§ 517. Member contributions. a. Members shall contribute three percent
of annual wages to the retirement system in which they have membership,
provided that such contributions shall not be required for more than
thirty years, for general members, or twenty-five years, for police/fire
members, except that beginning April first, two thousand thirteen for
members who first become members of the New York state and local
employees' retirement system on or after April first, two thousand
twelve, the rate at which each such member shall contribute in any
current plan year (April first to March thirty-first) shall be
determined by reference to the wages of such member in the second plan
year (April first to March thirty-first) preceding such current plan
year as follows:

1. members with wages of forty-five thousand dollars per annum or less
shall contribute three per centum of annual wages;

2. members with wages greater than forty-five thousand per annum, but
not more than fifty-five thousand per annum shall contribute three and
one-half per centum of annual wages;

3. members with wages greater than fifty-five thousand per annum, but
not more than seventy-five thousand per annum shall contribute four and
one-half per centum of annual wages;

4. members with wages greater than seventy-five thousand per annum but
not more than one hundred thousand per annum shall contribute five and
three-quarters per centum of annual wages; and

5. members with wages greater than one hundred thousand per annum
shall contribute six per centum of annual wages.

Notwithstanding the foregoing, during each of the first three plan
years (April first to March thirty-first) in which such member has
established membership in the New York state and local employees'
retirement system, such member shall contribute a percentage of annual
wages in accordance with the preceding schedule based upon a projection
of annual wages provided by the employer. Notwithstanding the foregoing,
when determining the rate at which each such member who became a member
of the New York state and local employees' retirement system on or after
April first, two thousand twelve shall contribute for any plan year
(April first to March thirty-first) between April first, two thousand
twenty-two and April first, two thousand twenty-four, such rate shall be
determined by reference to employees annual base wages of such member in
the second plan year (April first to March thirty-first) preceding such
current plan year. Base wages shall include regular pay, shift
differential pay, location pay, and any increased hiring rate pay, but
shall not include any overtime payments.

The head of each retirement system shall promulgate such regulations
as may be necessary and appropriate with respect to the deduction of
such contribution from members' wages and for the maintenance of any
special fund or funds with respect to amounts so contributed.

b. In the event of termination of employment, other than as a result
of transfer to another public employer, a member who is not vested or
entitled to any other benefit under this article may withdraw his
accumulated contributions pursuant to regulations promulgated by the
head of the retirement system involved. In the event membership in a
public retirement system shall terminate, other than as a result of
transfer to another public employer, any contributions remaining to the
credit of the member shall be refunded as specified by the rules or
regulations of the system involved. For the purpose of such withdrawal
or refund, such contributions, commencing on the date of this act or the
date such member first makes contributions hereunder, whichever is
later, together with the balances on such date from any contributions
theretofore made, shall be credited with interest at the rate of five
percent per annum.

c. Upon withdrawal of contributions by a member pursuant to
subdivision b, membership in the public retirement system involved shall
cease. A former member who thereafter returns to public service shall
not receive any credit for previous service to which such withdrawn or
refunded contributions applied unless such member applies therefor and
repays the amounts so withdrawn or refunded, together with interest
through the date of repayment at the rate of five percent per annum.
Notwithstanding any other provision of law to the contrary, a member
may, upon separation from service of the state or a participating
employer, withdraw his or her member contributions pursuant to the
applicable provision of law until such date as such individual has
accrued ten years of credited service in such system. However, the
withdrawal of contributions pursuant to this section by an individual
who has accrued at least five years of creditable service shall
terminate his or her membership and all rights in such retirement system
in the same manner as withdrawal of contributions would terminate the
membership of an individual who has not attained vested status. Nothing
in this section shall be construed as permitting an individual who has
accrued at least ten years of credit in a retirement system to withdraw
member contributions.

d. Notwithstanding any other provision of this article, a member shall
be entitled to withdraw any excess contributions within six months of
becoming subject to this article. Thereafter, such contributions, and
interest thereon, may only be withdrawn upon separation from service.
Upon retirement, such excess contributions, and any interest thereon,
may be withdrawn in a single lump sum, or at the election of the member
may be paid as an annuity under an option authorized pursuant to section
five hundred fourteen of this article. The retirement system may at any
time use any such excess contributions to offset a deficit of additional
member contributions as required pursuant to sections five hundred
four-a, five hundred four-b, and five hundred four-d of this article.
The use of basic member contributions to offset a deficit of additional
member contributions does not affect the contributions' tax designation
pursuant to section 414(h) of the Internal Revenue Code.

e. Notwithstanding any other provision of law, except as provided in
section five hundred seventeen-b of this article, except as provided in
section five hundred seventeen-c of this article, a member shall not be
permitted to borrow any portion of the contributions which are subject
to this section.

** f. * 1. Notwithstanding any other provision of law, each
participating employer shall pick up the member contributions required
on and after the effective date of this subdivision to be made under
this section by its employees and shall do so by reducing the salary of
each of its employees to which this section is applicable by that amount
which each such employee is required to contribute under this section.
The contributions so picked up shall be paid by each participating
employer in lieu of the member contributions to be paid by its employees
under this section and shall be treated as employer contributions in
determining income tax treatment under section 414(h) of the Internal
Revenue Code.

* NB Effective until notice of ruling by Internal Revenue Service per
ch. 627/2007 §22

* 1. Notwithstanding any other provision of law, each participating
employer shall pick up the member contributions required on and after
the effective date of this subdivision to be made under this section by
its employees, or required to be made for the purchase of credit for
previous service or military service by its employees pursuant to an
irrevocable payroll deduction agreement under subdivision b-1 of section
five hundred thirteen of this article, and shall do so by reducing the
salary of each of its employees to which this section, or subdivision
b-1 of section five hundred thirteen of this article, is applicable by
that amount which each such employee is required to contribute under
this section, or subdivision b-1 of section five hundred thirteen of
this article. The contributions so picked up shall be paid by each
participating employer in lieu of the member contributions to be paid by
its employees under this section, or subdivision b-1 of section five
hundred thirteen of this article, and shall be treated as employer
contributions in determining income tax treatment under section 414(h)
of the Internal Revenue Code.

* NB Takes effect upon notice of ruling by Internal Revenue Service
per ch. 627/2007 §22

2. Each participating employer of any employee (subject to this
article) who, in lieu of joining a public retirement system of the
state, elected an optional retirement program to which their employers
are thereby required to contribute, shall pick up the employee
contributions thereto which would otherwise be mandatory under the
provisions of state law and shall do so by reducing the salary of such
employee by the amount of employee contributions to such optional
retirement program which would otherwise be mandatory under the
provisions of state law. The contributions so picked up shall be paid by
each participating employer in lieu of the member contributions to be
paid by its employees and shall be treated as employer contributions in
determining income tax treatment under section 414(h) of the internal
revenue code.

3. With the exception of federal income tax treatment, the employee
contributions picked up or paid pursuant to this subdivision shall for
all other purposes, including computation of retirement benefits and
contributions by employers and employees, be deemed employee salary.
Nothing contained in this subdivision shall be construed as superseding
the provisions of section four hundred thirty-one of this chapter or any
similar provision of law which limits the salary base for computing
retirement benefits payable by a public retirement system.

* 4. The provisions of this subdivision f shall not apply to a
police/fire member or a member of the New York city employees'
retirement system who is a member of the uniformed correction force or
of the uniformed force of the department of sanitation, as defined in
subdivisions thirty-nine and sixty-two of section 13-101 of the
administrative code of the city of New York.

* NB Effective until chapter 525/2011 § 2 takes effect

* 4. The provisions of this subdivision shall not apply to a
police/fire member who is a member of either the New York city police
pension fund or the New York city fire department pension fund or a
member of the New York city employees' retirement system who is a member
of the uniformed correction force or of the uniformed force of the
department of sanitation, as defined in subdivisions thirty-nine and
sixty-two of section 13-101 of the administrative code of the city of
New York.

* NB See ch 525/2011 § 7 for effectiveness

** NB Expires per chap 782/88 § 8

g. Interest shall accrue from the date of death until the date of
payment on accumulated member contributions refunded pursuant to this
section upon the death of a member, where no death benefit is payable on
account of such death. Interest shall accrue at the rate provided in
subdivision one of section three-a of the general municipal law.

h. Notwithstanding any inconsistent provision of subdivision a of this
section, New York city enhanced plan members who are members of the New
York city fire department pension fund shall, as of the effective date
of this subdivision pursuant to chapter two hundred ninety-eight of the
laws of two thousand sixteen, contribute three percent of annual wages
to the pension fund in which they have membership, plus an additional
percentage of annual wages as set forth in the chapter of the laws of
two thousand sixteen which added this subdivision.

i. Notwithstanding any inconsistent provision of subdivision a of this
section, New York city enhanced plan members who are members of the New
York city police pension fund shall, as of the effective date of this
subdivision, contribute three percent of annual wages to the pension
fund in which they have membership, plus an additional percentage of
annual wages as set forth in the chapter of the laws of two thousand
seventeen which added this subdivision.