* § 13-521.1 Pick up of member contributions of Tier I and Tier II
members by employer. a. Notwithstanding any other provision of law to
the contrary, on and after the starting date for pick up, the employer
responsible for pick up shall pick up and pay into the annuity savings
fund (subject to the provisions of paragraph four of subdivision d of
this section) the Tier I or Tier II member contributions eligible for
pick up by the employer which each Tier I member (as defined in
subdivision fifty-two of section 13-501 of this chapter) or Tier II
member (as defined in subdivision fifty-three of such section 13-501)
would otherwise be required to make on and after such starting date,
including (1) any contributions required to be made for the purchase of
credit for previous service by its employees pursuant to an irrevocable
payroll deduction agreement under subdivision b-1 of section four
hundred forty-six of the retirement and social security law on and after
the effective date of such subdivision, and (2) any contributions
required to be made for the purchase of credit for prior service by its
employees pursuant to an irrevocable payroll deduction agreement under
subdivision g of section 13-505 of this chapter on and after the
effective date of such subdivision.
b. An amount equal to the amount of such picked up contributions shall
be deducted by the employer responsible for pick up from the salary of
such member (as such salary would be in the absence of a pickup program
applicable to him or her hereunder) and shall not be paid to such
member. Such deduction shall be effected by means of subtraction from
such member's current salary (as so defined), or offset against future
pay increases, or a combination of such methods.
c. (1) The member contributions picked up pursuant to this section for
any Tier I member or Tier II member shall be paid by the employer
responsible for pick up in lieu of an equal amount of the member
contributions otherwise required to be paid by such member under the
provisions of this chapter and shall be deemed to be and treated as
employer contributions pursuant to subsection h of section four hundred
fourteen of the United States internal revenue code, as amended, for the
purposes, under federal law, for which such subsection h so classified
such picked up contributions. Subject to the provisions of subdivision b
of this section, for all other purposes, including but not limited to:
(i) the obligation of such member to pay New York state and New York
city income and/or wages or earnings taxes and the withholding of such
taxes; and
(ii) the determination of the amount of such member's Tier I or Tier
II member contributions eligible for pick up by the employer; and
(iii) the determination of the amount of any retirement allowance or
other retirement system benefit payable to or on account of such member
or any other retirement system right, benefit or privilege of such
member;
the amount of the member contributions picked up pursuant to this
section shall be deemed to be a part of the employee salary of such
member and such member's gross salary (as it would be in the absence of
a pick up program applicable to him or her hereunder) shall not be
deemed to be changed by such member's participation in such program.
(2) Nothing contained in paragraph one of this subdivision c shall be
construed as superseding the provisions of section four hundred
thirty-one of the retirement and social security law or any similar
provision of law which limits the salary base for computing retirement
benefits payable by a public retirement system.
d. (1) For the purpose of determining the retirement system rights,
benefits and privileges of any Tier I member or Tier II member whose
Tier I or Tier II member contributions eligible for pick up by the
employer are picked up pursuant to this section (including the
procurement of loans by any such member), such picked up member
contributions, subject to the provisions of subparagraph four of this
paragraph, shall be deemed to be and treated (i) as member contributions
made by such member pursuant to law and (ii) as a part of such member's
accumulated deductions.
(2) Interest on contributions picked up for any Tier I or Tier II
member pursuant to this section shall accrue in favor of the member and
be payable to the retirement system at the same rate, for the same time
periods, in the same manner and under the same circumstances as interest
would be required to accrue in favor of the member and be payable to the
retirement system on such contributions if they were made by such member
in the absence of a pick up program applicable to such member under the
provisions of this section.
(3) Where member contributions of any Tier I member or Tier II member
are picked up and paid into the annuity savings fund pursuant to this
section, such picked up contributions shall be credited to a separate
account within the individual account of such member in such fund, so
that a separate record of the amount of such picked up contributions is
maintained.
(4) For the purposes of determining the retirement system rights,
benefits and privileges of any Tier I member or Tier II member who is a
a participant in a variable annuity program of the retirement system,
his or her picked up member contributions shall, to the extent and in
the proportions appropriate pursuant to his or her election to
participate in such program, be deemed to be and treated as a part of
his or her accumulated deductions and/or credits in his or her account
in the variable annuity savings fund. A separate record shall be kept
showing any such variable annuity savings fund account credits
attributable to any such picked up contributions.
(5) Nothing contained in this subdivision d shall be construed as
granting member contributions picked up under this section any status,
under federal law, other than as employer contributions, pursuant to
subsection h of section four hundred fourteen of the United States
internal revenue code, for the federal purposes for which such
subsection h so classifies such picked up contributions.
e. No contributor whose member contributions are required to be picked
up pursuant to this section shall have any right to elect that such pick
up, with accompanying deduction from the compensation of such
contributor as prescribed by subdivision b of this section, shall not be
effectuated.
* NB Expires per ch. 681/92 § 16
