Tuesday, March 20, 2012

Tier VI Retirement - Chapter 18 of the Laws of 2012

Tier VI Retirement - Chapter 18 of the Laws of 2012

STATUS:
S6735  RULES   Same as Uni. A 9558  Rules 
Retirement and Social Security Law

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



03/15/12
REFERRED TO RULES

03/14/12
ORDERED TO THIRD READING CAL.368

03/14/12
MESSAGE OF NECESSITY - 3 DAY MESSAGE

03/14/12
PASSED SENATE

03/14/12
DELIVERED TO ASSEMBLY

03/15/12
referred to ways and means

03/15/12
substituted for a9558

03/15/12
ordered to third reading rules cal.20

03/15/12
message of necessity - 3 day message

03/15/12
passed assembly

03/15/12
returned to senate

03/15/12
DELIVERED TO GOVERNOR

03/16/12
SIGNED CHAP.18




CHAPTER TEXT:


                            LAWS OF NEW YORK, 2012

                                  CHAPTER 18

                     (See FISCAL NOTES at end of Chapter.)

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

   Became a law March 16, 2012, with the approval of the  Governor.  Passed
     on  message  of  necessity  pursuant to Article III, section 14 of the
     Constitution by a majority vote, three-fifths being present.

     The People of the State of New York, represented in Senate and  Assem-
   bly, do enact as follows:

{Matter in italics is new; matter in brackets [ ] is old law to be omitted.}

     Section 1. Legislative findings and intent. The legislature finds that
   the  state's current pension system is financially unsustainable result-
   ing in fiscal instability for the state, local  governments  and  school
   districts.  Most  alarmingly,  the  dramatic growth in pension costs has
   resulted in a greater stress on the already overburdened taxpayer.
     Moreover, there is a significant state interest to reform the city  of
   New York's pension system. Rapid and unsustainable growth of the city of
   New  York's  pension  costs has a deleterious effect on the city, but as
   importantly, on the financial security  of  the  entire  state.  As  the
   financial  capital  of the world, the entire state relies heavily on the
   fiscal stability and growth of the city of New York. The ever-increasing
   and dramatic increases in pension costs in the city of New York,  howev-
   er,  are  destabilizing the fiscal and economic stability of the city of
   New York and therefore the state. Thus, rapidly growing  New  York  city
   pension  costs  are  of  substantial  state concern and must be remedied
   immediately.
     It is incumbent on the  state  to  implement  common  sense  long-term
   structural  reform  of  the current pension system for future employees.
   These reforms will not only protect the benefits of the  public  employ-
   ees, but will provide financial stability to the state government, local
   governments and school districts and taxpayers across this state.
     §  1-a.   Paragraph 1 of subdivision j of section 41 of the retirement
   and social security law, as amended by chapter 397 of the laws of  2009,
   is amended to read as follows:
     1. In addition to any other service credit to which he or she is enti-
   tled,  a  member  who meets the requirements set forth in paragraphs two
   and three of this subdivision shall be granted  one  day  of  additional
   service credit for each day of accumulated unused sick leave which he or
   she has at time of retirement for service, but such credit shall not (a)
   exceed  one  hundred  sixty-five  days, (b) be considered in meeting any
   service  or  age  requirements  prescribed  in  this chapter, and (c) be
   considered in computing final average salary. However, for an  executive
   branch  member designated managerial or confidential pursuant to article
   fourteen of the civil service law or in the collective negotiating units
   established by article fourteen of the civil service law designated  the
   professional,  scientific  and  technical  services unit, the rent regu-
   lation services negotiating  unit,  the  security  services  negotiating
   unit,  the  security  supervisors negotiating unit, the state university
   professional services  negotiating  unit,  the  administrative  services
   negotiating unit, the institutional services negotiating unit, the oper-
   ational services negotiating unit and the division of military and naval
   affairs  negotiating  unit  such  service  credit limitation provided in
   subparagraph (a) of this paragraph shall not exceed  two  hundred  days.
   For a nonjudicial officer or employee of the unified court system not in
   a collective negotiating unit or in a collective negotiating unit speci-
   fied  in  section  one  of  chapter two hundred three of the laws of two
   thousand four, for employees of the New York state dormitory  authority,
   for  employees  of  the  New  York state thruway authority, the New York
   state canal corporation and the state university construction  fund  and
   for  employees  of  the  New York liquidation bureau such service credit
   limitation provided in subparagraph (a)  of  this  paragraph  shall  not
   exceed  two  hundred  days.  For  members  who first become members of a
   public retirement system of the state on or after April first, two thou-
   sand twelve, such credit shall not exceed one hundred days.
     § 2. Subdivisions a and b of section 376 of the retirement and  social
   security  law,  subdivision  a  as amended by chapter 389 of the laws of
   1998 and subdivision b as amended by chapter 371 of the  laws  of  1969,
   are amended to read as follows:
     a.  A  member  who discontinues service other than by death or retire-
   ment:
     1. who has credit for at least five years of total service, or
     2. who has credit for at least five years of total service,  including
   a  minimum  of  five  years  of  member  service during which the member
   contributed to the system and/or participated in an increased-take-home-
   pay or non-contributory plan, and who does not withdraw his or her accu-
   mulated contributions, shall be entitled to make application pursuant to
   section three hundred seventy of this article for  a  vested  retirement
   allowance to be effective on or after the first day of the month follow-
   ing his or her attainment of sixty years of age, or sixty-three years of
   age  for  a  member who first becomes a member of the New York state and
   local police and fire retirement system on or  after  April  first,  two
   thousand  twelve.    The  retirement  allowance provided by this section
   shall vest automatically upon such discontinuance  of  service  by  such
   member.
     3. In the case of such a member who discontinues service other than by
   death  or  retirement  after March thirty-first, nineteen hundred sixty-
   six, who  had  been  contributing  toward  and/or  participating  in  an
   increased-take-home-pay  or  non-contributory  plan  for retirement on a
   basis other than retirement at age sixty for five years preceding his or
   her discontinuance of service, he or  she  shall  be  entitled  to  make
   application  for  a  vested  retirement  allowance to be effective on or
   after the first day of the month following  his  or  her  attainment  of
   fifty-five  years  of  age, or sixty-three years of age for a member who
                                      3                            CHAP. 18

   first becomes a member of the New York state and local police  and  fire
   retirement system on or after April first, two thousand twelve.
     b.  The  vested  retirement  allowance  shall  be computed and paid in
   accordance with the provisions of the plan of which the member had  been
   a  participant  provided,  however, that if the service fraction used to
   compute the retirement allowance  or  the  pension  provides  a  benefit
   greater  than  that which would have been provided had the service frac-
   tion one-sixtieth been used to compute the benefit, the service fraction
   one-sixtieth shall be used to compute the  vested  retirement  allowance
   unless  such  plan  shall specify another fraction to be used to compute
   the vested retirement allowance. The vested retirement  allowance  shall
   not  be  paid  before  the member attains age fifty-five, or sixty-three
   years of age for a member who first becomes a member  of  the  New  York
   state  and  local  police  and  fire retirement system on or after April
   first, two thousand twelve.
     § 3. Subdivision e of section 440 of the retirement and social securi-
   ty law, as added by chapter 285 of the laws of 1997, is amended to  read
   as follows:
     e.  Notwithstanding  any  other  provision of law to the contrary, the
   provisions and limitations of this article shall apply, as may be appro-
   priate, to all investigator members of  the  New  York  city  employees'
   retirement  system  who  last  joined such retirement system on or after
   July first, nineteen hundred seventy-six, and  prior  to  the  effective
   date  of  the  chapter  of the laws of two thousand twelve which amended
   this subdivision.
     § 4. Subdivisions 5, 7, 12, 17 and 24 of section 501 of the retirement
   and social security law, subdivisions 5, 12 and 17 as added  by  chapter
   890  of the laws of 1976, subdivision 7 as amended by chapter 408 of the
   laws of 2000 and subdivision 24 as amended by section 1  of  part  B  of
   chapter 504 of the laws of 2009, are amended to read as follows:
     5.  "Early  retirement  age"  shall  mean  age fifty-five, for general
   members, and the age on which a member completes or would have completed
   twenty  years  of  service,  for  police/fire  members,  New  York  city
   uniformed  correction/sanitation  revised  plan members and investigator
   revised plan members.
     7. "Eligible beneficiary" for the purposes  of  section  five  hundred
   nine  of  this  article  shall  mean the following persons or classes of
   persons in the order set forth: (a)  a  surviving  spouse  who  has  not
   renounced  survivorship  rights  in a separation agreement, until remar-
   riage, (b) surviving  children  until  age  twenty-five,  (c)  dependent
   parents,  determined  under  regulations promulgated by the comptroller,
   (d) any other person who qualified as a dependent on the  final  federal
   income  tax  return  of the member or the return filed in the year imme-
   diately preceding the year of death, until such person  reaches  twenty-
   one  years  of  age and (e) with respect to members of the New York city
   employees' retirement system (other  than  a  New  York  city  uniformed
   correction/sanitation  revised  plan  member  or an investigator revised
   plan member) and the board of education retirement system of the city of
   New York, a person whom the member shall have nominated in the form of a
   written designation, duly acknowledged and filed with the  head  of  the
   retirement  system for the purpose of section five hundred eight of this
   article. In the event that a class of eligible beneficiaries consists of
   more than one person,  benefits  shall  be  divided  equally  among  the
   persons in such class. For the purposes of section five hundred eight of
   this  article  the term "eligible beneficiary" shall mean such person as
   the member shall have nominated to receive the benefits provided in this
   CHAP. 18                           4

   article. To be effective, such a nomination must be in  the  form  of  a
   written  designation,  duly  acknowledged and filed with the head of the
   retirement system for this specific purpose. In the  event  such  desig-
   nated  beneficiary  does  not  survive  him,  or if he shall not have so
   designated a beneficiary, such benefits shall be payable to the deceased
   member's estate or as provided in section one thousand three hundred ten
   of the surrogate's court procedure act.
     12. "General member" shall mean a member subject to the provisions  of
   this  article who is not a police/fire member, a New York city uniformed
   correction/sanitation revised plan member  or  an  investigator  revised
   plan member.
     17.  "Normal  retirement  age"  shall  be  age  sixty-two, for general
   members, and the age at which a member completes or would have completed
   twenty-two years of service, for  police/fire  members,  New  York  city
   uniformed  correction/sanitation  revised  plan members and investigator
   revised plan members.
     24. "Wages" shall mean regular compensation earned by and  paid  to  a
   member  by a public employer, except that for members who first join the
   state and local employees' retirement system on or after January  first,
   two  thousand  ten,  overtime compensation paid in any year in excess of
   the overtime ceiling, as defined  by  this  subdivision,  shall  not  be
   included in the definition of wages. "Overtime compensation" shall mean,
   for  purposes of this section, compensation paid under any law or policy
   under which employees are paid at a rate  greater  than  their  standard
   rate  for  additional  hours  worked  beyond  those  required, including
   compensation paid under section one hundred  thirty-four  of  the  civil
   service  law and section ninety of the general municipal law. The "over-
   time ceiling" shall mean fifteen thousand dollars per annum  on  January
   first,  two  thousand  ten, and shall be increased by three percent each
   year thereafter, provided, however, that for members  who  first  become
   members  of the New York state and local employees' retirement system on
   or after April first, two thousand twelve, "overtime ceiling" shall mean
   fifteen thousand dollars per annum on April first, two thousand  twelve,
   and shall be increased each year thereafter by a percentage to be deter-
   mined  annually  by  reference  to  the  consumer price index (all urban
   consumers, CPI-U, U.S. city average, all items, 1982-84=100),  published
   by  the  United  States  bureau of labor statistics, for each applicable
   calendar year. Said percentage  shall  equal  the  annual  inflation  as
   determined from the increase in the consumer price index in the one year
   period  ending  on the December thirty-first prior to the cost-of-living
   adjustment effective on the ensuing April first.   For  the  purpose  of
   calculation  a  member's  primary  federal social security retirement or
   disability benefit, wages shall, in any calendar year, be limited to the
   portion of the member's wages  which  would  be  subject  to  tax  under
   section  three  thousand  one hundred twenty-one of the internal revenue
   code of nineteen hundred fifty-four, or  any  predecessor  or  successor
   provision  relating  thereto,  if  such member was employed by a private
   employer.  For members who first become members of the  New  York  state
   and local employees' retirement system on or after the effective date of
   the chapter of the laws of two thousand twelve which amended this subdi-
   vision,  the  following items shall not be included in the definition of
   wages: (a) wages in excess of the annual salary  paid  to  the  governor
   pursuant to section three of article four of the state constitution, (b)
   lump  sum  payments  for  deferred compensation, sick leave, accumulated
   vacation or other credits for time not worked, (c) any  form  of  termi-
   nation  pay,  (d)  any  additional  compensation paid in anticipation of
                                      5                            CHAP. 18

   retirement, and (e) in the case of  employees  who  receive  wages  from
   three  or more employers in a twelve month period, the wages paid by the
   third and each successive employer.
     § 5.  Section 501 of the retirement and social security law is amended
   by adding three new subdivisions 25, 26 and 27 to read as follows:
     25.    "New  York  city  uniformed  correction/sanitation revised plan
   member" shall mean a member who becomes subject  to  the  provisions  of
   this  article on or after April first, two thousand twelve, and who is a
   member of either the uniformed force of the New York city department  of
   correction  or  the  uniformed  force of the New York city department of
   sanitation.
     26. "New York city police/fire  revised  plan  member"  shall  mean  a
   police/fire member who becomes subject to the provisions of this article
   on  or  after  April  first, two thousand twelve, and who is a member of
   either the New York city police pension fund or the New York  city  fire
   department pension fund.
     27.  "Investigator  revised  plan  member"  shall mean an investigator
   member of the New York city employees' retirement system who is a police
   officer as defined  in  paragraph  (g)  of  subdivision  thirty-four  of
   section  1.20  of the criminal procedure law, and who becomes subject to
   the provisions of this article on or after  April  first,  two  thousand
   twelve.
     § 6. Intentionally omitted.
     §  7.  Subdivisions  a,  c  and d of section 503 of the retirement and
   social security law, subdivision a as amended by chapter 662 of the laws
   of 1988, subdivision c as amended by section 143 of subpart B of part  C
   of  chapter 62 of the laws of 2011 and subdivision d as added by chapter
   890 of the laws of 1976, are amended to read as follows:
     a. The normal service retirement benefit  specified  in  section  five
   hundred  four of this article shall be payable to general members, other
   than elective members, who have met  the  minimum  service  requirements
   upon  retirement  and  attainment of age sixty-two, provided, however, a
   general member who is a peace officer  employed  by  the  unified  court
   system  or  a member of a teachers' retirement system may retire without
   reduction of his or her retirement benefit upon attainment of  at  least
   fifty-five  years  of  age  and  completion  of  thirty or more years of
   service. For members who become members of the New York state and  local
   employees'  retirement  system  on  or  after  April first, two thousand
   twelve, the normal service retirement benefits specified in section five
   hundred four of this article shall be payable to general members,  other
   than  elective  members,  who  have met the minimum service requirements
   upon retirement and attainment of age sixty-three.
     c. A general member shall be eligible for early service retirement  at
   age  fifty-five with five years of credited service. A general member in
   the uniformed correction force  of  the  New  York  city  department  of
   correction, who is not eligible for early service retirement pursuant to
   subdivision c of section five hundred four-a of this article or subdivi-
   sion  c  of section five hundred four-b of this article or subdivision c
   of section five hundred four-d of this article, or a general  member  in
   the  uniformed  personnel  in institutions under the jurisdiction of the
   department of corrections  and  community  supervision,  as  defined  in
   subdivision  i  of  section  eighty-nine  of  this chapter or serving in
   institutions who is also in a title defined in such subdivision and  who
   has  made an election pursuant to the provisions of article seventeen of
   this chapter, shall also be eligible for early service retirement  after
   twenty-five  years  of  credited  service,  provided,  however, that the
   CHAP. 18                           6

   provisions of this subdivision and subdivision a of this  section  shall
   not  apply  to  a  New York city uniformed correction/sanitation revised
   plan member or an investigator revised plan member.
     d.  The  normal  service  retirement benefit specified in section five
   hundred five of this article shall be paid to police/fire  members,  New
   York  city  uniformed  correction/sanitation  revised  plan  members and
   investigator revised plan members without regard to age upon  retirement
   after  twenty-two  years  of  service. Early service retirement shall be
   permitted upon retirement after twenty  years  of  credited  service  or
   attainment  of  age  sixty-two,  provided,  however,  that New York city
   police/fire   revised   plan   members,   New   York   city    uniformed
   correction/sanitation revised plan members and investigator revised plan
   members shall not be eligible to retire for service prior to the attain-
   ment of twenty years of credited service.
     §  8.  Subdivisions  a,  c  and d of section 504 of the retirement and
   social security law, subdivision a as added by chapter 890 of  the  laws
   of  1976, subdivision c as amended by section 3 of part B of chapter 504
   of the laws of 2009 and subdivision d  as  amended  by  section  144  of
   subpart  B  of  part C of chapter 62 of the laws of 2011, are amended to
   read as follows:
     a. The service  retirement  benefit  for  general  members  at  normal
   retirement  age with twenty or more years of credited service shall be a
   pension equal to one-fiftieth of final average  salary  times  years  of
   credited  service,  not in excess of thirty years, less fifty percent of
   the primary social security retirement benefit as  provided  in  section
   five hundred eleven of this articleThe service retirement benefit for
   general  members  at  normal retirement age with twenty or more years of
   service who first become members of the New York state and local employ-
   ees' retirement system on or after April first, two thousand  twelve  at
   normal retirement age shall be a pension equal to the sum of thirty-five
   per  centum  and  one-fiftieth  of final average salary for each year of
   service in excess of twenty, but not in excess of  thirty,  times  final
   average salary times years of credited service.
     c.  The  early  service retirement benefit for general members, except
   for general members whose  early  retirement  benefit  is  specified  in
   subdivision  d  of this section, shall be the service retirement benefit
   specified in subdivision a or b of this section, as  the  case  may  be,
   without social security offset, reduced by one-fifteenth for each of the
   first two years by which early retirement precedes age sixty-two, plus a
   further  reduction  of:  (1)  one-thirtieth;  or  (2)  one-twentieth for
   members who first join the New York state and local  employees'  retire-
   ment  system  on or after January first, two thousand ten, for each year
   by which early retirement precedes age sixty, provided however, that for
   members who first become members of the New York state and local employ-
   ees' retirement system on or after the effective date of the chapter  of
   the  laws  of  two  thousand  twelve which amended this subdivision, the
   early service retirement benefit for general members, except for general
   members whose early retirement benefit is specified in subdivision d  of
   this  section,  shall  be  the  service  retirement benefit specified in
   subdivision a or b of this section, as the case may be,  without  social
   security offset, reduced by six and one-half per centum for each year by
   which  early  retirement precedes age sixty-three. At age sixty-two, the
   benefit shall be reduced by fifty percent of the primary social security
   retirement benefit, as provided in section five hundred eleven  of  this
   article.
                                      7                            CHAP. 18

     d.  The  early  service  retirement benefit for general members in the
   uniformed  correction  force  of  the  New  York  city   department   of
   correction,  who are not entitled to an early service retirement benefit
   pursuant to subdivision c of section five hundred four-a of this article
   or  subdivision  c  of  section  five  hundred four-b of this article or
   subdivision c of section five hundred four-d of  this  article,  or  for
   general  members  in  the  uniformed personnel in institutions under the
   jurisdiction of the department of corrections and community supervision,
   as defined in subdivision i of  section  eighty-nine  of  this  chapter,
   shall  be  a pension equal to one-fiftieth of final average salary times
   years of credited service at the  completion  of  twenty-five  years  of
   service,  but  not  in  excess of fifty percent of final average salary,
   provided, however, that the provisions of this section shall  not  apply
   to a New York city uniformed correction/sanitation revised plan member.
     § 9. Subdivision b of section 504-a of the retirement and social secu-
   rity law is amended by adding a new paragraph 4-a to read as follows:
     4-a.  Notwithstanding  any  other provision of this subdivision or any
   other provision of law to the contrary, no member of the uniformed force
   of the New York city department of correction who is  a  New  York  city
   uniformed  correction/sanitation  revised plan member shall be a partic-
   ipant in the twenty-year retirement program.
     § 10. Subdivision b of section 504-b  of  the  retirement  and  social
   security  law  is  amended  by  adding  a  new  paragraph 4-a to read as
   follows:
     4-a. Notwithstanding any other provision of this  subdivision  or  any
   other provision of law to the contrary, no member of the uniformed force
   of  the  New  York  city department of correction who is a New York city
   uniformed correction/sanitation revised plan member shall be  a  partic-
   ipant in the twenty-year retirement program for captains and above.
     §  11.  Subdivision  b  of  section 504-d of the retirement and social
   security law is amended by  adding  a  new  paragraph  1-a  to  read  as
   follows:
     1-a.  Notwithstanding  any  other provision of this subdivision or any
   other provision of law to the contrary, no member of the uniformed force
   of the New York city department of correction who is  a  New  York  city
   uniformed  correction/sanitation  revised plan member shall be a partic-
   ipant in the twenty-year retirement program.
     § 12. Section 505 of the retirement and social security law, as  added
   by chapter 890 of the laws of 1976, is amended to read as follows:
     § 505. Service retirement benefits; police/fire members, New York city
   uniformed  correction/sanitation  revised  plan members and investigator
   revised plan members.   a. The normal  service  retirement  benefit  for
   police/fire  members,  New  York  city  uniformed  correction/sanitation
   revised plan members and investigator revised  plan  members  at  normal
   retirement  age shall be a pension equal to fifty percent of final aver-
   age salary, less fifty percent of the primary social security retirement
   benefit commencing at age sixty-two, as provided in section five hundred
   eleven of this article.
     b. The early service retirement benefit for police/fire  members,  New
   York  city  uniformed  correction/sanitation  revised  plan  members and
   investigator revised plan members shall be a pension equal  to  two  and
   one-tenths  percent  of  final  average  salary  times years of credited
   service at the completion of twenty years of service or upon  attainment
   of age sixty-two, increased by one-third of one percent of final average
   salary  for  each month of service in excess of twenty years, but not in
   excess of fifty percent of final average salary, less fifty  percent  of
   CHAP. 18                           8

   the  primary social security retirement benefit commencing at age sixty-
   two as  provided  in  section  five  hundred  eleven  of  this  article,
   provided,  however, that New York city police/fire revised plan members,
   New  York  city uniformed correction/sanitation revised plan members and
   investigator revised plan members shall not be eligible  to  retire  for
   service prior to the attainment of twenty years of credited service.
     c.    A    police/fire    member,    a   New   York   city   uniformed
   correction/sanitation revised plan member  or  an  investigator  revised
   plan  member  who  retires  with twenty-two years of credited service or
   less may become eligible for annual escalation of the service retirement
   benefit if he elects to have the payment of his benefit commence on  the
   date  he  would have completed twenty-two years and one month or more of
   service. In such event, the service retirement benefit shall  equal  two
   percent  of final average salary for each year of credited service, less
   fifty percent of the primary social security retirement benefit commenc-
   ing at age sixty-two as provided in section five hundred eleven of  this
   article.
     § 13. Subdivisions b and c of section 507 of the retirement and social
   security  law,  subdivision  b  as amended by chapter 489 of the laws of
   2008 and subdivision c as amended by chapter 513 of the  laws  of  2010,
   are amended to read as follows:
     b.  A  police/fire member in active service, a New York city uniformed
   correction/sanitation revised plan member in active service or an inves-
   tigator revised plan member in active service, or a vested member  inca-
   pacitated  as the result of a qualifying World Trade Center condition as
   defined in section two of this chapter, who is not eligible for a normal
   service retirement benefit shall be eligible for the accidental disabil-
   ity benefit either as provided in subdivision a of this  section  or  if
   such  member  is physically or mentally incapacitated for performance of
   duty as the natural and proximate result of  an  accident  sustained  in
   such  active  service and not caused by such member's own willful negli-
   gence.
     c. In the case of a member of a retirement system other than  the  New
   York  state  and  local employees' retirement system, the New York state
   teachers' retirement system, the New  York  city  employees'  retirement
   system,  the  New  York city board of education retirement system or the
   New York city teachers' retirement system, or in the case of a member of
   the New York city employees' retirement system who is a  New  York  city
   uniformed  correction/sanitation  revised plan member or an investigator
   revised plan member, the accidental disability benefit  hereunder  shall
   be a pension equal to two percent of final average salary times years of
   credited service which such member would have attained if employment had
   continued until such member's full escalation date, not in excess of the
   maximum  years  of  service creditable for the normal service retirement
   benefit, less (i) fifty percent of the primary social security disabili-
   ty benefit, if any, as provided in section five hundred eleven  of  this
   article, and (ii) one hundred percent of any workers' compensation bene-
   fits payable.
     In  the  case  of  a member of the New York state and local employees'
   retirement system, the New York state teachers' retirement  system,  the
   New  York  city employees' retirement system (other than a New York city
   uniformed correction/sanitation revised plan member or  an  investigator
   revised  plan  member),  the New York city board of education retirement
   system or the New York city teachers' retirement system, the  accidental
   disability  benefit  hereunder shall be a pension equal to sixty percent
   of final average salary, less (i) fifty percent of  the  primary  social
                                      9                            CHAP. 18

   security disability benefit, if any, as provided in section five hundred
   eleven  of  this  article,  and (ii) one hundred percent of any workers'
   compensation benefits payable. In the event a  disability  retiree  from
   any  retirement  system  is not eligible for the primary social security
   disability benefit and continues to be eligible for disability  benefits
   hereunder,  such disability benefit shall be reduced by one-half of such
   retiree's primary social security retirement benefit, commencing at  age
   sixty-two,  in  the same manner as provided for service retirement bene-
   fits under section five hundred eleven of this article.
     § 14. The opening paragraph of subdivision a of section 507-a  of  the
   retirement and social security law, as amended by section 145 of subpart
   B  of  part  C  of chapter 62 of the laws of 2011, is amended to read as
   follows:
     [Application] Subject to the  provisions  of  subdivision  e  of  this
   section,  application for a disability retirement allowance for a member
   in the uniformed personnel in institutions under the jurisdiction of the
   department of corrections and community supervision of New York state as
   defined in subdivision i of section eighty-nine of this chapter or for a
   member serving in institutions who is also in a title  defined  in  such
   subdivision  and  who has made an election pursuant to the provisions of
   article seventeen of this chapter or the New  York  city  department  of
   correction may be made by:
     §  15.  Section  507-a  of  the  retirement and social security law is
   amended by adding a new subdivision e to read as follows:
     e. Notwithstanding the preceding subdivisions of this section  to  the
   contrary,  this  section  shall  not  apply to a member of the uniformed
   force of the New York city department of correction who is  a  New  York
   city uniformed correction/sanitation revised plan member.
     §  16.  Subdivision  a  of  section 507-c of the retirement and social
   security law, as added by chapter 622 of the laws of 1997, is amended to
   read as follows:
     a. Any member in the uniformed personnel  in  institutions  under  the
   jurisdiction  of the New York city department of correction, who becomes
   physically or mentally incapacitated for the performance  of  duties  as
   the natural and proximate result of an injury, sustained in the perform-
   ance or discharge of his or her duties by, or as a natural and proximate
   result of, an act of any inmate or any person confined in an institution
   under the jurisdiction of the department of correction or the department
   of  health,  or by any person who has been committed to such institution
   by any court shall be paid a performance of duty  disability  retirement
   allowance  equal  to  three-quarters of final average salary, subject to
   the provisions of section 13-176 of the administrative code of the  city
   of  New  York,  provided,  however,  that the provisions of this section
   shall not apply to a member of the uniformed force of the New York  city
   department   of   correction   who   is   a   New  York  city  uniformed
   correction/sanitation revised plan member.
     § 17. Subdivision b of section 508 of the retirement and social  secu-
   rity  law,  as amended by chapter 601 of the laws of 1997, is amended to
   read as follows:
     b. A member of a retirement system subject to the provisions  of  this
   article  who  is  a policeman, fireman, correction officer, investigator
   revised plan member or sanitation man and is in  a  plan  which  permits
   immediate  retirement  upon  completion of a specified period of service
   without regard to age or who is subject to  the  provisions  of  section
   five  hundred  four  or  five  hundred  five of this article, shall upon
   completion of ninety days of service be covered for financial protection
   CHAP. 18                           10

   in the event of death in service  pursuant  to  this  subdivision.  Such
   death  benefit  shall be equal to three times the member's salary raised
   to the next highest multiple of one thousand dollars, but  in  no  event
   shall  it exceed three times the maximum salary specified in section one
   hundred thirty of the civil service law or, in the case of a member of a
   retirement system other than the New  York  city  employees'  retirement
   system,  or  in  the  case  of  a member of the New York city employees'
   retirement system who is a New York city uniformed correction/sanitation
   revised plan member or an investigator revised plan member, the specific
   limitations specified for age of  entrance  into  service  contained  in
   subparagraphs (b), (c), (d), (e) and (f) of paragraph two of subdivision
   a of this section.
     §  18.  Paragraph  2 of subdivision b of section 510 of the retirement
   and social security law, as added by chapter 890 of the laws of 1976, is
   amended to read as follows:
     2. The first day of the month following the date  on  which  a  member
   completes or would have completed twenty-five years of credited service,
   with  respect to service retirement benefits for police/fire members and
   their  beneficiaries,  New  York  city  uniformed  correction/sanitation
   revised  plan  members  and  their beneficiaries or investigator revised
   plan members and their beneficiaries.
     § 19. Subdivision f of section 511 of the retirement and social  secu-
   rity law, as amended by section 147 of subpart B of part C of chapter 62
   of the laws of 2011, is amended to read as follows:
     f.  This  section  shall not apply to general members in the uniformed
   correction force of the New York city department  of  correction  or  to
   uniformed  personnel  in  institutions  under  the  jurisdiction  of the
   department of corrections and community supervision and security  hospi-
   tal treatment assistants, as those terms are defined in subdivision i of
   section  eighty-nine  of  this  chapter,  provided,  however,  that  the
   provisions of this section shall apply to  a  New  York  city  uniformed
   correction/sanitation revised plan member.
     §  20.  Section  512  of  the  retirement  and social security law, as
   amended by chapter 379 of the laws of 1986,  subdivisions  b  and  c  as
   amended by chapter 286 of the laws of 2010 and subdivision d as added by
   chapter 749 of the laws of 1992, is amended to read as follows:
     § 512. Final average salary.  a. A member's final average salary shall
   be  the  average  wages earned by such a member during any three consec-
   utive years which provide the highest average wage;  provided,  however,
   if  the  wages  earned  during  any  year included in the period used to
   determine final average salary exceeds that of the average of the previ-
   ous two years by more than ten percent, the  amount  in  excess  of  ten
   percent  shall be excluded from the computation of final average salary.
   [Where] Notwithstanding the preceding provisions of this subdivision  to
   the  contrary,  for  a member who first becomes a member of the New York
   state and local employees' retirement system on or  after  April  first,
   two  thousand  twelve,  or  for a New York city police/fire revised plan
   member, a New York city  uniformed  correction/sanitation  revised  plan
   member  or an investigator revised plan member, a member's final average
   salary shall be the average wages earned by such  a  member  during  any
   five consecutive years which provide the highest average wage; provided,
   however, if the wages earned during any year included in the period used
   to  determine  final  average  salary exceeds that of the average of the
   previous four years by more than ten percent, the amount  in  excess  of
   ten  percent  shall  be  excluded  from the computation of final average
   salary. In determining final average salary pursuant to any provision of
                                      11                           CHAP. 18

   this subdivision, where the period used to determine final average sala-
   ry is the period which immediately precedes the date of retirement,  any
   month  or  months  (not  in  excess  of twelve) which would otherwise be
   included  in  computing final average salary but during which the member
   was on authorized leave of absence at partial pay or without  pay  shall
   be  excluded  from the computation of final average salary and the month
   or an equal number of months immediately preceding such period shall  be
   substituted in lieu thereof.
     b.  Notwithstanding  the  provisions of subdivision a of this section,
   with respect to members of the  New  York  state  employees'  retirement
   system  who first become members of the New York state and local employ-
   ees' retirement system before April first, two thousand twelve, the  New
   York  state and local police and fire retirement system and the New York
   city teachers' retirement system, a member's final average salary  shall
   be  equal  to  one-third  of  the  highest total wages earned during any
   continuous period of employment for which the member was  credited  with
   three  years  of  service credit; provided, however, if the wages earned
   during any year of credited service included the period used  to  deter-
   mine final average salary exceeds the average of the wages of the previ-
   ous  two  years of credited service by more than ten percent, the amount
   in excess of ten percent shall be excluded from the computation of final
   average salary. For members who first become a member of  the  New  York
   state  and  local  employees' retirement system on or after April first,
   two thousand twelve, with respect to members of the New York  state  and
   local  employees'  retirement  system,  a  member's final average salary
   shall be equal to one-fifth of the highest total wages earned during any
   continuous period of employment for which the member was  credited  with
   five  years  of  service  credit; provided, however, if the wages earned
   during any year of credited service included the period used  to  deter-
   mine final average salary exceeds the average of the wages of the previ-
   ous  four years of credited service by more than ten percent, the amount
   in excess of ten percent shall be excluded from the computation of final
   average salary.
     c. Notwithstanding the provisions of subdivisions  a  and  b  of  this
   section,  the  final average salary of an employee who has been a member
   of the New York city employees' retirement system (other than a New York
   city  correction/sanitation  revised  plan  member  or  an  investigator
   revised  plan  member)  or the New York city teachers' retirement system
   for less than one year shall be the projected one year salary, with  the
   calculation  based  upon a twelve month projection of the sums earned in
   the portion of the year worked.  If a member has been employed for  more
   than  one  year but less than two years, then the member's final average
   salary shall be the average of the first year and projected second  year
   earnings  based  upon the calculation above, and if more than two years,
   but less than three years, then one-third the total  of  the  first  two
   years of employment plus the projected third year's earnings, calculated
   as indicated above.
     d.  Subject  to  the  provisions of subdivision c of this section, and
   notwithstanding the provisions of subdivision a of  this  section,  with
   respect  to  members  of  the New York city employees' retirement system
   (other than a New York city uniformed correction/sanitation revised plan
   member or an investigator revised plan member) and  the  New  York  city
   board  of  education retirement system who are subject to the provisions
   of this article, a member's final average  salary  shall  be  determined
   pursuant  to  the  provisions  of paragraph thirteen of subdivision e of
   section 13-638.4 of the administrative code of the city of New York.
   CHAP. 18                           12

     § 21. Subdivision h of section 513 of the retirement and social  secu-
   rity  law,  as  added  by chapter 477 of the laws of 2005, is amended to
   read as follows:
     h.  Notwithstanding  any  other provision of this section, any general
   member in the uniformed correction force of the New York city department
   of [corrections] correction who is absent without pay for a  child  care
   leave of absence pursuant to regulations of the New York city department
   of [corrections] correction shall be eligible for credit for such period
   of  child care leave provided such member files a claim for such service
   credit with the retirement system by December thirty-first, two thousand
   five or within ninety days of the termination of the child  care  leave,
   whichever  is  later, and contributes to the retirement system an amount
   which such member would have contributed during the period of such child
   care leave, together with  interest  thereon.  Service  credit  provided
   pursuant  to  this  subdivision  shall not exceed one year of credit for
   each period of authorized child care leave. In  the  event  there  is  a
   conflict  between  the provisions of this subdivision and the provisions
   of any other law or code to the contrary, the provisions of this  subdi-
   vision  shall  govern,  provided,  however,  that the provisions of this
   subdivision shall not apply to a member of the uniformed  force  of  the
   New  York city department of correction who is a New York city uniformed
   correction/sanitation revised plan member.
     § 22. Intentionally omitted.
     § 23. Subdivisions c and d of section 516 of the retirement and social
   security law, subdivision c as added by chapter 890 of the laws of  1976
   and  subdivision  d  as amended by section 148 of subpart B of part C of
   chapter 62 of the laws of 2011, are amended and a new subdivision  e  is
   added to read as follows:
     c.   The deferred vested benefit of police/fire members, New York city
   police/fire   revised   plan   members,   New   York   city    uniformed
   correction/sanitation  revised plan members or investigator revised plan
   members shall be a pension commencing at early retirement age  equal  to
   two  and one-tenths percent of final average salary times years of cred-
   ited service, less fifty percent of the primary social security  retire-
   ment  benefit  commencing  at age sixty-two, as provided in section five
   hundred eleven of this article. A police/fire member, a  New  York  city
   police/fire   revised   plan   member,   a   New   York  city  uniformed
   correction/sanitation revised plan member or investigator  revised  plan
   member  may  elect  to  receive  his  vested benefit commencing at early
   retirement age or age fifty-five. If the vested benefit commences before
   early retirement age, the benefit shall be reduced by one-fifteenth  for
   each  year,  if any, that the member's early retirement age is in excess
   of age sixty, and by one-thirtieth for each additional year by which the
   vested benefit commences prior to early retirement age. If  such  vested
   benefit is deferred until after such member's normal retirement age, the
   benefit  shall  be computed and subject to annual escalation in the same
   manner as provided for an early retirement benefit pursuant to  subdivi-
   sion c of section five hundred five of this article.
     d.  The  deferred  vested  benefit of general members in the uniformed
   correction force of the New York city department of correction, who  are
   not entitled to a deferred vested benefit under subdivision d of section
   five  hundred  four-a  of this article or under subdivision d of section
   five hundred four-b of this article or under subdivision  d  of  section
   five  hundred  four-d  of  this  article,  or  of general members in the
   uniformed personnel  in  institutions  under  the  jurisdiction  of  the
   department  of  corrections  and  community  supervision,  as defined in
                                      13                           CHAP. 18

   subdivision i of section eighty-nine of this  chapter,  with  twenty  or
   more  years  of credited service shall be a pension commencing at normal
   retirement age equal to one-fiftieth of final average salary times years
   of  credited  service, not in excess of thirty years, or for members who
   first become members of the New York state and local employees'  retire-
   ment  system  on  or  after  April first, two thousand twelve, a pension
   equal to the sum of thirty-five per centum  and  one-fiftieth  of  final
   average  salary for each year of service in excess of twenty, but not in
   excess of thirty, times final average salary  times  years  of  credited
   service.    The  deferred  vested  benefit  of  general  members  in the
   uniformed  correction  force  of  the  New  York  city   department   of
   correction,  who  are  not  entitled  to a deferred vested benefit under
   subdivision d of section five hundred four-a of this  article  or  under
   subdivision  d  of  section five hundred four-b of this article or under
   subdivision d of section five hundred four-d  of  this  article,  or  of
   general  members in the uniformed personnel in institutions under juris-
   diction of the department of corrections and community  supervision,  as
   defined  in  subdivision  i of section eighty-nine of this chapter, with
   less than twenty years of credited service shall be a pension commencing
   at normal retirement age equal to one-sixtieth of final  average  salary
   times  years  of credited service.   Such deferred vested benefit may be
   paid in the form of an early service retirement benefit, or may be post-
   poned until after normal retirement age, in which event the benefit will
   be subject to reduction or escalation as provided in  subdivision  c  of
   section five hundred four of this article.
     e.  In  no event shall the vested retirement allowance payable without
   optional modification be less than the actuarial equivalent of the total
   which results from the member's contributions accumulated with  interest
   at five percent per annum compounded annually to the date of retirement.
     §  24. Subdivision a of section 517 of the retirement and social secu-
   rity law, as added by chapter 890 of the laws of  1976,  is  amended  to
   read as follows:
     a.  Members  shall  contribute  three  percent  of annual wages to the
   retirement system in which they  have  membership,  provided  that  such
   contributions  shall  not  be  required  for more than thirty years, for
   general members, or twenty-five years, for police/fire  members,  except
   that  beginning April first, two thousand thirteen for members who first
   become members of the New York state  and  local  employees'  retirement
   system  on  or after April first, two thousand twelve, the rate at which
   each such member shall contribute in any current plan year (April  first
   to  March thirty-first) shall be determined by reference to the wages of
   such member in the second plan year (April first to March  thirty-first)
   preceding such current plan year as follows:
     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.
   CHAP. 18                           14

     Notwithstanding  the  foregoing,  during  each of the first three plan
   years (April first to March  thirty-first)  in  which  such  member  has
   established  membership  in  the  New  York  state  and local employees'
   retirement system, such member shall contribute a percentage  of  annual
   wages  in accordance with the preceding schedule based upon a projection
   of annual wages provided by the employer.
     The head of each retirement system shall promulgate  such  regulations
   as  may  be  necessary  and appropriate with respect to the deduction of
   such contribution from members' wages and for  the  maintenance  of  any
   special fund or funds with respect to amounts so contributed.
     §  25.  Subdivision  b  of  section 517-c of the retirement and social
   security law, as amended by chapter 171 of the laws of 2011, is  amended
   to read as follows:
     b.  A  member  of  the  New York state and local employees' retirement
   system, the New York state and local police and fire retirement  system,
   the  New  York  city  employees'  retirement system or the New York city
   board of education retirement system in active service  who  has  credit
   for  at  least  one year of member service may borrow, no more than once
   during each twelve month period, an amount  not  exceeding  seventy-five
   percent of the total contributions made pursuant to section five hundred
   seventeen  of  this article (including interest credited at the rate set
   forth in subdivision c of such section five hundred seventeen compounded
   annually) and not less than one  thousand  dollars,  provided,  however,
   that  the  provisions of this section shall not apply to a New York city
   uniformed correction/sanitation revised plan member or  an  investigator
   revised plan member.
     § 26. Intentionally omitted.
     §  27.  Paragraphs  4  and  5  of  subdivision a of section 600 of the
   retirement and social security law, as amended by  chapter  370  of  the
   laws  of  1996,  are  amended  and a new paragraph 6 is added to read as
   follows:
     4. Members qualified for participation in the uniformed transit police
   force plan or housing police force plan in the New York city  employees'
   retirement [systems] system; [and]
     5.  Investigator  [membermembers  of  the  New York city employees'
   retirement system[.]; and
     6. Members of the uniformed force of the New York city  department  of
   sanitation who join or rejoin a public retirement system of the state on
   or after April first, two thousand twelve.
     §  28. Subdivision l of section 601 of the retirement and social secu-
   rity law, as amended by section 5 of part B of chapter 504 of  the  laws
   of 2009, is amended to read as follows:
     l.  "Wages"  shall  mean  regular compensation earned by and paid to a
   member by a public employer, except that for members who first join  the
   New  York  state  and local employees' retirement system or the New York
   state teachers' retirement system on or after January first,  two  thou-
   sand  ten, overtime compensation paid in any year in excess of the over-
   time ceiling, as defined by this subdivision, shall not be  included  in
   the  definition  of  wages.  "Overtime  compensation"  shall  mean,  for
   purposes of this section, compensation paid  under  any  law  or  policy
   under  which  employees  are  paid at a rate greater than their standard
   rate for  additional  hours  worked  beyond  those  required,  including
   compensation  paid  under  section  one hundred thirty-four of the civil
   service law and section ninety of the general municipal law. The  "over-
   time  ceiling"  shall mean fifteen thousand dollars per annum on January
   first, two thousand ten, and shall be increased by three per  cent  each
                                      15                           CHAP. 18

   year  thereafter,  provided,  however, that for members who first become
   members of a public retirement system of the state  on  or  after  April
   first,  two thousand twelve, "overtime ceiling" shall mean fifteen thou-
   sand dollars per annum on April first, two thousand twelve, and shall be
   increased each year thereafter by a percentage to be determined annually
   by  reference  to  the consumer price index (all urban consumers, CPI-U,
   U.S. city average, all items,  1982-84=100),  published  by  the  United
   States  bureau  of  labor statistics, for each applicable calendar year.
   Said percentage shall equal the annual inflation as determined from  the
   increase  in  the  consumer price index in the one year period ending on
   the December thirty-first prior to the cost-of-living adjustment  effec-
   tive  on  the  ensuing April first.  For members who first join a public
   retirement system of the state on or after  April  first,  two  thousand
   twelve,  the  following items shall not be included in the definition of
   wages: 1.  wages in excess of the annual salary  paid  to  the  governor
   pursuant  to section three of article four of the state constitution, 2.
   lump sum payments for deferred  compensation,  sick  leave,  accumulated
   vacation  or  other  credits  for time not worked, 3. any form of termi-
   nation pay, 4. any  additional  compensation  paid  in  anticipation  of
   retirement, and 5. in the case of employees who receive wages from three
   or  more employers in a twelve month period, the wages paid by the third
   and each successive employer.
     § 29. Section 601 of the retirement and social security law is amended
   by adding a new subdivision m to read as follows:
     m. "New York city revised plan member" shall mean a member of the  New
   York  city  employees'  retirement  system,  the New York city teachers'
   retirement system or the board of education  retirement  system  of  the
   city  of  New York who becomes subject to the provisions of this article
   on or after April first, two thousand twelve.
     § 29-a. Subdivision b-1 of section 602 of the  retirement  and  social
   security law, as added by section 2 of part C of chapter 504 of the laws
   of 2009, is amended to read as follows:
     b-1.  (1) Notwithstanding the provisions of subdivision a or b of this
   section or any other provision of law to the contrary, (i) a  member  of
   the  New  York  city  teachers'  retirement  system who holds a position
   represented  by  the  recognized  teacher  organization  for  collective
   bargaining  purposes,  and  who became subject to the provisions of this
   article after the effective date of this subdivision, or (ii)  a  member
   of  the  New  York city board of education retirement system who holds a
   position represented by the recognized teacher organization for  collec-
   tive  bargaining  purposes,  and who became subject to the provisions of
   this article after the effective date of this subdivision, shall not  be
   eligible for service retirement benefits hereunder until such member has
   rendered a minimum of ten years of credited service.
     (2)  Notwithstanding  the  provisions  of  subdivision  a or b of this
   section or any other provision of law to  the  contrary,  a  member  who
   first  joins  a  public retirement system of the state on or after April
   first, two thousand twelve shall not be eligible for service  retirement
   benefits hereunder until such member has rendered a minimum of ten years
   of credited service.
     § 30. Intentionally omitted.
     §  31. Subdivision a of section 603 of the retirement and social secu-
   rity law, as amended by section 7 of part B of chapter 504 of  the  laws
   of  2009,  is  amended  and  a  new  subdivision a-1 is added to read as
   follows:
   CHAP. 18                           16

     a.  The service retirement benefit specified in  section  six  hundred
   four  of this article shall be payable to members who have met the mini-
   mum service requirements upon retirement and attainment  of  age  sixty-
   two,  other  than  members who are eligible for early service retirement
   pursuant to subdivision c of section six hundred four-b of this article,
   subdivision c of section six hundred four-c of this article, subdivision
   d  of  section  six  hundred  four-d  of  this article, subdivision c of
   section six hundred four-e of this article, subdivision c of section six
   hundred four-f of this article, subdivision c  of  section  six  hundred
   four-g  of  this article, subdivision c of section six hundred four-h of
   this article or subdivision c of section  six  hundred  four-i  of  this
   article, provided, however, a member of a teachers' retirement system or
   the  New  York  state  and  local employees' retirement system who first
   joins such system before January first, two thousand ten or a member who
   is a uniformed court officer or peace officer employed  by  the  unified
   court  system who first becomes a member of the New York state and local
   employees' retirement system before April first, two thousand twelve may
   retire without reduction of his or her retirement benefit  upon  attain-
   ment  of  at  least  fifty-five years of age and completion of thirty or
   more years of service, provided, however, that a uniformed court officer
   or peace officer employed by the unified court system who first  becomes
   a member of the New York state and local employees' retirement system on
   or  after  January first, two thousand ten and retires without reduction
   of his or her retirement benefit upon attainment of at least  fifty-five
   years  of age and completion of thirty or more years of service pursuant
   to this section shall be  required  to  make  the  member  contributions
   required  by subdivision f of section six hundred thirteen of this arti-
   cle for all years of credited and creditable service,  provided  further
   that the the preceding provisions of this subdivision shall not apply to
   a New York city revised plan member.
     a-1.    For  members  who first become a member of a public retirement
   system of the state on or after April first, two  thousand  twelve,  the
   service retirement benefit specified in section six hundred four of this
   article  shall  be  payable  to members who have met the minimum service
   requirements upon retirement and have attained age sixty-three.
     § 32. Subdivision i of section 603 of the retirement and social  secu-
   rity  law,  as amended by section 8 of part B of chapter 504 of the laws
   of 2009, is amended by adding a new paragraph 3 to read as follows:
     3. A member of a public retirement system of the state who has met the
   minimum service requirement, but who is not  a  New  York  city  transit
   authority  member,  as  defined  in  paragraph  one  of subdivision a of
   section six hundred four-b of this article, may retire prior  to  normal
   retirement  age,  but  no  earlier than attainment of age fifty-five, in
   which event, the amount of his or her retirement benefit computed  with-
   out  optional  modification  shall  be  reduced  by six and one-half per
   centum for each year by which early retirement precedes age sixty-three.
     § 33. Subdivision t of section 603 of the retirement and social  secu-
   rity  law,  as added by section 8-a of part B of chapter 504 of the laws
   of 2009, is amended to read as follows:
     t. Members who join the New York state teachers' retirement system  on
   or  after  January  first, two thousand ten, shall be eligible to retire
   without reduction of his or her retirement benefit upon attainment of at
   least fifty-seven years of age and completion of thirty or more years of
   service. Members who retire pursuant to the provisions of this  subdivi-
   sion  shall  be  required  to  make the member contributions required by
   subdivision g of section six hundred thirteen of this  article  for  all
                                      17                           CHAP. 18

   years of credited and creditable service.  The provisions of this subdi-
   vision  shall  not apply to members who first become a member of the New
   York state teachers' retirement system on  or  after  April  first,  two
   thousand twelve.
     §  33-a.  Subdivision  a  of  section 604 of the retirement and social
   security law, as amended by section 8-b of part B of chapter 504 of  the
   laws of 2009, is amended to read as follows:
     a.  The  service  retirement  benefit  at  normal retirement age for a
   member with less than twenty years of credited  service,  or  less  than
   twenty-five  years  credited service for a member who joins the New York
   state teachers' retirement system on or after January first,  two  thou-
   sand ten, shall be a retirement allowance equal to one-sixtieth of final
   average  salary  times  years of credited service. Normal retirement age
   for members who first become members of a public  retirement  system  of
   the  state  on  or  after  April first, two thousand twelve shall be age
   sixty-three.
     § 34. Section 604 of the retirement and social security law is amended
   by adding a new subdivision b-1 to read as follows:
     b-1.  Notwithstanding any other provision of law to the contrary,  the
   service  retirement  benefit  for  members  with twenty or more years of
   credit service who first become a member of a public  retirement  system
   of  the state on or after April first, two thousand twelve at age sixty-
   three shall be a pension equal to the sum of thirty-five per centum  and
   one-fiftieth  of final average salary for each year of service in excess
   of twenty times final average salary times years  of  credited  service.
   In  no  event  shall  any  retirement  benefit  payable without optional
   modification be less than the actuarially equivalent annuitized value of
   the member's contributions accumulated with interest at five percent per
   annum compounded annually to the date of retirement.
     § 35. Paragraph 1 of subdivision d of section 604-b of the  retirement
   and  social  security law, as amended by chapter 10 of the laws of 2000,
   is amended to read as follows:
     1. A participant in the twenty-five-year and age fifty-five retirement
   program who:
     (i) discontinues city-service and service as a member of the New  York
   city transit authority other than by death or retirement; and
     (ii)  in  the case of a participant who is not a New York city revised
   plan member, prior to such discontinuance, completed five but less  than
   twenty-five  years  of allowable service in the transit authority or, in
   the case of a participant who is a New York city  revised  plan  member,
   has  completed  ten but less than twenty-five years of allowable service
   in the transit authority prior to such discontinuance; and
     (iii) has paid, prior to such discontinuance,  all  additional  member
   contributions  and  interest,  if any, required by subdivision e of this
   section; and
     (iv) does not withdraw in whole or in  part  his  or  her  accumulated
   member  contributions  pursuant  to section six hundred thirteen of this
   article unless such participant thereafter returns to public service and
   repays the amounts so withdrawn, together  with  interest,  pursuant  to
   such  section six hundred thirteen of this article; shall be entitled to
   receive a deferred vested benefit as provided  in  section  six  hundred
   twelve of this article.
     §  36.  Subparagraph  (ii)  of paragraph 3 of subdivision d of section
   604-b of the retirement and social security law, as added by chapter 352
   of the laws of 1997, is amended to read as follows:
   CHAP. 18                           18

     (ii) [Such] In the case of a participant who is not a  New  York  city
   revised  plan  member,  such  vested benefit shall become payable on the
   earliest date on which such discontinued member could have  retired  for
   service  if  such  discontinuance  had not occurred or, in the case of a
   participant  who  is  a  New  York city revised plan member, such vested
   benefit shall become payable at age sixty-three.
     § 37. Subdivision b of section 604-c  of  the  retirement  and  social
   security  law, as added by chapter 96 of the laws of 1995, is amended by
   adding a new paragraph 2-a to read as follows:
     2-a. Notwithstanding any other provision of this  subdivision  or  any
   other provision of law to the contrary, no member who becomes subject to
   the  provisions  of  this article on or after the effective date of this
   paragraph shall be a participant in the twenty-five-year  early  retire-
   ment program.
     §  38. Paragraph 1 of subdivision d of section 604-c of the retirement
   and social security law, as amended by chapter 659 of the laws of  1999,
   is amended to read as follows:
     1. A participant in the twenty-year/age fifty retirement program who:
     (i)  discontinues  service  as  a Triborough bridge and tunnel member,
   other than by death or retirement; and
     (ii) in the case of a participant who is not a New York  city  revised
   plan  member, prior to such discontinuance, completed five but less than
   twenty years of credited service or, in the case of a participant who is
   a New York city revised plan member, has completed  ten  but  less  than
   twenty years of credited service; and
     (iii)  has  paid,  prior to such discontinuance, all additional member
   contributions and interest (if any) required by subdivision  e  of  this
   section; and
     (iv)  does  not  withdraw  in  whole or in part his or her accumulated
   member contributions pursuant to section six hundred  thirteen  of  this
   article unless such participant thereafter returns to public service and
   repays  the  amounts  so  withdrawn, together with interest, pursuant to
   such section six hundred  thirteen;  shall  be  entitled  to  receive  a
   deferred vested benefit as provided in this subdivision.
     §  39.  Subparagraph  (ii)  of paragraph 2 of subdivision d of section
   604-c of the retirement and social security law, as added by chapter 472
   of the laws of 1995, is amended to read as follows:
     (ii) [Such] In the case of a participant who is not a  New  York  city
   revised  plan  member,  such  vested benefit shall become payable on the
   earliest date on which such discontinued member could have  retired  for
   service  if  such  discontinuance  had not occurred or, in the case of a
   participant who is a New York city  revised  plan  member,  such  vested
   benefit shall become payable at age sixty-three.
     §  40.  Subdivision  c  of  section 604-d of the retirement and social
   security law is amended by  adding  a  new  paragraph  3-a  to  read  as
   follows:
     3-a.    Notwithstanding any other provision of this subdivision or any
   other provision of law to the contrary, no member who becomes subject to
   the provisions of this article on or after the effective  date  of  this
   paragraph  shall  be  a  participant  in  the age fifty-seven retirement
   program.
     § 41. Paragraph 1 of subdivision d of section 604-e of the  retirement
   and social security law, as added by chapter 576 of the laws of 2000, is
   amended to read as follows:
     1. A participant in the twenty-five year retirement program:
                                      19                           CHAP. 18

     (i)  who  discontinues  service  as  such a participant, other than by
   death or retirement; and
     (ii)  in  the case of a participant who is not a New York city revised
   plan member, who prior to such discontinuance, completed five  but  less
   than  twenty-five  years of allowable service as a dispatcher member or,
   in the case of a participant who is a New York city revised plan member,
   who prior to such discontinuance, completed ten but  less  than  twenty-
   five years of allowable service as a dispatcher member; and
     (iii) who, subject to the provisions of paragraph seven of subdivision
   e  of  this  section,  has paid, prior to such discontinuance, all addi-
   tional member contributions and interest (if any) required  by  subdivi-
   sion e of this section; and
     (iv)  who does not withdraw in whole or in part his or her accumulated
   member contributions pursuant to section six hundred  thirteen  of  this
   article unless such participant thereafter returns to public service and
   repays  the  amounts  so  withdrawn, together with interest, pursuant to
   such section six hundred  thirteen;  shall  be  entitled  to  receive  a
   deferred vested benefit as provided in this subdivision.
     §  42.  Subparagraph  (ii)  of paragraph 2 of subdivision d of section
   604-e of the retirement and social security law, as added by chapter 576
   of the laws of 2000, is amended to read as follows:
     (ii) [Such] In the case of a participant who is not a  New  York  city
   revised  plan  member,  such  vested benefit shall become payable on the
   earliest date on which such discontinued member could have  retired  for
   service  if  such  discontinuance  had not occurred or, in the case of a
   participant who is a New York city  revised  plan  member,  such  vested
   benefit shall become payable at age sixty-three.
     §  43. Paragraph 1 of subdivision d of section 604-e of the retirement
   and social security law, as added by chapter 577 of the laws of 2000, is
   amended to read as follows:
     1. A participant in the twenty-five year retirement program:
     (i) who discontinues service as such  a  participant,  other  than  by
   death or retirement; and
     (ii)  in  the case of a participant who is not a New York city revised
   plan member, who prior to such discontinuance, completed five  but  less
   than  twenty-five years of allowable service as an EMT member or, in the
   case of a participant who is a New York city revised  plan  member,  who
   prior  to  such  discontinuance, completed ten but less than twenty-five
   years of allowable service as an EMT member; and
     (iii) who, subject to the provisions of paragraph seven of subdivision
   e of this section, has paid, prior to  such  discontinuance,  all  addi-
   tional  member  contributions and interest (if any) required by subdivi-
   sion e of this section; and
     (iv) who does not withdraw in whole or in part his or her  accumulated
   member  contributions  pursuant  to section six hundred thirteen of this
   article unless such participant thereafter returns to public service and
   repays the amounts so withdrawn, together  with  interest,  pursuant  to
   such  section  six  hundred  thirteen;  shall  be  entitled to receive a
   deferred vested benefit as provided in this subdivision.
     § 44. Subparagraph (ii) of paragraph 2 of  subdivision  d  of  section
   604-e of the retirement and social security law, as added by chapter 577
   of the laws of 2000, is amended to read as follows:
     (ii)  [SuchIn  the case of a participant who is not a New York city
   revised plan member, such vested benefit shall  become  payable  on  the
   earliest  date  on which such discontinued member could have retired for
   service if such discontinuance had not occurred or, in  the  case  of  a
   CHAP. 18                           20

   participant  who  is  a  New  York city revised plan member, such vested
   benefit shall become payable at age sixty-three.
     §  45. Paragraph 1 of subdivision d of section 604-f of the retirement
   and social security law, as added by chapter 559 of the laws of 2001, is
   amended to read as follows:
     1. A participant in the twenty-five year retirement program:
     (i) who discontinues service as such  a  participant,  other  than  by
   death or retirement; and
     (ii)  in  the case of a participant who is not a New York city revised
   plan member, who prior to such discontinuance, completed five  but  less
   than  twenty-five years of credited service or, in the case of a partic-
   ipant who is a New York city revised plan  member,  who  prior  to  such
   discontinuance, completed ten but less than twenty-five years of credit-
   ed service; and
     (iii) who, subject to the provisions of paragraph seven of subdivision
   e  of  this  section,  has paid, prior to such discontinuance, all addi-
   tional member contributions and interest (if any) required  by  subdivi-
   sion e of this section; and
     (iv)  who does not withdraw in whole or in part his or her accumulated
   member contributions pursuant to section six hundred  thirteen  of  this
   article unless such participant thereafter returns to public service and
   repays  the  amounts  so  withdrawn, together with interest, pursuant to
   such section six hundred  thirteen;  shall  be  entitled  to  receive  a
   deferred vested benefit as provided in this subdivision.
     §  46.  Subparagraph  (ii)  of paragraph 2 of subdivision d of section
   604-f of the retirement and social security law, as added by chapter 559
   of the laws of 2001, is amended to read as follows:
     (ii) [Such] In the case of a participant who is not a  New  York  city
   revised  plan  member,  such  vested benefit shall become payable on the
   earliest date on which such discontinued member could have  retired  for
   service  if  such  discontinuance  had not occurred or, in the case of a
   participant who is a New York city  revised  plan  member,  such  vested
   benefit shall become payable at age sixty-three.
     §  47. Paragraph 1 of subdivision d of section 604-f of the retirement
   and social security law, as added by chapter 582 of the laws of 2001, is
   amended to read as follows:
     1. A participant in the twenty-five year retirement program:
     (i) who discontinues service as such  a  participant,  other  than  by
   death or retirement; and
     (ii)  in  the case of a participant who is not a New York city revised
   plan member, who prior to such discontinuance, completed five  but  less
   than  twenty-five years of allowable service as a special officer, park-
   ing control specialist, school safety agent,  campus  peace  officer  or
   taxi and limousine inspector member or, in the case of a participant who
   is  a  New  York  city revised plan member, who prior to such discontin-
   uance, completed ten  but  less  than  twenty-five  years  of  allowable
   service  as a special officer, parking control specialist, school safety
   agent, campus peace officer or taxi and limousine inspector member; and
     (iii) who, subject to the provisions of paragraph seven of subdivision
   e of this section, has paid, prior to  such  discontinuance,  all  addi-
   tional  member  contributions and interest, if any, required by subdivi-
   sion e of this section; and
     (iv) who does not withdraw in whole or in part his or her  accumulated
   member  contributions  pursuant  to section six hundred thirteen of this
   article unless such participant thereafter returns to public service and
   repays the amounts so withdrawn, together  with  interest,  pursuant  to
                                      21                           CHAP. 18

   such  section  six  hundred  thirteen;  shall  be  entitled to receive a
   deferred vested benefit as provided in this subdivision.
     §  48.  Subparagraph  (ii)  of paragraph 2 of subdivision d of section
   604-f of the retirement and social security law, as added by chapter 582
   of the laws of 2001, is amended to read as follows:
     (ii) [Such] In the case of a participant who is not a  New  York  city
   revised  plan  member,  such  vested benefit shall become payable on the
   earliest date on which such discontinued member could have  retired  for
   service  if  such  discontinuance  had not occurred or, in the case of a
   participant who is a New York city  revised  plan  member,  such  vested
   benefit shall become payable at age sixty-three.
     §  49. Paragraph 1 of subdivision d of section 604-g of the retirement
   and social security law, as added by chapter 414 of the laws of 2002, is
   amended to read as follows:
     1. A participant in the twenty-five year/age fifty retirement program:
     (i) who discontinues service as such  a  participant,  other  than  by
   death or retirement; and
     (ii)  in  the case of a participant who is not a New York city revised
   plan member, who prior to such discontinuance, completed five  but  less
   than  twenty-five years of credited service or, in the case of a partic-
   ipant who is a New York city revised plan  member,  who  prior  to  such
   discontinuance, completed ten but less than twenty-five years of credit-
   ed service; and
     (iii) who, subject to the provisions of paragraph seven of subdivision
   e  of  this  section,  has paid, prior to such discontinuance, all addi-
   tional member contributions and interest (if any) required  by  subdivi-
   sion e of this section; and
     (iv)  who does not withdraw in whole or in part his or her accumulated
   member contributions pursuant to section six hundred  thirteen  of  this
   article unless such participant thereafter returns to public service and
   repays  the  amounts  so  withdrawn, together with interest, pursuant to
   such section six hundred  thirteen;  shall  be  entitled  to  receive  a
   deferred vested benefit as provided in this subdivision.
     §  50.  Subparagraph  (ii)  of paragraph 2 of subdivision d of section
   604-g of the retirement and social security law, as added by chapter 414
   of the laws of 2002, is amended to read as follows:
     (ii) [Such] In the case of a participant who is not a  New  York  city
   revised  plan  member,  such  vested benefit shall become payable on the
   earliest date on which such discontinued member could have  retired  for
   service  if  such  discontinuance  had not occurred or, in the case of a
   participant who is a New York city  revised  plan  member,  such  vested
   benefit shall become payable at age sixty-three.
     §  51. Paragraph 1 of subdivision d of section 604-h of the retirement
   and social security law, as added by chapter 682 of the laws of 2003, is
   amended to read as follows:
     1. A participant in the twenty-five year retirement program:
     (i) who discontinues service as such  a  participant,  other  than  by
   death or retirement; and
     (ii)  in  the case of a participant who is not a New York city revised
   plan member, who prior to such discontinuance, completed five  but  less
   than  twenty-five years of credited service or, in the case of a partic-
   ipant who is a New York city revised plan  member,  who  prior  to  such
   discontinuance, completed ten but less than twenty-five years of credit-
   ed service; and
     (iii) who, subject to the provisions of paragraph seven of subdivision
   e  of  this  section,  has paid, prior to such discontinuance, all addi-
   CHAP. 18                           22

   tional member contributions and interest (if any) required  by  subdivi-
   sion e of this section; and
     (iv)  who does not withdraw in whole or in part his or her accumulated
   member contributions pursuant to section six hundred  thirteen  of  this
   article unless such participant thereafter returns to public service and
   repays  the  amounts  so  withdrawn, together with interest, pursuant to
   such section six hundred  thirteen;  shall  be  entitled  to  receive  a
   deferred vested benefit as provided in this subdivision.
     §  52.  Subparagraph  (ii)  of paragraph 2 of subdivision d of section
   604-h of the retirement and social security law, as added by chapter 682
   of the laws of 2003, is amended to read as follows:
     (ii) [Such] In the case of a participant who is not a  New  York  city
   revised  plan  member,  such  vested benefit shall become payable on the
   earliest date on which such discontinued member could have  retired  for
   service  if  such  discontinuance  had not occurred or, in the case of a
   participant who is a New York city  revised  plan  member,  such  vested
   benefit shall become payable at age sixty-three.
     §  53.  Subdivision  b  of  section 604-i of the retirement and social
   security law is amended by  adding  a  new  paragraph  5-a  to  read  as
   follows:
     5-a.    Notwithstanding any other provision of this subdivision or any
   other provision of law to the contrary, no member who becomes subject to
   the provisions of this article on or after the effective  date  of  this
   paragraph  shall  be  a  participant  in  the  age fifty-five retirement
   program.
     § 54. Subdivisions a, b, c and d of section 608 of the retirement  and
   social security law, subdivision a as amended by chapter 379 of the laws
   of  1986,  subdivisions b and c as amended by chapter 286 of the laws of
   2010 and subdivision d as added by chapter 749 of the laws of 1992,  are
   amended to read as follows:
     a.  [AFor  members  who first become members of a public retirement
   system of the state before April first, two thousand twelve, a  member's
   final  average salary shall be the average wages earned by such a member
   during any three consecutive years which  provide  the  highest  average
   wage; provided, however, if the wages earned during any year included in
   the  period  used  to determine final average salary exceeds that of the
   average of the previous two years by more than ten percent,  the  amount
   in excess of ten percent shall be excluded from the computation of final
   average  salary.    For members who first become members of the New York
   state and local employees' retirement  system  or  the  New  York  state
   teachers'  retirement  system  on  or  after  April  first, two thousand
   twelve, a member's final average  salary  shall  be  the  average  wages
   earned  by  such  member during any five consecutive years which provide
   the highest average wage; provided, however, if the wages earned  during
   any  year  included in the period used to determine final average salary
   exceeds that of the average of the previous four years by more than  ten
   percent,  the amount in excess of ten percent shall be excluded from the
   computation of final average salary. Where the period used to  determine
   final  average  salary is the period which immediately precedes the date
   of retirement, any month or months (not in excess of twelve) which would
   otherwise be included in computing final average salary but during which
   the member was on authorized leave of absence at partial pay or  without
   pay  shall  be excluded from the computation of final average salary and
   the month or an equal number of months immediately preceding such period
   shall be substituted in lieu thereof.
                                      23                           CHAP. 18

     b. Notwithstanding the provisions of subdivision a  of  this  section,
   with  respect  to members who first became members of the New York state
   and local employees' retirement system and the New York  city  teachers'
   retirement  system  before  April first, two thousand twelve, a member's
   final  average  salary  shall be equal to one-third of the highest total
   wages earned by such member during any continuous period  of  employment
   for  which  the  member was credited with three years of service credit;
   provided, however, if the wages  earned  during  any  year  of  credited
   service  included  in  the period used to determine final average salary
   exceeds the average of the wages of the previous two years  of  credited
   service  by  more  than ten percent, the amount in excess of ten percent
   shall be excluded from the computation of  final  average  salary.  With
   respect  to  members  who first become members of the New York state and
   local employees' retirement system  and  the  New  York  city  teachers'
   retirement  system  on  or  after  April  first,  two thousand twelve, a
   member's final average salary shall be equal to one-fifth of the highest
   total wages earned by  such  member  during  any  continuous  period  of
   employment  for which the member was credited with five years of service
   credit; provided, however, if the wages earned during any year of  cred-
   ited  service  included  in  the  period used to determine final average
   salary exceeds the average of the wages of the previous  four  years  of
   credited  service  by more than ten percent, the amount in excess of ten
   percent shall be excluded from the computation of final average salary.
     c. Notwithstanding the provisions of subdivisions  a  and  b  of  this
   section,  the  final average salary of an employee who has been a member
   of the New York city employees' retirement system or the New  York  city
   teachers' retirement system for less than one year shall be the project-
   ed  one  year  salary,  with  the  calculation based upon a twelve month
   projection of the sums earned in the portion of the year worked.   If  a
   member has been employed for more than one year but less than two years,
   then the member's final average salary shall be the average of the first
   year  and  projected  second  year  earnings  based upon the calculation
   above, and if more than two years, but less than three years, then  one-
   third  the total of the first two years of employment plus the projected
   third year's earnings, calculated as indicated above, provided that this
   subdivision shall not apply to a New York city revised  plan  member  of
   the  New  York  city  employees'  retirement  system  or a New York city
   revised plan member of the New York city teachers' retirement system.
     d. Subject to the provisions of subdivision c  of  this  section,  and
   notwithstanding  the  provisions  of subdivision a of this section, with
   respect to members of the New York city employees' retirement system and
   the New York city board of education retirement system who  are  subject
   to the provisions of this article, a member's final average salary shall
   be determined pursuant to the provisions of paragraph fourteen of subdi-
   vision  e  of section 13-638.4 of the administrative code of the city of
   New York, provided, however, that the applicable provisions and  limita-
   tions  of  the  term "wages", as defined in subdivision l of section six
   hundred one of this article, shall apply to such determinations of final
   average salary.
     § 55. Paragraph 2 of subdivision b of section 609  of  the  retirement
   and  social security law, as amended by section 8-c of part B of chapter
   504 of the laws of 2009, is amended to read as follows:
     2. Previous service credit shall not be  granted  unless  such  member
   applies  therefor  and repays the amount refunded by a public retirement
   system of the state for service  rendered  after  July  first,  nineteen
   hundred seventy-six together with interest through the date of repayment
   CHAP. 18                           24

   at  the  rate  of  five  percent per annum compounded annually and three
   percent of the wages earned for service prior to that date together with
   interest from July first, nineteen hundred seventy-six through the  date
   of payment at the rate of five percent per annum compounded annually and
   three percent of the wages earned for service which predates the date of
   entry  into  the retirement system together with interest at the rate of
   five percent per annum compounded annually from the date of such service
   until the date of payment. Anything in this paragraph  to  the  contrary
   notwithstanding, in order to obtain credit for previous service, members
   who  first  join  the  New  York state teachers' retirement system on or
   after January first, two thousand  ten  shall  pay  three  and  one-half
   percent  of  wages  earned  for service which predates the date of entry
   into the retirement system together with interest at the  rate  of  five
   percent  per  annum  compounded  annually  from the date of such service
   until the date of payment.  Anything in this paragraph to  the  contrary
   notwithstanding, in order to obtain credit for previous service, members
   who first join a public retirement system of the state on or after April
   first,  two  thousand  twelve  shall pay six percent of wages earned for
   service which predates the date of  entry  into  the  retirement  system
   together  with interest at the rate of five percent per annum compounded
   annually from the date of such service until the date of payment.
     § 56. Section 609 of the retirement and social security law is amended
   by adding a new subdivision h to read as follows:
     h.  Notwithstanding any other provision of law to the contrary, a  New
   York  city  revised plan member shall not receive service credit for any
   undocumented sick leave that may be credited toward terminal leave.
     § 57. Subdivisions a and a-1 of section  612  of  the  retirement  and
   social security law, subdivision a as separately amended by section 9 of
   part  B  and  section 3 of part C of chapter 504 of the laws of 2009 and
   subdivision a-1 as added by section 4 of part C of chapter  504  of  the
   laws of 2009, are amended to read as follows:
     a. Except as provided in subdivision a-1 of this section, a member who
   has  five  or  more  years  of credited service, or ten or more years of
   credited service for a member who first joined the New  York  state  and
   local  employees'  retirement  system  or  the  New York state teachers'
   retirement system on or after January  first,  two  thousand  ten,  upon
   termination  of  employment,  other  than  a member who is entitled to a
   deferred vested benefit pursuant to any other provision of this article,
   shall be entitled to a deferred vested benefit at normal retirement  age
   computed  in  accordance with the provisions of section six hundred four
   of this article. Except as provided in subdivision a-1 of this  section,
   a  member  of  a  teachers'  retirement system or the New York state and
   local employees' retirement system who has five or more years of credit-
   ed service, or ten or more years of credited service for  a  member  who
   first  becomes  a  member  of  the  New  York state and local employees'
   retirement system or the New York state teachers' retirement  system  on
   or after January first, two thousand ten, upon termination of employment
   shall  be  entitled to a deferred vested benefit prior to normal retire-
   ment age, but no earlier than age  fifty-five,  computed  in  accordance
   with  the  provisions  of  subdivision i of section six hundred three of
   this article as amended by section eight  of  part  B  of  chapter  five
   hundred four of the laws of two thousand nineAnything to the contrary
   notwithstanding, a member of a public retirement system of the state who
   first  became a member of such system on or after April first, two thou-
   sand twelve must have at least ten years of credited service in order to
   qualify for a deferred vested benefit under this  section;  such  member
                                      25                           CHAP. 18

   shall  not  be entitled to such benefit prior to the member's attainment
   of age sixty-three; and such deferred vested benefit shall  be  computed
   pursuant to subdivision b-1 of section six hundred four of this article.
     a-1.  Notwithstanding  the provisions of subdivision a of this section
   or any other provision of law to the contrary, (i) a member of  the  New
   York  city  teachers' retirement system who holds a position represented
   by  the  recognized  teacher  organization  for  collective   bargaining
   purposes, who became subject to the provisions of this article after the
   effective  date  of  this  subdivision, and who has ten or more years of
   credited service, or (ii) a member of the New York city board of  educa-
   tion  retirement  system  who holds a position represented by the recog-
   nized teacher  organization  for  collective  bargaining  purposes,  who
   became  subject  to  the  provisions of this article after the effective
   date of this subdivision, and who has ten  or  more  years  of  credited
   service,  other  than such a member of either of such retirement systems
   who is entitled to a deferred  vested  benefit  pursuant  to  any  other
   provision  of  this  article,  shall, upon termination of employment, be
   entitled to a deferred vested benefit at normal retirement age  computed
   in  accordance  with  the provisions of section six hundred four of this
   article.   Notwithstanding the  provisions  of  subdivision  a  of  this
   section  or  any other provision of law to the contrary, a member of the
   New York city teachers' retirement system who holds a  position  repres-
   ented  by  the recognized teacher organization for collective bargaining
   purposes, who became subject to the provisions of this article after the
   effective date of this subdivision, and who has ten  or  more  years  of
   credited  service, shall, upon termination of employment, be entitled to
   a deferred vested benefit prior to normal retirement age, but no earlier
   than age fifty-five, computed  in  accordance  with  the  provisions  of
   subdivision  i  of  section six hundred three of this article, provided,
   however, that any such member of either of such retirement  systems  who
   is  a  New  York  city  revised plan member shall be required to have at
   least ten years of credited service  in  order  to  be  eligible  for  a
   deferred vested benefit, such member shall not be entitled to payability
   of such benefit prior to attainment of age sixty-three and such deferred
   vested  benefit shall be computed pursuant to subdivision b-1 of section
   six hundred four of this article.
     § 58. Paragraphs 1 and 2 of subdivision a and subdivisions f and g  of
   section  613  of  the retirement and social security law, paragraph 1 of
   subdivision a as amended and paragraph 2 of subdivision a  as  added  by
   chapter 10 of the laws of 2000, subdivisions f and g as added by section
   9-a of part B of chapter 504 of the laws of 2009, are amended to read as
   follows:
     1.  Except  as  provided by paragraph two of this subdivision, members
   shall contribute three percent of annual wages to the retirement  system
   in  which  they  have membership, except that beginning April first, two
   thousand thirteen for members who  first  become  members  of  a  public
   retirement  system  of  the  state on or after April first, two thousand
   twelve, the rate at which each  such  member  shall  contribute  in  any
   current  plan  year  (April first to March thirty-first) shall be deter-
   mined by reference to the wages of such member in the second  plan  year
   (April  first to March thirty-first) preceding such current plan year as
   follows:
     (i) members with wages of forty-five thousand  dollars  per  annum  or
   less shall contribute three per centum of annual wages;
   CHAP. 18                           26

     (ii)  members  with  wages greater than forty-five thousand per annum,
   but not more than fifty-five thousand per annum shall  contribute  three
   and one-half per centum of annual wages;
     (iii)  members  with wages greater than fifty-five thousand per annum,
   but not more than seventy-five thousand per annum shall contribute  four
   and one-half per centum of annual wages;
     (iv)  members  with wages greater than seventy-five thousand per annum
   but not more than one hundred thousand per annum shall  contribute  five
   and three-quarters per centum of annual wages; and
     (v)  members  with  wages  greater than one hundred thousand per annum
   shall contribute six per centum of annual wages.
     Notwithstanding the foregoing, during each of  the  first  three  plan
   years  (April  first  to  March  thirty-first)  in which such member has
   established membership in a public retirement system of the state,  such
   member  shall contribute a percentage of annual wages in accordance with
   the preceding schedule based upon a projection of annual wages  provided
   by the employer.
     The  head  of each retirement system shall promulgate such regulations
   as may be necessary and appropriate with respect  to  the  deduction  of
   such  contribution  from  members'  wages and for the maintenance of any
   special fund or funds with respect to amounts so contributed.
     2. A member of the New York city employees' retirement system  who  is
   eligible  to be a participant in the twenty-five-year and age fifty-five
   retirement program, as defined by paragraph five  of  subdivision  a  of
   section  six hundred four-b of this article shall contribute two percent
   of annual wages to such system effective on the  starting  date  of  the
   elimination  of  additional  member  contributions,  as  defined  in  an
   election made pursuant to paragraph ten of subdivision e of section  six
   hundred  four-b  of this article, except that beginning April first, two
   thousand thirteen for members who first become members of the  New  York
   city  employees' retirement system on or after April first, two thousand
   twelve, the rate at which each  such  member  shall  contribute  in  any
   current  plan  year  (April first to March thirty-first) shall be deter-
   mined by reference to the wages of such member in the second  plan  year
   (April  first to March thirty-first) preceding such current plan year as
   follows:
     (i) members with wages of forty-five thousand  dollars  per  annum  or
   less shall contribute three per centum of annual wages;
     (ii)  members  with  wages greater than forty-five thousand per annum,
   but not more than fifty-five thousand per annum shall  contribute  three
   and one-half per centum of annual wages;
     (iii)  members  with wages greater than fifty-five thousand per annum,
   but not more than seventy-five thousand per annum shall contribute  four
   and one-half per centum of annual wages;
     (iv)  members  with wages greater than seventy-five thousand per annum
   but not more than one hundred thousand per annum shall  contribute  five
   and three-quarters per centum of annual wages; and
     (v)  members  with  wages  greater than one hundred thousand per annum
   shall contribute six per centum of annual wages.
     Notwithstanding the foregoing, during each of  the  first  three  plan
   years  (April  first  to  March  thirty-first)  in which such member has
   established membership  in  the  New  York  city  employees'  retirement
   system,  such  member  shall  contribute a percentage of annual wages in
   accordance with the preceding schedule based upon a projection of annual
   wages provided by the employer.
                                      27                           CHAP. 18

     f. Anything in subdivision a of this section to the contrary  notwith-
   standing a member employed as a uniformed court officer or peace officer
   in the unified court system who first joins the New York state and local
   employees' retirement system on or after January first, two thousand ten
   shall  contribute four percent of annual wages to the New York state and
   local employees' retirement system , except that beginning April  first,
   two  thousand  thirteen  for members who first become members of the New
   York state and local employees' retirement  system  on  or  after  April
   first,  two  thousand  twelve,  the rate at which each such member shall
   contribute in any current plan year (April first to March  thirty-first)
   shall  be  determined  by  reference  to the wages of such member in the
   second plan year (April first  to  March  thirty-first)  preceding  such
   current plan year as follows:
     1. members with wages of forty-five thousand dollars per annum or less
   shall contribute three per centum of annual wages;
     2.  members with wages greater than forty-five thousand per annum, but
   not more than fifty-five thousand per annum shall contribute  three  and
   one-half per centum of annual wages;
     3.  members with wages greater than fifty-five thousand per annum, but
   not more than seventy-five thousand per annum shall contribute four  and
   one-half per centum of annual wages;
     4. members with wages greater than seventy-five thousand per annum but
   not  more  than one hundred thousand per annum shall contribute five and
   three-quarters per centum of annual wages; and
     5. members with wages greater than  one  hundred  thousand  per  annum
   shall contribute six per centum of annual wages.
     Notwithstanding  the  foregoing,  during  each of the first three plan
   years (April first to March  thirty-first)  in  which  such  member  has
   established  membership  in  the  New  York  state  and local employees'
   retirement system, such member shall contribute a percentage  of  annual
   wages  in accordance with the preceding schedule based upon a projection
   of annual wages provided by the employer.
     The head of the New York state and local employees' retirement  system
   shall  promulgate  such  regulations as may be necessary and appropriate
   with respect to the deduction of such contribution from  members'  wages
   and  for  the  maintenance  of any special fund or funds with respect to
   amounts so contributed.
     g. Members who first join the  New  York  state  teachers'  retirement
   system  on  or  after  January  first, two thousand ten shall contribute
   three and one-half percent of annual wages to the New York state  teach-
   ers'  retirement system, except that beginning April first, two thousand
   thirteen for members who first become members  of  the  New  York  state
   teachers'  retirement  system  on  or  after  April  first, two thousand
   twelve, the rate at which each  such  member  shall  contribute  in  any
   current  plan year (July first to June thirtieth) shall be determined by
   reference to the wages of such member in  the  second  plan  year  (July
   first to June thirtieth) preceding such current plan year as follows:
     1. members with wages of forty-five thousand dollars per annum or less
   shall contribute three per centum of annual wages;
     2.  members with wages greater than forty-five thousand per annum, but
   not more than fifty-five thousand per annum shall contribute  three  and
   one-half per centum of annual wages;
     3.  members with wages greater than fifty-five thousand per annum, but
   not more than seventy-five thousand per annum shall contribute four  and
   one-half per centum of annual wages;
   CHAP. 18                           28

     4. members with wages greater than seventy-five thousand per annum but
   not  more  than one hundred thousand per annum shall contribute five and
   three-quarters per centum of annual wages; and
     5.  members  with  wages  greater  than one hundred thousand per annum
   shall contribute six per centum of annual wages.
     Notwithstanding the foregoing, during each of  the  first  three  plan
   years  (July  first  to  June thirtieth) in which such member has estab-
   lished membership in the New York  state  teachers'  retirement  system,
   such  member shall contribute a percentage of annual wages in accordance
   with the preceding schedule based upon  a  projection  of  annual  wages
   provided by the employer.
     The  head  of  the  New  York  state teachers' retirement system shall
   promulgate such regulations as may be  necessary  and  appropriate  with
   respect  to  the  deduction of such contribution from members' wages and
   for the maintenance of any special fund or funds with respect to amounts
   so contributed.
     § 59. Intentionally omitted.
     § 60. Section 650 of  the  retirement  and  social  security  law,  as
   amended  by  chapter  746  of  the  laws  of 1989, is amended to read as
   follows:
     § 650. Application.  This article shall apply to a member of  the  New
   York  city  employees'  retirement  system (i) who holds the position of
   bridge and tunnel officer, sergeant or lieutenant  with  the  Triborough
   bridge and tunnel authority, and has received or receives an appointment
   to  at least one such position from a competitive civil service list; or
   (ii) who holds the position of assistant bridge and  tunnel  maintainer,
   bridge  and  tunnel  maintainer,  senior bridge and tunnel maintainer or
   laborer with the  Triborough  bridge  and  tunnel  authority,  provided,
   however,  that  this  article shall not apply to a New York city revised
   plan member (as defined in subdivision m of section six hundred  one  of
   this chapter).
     §  61.  Paragraphs  1  and  1-a of subdivision b of section 911 of the
   retirement and social security law, paragraph 1 as amended by section  5
   and  paragraph 1-a as added by section 6 of part C of chapter 504 of the
   laws of 2009, are amended to read as follows:
     1. Subject to the provisions of paragraph one-a of  this  subdivision,
   and except as provided in paragraph one-b of this subdivision, an eligi-
   ble  member  (i)  with a date of membership in a retirement system on or
   after July twenty-seventh, nineteen hundred seventy-six and (ii) who has
   ten or more years of membership or ten or more years of credited service
   with a retirement system under the provisions  of  article  fourteen  or
   fifteen of this chapter shall not be required to contribute to a retire-
   ment  system  pursuant  to section five hundred seventeen or six hundred
   thirteen of this chapter as of the cessation date.
     1-a. Notwithstanding the provisions of paragraph one of this  subdivi-
   sion  or  any  other  provision  of  law  to the contrary, and except as
   provided in paragraph one-b of this subdivision, a  member  of  the  New
   York  city  teachers'  retirement  system  or the New York city board of
   education retirement system:
     (i) who is a twenty-seven  year  participant  in  the  age  fifty-five
   retirement  program  (as defined in paragraph twelve of subdivision a of
   section six hundred four-i of this chapter), and
     (ii) who becomes subject to the provisions of article fifteen of  this
   chapter  after the effective date of this paragraph, shall contribute to
   a retirement system pursuant to section six  hundred  thirteen  of  this
                                      29                           CHAP. 18

   chapter  until  he  or  she has completed twenty-seven years of credited
   service.
     §  62. Subdivision b of section 911 of the retirement and social secu-
   rity law is amended by adding a new paragraph 1-b to read as follows:
     1-b. The provisions of this subdivision shall not apply to a New  York
   city  uniformed correction/sanitation revised plan member (as defined in
   subdivision twenty-five of section five hundred one of this chapter), an
   investigator revised plan member (as defined in subdivision twenty-seven
   of section five hundred one of this chapter) or a New York city  revised
   plan  member  (as defined in subdivision m of section six hundred one of
   this chapter).
     § 63. Section 1000 of  the  retirement  and  social  security  law  is
   amended by adding a new subdivision 10 to read as follows:
     10.  Anything  to  the  contrary  in  subdivision four of this section
   notwithstanding, to obtain such credit,  a  member  who  first  joins  a
   public retirement system of the state on or after April first, two thou-
   sand  twelve  shall  pay such retirement system, for deposit in the fund
   used to accumulate employer contributions, a sum equal to the product of
   the number of years of military service being claimed and six percent of
   such member's compensation earned during the twelve months  of  credited
   service  immediately preceding the date that the member made application
   for credit pursuant to this section.
     § 64. Section 1202 of  the  retirement  and  social  security  law  is
   amended by adding a new subdivision c to read as follows:
     c.  In  no event shall the vested retirement allowance payable without
   optional modification be less than the actuarial equivalent of the total
   which results from the member's contributions accumulated with  interest
   at five percent per annum compounded annually to the date of retirement.
     § 65. Section 1204 of the retirement and social security law, as added
   by section 1 of part A of chapter 504 of the laws of 2009, is amended to
   read as follows:
     §   1204.  Member  contributions.  Members  who  are  subject  to  the
   provisions of this article shall  contribute  three  percent  of  annual
   wages  to  the  retirement  system in which they have membership, except
   that beginning April first, two thousand thirteen for members who  first
   become  members  of the New York state and local police and fire retire-
   ment system on or after April first, two thousand twelve,  the  rate  at
   which  each such member shall contribute in any current plan year (April
   first to March thirty-first) shall be determined  by  reference  to  the
   wages of such member in the second plan year (April first to March thir-
   ty-first) preceding such current plan year as follows:
     a. members with wages of forty-five thousand dollars per annum or less
   shall contribute three per centum of annual wages;
     b.  members with wages greater than forty-five thousand per annum, but
   not more than fifty-five thousand per annum shall contribute  three  and
   one-half per centum of annual wages;
     c.  members with wages greater than fifty-five thousand per annum, but
   not more than seventy-five thousand per annum shall contribute four  and
   one-half per centum of annual wages;
     d. members with wages greater than seventy-five thousand per annum but
   not  more  than one hundred thousand per annum shall contribute five and
   three-quarters per centum of annual wages; and
     e. members with wages greater than  one  hundred  thousand  per  annum
   shall contribute six per centum of annual wages.
     Notwithstanding  the  foregoing,  during  each of the first three plan
   years (April first to March  thirty-first)  in  which  such  member  has
   CHAP. 18                           30

   established  membership  in the New York state and local police and fire
   retirement system, such member shall contribute a percentage  of  annual
   wages  in accordance with the preceding schedule based upon a projection
   of  annual  wages  provided  by the employer. Effective April first, two
   thousand twelve, all members subject to the provisions of  this  article
   shall  not  be  required  to  make  member contributions on annual wages
   excluded from the  calculation  of  final  average  salary  pursuant  to
   section 1203 of this article. Nothing in this section, however, shall be
   construed  or  deemed to allow members to receive a refund of any member
   contributions on such wages paid prior  to  April  first,  two  thousand
   twelve.
     Members  who  are enrolled in a retirement plan that limits the amount
   of creditable service a member can accrue shall not be required to  make
   contributions pursuant to this section after accruing the maximum amount
   of  service  credit  allowed  by  the  retirement plan in which they are
   enrolled. The state comptroller shall promulgate such regulations as may
   be necessary and appropriate with  respect  to  the  deduction  of  such
   contribution  from members' wages and for the maintenance of any special
   fund or funds with respect to amounts so contributed. In  no  way  shall
   the  member  contributions  made  pursuant  to  this  section be used to
   provide for pension increases or annuities of any kind.
     § 66. Intentionally omitted.
     § 67. The retirement and social security law is amended  by  adding  a
   new section 1209 to read as follows:
     § 1209.  Final average salary. For members who first become members of
   the  New  York  state  and local police and fire retirement system on or
   after April first, two thousand twelve, a member's final average  salary
   shall  be  equal  to one-fifth of the highest total wages earned by such
   member during any continuous period of employment for which  the  member
   was  credited  with  five years of service credit; provided, however, if
   the wages earned during any year of credited  service  included  in  the
   period used to determine final average salary exceeds the average of the
   wages  of  the  previous four years of credited service by more than ten
   percent, the amount in excess of ten percent shall be excluded from  the
   computation of final average salary. Wages in excess of the annual sala-
   ry paid to the governor pursuant to section three of article four of the
   state constitution shall be excluded from the computation of final aver-
   age  salary  for  members who first become members of the New York state
   and local police and fire retirement system on or after April first, two
   thousand twelve.
     § 68. The retirement and social security law is amended  by  adding  a
   new section 1210 to read as follows:
     §  1210. Wages.   For members who first become members of the New York
   state and local police and fire retirement  system  on  or  after  April
   first, two thousand twelve, the following items shall not be included in
   the  definition  of wages: a.  wages in excess of the annual salary paid
   to the governor pursuant to section three of article four of  the  state
   constitution,  b.  lump  sum  payments  for  deferred compensation, sick
   leave, accumulated vacation or other credits for time not worked, c. any
   form of termination pay, d. any additional compensation paid  in  antic-
   ipation of retirement, and e. in the case of employees who receive wages
   from three or more employers in a twelve month period, the wages paid by
   the third and each successive employer.
     § 69. Intentionally omitted.
     § 70. Intentionally omitted.
     § 71. Intentionally omitted.
                                      31                           CHAP. 18

     §  72.  Subdivision 2 of section 182 of the education law, as added by
   chapter 1076 of the laws of 1968, is amended to read as follows:
     2.  Employee  contributions.  In  the  case  of any electing employee,
   contributions at the rate of three [percentum] per centum of  his  state
   salary  shall  be  deducted  by  the  state  comptroller as the employee
   contribution, provided however, that such employee contribution shall be
   made by the state in accordance with subdivision  one  of  this  section
   during such period as (a) either section seventy-a of the retirement and
   social  security law or section five hundred twenty-eight of [the educa-
   tion law] this title provides that the contribution of  each  member  of
   the  New  York  state employees' retirement system or the New York state
   teachers' retirement system in the employ of the state shall be  reduced
   by  at  least  eight  [percentum] per centum of his compensation, or (b)
   employee contributions to either such system are no longer  required  by
   reason of such system becoming noncontributory for state employees.
     Notwithstanding  any other law to the contrary, beginning April first,
   two thousand thirteen any electing employee appointed on or after  April
   first,  two  thousand twelve, the rate at which each such employee shall
   contribute in any current plan year (January first to  December  thirty-
   first)  shall  be determined by reference to the wages of such member in
   the second plan year (January first to December thirty-first)  preceding
   such current plan year as follows:
     (a)  members  with  wages  of forty-five thousand dollars per annum or
   less shall contribute three per centum of annual wages;
     (b) members with wages greater than forty-five thousand per annum, but
   not more than fifty-five thousand per annum shall contribute  three  and
   one-half per centum of annual wages;
     (c) members with wages greater than fifty-five thousand per annum, but
   not  more than seventy-five thousand per annum shall contribute four and
   one-half per centum of annual wages;
     (d) members with wages greater than seventy-five  thousand  per  annum
   but  not  more than one hundred thousand per annum shall contribute five
   and three-quarters per centum of annual wages; and
     (e) members with wages greater than one  hundred  thousand  per  annum
   shall contribute six per centum of annual wages.
     Notwithstanding  the  foregoing,  during  each of the first three plan
   years (January first to December thirty-first) in which such member  has
   established  membership  in the Education Department Optional Retirement
   Program, such employee shall contribute a percent  of  annual  wages  in
   accordance with the preceding schedule based upon a projection of annual
   wages provided by the employer.
     §  72-a. Section 390 of the education law is amended by adding two new
   subdivisions 3-a and 8-a to read as follows:
     3-a. Beginning July first, two thousand thirteen, the  term  "eligible
   employees"  shall  also mean any person excluded from or not encompassed
   within a negotiating unit within the meaning of article fourteen of  the
   civil  service  law who would otherwise be entitled to receive a benefit
   under the retirement and  social  security  law  or  the  education  law
   initially hired on or after July first, two thousand thirteen with esti-
   mated  annual  wages of seventy-five thousand per annum or greater. Such
   estimate of annual wages to determine eligibility for  the  purposes  of
   this  subdivision shall be provided by the employer. For the purposes of
   this subdivision, a newly hired state employee whose immediate preceding
   employment was with another department, division, or agency of the state
   shall not be deemed to be an eligible employee.
   CHAP. 18                           32

     8-a. Beginning July first, two thousand thirteen, the  term  "electing
   employer"  shall  also  mean any public employer within the state of New
   York that employs one or more employees who have elected to  participate
   in the optional retirement program established pursuant to this article.
     §  72-b.  Section  392 of the education law is amended by adding a new
   subdivision 1-a to read as follows:
     1-a. Employer contributions. In the  case  of  any  electing  employee
   excluded  from  or  not encompassed within a negotiating unit within the
   meaning of article fourteen of the civil service law initially hired  on
   or  after  July first, two thousand thirteen, the state and the electing
   employer shall, during the continuance of his or  her  employment,  make
   contributions at the rate of eight per centum of his or her salary.
     §  73.  Paragraph (c) of subdivision 2 of section 392 of the education
   law, as added by chapter 617 of the laws of 2007, is amended and  a  new
   paragraph (d) is added to read as follows:
     (c)  Notwithstanding  any other provision of this section or any other
   law to the contrary, (1) on and after April first,  two  thousand  eight
   for  a  member  who  joined  the optional retirement program established
   pursuant to this article before April first, two thousand twelve and who
   has ten or more years of membership in such optional retirement program,
   the state shall contribute  one-third  of  the  three  percent  employee
   contribution  required  pursuant  to  the  provisions of this section on
   behalf of such employee; and (2) on and after April first, two  thousand
   nine for a member who joined the optional retirement program established
   pursuant to this article before April first, two thousand twelve and who
   has ten or more years of membership in such optional retirement program,
   the  state  shall  contribute  two-thirds  of the three percent employee
   contribution required pursuant to the  provisions  of  this  section  on
   behalf  of such employee; and (3) on and after April first, two thousand
   ten for a member who joined the optional retirement program  established
   pursuant to this article before April first, two thousand twelve and who
   has ten or more years of membership in such optional retirement program,
   the  state  shall  contribute  the  three  percent employee contribution
   required pursuant to the provisions of this section on  behalf  of  such
   employee.    The  provisions  of  this  paragraph shall not apply to any
   electing employee who  becomes  a  member  of  the  optional  retirement
   program on or after April first, two thousand twelve.
     (d)  Notwithstanding  any  other  law to the contrary, beginning April
   first, two thousand thirteen any electing employee appointed on or after
   April first, two thousand twelve, the rate at which each  such  employee
   shall  contribute  in  any  current plan year (January first to December
   thirty-first) shall be determined by reference  to  the  wages  of  such
   member  in the second plan year (January first to December thirty-first)
   preceding such current plan year as follows:
     (i) members with wages of forty-five thousand  dollars  per  annum  or
   less shall contribute three per centum of annual wages;
     (ii)  members  with  wages greater than forty-five thousand per annum,
   but not more than fifty-five thousand per annum shall  contribute  three
   and one-half per centum of annual wages;
     (iii)  members  with wages greater than fifty-five thousand per annum,
   but not more than seventy-five thousand per annum shall contribute  four
   and one-half per centum of annual wages;
     (iv)  members  with wages greater than seventy-five thousand per annum
   but not more than one hundred thousand per annum shall  contribute  five
   and three-quarters per centum of annual wages; and
                                      33                           CHAP. 18

     (v)  members  with  wages  greater than one hundred thousand per annum
   shall contribute six per centum of annual wages.
     Notwithstanding  the  foregoing,  during  each of the first three plan
   years (January first to December thirty-first) in which such member  has
   established  membership  in  the  State  University  Optional Retirement
   Program, such employee shall contribute a percent  of  annual  wages  in
   accordance with the preceding schedule based upon a projection of annual
   wages provided by the employer.
     §  74. Paragraph (c) of subdivision 2 of section 6252 of the education
   law, as added by chapter 617 of the laws of 2007, is amended and  a  new
   paragraph (d) is added to read as follows:
     (c)  Notwithstanding  any other provision of this section or any other
   law to the contrary, (1) on and after April first,  two  thousand  eight
   for  a  member  who  joined  the optional retirement program established
   pursuant to this article before April first, two thousand twelve and who
   has ten or more years of membership in such optional retirement program,
   the city shall  contribute  one-third  of  the  three  percent  employee
   contribution  required  pursuant  to  the  provisions of this section on
   behalf of such employee; and (2) on and after April first, two  thousand
   nine for a member who joined the optional retirement program established
   pursuant to this article before April first, two thousand twelve and who
   has ten or more years of membership in such optional retirement program,
   the  city  shall  contribute  two-thirds  of  the three percent employee
   contribution required pursuant to the  provisions  of  this  section  on
   behalf  of such employee; and (3) on and after April first, two thousand
   ten for a member who joined the optional retirement program  established
   pursuant to this article before April first, two thousand twelve and who
   has ten or more years of membership in such optional retirement program,
   the  city  shall  contribute  the  three  percent  employee contribution
   required pursuant to the provisions of this section on  behalf  of  such
   employee. The provisions of this paragraph shall not apply to any elect-
   ing  employee who becomes a member of the optional retirement program on
   or after April first, two thousand twelve.
     (d) Notwithstanding any other law to  the  contrary,  beginning  April
   first, two thousand thirteen any electing employee appointed on or after
   April  first,  two thousand twelve, the rate at which each such employee
   shall contribute in any current plan year  (January  first  to  December
   thirty-first)  shall  be  determined  by  reference to the wages of such
   member in the second plan year (January first to December  thirty-first)
   preceding such current plan year as follows:
     (1)  members  with  wages  of forty-five thousand dollars per annum or
   less shall contribute three per centum of annual wages;
     (2) members with wages greater than forty-five thousand per annum, but
   not more than fifty-five thousand per annum shall contribute  three  and
   one-half per centum of annual wages;
     (3) members with wages greater than fifty-five thousand per annum, but
   not  more than seventy-five thousand per annum shall contribute four and
   one-half per centum of annual wages;
     (4) members with wages greater than seventy-five  thousand  per  annum
   but  not  more than one hundred thousand per annum shall contribute five
   and three-quarters per centum of annual wages; and
     (5) members with wages greater than one  hundred  thousand  per  annum
   shall contribute six per centum of annual wages.
     Notwithstanding  the  foregoing,  during  each of the first three plan
   years (January first to December thirty-first) in which such member  has
   established membership in the Board of Higher Education Optional Retire-
   CHAP. 18                           34

   ment  Program,  such employee shall contribute a percent of annual wages
   in accordance with the preceding schedule based  upon  a  projection  of
   annual wages provided by the employer.
     §  75.  Paragraphs  (b) and (c) of subdivision 86 of section 13-101 of
   the administrative code of the city of New York, as added by chapter 114
   of the laws of 1989, are amended to read as follows:
     (b) In the case of a uniformed force member who is  a  member  of  the
   uniformed  force  of  the department of sanitation and is not a Tier III
   member (as defined in subdivision seventy-three of this  section)  or  a
   Tier  IV member (as defined in subdivision seventy-six of this section),
   the term "normal rate of contribution as a uniformed force member" shall
   mean the proportion of such member's earnable compensation  required  to
   be deducted from his or her compensation by the applicable provisions of
   sections 13-125, 13-154, 13-159 and 13-160 of this chapter as his or her
   member  contributions,  exclusive  of any increase in such contributions
   pursuant to subdivision d, e, or f of section 13-125 of this chapter, or
   any decrease in  such  contributions  on  account  of  any  program  for
   increased-take-home-pay  or  pursuant  to subdivision one of section one
   hundred thirty-eight-b of the retirement and social security law (relat-
   ing to election to decrease member contributions by contributions due on
   account of social security coverage).
     (c) In the case of any uniformed force member (1) who is both a member
   of the uniformed correction force and a Tier III member, or (2)  who  is
   both a member of the uniformed force of the department of sanitation and
   a  Tier III member, the term "normal rate of contribution as a uniformed
   force member" shall mean the percentage of  the  annual  wages  of  such
   member required to be deducted from such member's wages by subdivision a
   of  section five hundred seventeen of the retirement and social security
   law, as his or her member contributions.
     § 76. Paragraph (b) of subdivision 87 of section 13-101 of the  admin-
   istrative  code  of the city of New York, as added by chapter 114 of the
   laws of 1989, is amended to read as follows:
     (b) a uniformed force member who is not required to contribute  during
   such  payroll  period because he or she is a Tier III member who, having
   contributed for thirty years, or who, in the case of  a  New  York  city
   uniformed  correction/sanitation  revised  plan  member  (as  defined in
   subdivision twenty-five of section five hundred one  of  the  retirement
   and  social security law), having contributed for twenty-five years, has
   discontinued member contributions pursuant to subdivision a  of  section
   five hundred seventeen of the retirement and social security law.
     §  77. Paragraph (c) of subdivision 89 of section 13-101 of the admin-
   istrative code of the city of New York, as added by chapter 114  of  the
   laws of 1989, is amended to read as follows:
     (c) In the case of any contributing uniformed force member who is both
   (1)  a  member of the uniformed correction force (as defined in subdivi-
   sion thirty-nine of this section) or the uniformed force of the  depart-
   ment of sanitation (as defined in subdivision sixty-two of this section)
   and  (2)  a  Tier III member (as defined in subdivision seventy-three of
   this section), the term "uniformed force member  contributions  eligible
   for pick up by the employer" shall mean the amount which, in the absence
   of  a  pick  up  program  applicable  to such member pursuant to section
   13-125.1 of this chapter, would be required  to  be  deducted  from  the
   wages  of  such member for such payroll period pursuant to subdivision a
   of section five hundred seventeen of the retirement and social  security
   law as his or her required member contributions for such payroll period.
                                      35                           CHAP. 18

     §  78. Paragraph 14 of subdivision e of section 13-638.4 of the admin-
   istrative code of the city of New York, as added by chapter 749  of  the
   laws of 1992, is amended to read as follows:
     (14)  (i)  Subject  to the provisions of subdivision f of this section
   and the provisions of subdivision c of section six hundred eight of  the
   RSSL,  where  those  provisions  are applicable, and notwithstanding the
   provisions of subdivision a of section six hundred eight  of  the  RSSL,
   for  a  tier IV member of NYCERS who is not a New York city revised plan
   member (as defined in subdivision m of section six hundred  one  of  the
   RSSL) or for a tier IV member of BERS who is not a New York city revised
   plan member, the term "final average salary", as used in article fifteen
   of the RSSL, shall be equal to the greater of:
     [(i)(A)  one-third of the highest total wages earned by such member
   during any continuous period of employment  for  which  the  member  was
   credited  with three years of service credit; provided that if the wages
   earned during any year of credited service included in the  period  used
   to  determine  final  average salary exceeds the average of the wages of
   the previous two years of credited service by more than ten percent, the
   amount in excess of ten percent shall be excluded from  the  computation
   of final average salary; or
     [(ii)(B)  the  total  wages earned during any six consecutive years
   from service for which the member received service credit divided by the
   amount of such  service  credit  earned  during  that  six-year  period,
   provided,  however,  that "wages", as used in this paragraph, shall mean
   the applicable provisions  and  limitations  of  the  term  "wages",  as
   defined in subdivision 1 of section six hundred one of the RSSL.
     (ii)  Subject to the provisions of subdivision f of this section where
   those provisions are applicable, and notwithstanding the  provisions  of
   subdivisions  a  and  c  of section six hundred eight of the RSSL, for a
   tier IV member of NYCERS who is a New York city revised plan member  (as
   defined  in  subdivision  m of section six hundred one of the RSSL) or a
   tier IV member of BERS who is a New York city revised plan  member,  the
   term  "final  average  salary",  as used in article fifteen of the RSSL,
   shall be equal to one-fifth of the highest total wages  earned  by  such
   member  during  any continuous period of employment for which the member
   was credited with five years of service credit;  provided  that  if  the
   wages  earned during any year of credited service included in the period
   used to determine final average salary exceeds the average of the  wages
   of the previous four years of credited service by more than ten percent,
   the  amount in excess of ten percent shall be excluded from the computa-
   tion of final average salary, provided further that "wages", as used  in
   this  paragraph, shall mean the applicable provisions and limitations of
   the term "wages", as defined in subdivision l of section six hundred one
   of the RSSL.
     § 78-a. Section 63-c of the executive law is amended by adding  a  new
   subdivision 5 to read as follows:
     5.  Notwithstanding  any  other law to the contrary, including without
   limitation; section sixty-four of this article; the education  law;  the
   retirement  and  social  security law and the administrative code of the
   city of New York, the portion of all  money  received  by  the  attorney
   general  in  connection  with the settlement of an action arising out of
   the management, operation, investments of  or  otherwise  in  connection
   with  a  retirement  or other fund established pursuant to the education
   law, the retirement and social security law or the  administrative  code
   of  the  city of New York attributable to the harm suffered by such fund
   shall be deposited into such fund.
   CHAP. 18                           36

     § 79. Nothing contained  in  sections  seventy-five,  seventy-six  and
   seventy-seven  of  this act shall be construed to create any contractual
   right  with  respect  to  members  to  whom  such  sections  apply.  The
   provisions  of  such  sections are intended to afford members the advan-
   tages  of  certain  benefits contained in the internal revenue code, and
   the effectiveness and existence  of  such  sections  and  benefits  they
   confer are completely contingent thereon.
     § 80. Notwithstanding any provision of law to the contrary, nothing in
   this  act  shall  limit  the  rights accruing to employees pursuant to a
   collective bargaining agreement for the unexpired term of such agreement
   or the eligibility of any member of an employee organization to  join  a
   special  retirement  plan  open to him or her pursuant to a collectively
   negotiated agreement with any state or local government employer,  where
   such  agreement  is  in  effect on the effective date of this act and so
   long as such agreement remains in effect thereafter; provided,  however,
   that  any  such  eligibility  shall  not  apply upon termination of such
   agreement for employees otherwise subject to the provisions  of  article
   22 of the retirement and social security law, provided further that this
   section shall not be construed as authorizing any member who first joins
   a public retirement system of the state (as defined in subdivision 23 of
   section 501 of the retirement and social security law) on or after April
   1,  2012 to become a participant in any of the special plans established
   by section 504-a, 504-b, 504-d, 604-a, 604-c (as added by chapter 96  of
   the  laws of 1995), 604-d or 604-i of the retirement and social security
   law or section 13-157.1 or 13-157.4 of the administrative  code  of  the
   city of New York.
     §  81.  No  enhancement, increase or other alteration or change in the
   benefit structure provided herein shall be authorized.
     § 81-a. The retirement and social security law is amended by adding  a
   new section 25 to read as follows:
     §  25.  Appropriations  in  retirement  bills.  The state shall make a
   payment to the retirement system in an amount equal to the value of  the
   benefits  associated  with  prior  service  upon the enactment of a bill
   which enacts or amends any provision of law  relating  to  a  retirement
   system  or  plan  of  the  state  of New York or of any of its political
   subdivisions. The state may amortize such payment over a five year peri-
   od at a rate of interest to be determined by the retirement system. Such
   bill shall contain an itemized appropriation from  the  state's  general
   fund  beginning  for  the  fiscal  year  in which such amendment becomes
   effective and which shall not be used for any other purpose,  sufficient
   to  disburse  a  minimum of the first of five such amortization payments
   plus the present value of the benefits  provided  to  employees  of  the
   state  or  its political subdivisions by the bill for the current fiscal
   year. The state shall continue to pay for the cost of  the  benefits  as
   provided  by  the bill to the state and its political subdivisions on an
   ongoing basis. Such appropriation from the state's  general  fund  shall
   only  be  required when a bill is enacted on a statewide basis. In addi-
   tion, such appropriation from the state's  general  fund  shall  not  be
   required when the benefits provided by a particular bill must be elected
   by a participating employer, local government, or school district.
     §  81-b.  The  retirement and social security law is amended by adding
   three new articles 23, 24, and 25 to read as follows:
                                  ARTICLE 23
                             BENEFIT ENHANCEMENTS
   Section 1300. Definitions.
           1301. Election of benefit enhancements.
                                      37                           CHAP. 18

           1302. Benefit enhancements.
           1303. Additional member contributions.
           1304. Election not collectively bargained.
     §  1300.  Definitions. The following words and phrases as used in this
   article shall have the following meanings unless a different meaning  is
   plainly required by the context:
     a. "Retirement system" shall mean the New York state and local employ-
   ees'  retirement  system  and  the  New  York state teachers' retirement
   system.
     b. "Eligible employee", subject to the limitations of section thirteen
   hundred two of this article, shall mean a state employee that becomes  a
   member  of  a retirement system who first became a member of such system
   on or after April first, two thousand twelve who is identified as eligi-
   ble to receive the benefit enhancements provided  for  in  this  article
   upon  election  by  the  state  of New York pursuant to section thirteen
   hundred one of this article.
     § 1301. Election of benefit enhancements. a. The state of New York may
   elect to provide its employees the benefit enhancements provided for  in
   section thirteen hundred two of this article.
     b.  A  separate  election  to provide benefit enhancements pursuant to
   subdivision a of this section must be made for each specific  collective
   bargaining  organization,  recognized  or  certified pursuant to article
   fourteen of the civil service law.
     c. Such election is made by the governor to the retirement system upon
   receipt of a request from the collective bargaining organization, recog-
   nized or certified pursuant to article fourteen of the civil service law
   to represent such  eligible  employees.    No  such  petition  shall  be
   required  for  employees  who  are  not  represented for the purposes of
   collective bargaining subject to the limitation provided in section nine
   hundred two of this chapter.
     § 1302. Benefit enhancements. Notwithstanding any  other  law  to  the
   contrary,  eligible  employees  shall  be  permitted  to retire, without
   penalty, upon reaching age fifty-seven and completing  at  least  thirty
   years  of  credited service. Employees retiring pursuant to this section
   shall receive a pension allowance equal to the sum  of  thirty-five  per
   centum and one-fiftieth of final average salary for each year of service
   in  excess  of twenty times final average salary times years of credited
   service.
     § 1303. Additional member contributions. Upon election by the state of
   New York, the retirement system shall require additional member contrib-
   utions to be paid by  all  eligible  employees.  The  additional  member
   contributions  to  be  paid by eligible employees shall be of a level so
   that no additional contributions shall be paid by the state to cover the
   cost of such additional benefits. Additional member  contributions  made
   pursuant  to  this  section shall be in addition to member contributions
   made pursuant to other provisions of this chapter.
     § 1304. Election not collectively bargained.    The  determination  to
   make  an election in accordance with this article shall not be deemed to
   be, or to relate to or affect, a term and condition of employment within
   the meaning of article fourteen of the civil service law  or  any  local
   law enacted in furtherance thereof.
                                  ARTICLE 24
                             BENEFIT ENHANCEMENTS
   Section 1310. Definitions.
           1311. Election of benefit enhancements.
           1312. Benefit enhancements.
   CHAP. 18                           38

           1313. Additional member contributions.
           1314. Election not collectively bargained.
     §  1310. Definitions.  The following words and phrases as used in this
   article shall have the following meanings unless a different meaning  is
   plainly required by the context:
     a. "Retirement system" shall mean the New York state and local employ-
   ees'  retirement  system  and  the  New  York state teachers' retirement
   system.
     b. "Eligible employee", subject to the limitations of section thirteen
   hundred twelve of this article, shall mean  a  member  of  a  retirement
   system who first became a member of such system on or after April first,
   two thousand twelve who is identified as eligible to receive the benefit
   enhancements  provided for in this article upon election by the state of
   New York pursuant to section thirteen hundred eleven of this article.
     § 1311. Election of benefit enhancements. a. The state of New York may
   elect to provide employees who hold a position represented by the recog-
   nized collective bargaining units affiliated with  the  New  York  state
   united teachers employee organization as certified by his or her employ-
   er  the  benefit  enhancements  provided for in section thirteen hundred
   twelve of this article.
     b. Such election is made by the governor to the retirement system upon
   receipt of a request by the New  York  state  united  teachers  employee
   organization.
     §  1312.  Benefit  enhancements.  Notwithstanding any other law to the
   contrary, eligible employees  shall  be  permitted  to  retire,  without
   penalty,  upon  reaching  age fifty-seven and completing at least thirty
   years of credited service. Employees retiring pursuant to  this  section
   shall  receive  a  pension allowance equal to the sum of thirty-five per
   centum and one-fiftieth of final average salary for each year of service
   in excess of twenty times final average salary times years  of  credited
   service.
     § 1313. Additional member contributions. Upon election by the state of
   New York, the retirement system shall require additional member contrib-
   utions  to  be  paid  by  all  eligible employees. The additional member
   contributions to be paid by eligible employees shall be of  a  level  so
   that  no  additional contributions shall be paid by the state or partic-
   ipating employers in the retirement system to cover  the  cost  of  such
   additional  benefits.  Additional  member contributions made pursuant to
   this section shall be in addition to member contributions made  pursuant
   to other provisions of this chapter.
     §  1314.  Election  not collectively bargained.   The determination to
   make an election in accordance with this article shall not be deemed  to
   be, or to relate to or affect, a term and condition of employment within
   the  meaning  of  article fourteen of the civil service law or any local
   law enacted in furtherance thereof.
                                  ARTICLE 25
                             BENEFIT ENHANCEMENTS
   Section 1320. Definitions.
           1321. Election of benefit enhancements.
           1322. Benefit enhancements.
           1323. Additional member contributions.
           1324. Election not collectively bargained.
     § 1320. Definitions. The following words and phrases as used  in  this
   article  shall have the following meanings unless a different meaning is
   plainly required by the context:
                                      39                           CHAP. 18

     a. "Retirement system" shall mean the New York city employees' retire-
   ment system, the New York city teachers' retirement system, and the  New
   York city board of education retirement system.
     b. "Eligible employee", subject to the limitations of section thirteen
   hundred  twenty-two of this article, shall mean a member of a retirement
   system who first became a member of such system on or after April first,
   two thousand twelve who is identified as eligible to receive the benefit
   enhancements provided for in this article upon election by the  city  of
   New  York  pursuant to section thirteen hundred twenty-one of this arti-
   cle.
     § 1321. Election of benefit enhancements. a. The city of New York  may
   elect  to provide its employees the benefit enhancements provided for in
   section thirteen hundred twenty-two of this article.
     b. A separate election to provide  benefit  enhancements  pursuant  to
   subdivision  a of this section must be made for each specific collective
   bargaining organization, recognized or  certified  pursuant  to  article
   fourteen of the civil service law.
     c.  Such  election  may be made at the sole discretion of the mayor of
   the city of New York to the retirement systems upon receipt of a request
   from the collective bargaining  organization,  recognized  or  certified
   pursuant  to article fourteen of the civil service law to represent such
   eligible employees. No such petition shall be required for employees who
   are not represented for the purposes of collective bargaining subject to
   the limitation provided in section nine hundred two of this chapter.
     § 1322. Benefit enhancements. Notwithstanding any  other  law  to  the
   contrary, eligible employees shall be eligible to receive benefits spec-
   ified  by  the mayor of the city of New York, provided that the petition
   provided pursuant to subdivision c of section thirteen  hundred  twenty-
   one of this article requested the election of such benefits.
     §  1323. Additional member contributions. Upon election by the city of
   New York, the retirement system shall require additional member contrib-
   utions to be paid by  all  eligible  employees.  The  additional  member
   contributions  to  be  paid by eligible employees shall be of a level so
   that no additional contributions shall be paid by the city of  New  York
   to  cover  the  cost  of  such  additional  benefits.  Additional member
   contributions made pursuant to this section  shall  be  in  addition  to
   member contributions paid pursuant to other provisions of this chapter.
     §  1324.  Election  not collectively bargained.   The determination to
   make an election in accordance with this article shall not be deemed  to
   be, or to relate to or affect, a term and condition of employment within
   the  meaning  of  article fourteen of the civil service law or any local
   law enacted in furtherance thereof.
     § 82. Severability clause. If any clause, sentence, paragraph,  subdi-
   vision,  section  or  part of this act shall be adjudged by any court of
   competent jurisdiction to be invalid, such judgment  shall  not  affect,
   impair,  or  invalidate  the remainder thereof, but shall be confined in
   its operation to the clause, sentence, paragraph,  subdivision,  section
   or part thereof directly involved in the controversy in which such judg-
   ment shall have been rendered. It is hereby declared to be the intent of
   the  legislature  that  this  act  would  have been enacted even if such
   invalid provisions had not been included herein.
     § 83. This act shall take effect April  1,  2012,  provided  that  the
   amendments  to subdivision a of section 603 of the retirement and social
   security law made by section thirty-one of this act shall be subject  to
   the  expiration and reversion of such subdivision pursuant to section 13
   of chapter 682 of the laws of 2003, as amended, provided,  further  that
   CHAP. 18                           40

   the  amendments  to  subdivisions 86, 87 and 89 of section 13-101 of the
   administrative code of the city of New York made  by  sections  seventy-
   five,  seventy-six  and  seventy-seven  of this act shall not affect the
   expiration of such subdivisions and shall be deemed to expire therewith.
   ------------------------------------------------------------------------
     FISCAL  NOTE.--Pursuant  to  Section  50  of  the Legislative Law, the
   fiscal note that must be appended in its entirety to this bill is:
     This bill would amend various  sections  of  the  Education  Law,  the
   Retirement  and  Social Security Law, and the Administrative Code of the
   City of New York to implement a new  retirement  benefit  structure  for
   members  who  first  join a public retirement system of the state or New
   York City on or after April 1, 2012. The following provisions  are  with
   respect  to  members  of the New York State Teachers' Retirement System.
   Members would be eligible  for  an  unreduced  retirement  benefit  upon
   attainment  of age 63. Benefits would be vested after ten years of cred-
   ited service. Members would be permitted to receive a reduced retirement
   benefit as early as age 55 with a reduction of 6.5% per  year  for  each
   year  that commencement precedes age 63.  The retirement benefit formula
   for members whose years of service are less than 20 would  be  equal  to
   one-sixtieth  of  final  average  salary  times  years of service.   The
   retirement benefit formula for those members whose years of  service  is
   20  or more would be equal to 1.75% times years of service up to 20, and
   2.0% times years of service in excess of 20. Final average salary  would
   be  determined  as  the average of the highest five consecutive years of
   salary. Salary in excess of ten percent over the  average  of  the  four
   previous  years  would  not  be  included  in  the final average salary.
   Members would be required to contribute between three and six percent of
   annual salary each year based upon their earnings  in  the  second  plan
   year preceding the current year in accordance with the schedule below:
   Wages Earned                                      Member Contribution Rate
   $45,000 or less                                        3.00%
   Greater than $45,000 but not greater than $55,000      3.50%
   Greater than $55,000 but not greater than $75,000      4.50%
   Greater than $75,000 but not greater than $100,000     5.75%
   Greater than $100,000                                  6.00%
   Wages  in  excess  of the annual salary paid to the Governor pursuant to
   the state constitution are not includable. Additionally in the  case  of
   members  who  work for multiple employers, only salary received from two
   employers is includable.
     In Article 23-a of the bill, if NYSUT petitions the  Governor  to  add
   the provisions of this section, and the Governor so elects, then a 57/30
   benefit  enhancement  is added in which eligible members may retire with
   an unreduced benefit upon reaching age 57 provided they  have  completed
   at  least  30  years of credited service. Upon election of this section,
   NYSTRS shall determine the  cost  of  this  provision,  and  the  member
   contribution  rate shall be increased by this amount, such that there is
   no additional cost to employers due to the provisions of this section.
     The current required employer contribution rate for the New York State
   Teachers' Retirement System is 11.11% of pay,  applicable  to  7/1/11  -
   6/30/12  member  salaries  and to be collected in the fall of 2012. This
   rate is estimated to increase to 11.84% for the 7/1/12 - 6/30/13  fiscal
   year. This rate is applicable to the salaries of all members, regardless
   of  tier.  In that this proposed benefit structure is only applicable to
   members joining on or after April 1, 2012,  it  will  be  several  years
   before it has a noticeable impact on the employer contribution rate. The
   cost  savings  impact  of  this change will become more significant with
                                      41                           CHAP. 18

   time as the number of post-4/1/12 members grows as a percentage  of  the
   total membership.
     Our "new entrant rate", a hypothetical employer contribution rate that
   would occur if we started a new Retirement System without any assets, is
   equal to 10.9% of pay under the Tier 4 benefit structure and 7.9% of pay
   under  the  Tier  5  benefit structure, in accordance with the actuarial
   assumptions adopted by the Retirement Board on October  27,  2011.  This
   can  be  thought of as the long-term expected cost of the benefit struc-
   ture, based on current actuarial assumptions. For the proposed new bene-
   fit structure as described above, this new entrant rate would  be  equal
   to 4.6% of pay.
     With respect to the breakdown of the total plan cost into employer and
   employee  portions,  the  long-term  expected  total cost of the benefit
   structure   for   Tier   4   breaks   down   approximately   as    89/11
   employer/employee,  for Tier 5 the split is 69/31 employer/employee, and
   for the Tier 6 benefit structure proposed here the split would be  49/51
   employer/employee, based on current actuarial assumptions. Of course the
   employee  contribution  rate  is  fixed, while the employer contribution
   rate is variable as employers are responsible for  overall  funding  and
   assume all risks and benefits associated with investment performance and
   demographic  experience.  The actual employer cost in a given year could
   be higher or lower than the cost projected above depending on how actual
   investment returns  and  demographic  experience  differ  from  what  is
   projected.
     The  source  of  this  estimate is Fiscal Note 2012-23 dated March 14,
   2012 prepared by the Actuary of the New York State Teachers'  Retirement
   System and is intended for use only during the 2012 Legislative Session.
   I,  Richard  A.  Young,  am the Actuary for the New York State Teachers'
   Retirement System. I am a member of the American  Academy  of  Actuaries
   and  I meet the Qualification Standards of the American Academy of Actu-
   aries to render the actuarial opinion contained herein.
     FISCAL NOTE.--This bill would  require  new  members  who  first  join
   public retirement systems in New York State on or after April 1, 2012 to
   become  covered  under the provisions of a new defined benefit plan. New
   non-unionized members who first join public retirement  systems  in  New
   York  State on or after July 1, 2013 would have the option of joining an
   existing defined contribution plan.
     Insofar as this bill would affect the New York State and Local Employ-
   ees Retirement System (ERS),  the  significant  design  changes  to  the
   current defined benefit plan include:
     1.  Beginning  April  1, 2013, employee contributions of X% of pay for
   all years of service, (except members enrolled in a plan that limits the
   amount of creditable service that may be accrued would not  be  required
   to  contribute  after  accruing the maximum amount of creditable service
   under such plan), where the X% applies for a fiscal year and  is  deter-
   mined as follows:
             Annual Pensionable salary                 X%
             as of 3/31/two fiscal years prior
             up to $45,000.00                        3.00%
             $45,000.01 to $55,000.00                3.50%
             $55,000.01 to $75,000.00                4.50%
             $75,000.01 to $100,000.00               5.75%
             $100,000.01 or more                     6.00%
     2. The service retirement benefit would be one-sixtieth (1.67%) of FAS
   for  less  than  20  years  of  creditable  service, OR, when creditable
   CHAP. 18                           42

   service is 20 years or more, 35% plus one-fiftieth (2.00%)  of  FAS  for
   service credit in excess of 20 years,
     3. Members in regular plans (where retirement eligibility requires the
   attainment  of  a  certain  age as well as the accumulation of a certain
   amount of service credit) must attain age 63 before they may receive  an
   unreduced  service  retirement benefit.   Retirement with reductions can
   commence at age 55 with the application of an early age reduction factor
   at a rate of 6.5% per year.
     4. Final average salary (FAS) would be based on a 5 year average, with
   no year's salary permitted to exceed 10% of the average of the  previous
   4 year's salary,
     5.  Reportable salary (for a fiscal year) may not exceed the salary of
   the Governor of the state of New York, which currently is set in law  to
   be  $179,000  (the  reportable  salary  would change when the Governor's
   salary does) and pensionable salary applies on salary from no more  than
   two employers per fiscal year,
     6.  Lump  sum vacation pay, any form of termination pay and additional
   compensation paid in anticipation  of  retirement  would  no  longer  be
   included in a member's final average salary,
     7. Service credit for unused sick leave time is capped at 100 days,
     8.  An  early  age  retirement starting at age 57 for those with 30 or
   more years of creditable service is potentially provided to  petitioning
   bargaining units subject to approval by the Governor of the state of New
   York  with  the  enhanced  benefit  paid  for  by an additional employee
   contribution yet to be determined.
     If this bill is enacted, NYSLRS would calculate new plan rates for all
   ERS members who first enter on or after April 1,  2012.  The  long  term
   expected  annual  employer  normal  contribution  rate  for  new general
   members would be approximately 5.7% of payroll. The long  term  expected
   annual   employer  total  contribution  rate  for  new  general  members
   (includes Group Term Life Insurance and the administrative  rate)  would
   be approximately 6.4% of payroll.
     For  fiscal  year  2013,  the  total contribution rate for new general
   members (includes Group Term Life Insurance and the administrative rate)
   would be approximately 10.0%  of  payroll.  The  FY  2013  contributions
   assume  that  the  new  tier will be added to the existing ERS plan, and
   does not become its own, independent plan.
     For ERS members in retirement  plans  that  allow  retirement  without
   regard  to  age,  the long term expected and FY 2013 contributions would
   vary by plan with a representative set of the larger plans given in  the
   table below (with the general plan for tiers 5 and 6 included for refer-
   ence):
           Plan                       Long Term Expected         FY 2013
                                      Total Contribution       Contribution
        Tier 5 General                      9.4%                  14.9%
        Tier 6 General                      6.4%                  10.0%
        Tier 5 Non-State COs               10.6%                  17.5%
        Tier 6 Non-State COs                7.2%                  11.5%
        Tier 5 State COs                   12.1%                  19.8%
        Tier 6 State COs                    8.8%                  14.2%
        Tier 5 Sheriffs (553)              16.2%                  26.5%
        Tier 6 Sheriffs (553)              12.9%                  20.9%
     Insofar  as this bill would affect the New York State and Local Police
   and Fire Retirement System (PFRS), the significant design changes to the
   defined benefit plan include:
                                      43                           CHAP. 18

     1. Beginning April 1, 2013, employee contributions of X%  of  pay  for
   all years of service, (except members enrolled in a plan that limits the
   amount  of  creditable service that may be accrued would not be required
   to contribute after accruing the maximum amount  of  creditable  service
   under  such  plan), where the X% applies for a fiscal year and is deter-
   mined as follows:
             Annual Pensionable salary                 X%
             as of 3/31/two fiscal years prior
             up to $45,000.00                        3.00%
             $45,000.01 to $55,000.00                3.50%
             $55,000.01 to $75,000.00                4.50%
             $75,000.01 to $100,000.00               5.75%
             $100,000.01 or more                     6.00%
     2. Final average salary (FAS) would be based on a 5 year average, with
   no year's salary permitted to exceed 10% of the average of the  previous
   4 year's salary,
     3.  Reportable salary (for a fiscal year) may not exceed the salary of
   the Governor of the state of New York, which currently is set in law  to
   be  $179,000  (the  reportable  salary  would change when the Governor's
   salary does) and pensionable salary applies on salary from no more  than
   two employers per fiscal year,
     4.  Any  form  of  termination pay and additional compensation paid in
   anticipation of retirement would no longer be  included  in  a  member's
   final average salary,
     5. Members in regular plans (where retirement eligibility requires the
   attainment  of  a  certain  age as well as the accumulation of a certain
   amount of service credit) must attain age 63 before they may  receive  a
   service retirement benefit,
     6. Service credit for unused sick leave time is capped at 100 days, If
   this bill is enacted, NYSLRS would calculate new plan rates for all PFRS
   members  who  first enter on or after April 1, 2012. For PFRS members in
   retirement plans that allow retirement without regard to age,  the  long
   term expected and FY 2013 contributions would vary by plan with a repre-
   sentative  set of the larger plans given in the table below. The FY 2013
   contributions assume that the new tier will be  added  to  the  existing
   PFRS plan, and does not become its own, independent plan.
           Plan                       Long Term Expected         FY 2013
                                      Total Contribution       Contribution
        Tier 5 384D                         14.8%                 20.1%
        Tier 6 384D                         10.5%                 14.1%
        Tier 5 384E                         15.1%                 20.5%
        Tier 6 384E                         10.8%                 14.5%
        T5 State Police                     16.2%                 22.1%
        T6 State Police                     11.1%                 15.0%
     There  would  also  be  additional  administrative  expenses to inform
   employers and new members of the new plan provisions and to modify auto-
   mated systems.  Employee contributions would now be a function  of  base
   salary  instead  of one fixed rate. To implement these employee contrib-
   ution rate changes the modification of NYSLRS automated systems would be
   substantial with an associated implementation expense estimated at $3 to
   5 million. The more complicated system  would  be  more  challenging  to
   maintain,  apply,  and  explain,  resulting  in estimated annual ongoing
   expenses in the millions of dollars. The state and each of the  approxi-
   mately  3,000 participating employers would have to modify their methods
   for withholding employee contributions, which could also lead  to  total
   expenses in the millions of dollars. Lastly, the bill contains no appro-
   CHAP. 18                           44

   priation to support the additional payroll administrative expense to the
   Office  of  the  State  Comptroller  or  the  implementation and ongoing
   expenses of NYSLRS related to the new tier.
     This  bill  would provide new members who first join public retirement
   systems in New York State on or after July 1, 2013 the option to  become
   covered  under  an  existing  defined  contribution  plan in lieu of the
   defined benefit plan.
     There would be additional NYSLRS  administrative  expenses  to  inform
   employers  and new members of the option. These expenses are expected to
   be small.
     Summary of relevant resources:
     Data: March 31, 2011 Actuarial Year End  File  with  distributions  of
   membership  and  other  statistics  displayed  in the 2011 Report of the
   Actuary and 2011 Comprehensive Annual Financial Report.
     Assumptions and Methods: 2010 and 2011  Annual  Report  to  the  Comp-
   troller  on  Actuarial  Assumptions,  Codes Rules and Regulations of the
   State of New York:  Audit and Control.
     Market Assets and GASB Disclosures: March 31, 2011 New York State  and
   Local  Retirement System Financial Statements and Supplementary Informa-
   tion.
     Valuations of Benefit Liabilities and Actuarial Assets: summarized  in
   the 2011 Actuarial Valuations report.
     I am a member of the American Academy of Actuaries and meet the Quali-
   fication Standards to render the actuarial opinion contained herein.
     This  estimate, dated March 14, 2012, and intended for use only during
   the 2012 Legislative Session, is Fiscal Note No. 2012-117,  prepared  by
   the Actuary for the ERS and PFRS.
     FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
     This bill would require new members who first join any of the five New
   York  City  pension  systems on or after April 1, 2012 to become covered
   under the provisions of a new defined benefit plan, Tier 6. The  signif-
   icant design elements of the plan are:
     For non-uniformed employees:
     1. Retirement age 63.
     2. Benefit formula:
     - 1.75% for each year of service up to 20 years
     - 2.0% for each year of service from 20 years to 30 years
     - 2.0% for each year of service beyond 30 years
     3. Employee Contributions:
             Employee Salaries             Contribution %
             Less than $45,000                   3%
             $45,000-55,000                      3.5%
             $55,000-75,000                      4.5%
             $75,000-100,000                     5.75%
             $100,000+                           6%
     4. Vesting after 10 years of service
     5.  Final  Average  Salary (FAS) computed on a 5-year average with a 4
   year look-back for years in excess of 10% above the preceding years.
     6. Cap maximum pensionable earnings at the Governor's salary.
     7. An early retirement option for employees  under  63  years  of  age
   which  allows them to retire as young as age 55 with a 6.5% reduction in
   the benefit per year for each year below age 63.
     For employees who are members of the uniformed forces:
     All employees covered by these provisions would  receive  benefits  as
   described  under  the  section  of  the  law  that  sets  out the Tier 3
   provisions. Additionally, the Final Average Salary (FAS) is computed  on
                                      45                           CHAP. 18

   a  5-year  average  with  a  4 year look-back for years in excess of 10%
   above the preceding years.
     The  impact  of this legislation on City's Fiscal Year 2015 would be a
   savings of approximately $49 million. The total  impact  on  the  City's
   budget  over  the  next 30 years would be a savings of approximately $21
   billion.
     This estimate, dated March 14, 2012, and intended for use only  during
   the  2012  Legislative  Session,  was  prepared  by the city of New York
   office of management and budget.

   The Legislature of the STATE OF NEW YORK ss:
     Pursuant to the authority vested in us by section 70-b of  the  Public
   Officers  Law,  we  hereby  jointly  certify that this slip copy of this
   session law was printed under our direction and, in accordance with such
   section, is entitled to be read into evidence.

      DEAN G. SKELOS                                      SHELDON SILVER
   Temporary President of the Senate                Speaker of the Assembly


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