AAC-47-13-00006-P Membership Contributions and Withdrawls
11/20/13 N.Y. St. Reg. AAC-47-13-00006-P
NEW YORK STATE REGISTER
VOLUME XXXV, ISSUE 47
November 20, 2013
RULE MAKING ACTIVITIES
DEPARTMENT OF AUDIT AND CONTROL
PROPOSED RULE MAKING
NO HEARING(S) SCHEDULED
I.D No. AAC-47-13-00006-P
Membership Contributions and Withdrawls
PURSUANT TO THE PROVISIONS OF THE State Administrative Procedure Act, NOTICE is hereby given of the following proposed rule:
Proposed Action:
This is a consensus rule making to add Part 381 to Title 2 NYCRR.
Statutory authority:
Retirement and Social Security Law, sections 11, 311 and 1204
Subject:
Membership contributions and withdrawls.
Purpose:
Establish rules for contributions and withdrawls for members covered by Article 22 of the Retirement and Social Security Law.
Text of proposed rule:
PART 381. ARTICLE 22 –MEMBERSHIP CONTRIBUTIONS AND WITHDRAWALS
§ 381.1 Background and determination.
Section 1204 of the Retirement and Social Security Law, as added by section 1 of Chapter 504 of the Laws of 2009, directs and authorizes the State Comptroller to promulgate regulations necessary with respect to deductions of contributions from the wages of members who are covered by the provisions of Article 22 of the law, and maintenance of any special fund(s) with respect to amounts contributed. This part is being promulgated to set forth by Regulation the provisions of Article 22 with respect to members of the New York State and Local Police and Fire Retirement System.
§ 381.2 Member contributions.
Members of the New York State and Local Police and Fire Retirement System who are covered by the provisions of Article 22 of the Retirement and Social Security Law shall contribute a percentage of their annual wages to the Retirement System as set forth in Section 1204. Such contributions shall not be required after accruing the maximum service credit allowed under the plan in which they are enrolled.
Contributions made pursuant to Article 22 of the Retirement and Social Security Law shall be considered CO-ESC contributions, as defined by Part 326 of these regulations. In no event shall these contributions provide for a pension increase or annuity.
§ 381.3 Withdrawal and refund of CO-ESC contributions.
In the event of termination of employment other than as a result of transfer to another public employer, a member participating in the retirement plan provided for in Article 22 of the Retirement and Social Security Law, who is not vested or entitled to any other benefit under Article 22, may withdraw his CO-ESC contributions and terminate his membership in the New York State and Local Police and Fire Retirement System by filing a form prescribed by the Retirement System for this purpose. Such a request may be made after the member has been separated from service for at least 15 days. The Retirement system shall thereupon refund the CO-ESC contributions.
§ 381.4 Refund of member's contributions on death of the member.
In the event of termination of membership with New York State and Local Police and Fire Retirement System by the death of a member participating in the retirement plan provided for in Article 22 of the Retirement and Social Security Law, where no application for death benefits has been approved by the Comptroller on account of such member's death and where there are no individuals eligible to receive death benefits on account of such member's death under the provisions of Article 22 of the Retirement and Social Security Law and the regulations promulgated thereunder, accumulated contributions shall be refunded to the beneficiary duly designated by the member on a form prescribed by and filed with the Retirement System for this purpose. In the absence of such designation of beneficiary, any accumulated contributions made by the deceased member shall be refunded to his estate. Such duly designated beneficiary or, in the absence thereof, the estate's legal representative, must file a written request for such a refund with the Retirement System on a form prescribed by the Retirement System for this purpose. The Retirement System shall thereupon refund the accumulated contributions.
§ 381.5 Interest on refunded accumulated contributions.
The accumulated contributions withdrawn as provided for by sections 381.3 and 381.4 of this Part shall be refunded with interest at the rate of five percent per annum.
§ 381.6 Restoration of credit for previous service.
Membership in the New York State and Local Police and Fire Retirement System shall cease upon withdrawal of contributions pursuant to these regulations. A former member who thereafter returns to public service shall not receive any credit for previous service to which such withdrawn and refunded contributions applied unless and until such former member applies for such credit and repays the entire amount withdrawn and refunded, together with interest through the date of repayment at the rate of five percent per annum.
Text of proposed rule and any required statements and analyses may be obtained from:
Jamie Elacqua, Office of the State Comptroller, 110 State Street, Albany, NY 12236, (518) 473-4146, email: jelacqua@osc.state.ny.us
Data, views or arguments may be submitted to:
Same as above.
Public comment will be received until:
45 days after publication of this notice.
Consensus Rule Making Determination
This is a consensus rulemaking proposed for the purpose of adding a new Part 381 to Title 2 of NYCRR relating to membership contributions and withdrawls by members of the New York State and Local Employees’ Retirement System and the New York State and Local Police and Fire Retirement System covered by Article 22 of the Retirement and Social Security Law. These amendments are being promulgated to comply with the provisions of Section 1204 of the Retirement and Social Security Law, as added by section 1 of Chapter 504 of the Laws of 2009 and it has been determined that no person is likely to object to the adoption of the rule as written.
