AAC-47-12-00007-P Relates to Transfer, Tier Reinstatement and Payment of Contributions by Certain Members Joining the Retirement System After 1/1/10

11/21/12 N.Y. St. Reg. AAC-47-12-00007-P

NEW YORK STATE REGISTER

VOLUME XXXIV, ISSUE 47

November 21, 2012

RULE MAKING ACTIVITIES

DEPARTMENT OF AUDIT AND CONTROL

PROPOSED RULE MAKING

NO HEARING(S) SCHEDULED

 

I.D No. AAC-47-12-00007-P

Relates to Transfer, Tier Reinstatement and Payment of Contributions by Certain Members Joining the Retirement System After 1/1/10

PURSUANT TO THE PROVISIONS OF THE State Administrative Procedure Act, NOTICE is hereby given of the following proposed rule:

Proposed Action:

Addition of Part 382 to Title 2 NYCRR.

Statutory authority:

Retirement and Social Security Law, section 613

Subject:

Relates to transfer, tier reinstatement and payment of contributions by certain members joining the retirement system after 1/1/10.

Purpose:

Clarifies provisions of the RSSL relating to Uniformed Court Officers and Peace Officers in the Unified Court System.

Text of proposed rule:

PART 382

UNIFORMED COURT OFFICERS OR PEACE OFFICERS IN THE UNIFIED COURT SYSTEM

§ 382.1 Background and Determination.

Chapter 504 of the Laws of 2009 amended the Retirement and Social Security law and the General Municipal Law, in relation to persons joining a public retirement system on or after January 1, 2010. Section 9-a of Part B of Chapter 504 of the Laws of 2009 amended Section 613 of the Retirement and Social Security Law by adding subdivision (f) which empowered the Comptroller to promulgate regulations as may be necessary and appropriate with respect to the deduction from a members’ annual wages for the 4% contributions required from all Uniformed Court Officers and Peace Officers in the Unified Court System who first join the New York State and Local Employees’ Retirement System on or after January 1, 2010. This Part is promulgated to establish the consequences of transfer, tier reinstatement and the payment of contributions for additional service upon the contributions made by Uniformed Court Officers and Peace Officers in the Unified Court System.

§ 382.2 Transfers.

Effect of transfer on contributions made pursuant to Sections 609 and 613 of the Retirement and Social Security Law, as amended by Chapter 504 of the Laws of 2009:

A member employed as a Uniformed Court Officer or Peace Officer in the Unified Court System, who joins the New York State and Local Employees’ Retirement System on or after 1/1/2010, and who transfers a membership from another public retirement system of the state with a date of membership on or after 07/27/76 shall not be entitled to a refund of the 4% contribution made by such member prior to the effective date of transfer.

§ 382.3 Tier Reinstatements.

Effect of Tier Reinstatement on contributions made pursuant to Sections 609 and 613 of the Retirement and Social Security Law, as amended by Chapter 504 of the Laws of 2009:

A member, employed as a Uniformed Court Officer or Peace Officer in the Unified Court System, who joins the New York State and Local Employees’ Retirement System on or after 1/1/2010, and who reinstates a previously withdrawn or terminated membership from a public retirement system of the state pursuant to Section 645 of the Retirement and Social Security Law, shall cease to make contributions at the rate of 4% of annual wages and commence to make contributions at the rate of 3% of annual wages according to the following:

(a) If the member’s authorization for tier reinstatement is received by the retirement system within 30 days from notification and request for payment, cession of the 4% contributions shall be the first day of the month of the latest date of membership; or

(b) If the members’ authorization for tier reinstatement is received by the retirement system more than 30 days from notification and request for payment, cession of the 4% contributions shall be the first day of the month in which such authorization is so received.

§ 382.4 Payment of Additional Contributions.

Sections 603 and 613 of the Retirement and Social Security Law, as amended by Chapter 504 of the Laws of 2009 establish that a member, employed as a Uniformed Court Officer or Peace Officer in the Unified Court System, who joins the New York State and Local Employees’ Retirement System on or after 1/1/2010, shall retire without reduction at age 55 and upon completion of 30 years of service, provided that the 4% contributions are made for all years of creditable service. Payment of the additional 1% contributions for service other than as a Uniformed Court Officer or Peace Officer in the Unified Court System may be made as follows at the option of the member:

(a) At any time during the member’s career, by either lump sum or payroll deductions. However, once paid, these contributions will not be refunded except upon withdrawal and termination of a nonvested membership or the death of the member in service; or

(b) At retirement. In the event that such amount is not paid at retirement, the actuarial equivalent shall be deducted from the member’s retirement allowance.

Such additional contributions shall include appropriate interest in an amount to bring the total contribution balance to what it would have been had the contributions been made in a timely manner.

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, [phone], email: [e-mail]

Data, views or arguments may be submitted to:

Same as above.

Public comment will be received until:

45 days after publication of this notice.

Regulatory Impact Statement

1. Statutory authority: Section 9-a of Part B of Chapter 504 of the Laws of 2009 amended Section 613 of the Retirement and Social Security Law by adding a new subdivision (f) which empowered the Comptroller to promulgate regulations as may be necessary and appropriate with respect to the deduction from a members’ annual wages for the 4% contributions required from all Uniformed Court Officers and Peace Officers in the Unified Court System who first join the New York State and Local Employees’ Retirement System on or after January 1, 2010.

2. Legislative objectives. This Part is promulgated pursuant to such statutory authority to establish the consequences of transfer, tier reinstatement and the payment of contributions for additional service upon the contributions made by Uniformed Court Officers and Peace Officers in the Unified Court System.

3. Needs and benefits: The addition of this regulation provides members and participating employers with more specific guidance to aid them in determining the consequences of an individual’s transfer, tier reinstatement and the payment of contributions for additional service upon the contributions made by Uniformed Court Officers and Peace Officers in the Unified Court System.

4. Costs: There will be no additional cost to the employer or Office of the State Comptroller.

5. Local government mandates: The proposed rule clarifies the law relating to certain contributions and does not impose any local government mandate.

6. Paperwork: There is no additional paperwork required.

7. Duplication: This action does not conflict with or duplicate any state or federal requirements.

8. Alternatives: No significant alternatives were considered.

9. Federal standards: Not applicable.

10. Compliance schedule: Not applicable.

Regulatory Flexibility Analysis

The Office of the State Comptroller finds that the rule will not impose any adverse economic impact or reporting, recordkeeping or other compliance requirements on small businesses or local governments because it relates to contributions by certain members of the retirement system.

Rural Area Flexibility Analysis

The Office of the State Comptroller finds that that this rule will not impose any adverse impact on rural areas or reporting, recordkeeping or other compliance requirements on public or private entities in rural areas because it relates to payment of member contributions by certain members of the retirement system.