BE PROVIDED BY SUCH CONTRACTS FOR ELECTING EMPLOYEES AND THEIR BENEFICI-
ARIES, (B) THE RELATION OF SUCH RIGHTS AND BENEFITS TO THE AMOUNT OF
CONTRIBUTIONS TO BE MADE UNDER THIS ARTICLE, (C) THE SUITABILITY OF SUCH
RIGHTS AND BENEFITS TO THE NEEDS AND INTERESTS OF ELECTING EMPLOYEES AND
TO THE INTERESTS OF THE SCHOOL DISTRICT AND OF ELECTING EMPLOYERS IN THE
EMPLOYMENT AND RETENTION OF ELIGIBLE EMPLOYEES, AND (D) THE AUTHORITY
AND ABILITY OF THE DESIGNATED INSURER OR INSURERS TO PROVIDE RIGHTS AND
BENEFITS UNDER SUCH CONTRACTS.
3. ADMINISTRATION OF PROGRAM. THE APPROPRIATE BOARD OF EDUCATION IS
HEREBY AUTHORIZED TO PROVIDE FOR, BY THE ADOPTION OF A RESOLUTION, THE
SCHOOL DISTRICT TO ADMINISTER SUCH OPTIONAL RETIREMENT PROGRAM AND TO
PERFORM SUCH FUNCTIONS AS MAY BE NECESSARY FOR SUCH PURPOSES IN ACCORD-
ANCE WITH THIS ARTICLE. SUCH PROGRAM MAY BE ADMINISTERED BY THE BOARD,
BY THE OFFICE OF THE COMPTROLLER IF IT SHALL OFFER SUCH A PLAN, OR BY
THE PENSION ADMINISTRATOR OF THE STATE UNIVERSITY OF NEW YORK, AT THE
OPTION OF THE BOARD.
S 432. RATES OF CONTRIBUTION. 1. EMPLOYER CONTRIBUTIONS. THE ELECTING
EMPLOYER SHALL, DURING CONTINUANCE OF AN ENROLLED EMPLOYEE'S EMPLOYMENT,
MAKE CONTRIBUTIONS AT THE RATE OF EIGHT PERCENT OF HIS OR HER SALARY,
OUT OF MONIES WHICH SHALL BE AVAILABLE TO THE ELECTING EMPLOYER FOR SUCH
PURPOSE. FOR PURPOSES OF THIS SUBDIVISION, THAT PORTION OF THE EMPLOY-
EE'S SALARY UPON WHICH CONTRIBUTIONS ARE OR MAY THEREAFTER BE PAID TO
THE SECRETARY OF THE TREASURY OF THE UNITED STATES PURSUANT TO ARTICLE
THREE OF THE RETIREMENT AND SOCIAL SECURITY LAW SHALL BE DEEMED NOT TO
EXCEED SIXTEEN THOUSAND FIVE HUNDRED DOLLARS.
2. EMPLOYEE CONTRIBUTIONS. IN THE CASE OF ANY ENROLLED EMPLOYEE,
CONTRIBUTIONS AT THE RATE OF THREE PERCENT OF HIS OR HER SALARY SHALL BE
DEDUCTED AS THE EMPLOYEE CONTRIBUTION BY THE APPROPRIATE FISCAL OFFICER
WITH RESPECT TO AN ELECTING EMPLOYER, PROVIDED HOWEVER, THAT SUCH
EMPLOYEE CONTRIBUTION SHALL BE MADE BY THE ELECTING EMPLOYER IN ACCORD-
ANCE WITH SUBDIVISION ONE OF THIS SECTION DURING SUCH PERIOD AS THE (A)
CONTRIBUTIONS OF ANY MEMBERS OF ANY OTHER PUBLIC RETIREMENT SYSTEM IN
THIS STATE IN ITS EMPLOY SHALL BE REDUCED BY AT LEAST EIGHT PERCENT OF
THEIR COMPENSATION IN ACCORDANCE WITH SECTION SEVENTY-A OF THE RETIRE-
MENT AND SOCIAL SECURITY LAW, OR (B) EMPLOYEE CONTRIBUTIONS TO ANY SUCH
SYSTEM OF WHICH ANY OF ITS EMPLOYEES ARE MEMBERS ARE NO LONGER REQUIRED
BY REASONS OF SUCH SYSTEM BECOMING NON-CONTRIBUTORY FOR SUCH EMPLOYEES.
3. FISCAL OFFICER TO MAKE PAYMENTS. PAYMENT OF CONTRIBUTIONS BY ELECT-
ING EMPLOYERS PURSUANT TO SUBDIVISIONS ONE AND TWO OF THIS SECTION SHALL
BE MADE TO THE DESIGNATED INSURER OR INSURERS BY THE APPROPRIATE FISCAL
OFFICER FOR EMPLOYEES OF SUCH ELECTING EMPLOYER.
4. CONTRIBUTIONS DURING THE FIRST YEAR OF SERVICE. NO CONTRIBUTIONS
PURSUANT TO SUBDIVISIONS ONE AND TWO OF THIS SECTION FOR ENROLLED
EMPLOYEES SHALL BE MADE BY THE ELECTING EMPLOYER UNTIL HIS OR HER
COMPLETION OF ONE YEAR OF SERVICE AND CONTINUANCE IN SERVICE THEREAFTER.
EMPLOYEE CONTRIBUTIONS, IF ANY, REQUIRED DURING THIS INITIAL YEAR OF
SERVICE SHALL BE DEDUCTED AND HELD BY THE APPROPRIATE FISCAL OFFICER OF
AN ELECTING EMPLOYER. AT THE END OF HIS OR HER INITIAL YEAR OF SERVICE,
A SINGLE CONTRIBUTION IN AN AMOUNT DETERMINED PURSUANT TO SUBDIVISIONS
ONE AND TWO OF THIS SECTION, WITH INTEREST AT THE RATE OF FOUR PERCENT
PER ANNUM, SHALL BE MADE BY THE APPROPRIATE FISCAL OFFICER FOR AN ELECT-
ING EMPLOYER, TO THE DESIGNATED INSURER OR INSURERS, ON BEHALF OF SUCH
EMPLOYEE CONTINUED IN SERVICE. IN THE CASE OF AN ENROLLED EMPLOYEE WHO
DOES NOT CONTINUE IN SERVICE WITH AN ELECTING EMPLOYER BEYOND HIS OR HER
INITIAL YEAR OF SERVICE, THE AMOUNT OF EMPLOYEE CONTRIBUTION, IF ANY,
S. 4524--A 9
DEDUCTED FROM HIS OR HER SALARY SHALL BE REFUNDED TO HIM OR HER, WITH
INTEREST AT THE RATE OF FOUR PERCENT PER ANNUM.
5. EXCEPTIONS. THE PROVISIONS OF SUBDIVISION FOUR OF THIS SECTION
SHALL NOT APPLY TO ANY ENROLLED EMPLOYEE OTHER THAN AN EMPLOYEE
APPOINTED FOR A SPECIFIED PERIOD OF LESS THAN THREE MONTHS WHO, AT THE
TIME OF INITIAL APPOINTMENT, OWNS A CONTRACT DETERMINED BY THE ELECTING
EMPLOYER TO BE SIMILAR TO THOSE CONTRACTS TO BE PURCHASED UNDER THE
OPTIONAL RETIREMENT PROGRAM AND ISSUED BY THE DESIGNATED INSURER OR
INSURERS.
S 433. ELECTION. 1. ELECTION OF THE OPTIONAL RETIREMENT PROGRAM. (A)
THIS SECTION SHALL NOT APPLY TO ANY SCHOOL DISTRICT WHICH DOES NOT ELECT
TO OFFER BOTH THE OPTIONAL RETIREMENT PROGRAM AND THE EXISTING NEW YORK
STATE TEACHERS' RETIREMENT SYSTEM.
(B) EACH ELIGIBLE EMPLOYEE, WITHIN THIRTY DAYS OF HIS OR HER ENTRY
INTO SERVICE, SHALL ELECT (I) TO JOIN A PUBLIC RETIREMENT SYSTEM IN THIS
STATE IN ACCORDANCE WITH THE PROVISIONS OF LAW APPLICABLE THERETO OR
(II) THE OPTIONAL RETIREMENT PROGRAM ESTABLISHED PURSUANT TO THIS ARTI-
CLE; PROVIDED HOWEVER, THAT UPON ELECTION BY THE ELIGIBLE EMPLOYEE, THE
ELECTING EMPLOYER SHALL MAKE THE FINAL APPROVAL OR DISAPPROVAL AS TO THE
ENROLLMENT OF THE ELECTING EMPLOYEE IN THE OPTIONAL RETIREMENT PROGRAM
ESTABLISHED PURSUANT TO THIS ARTICLE.
(C) IN THE EVENT AN ELIGIBLE EMPLOYEE FAILS TO MAKE AN ELECTION AS
PROVIDED IN PARAGRAPH (B) OF THIS SUBDIVISION OR THE ELECTING EMPLOYER
DECIDES THE ELECTING EMPLOYEE SHALL NOT ENROLL IN THE OPTIONAL RETIRE-
MENT PROGRAM PURSUANT TO PARAGRAPH (B) OF THIS SUBDIVISION, HE OR SHE
SHALL BE DEEMED TO HAVE ELECTED MEMBERSHIP IN SUCH PUBLIC RETIREMENT
SYSTEM IN THIS STATE IN WHICH HIS OR HER MEMBERSHIP MAY BE OTHERWISE
REQUIRED IN ACCORDANCE WITH LAW. SUCH MEMBERSHIP SHALL BE EFFECTIVE AS
OF THE DATE OF ENTRY INTO SERVICE OR AT THE TIME OTHERWISE REQUIRED BY
LAW.
(D) THE AMOUNT, IF ANY, REQUIRED TO HAVE BEEN CONTRIBUTED BY ANY
ENROLLED EMPLOYEE IN ACCORDANCE WITH AN ENROLLMENT OR FAILURE TO ELECT
PURSUANT TO PARAGRAPH (B) OR PARAGRAPH (C) OF THIS SUBDIVISION SHALL BE
COLLECTED BY PAYROLL DEDUCTIONS IN SUCH MANNER AS MAY BE PROVIDED BY THE
APPROPRIATE FISCAL OFFICER FOR EMPLOYEES OF AN ELECTING EMPLOYER, OR IN
THE CASE OF MEMBERSHIP IN OTHER PUBLIC RETIREMENT SYSTEMS IN THIS STATE,
BY THE RETIREMENT SYSTEM CONCERNED.
(E) ANY EMPLOYEE OF AN ELECTING EMPLOYER WHO BECOMES ELIGIBLE TO ELECT
THE OPTIONAL RETIREMENT PROGRAM BY REASON OF HIS OR HER APPOINTMENT,
PROMOTION, TRANSFER OR RECLASSIFICATION TO A POSITION PREVIOUSLY SO
ELIGIBLE, MAY ELECT THE OPTIONAL RETIREMENT PROGRAM ESTABLISHED PURSUANT
TO THIS ARTICLE PURSUANT TO PARAGRAPH (B) OF THIS SUBDIVISION. SUCH
ELECTION SHALL BE MADE WITHIN THIRTY DAYS AFTER NOTICE IN WRITING TO
SUCH EMPLOYEE OF HIS OR HER ELIGIBILITY, AND SHALL BECOME EFFECTIVE ON
THE DATE OF SUCH ENROLLMENT SHOULD THE ELECTION OF SUCH ELIGIBLE EMPLOY-
EE BE APPROVED BY THE ELECTING EMPLOYER.
(F) NO ELECTION BY AN ELIGIBLE EMPLOYEE OF THE OPTIONAL RETIREMENT
PROGRAM SHALL BE EFFECTIVE UNLESS IT SHALL BE ACCOMPANIED BY AN APPRO-
PRIATE APPLICATION, WHERE REQUIRED, FOR THE ISSUANCE OF CONTRACT OR
CONTRACTS UNDER THE PROGRAM AND NO ELECTION SHALL BECOME AN ENROLLMENT
WITHOUT THE APPROVAL OF THE ELECTING EMPLOYER PURSUANT TO PARAGRAPH (B)
OF THIS SUBDIVISION.
2. INELIGIBILITY FOR OTHER RETIREMENT SYSTEM MEMBERSHIP. ANY EMPLOYEE
WHO ENROLLS IN THE OPTIONAL RETIREMENT PROGRAM SHALL BE INELIGIBLE FOR
MEMBERSHIP IN THE NEW YORK STATE AND LOCAL EMPLOYEES' RETIREMENT SYSTEM,
THE NEW YORK STATE TEACHERS' RETIREMENT SYSTEM OR ANY OTHER PUBLIC
S. 4524--A 10
RETIREMENT SYSTEM IN THIS STATE SO LONG AS HE OR SHE SHALL REMAIN
CONTINUOUSLY EMPLOYED IN ANY POSITION BY AN ELECTING EMPLOYER AND SHALL
CONTINUE IN THE OPTIONAL RETIREMENT PROGRAM.
3. DISCONTINUANCE OF SERVICE FOR NEW YORK STATE RETIREMENT SYSTEMS.
(A) ANY ELIGIBLE EMPLOYEE WHO IS A MEMBER OF EITHER THE NEW YORK STATE
AND LOCAL EMPLOYEES' RETIREMENT SYSTEM OR THE NEW YORK STATE TEACHERS'
RETIREMENT SYSTEM AT THE TIME HE OR SHE ENROLLS IN THE OPTIONAL RETIRE-
MENT PROGRAM ESTABLISHED PURSUANT TO THIS ARTICLE, SHALL BE DEEMED TO BE
A PERSON WHO DISCONTINUES SERVICE ON THE EFFECTIVE DATE OF SUCH ENROLL-
MENT, FOR THE PURPOSE OF DETERMINING HIS OR HER ELIGIBILITY FOR RIGHTS
AND BENEFITS IN EITHER SUCH SYSTEM; PROVIDED HOWEVER, THAT IF HE OR SHE
DOES NOT WITHDRAW HIS OR HER ACCUMULATED CONTRIBUTIONS, THE AMOUNT OF
ANY SUCH BENEFIT TO WHICH HE OR SHE OR HIS OR HER ESTATE OR PERSON
DESIGNATED BY HIM OR HER MAY BECOME ENTITLED UNDER EITHER SUCH SYSTEM
SHALL BE COMPUTED ONLY ON THE BASIS OF SERVICE OTHERWISE CREDITABLE TO
HIM OR HER THEREIN AND HIS OR HER COMPENSATION DURING SUCH SERVICE.
(B) ENROLLED EMPLOYEES AND THEIR BENEFICIARIES SHALL NOT BE ENTITLED
TO ANY RIGHT OR BENEFIT UNDER EITHER THE NEW YORK STATE AND LOCAL
EMPLOYEES' RETIREMENT SYSTEM OR THE NEW YORK STATE TEACHERS' RETIREMENT
SYSTEM OTHER THAN A VESTED RETIREMENT ALLOWANCE, RETIREMENT ALLOWANCE OR
ORDINARY DEATH BENEFIT TO THE EXTENT EXPRESSLY PROVIDED FOR IN THIS
SECTION.
4. DISCONTINUANCE OF SERVICE FOR NEW YORK CITY RETIREMENT SYSTEMS. (A)
ANY ELIGIBLE EMPLOYEE OF AN ELECTING EMPLOYER WHO IS A MEMBER OR TRANS-
FERRED CONTRIBUTOR OF EITHER THE NEW YORK CITY TEACHERS' RETIREMENT
SYSTEM OR THE NEW YORK CITY EMPLOYEES' RETIREMENT SYSTEM AT THE TIME HE
OR SHE ENROLLS IN THE OPTIONAL RETIREMENT PROGRAM OFFERED BY AN ELECTING
EMPLOYER PURSUANT TO THIS ARTICLE SHALL BE DEEMED TO BE A PERSON WHO
TERMINATES MEMBERSHIP ON THE EFFECTIVE DATE OF SUCH ENROLLMENT, FOR THE
PURPOSE OF DETERMINING HIS OR HER ELIGIBILITY FOR RIGHTS AND BENEFITS IN
EITHER SUCH SYSTEM; PROVIDED HOWEVER, THAT IF HE OR SHE DOES NOT WITH-
DRAW HIS OR HER ACCUMULATED CONTRIBUTIONS, (I) HIS OR HER CONTINUED
SERVICE AT A COMMUNITY COLLEGE WHOSE EMPLOYEES ARE OTHERWISE ELIGIBLE
FOR THE NEW YORK CITY TEACHERS' RETIREMENT SYSTEM OR THE NEW YORK CITY
EMPLOYEES' RETIREMENT SYSTEM SHALL BE DEEMED TO BE MEMBER SERVICE IN
EITHER THE NEW YORK CITY TEACHERS' RETIREMENT SYSTEM OR THE NEW YORK
CITY EMPLOYEES' RETIREMENT SYSTEM FOR THE PURPOSE OF DETERMINING HIS OR
HER ELIGIBILITY FOR ANY RETIREMENT ALLOWANCE OR ORDINARY DEATH BENEFIT
UNDER EITHER SUCH SYSTEM DEPENDENT UPON A SPECIFIED PERIOD OF TOTAL
SERVICE OR UPON ATTAINMENT OF A SPECIFIED AGE WHILE IN SERVICE OR UPON
DEATH WHILE IN SERVICE; AND (II) THE AMOUNT OF ANY SUCH BENEFIT TO WHICH
HE OR SHE OR HIS OR HER ESTATE OR PERSON DESIGNATED BY HIM OR HER MAY
BECOME ENTITLED UNDER EITHER SUCH SYSTEM SHALL BE COMPUTED ONLY ON THE
BASIS OF SERVICE OTHERWISE CREDITABLE TO HIM OR HER THEREIN AND HIS OR
HER COMPENSATION DURING SUCH SERVICE.
(B) ENROLLED EMPLOYEES AND THEIR BENEFICIARIES SHALL NOT BE ENTITLED
TO ANY RIGHT OR BENEFIT UNDER EITHER THE NEW YORK CITY TEACHERS' RETIRE-
MENT SYSTEM OR THE NEW YORK CITY EMPLOYEES' RETIREMENT SYSTEM OTHER THAN
A RETIREMENT ALLOWANCE OR ORDINARY DEATH BENEFIT TO THE EXTENT EXPRESSLY
PROVIDED FOR IN THIS SECTION. SUCH EMPLOYEE SHALL NOT BE ELIGIBLE FOR
ANY BENEFIT PURSUANT TO SECTION TWO HUNDRED FORTY-FIVE OF THE MILITARY
LAW.
5. NEW YORK STATE TEACHERS' RETIREMENT SYSTEM EXCEPTIONS. (A) SUBDIVI-
SION TWO OF THIS SECTION SHALL NOT APPLY TO ANY ENROLLED EMPLOYEE WHO
RENDERS SERVICE WHICH IS CREDITABLE IN THE NEW YORK STATE TEACHERS'
S. 4524--A 11
RETIREMENT SYSTEM, OTHER THAN SERVICE FOR WHICH A CONTRIBUTION IS MADE
TO THE OPTIONAL RETIREMENT PROGRAM PURSUANT TO THIS ARTICLE.
(B) SUBDIVISION THREE OF THIS SECTION SHALL NOT APPLY TO ANY MEMBER OF
THE NEW YORK STATE TEACHERS' RETIREMENT SYSTEM WHO, AFTER JOINING SUCH
SYSTEM, ENROLLS IN THE OPTIONAL RETIREMENT PROGRAM PURSUANT TO THIS
ARTICLE.
(C) SUBDIVISION THREE OF THIS SECTION NOTWITHSTANDING, ANY ENROLLED
EMPLOYEE WHO IS A MEMBER OF THE NEW YORK STATE TEACHERS' RETIREMENT
SYSTEM MAY OBTAIN CREDIT FOR SERVICE, OTHER THAN SERVICE FOR WHICH A
CONTRIBUTION IS MADE TO THE OPTIONAL RETIREMENT PROGRAM, WHICH IS CRED-
ITABLE IN SUCH SYSTEM AND WAS RENDERED AFTER SUCH MEMBER HAD ENROLLED IN
THE OPTIONAL RETIREMENT PROGRAM, PROVIDED (I) SUCH MEMBER HAS RENDERED
AT LEAST FIVE YEARS OF SERVICE CREDITED WITH THE NEW YORK STATE TEACH-
ERS' RETIREMENT SYSTEM AT THE TIME SUCH SERVICE IS CREDITED, AND (II) IN
THE CASE OF SUCH MEMBER SUBJECT TO THE PROVISIONS OF ARTICLE FOURTEEN OR
FIFTEEN OF THE RETIREMENT AND SOCIAL SECURITY LAW, THE MEMBER CONTRIB-
UTES THREE PERCENT OF THE WAGES EARNED FOR SUCH SERVICE TOGETHER WITH
INTEREST AT THE RATE OF FIVE PERCENT PER ANNUM COMPOUNDED ANNUALLY FROM
THE DATE OF SUCH SERVICE UNTIL PAYMENT IS MADE.
(D) ANYTHING IN THIS SUBDIVISION NOTWITHSTANDING, SERVICE AS AN
ENROLLED EMPLOYEE FOR WHICH A CONTRIBUTION IS MADE TO THE OPTIONAL
RETIREMENT PROGRAM SHALL NEITHER ENTITLE ANY ENROLLED EMPLOYEE TO JOIN
OR REJOIN THE NEW YORK STATE TEACHERS' RETIREMENT SYSTEM NOR BE CREDITA-
BLE IN SUCH SYSTEM.
S 434. SURVIVOR'S BENEFITS. IN THE CASE OF THE DEATH OF ANY ENROLLED
EMPLOYEE, AFTER THE EFFECTIVE DATE OF SUCH ENROLLMENT AND BEFORE RETIRE-
MENT, THE VALUE OF THE DEATH BENEFITS PROVIDED BY THE CONTRACT OR
CONTRACTS PURCHASED UNDER THE OPTIONAL RETIREMENT PROGRAM WHICH IS
ATTRIBUTABLE TO THE STATE'S CONTRIBUTION AS DETERMINED BY THE APPROPRI-
ATE BOARD OF EDUCATION, SHALL BE DEEMED TO BE AN ORDINARY DEATH BENEFIT
PROVIDED UNDER A PUBLIC PENSION PLAN WITHIN THE MEANING OF SECTION SIX
HUNDRED FIFTY-FIVE OF THE RETIREMENT AND SOCIAL SECURITY LAW. NOTWITH-
STANDING THE PROVISIONS OF SUCH SECTION OF THE RETIREMENT AND SOCIAL
SECURITY LAW, A SURVIVOR'S BENEFIT PAYABLE THEREUNDER ON ACCOUNT OF THE
DEATH OF ANY ENROLLED EMPLOYEE WHILE IN THE EMPLOY OF AN ELECTING
EMPLOYER, AFTER THE EFFECTIVE DATE OF SUCH ENROLLMENT AND BEFORE RETIRE-
MENT, INCLUDING AN EMPLOYEE SUBJECT TO THE PROVISIONS OF SUBDIVISION
THREE OF SECTION FOUR HUNDRED THIRTY-THREE OF THIS ARTICLE, SHALL BE
PAID TO SUCH PERSON OR PERSONS AS SUCH EMPLOYEE SHALL HAVE NOMINATED TO
RECEIVE THE DEATH BENEFITS PROVIDED BY THE CONTRACT OR CONTRACTS
PURCHASED UNDER THE OPTIONAL RETIREMENT PROGRAM. IN THE EVENT SUCH
DESIGNATED BENEFICIARY OR BENEFICIARIES DO NOT SURVIVE THE EMPLOYEE, OR
IF A BENEFICIARY WAS NOT SO DESIGNATED, THE SURVIVOR'S BENEFIT SHALL BE
PAID TO THE DECEASED EMPLOYEE'S ESTATE OR AS PROVIDED IN SECTION THIR-
TEEN HUNDRED TEN OF THE SURROGATE'S COURT PROCEDURE ACT.
S 435. SOCIAL SECURITY. EVERY ENROLLED EMPLOYEE SHALL HAVE OLD-AGE,
SURVIVOR'S, AND DISABILITY INSURANCE COVERAGE PROVIDED BY THE FEDERAL
SOCIAL SECURITY ACT IN ACCORDANCE WITH THE PROVISIONS OF ARTICLE THREE
OF THE RETIREMENT AND SOCIAL SECURITY LAW.
S 436. EMPLOYER NOT LIABLE FOR PAYMENT OF BENEFITS. NO ELECTING
EMPLOYER SHALL BE A PARTY TO ANY CONTRACT PURCHASED IN WHOLE OR IN PART
WITH CONTRIBUTIONS MADE UNDER THE OPTIONAL RETIREMENT PROGRAM ESTAB-
LISHED AND ADMINISTERED PURSUANT TO THIS ARTICLE. NO RETIREMENT, DEATH,
OR OTHER BENEFITS SHALL BE PAYABLE BY ANY ELECTING EMPLOYER UNDER SUCH
OPTIONAL RETIREMENT PROGRAM. SUCH BENEFITS SHALL BE PAID TO ENROLLED
S. 4524--A 12
EMPLOYEES OR THEIR BENEFICIARIES BY THE DESIGNATED INSURER OR INSURERS
IN ACCORDANCE WITH THE TERMS OF THEIR CONTRACTS.
S 437. INCONSISTENT PROVISIONS OF OTHER ACTS SUPERSEDED. INSOFAR AS
THE PROVISIONS OF THIS ARTICLE ARE INCONSISTENT WITH THE PROVISIONS OF
ANY OTHER ACT, GENERAL OR SPECIAL, THE PROVISIONS OF THIS ARTICLE SHALL
BE CONTROLLING.
S 3. The opening paragraph of subdivision a of section 30 of the
retirement and social security law is amended to read as follows:
A municipality may elect to participate in the retirement system.
Such election shall be exercised by the adoption of a resolution
approved by its local legislative body and any other body or officer
required by law to approve resolution of such local legislative body.
Upon the filing of a certified copy of such resolution with the comp-
troller, EXCEPT FOR MUNICIPALITIES THAT ELECT TO PARTICIPATE IN THE
OPTIONAL RETIREMENT SYSTEMS AUTHORIZED PURSUANT TO ARTICLE EIGHT-A OF
THE GENERAL MUNICIPAL LAW AND ARTICLE NINE-A OF THE EDUCATION LAW, such
election shall be irrevocable, and the municipality shall become a
participating employer, subject, however, to the conditions provided in
this subdivision.
S 4. This act shall take effect immediately.
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