Laws of New York (Last Updated: November 21, 2014) |
ADC New York City Administrative Code(NEW) |
Title 13. RETIREMENT AND PENSIONS |
Chapter 4. TEACHERS' RETIREMENT SYSTEM |
Section 13-505. Credit for service and service certificates
Latest version.
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a. In computing the length of service of a contributor for retirement purposes under the provisions of this chapter, full credit up to the nearest number of years and months shall be given each contributor by the retirement board: 1. For all city-service; and 2. In the case of present-teachers for all teaching or supervisory service in schools and colleges not maintained by the city; and 3. (a) In the case of new-entrants for all teaching or supervisory service in schools and colleges not maintained by the city, and for all service rendered in the employ of the Works Progress Administration or of any other agency of the government of the United States on educational projects in the schools of the city of New York or in conjunction with educational projects of the board of education of the city of New York during the period commencing January first, nineteen hundred thirty-three and ending December thirty-first, nineteen hundred forty-three, provided that in no case shall the total amount of service subject to purchase exceed fifteen years, and furthermore provided that for any such new-entrant who becomes a contributor for the first time after June thirtieth, nineteen hundred thirty-five, except as otherwise provided in this section, credit for service previous to becoming a contributor shall be given only to the extent that reserves sufficient to purchase credit for such previous service are transferred to the teachers' retirement system on behalf of the contributor from another pension system or are paid in a lump sum by the contributor, whether or not such contributor was a member of another pension system. (b) In all cases except transfers under section five hundred twenty-two of the education law and forty-three of the retirement and social security law, if the reserve transferred is insufficient to purchase such previous service, the contributor shall be permitted to pay a lump sum equal to the deficiency. (c) Any special or general law, except section five hundred twenty-two of the education law and forty-three of the retirement and social security law, to the contrary notwithstanding, the amount of money necessary to purchase such prior service or part thereof shall be the amount of money determined by the actuary to be equal to the reserve the city would have been required to contribute to the contingent reserve fund in the same manner as provided in section forty-three of the retirement and social security law, if such service or part thereof were rendered to the city while a member based upon the salary received at the date of purchase. (d) Credit for such prior service up to a maximum of fifteen years shall be given only if application and payment therefor is made by the contributor within the first four years subsequent to membership in the New York city teachers' retirement system or before December thirty-first, nineteen hundred sixty-nine, whichever is later. (e) Members of the New York city teachers' retirement system who held membership in such system on January first, nineteen hundred fifty-nine, shall be permitted to purchase credit for prior service under this subdivision provided that they make application and payment therefor on or before December thirty-first, nineteen hundred sixty-nine. (f) Subject to the provisions of subparagraph (j) of this paragraph three, such members who held membership on December first, nineteen hundred fifty-eight shall have the right to purchase such prior service credit at the rate applicable to them as of December first, nineteen hundred fifty-eight. (g) Subject to the provisions of subparagraphs (j) and (k) of this paragraph three, such members who entered into membership subsequent to December first, nineteen hundred fifty-eight shall have the right to purchase such prior service credit at the rate applicable to them as of the time of their entry into membership. (h) Any transfer of a reserve from another pension system or lump sum paid by a contributor under this subdivision shall at no time be refunded. (i) The contributor shall have the option of transferring his or her contributions from another pension system to the teachers' retirement system which contributions shall be paid into the contributor's annuity account. (j) (1) Any contributor who: (a) last entered or shall last enter membership in the retirement system prior to July first, nineteen hundred seventy; and (b) heretofore and on or after July first, nineteen hundred sixty-nine filed a timely application, in accordance with the applicable requirements of the preceding subparagraphs of this paragraph three, to purchase credit for prior outside service or any part thereof, or hereafter files a timely application in accordance with the applicable requirements of this paragraph three to purchase credit for such service or any part thereof; and (c) is not a twenty-year pension plan contributor or age fifty-five-increased-benefits pension plan contributor at the time of filing such application, in any case where such application is filed on or after July first, nineteen hundred seventy; shall not be eligible, whether or not he or she has paid the purchase price for prior outside service credit pursuant to such application, to elect to become a twenty-year pension plan contributor or an age-fifty-five-increased-benefits pension plan contributor unless he or she files with his or her application to become such a contributor, a consent that the purchase price of credit for his or her prior outside service shall be recalculated in accordance with the provisions of item four of this subparagraph (j) and that his or her rights with respect to the purchase of credit for such service, or where he or she has previously paid the purchase price of credit for such service or any part thereof, his or her rights as to any such purchased credit, shall be as prescribed in items two to six inclusive of this subparagraph (j). (2) In the case of any such contributor who has filed a consent pursuant to item one of this subparagraph (j) and who has not previously paid the purchase price of credit for prior outside service or any part thereof, the retirement system shall notify such contributor of the purchase price, as recalculated pursuant to item four of this subparagraph, of credit for the number of purchaseable years of such service designated by him or her in his or her application to purchase. (3) In the case of any such contributor who has filed a consent pursuant to item one of this subparagraph (j) and who has previously paid the purchase price of credit for prior outside service or any part thereof, the retirement system shall notify such contributor of: (i) the amount of the excess of: (1) the recalculated purchase price, under item four of this subparagraph (j), of credit for such prior outside service or part thereof; over (2) the purchase price previously paid by such contributor for such credit; and (ii) the amount of prior outside service for which such contributor would be credited, if the credit based on the purchase price previously paid by him or her were reduced to the credit which such purchase price would purchase under the provisions of item four of this subparagraph (j). (4) The recalculated purchase price of credit for the prior outside service of any such contributor, whether he or she seeks to elect to become a twenty-year pension plan contributor or an age-fifty-five-increased-benefits pension plan contributor, shall be computed: (i) on the basis of the salary which was used or was required to be used, pursuant to the provisions of the preceding subparagraphs of this paragraph three, to calculate the prior purchase price which he or she paid or was required to pay to purchase credit for prior outside service; and (ii) on the basis of the larger of the following two amounts: (1) the amount which the required reserve under subparagraph (c) of this paragraph three would equal, if computed on the basis of his or her retirement for service as an age-fifty-five-increased-benefits pension plan contributor, so as to provide a pension equal to one and two-tenths per centum of his or her average salary for each year of the prior outside service with respect to which such recalculation is made; or (2) the amount which the required reserve under subparagraph (c) of this paragraph three would equal, if computed on the basis of his or her retirement for service as a twenty-year pension plan contributor, so as to provide a pension equal to one and two-tenths per centum of his or her average salary for each year of the prior outside service with respect to which such recalculation is made. (5) If any such contributor mentioned in item two of this subparagraph (j) shall, within thirty days after the notification required by such item two, pay to the retirement system the recalculated purchase price of credit, as set forth in such notification, he or she shall be entitled to credit for such period of prior outside service. If he or she shall fail to make any such payment within such period of thirty days, his or her application to purchase prior outside service pursuant to which such notification was made shall be null and void and he or she shall have no further rights under such application. (6) (i) If any such contributor mentioned in item three of this subparagraph (j) shall, within thirty days after the notification required by such item three, pay to the retirement system the amount of the excess set forth in such notification pursuant to subitem (i) of such item three, he or she shall be credited with the period of prior outside service for which he or she previously paid the purchase price. (ii) If any such contributor shall, within such period of thirty days, fail to make the payment mentioned in subitem (i) of item three of this subparagraph (j), he or she shall be credited with the reduced period of prior outside service as set forth in such notification pursuant to subitem (ii) of such item three, and shall not be entitled to credit for any other prior outside service. (k) (1) Subject to the provisions of items two and three of this subparagraph (k), any twenty-year pension plan contributor or age-fifty-five-increased-benefits pension plan contributor shall have the right to purchase credit for prior outside service or any part thereof within the period of time prescribed by, and in accordance with the applicable provisions of subparagraphs (a) to (d), inclusive, and (h) and (i) of this paragraph three, except as otherwise provided by the applicable provisions of items four and five of this subparagraph (k). (2) The provisions of item one of this subparagraph (k) and the applicable provisions of items four and five of this subparagraph shall not apply to any twenty-year pension plan contributor or age-fifty-five-increased-benefits pension plan contributor who, before becoming such a contributor: (i) filed an application to purchase credit for prior outside service under the circumstances specified in item one of subparagraph (j) of this paragraph three; and (ii) paid the purchase price, as then in effect, for such credit. (3) In any case where any twenty-year pension plan contributor or age-fifty-five-increased-benefits pension plan contributor, before becoming such a contributor: (i) filed an application to purchase credit for prior outside service under the circumstances specified in item one of subparagraph (j) of this paragraph three; and (ii) did not, before becoming such a contributor, pay the purchase price, as then in effect, for such credit; and (iii) does not pay the recalculated purchase price for such credit pursuant to item five of such subparagraph (j); and (iv) would otherwise be eligible to purchase credit for prior outside service pursuant to the provisions of this subparagraph (k); the provisions of item one of this subparagraph (k) and the applicable provisions of items four and five of this subparagraph shall not apply to such contributor until such application to purchase credit becomes null and void pursuant to the provisions of item five of such subparagraph (j). (4) If all of the prior outside service rendered at any time by any contributor to whom the provisions of item one of this subparagraph (k) are applicable was rendered prior to July first, nineteen hundred seventy, the purchase price to be paid by such contributor, whether he or she is a twenty-year pension plan contributor or an age-fifty-five-increased-benefits pension plan contributor, shall be the larger of the two amounts computed as prescribed by subitem (ii) of item four of subparagraph (j) of this paragraph three. (5) If any part of the prior outside service of any contributor to whom the provisions of item one of this subparagraph (k) are applicable was rendered on or after July first, nineteen hundred seventy, the purchase price to be paid by such contributor, whether or not he or she rendered prior outside service prior to such date, and whether or not he or she is a twenty-year pension plan contributor or an age-fifty-five-increased-benefits pension plan contributor, shall be the larger of the following two amounts: (i) the amount which the required reserve under subparagraph (c) of this paragraph three would equal, if computed on the basis of his or her retirement for service as an age-fifty-five-increased-benefits pension plan contributor so as to provide a pension equal to one and fifty-three one hundredths per centum of his or her average salary for each year of such prior outside service for which he or she seeks to purchase credit; or (ii) the amount which the required reserve under subparagraph (c) of this paragraph three would equal, if computed on the basis of his or her retirement for service as a twenty-year pension plan contributor, so as to provide a pension equal to one and seven-tenths per centum of his or her average salary for each year of such prior outside service for which he or she seeks to purchase credit. (1) In any case where any twenty-year pension plan contributor or age-fifty-five-increased-benefits pension plan contributor: (a) dies or retires; and (b) in order to obtain credit for any prior outside service, had paid therefor: (i) a recalculated purchase price or any part thereof computed pursuant to subitem (ii) of item four of subparagraph (j) of this paragraph three; or (ii) a purchase price computed pursuant to item four or item five of subparagraph (k) of this paragraph three; on the basis of a reserve larger than that which would have been computed with respect to such contributor if such reserve had been computed on the basis of the pension plan in effect with respect to such contributor at the time of his or her death or retirement, any excess of the total purchase price paid by him or her for such prior outside service over the amount which such total purchase price would have equalled if such computation had been made on the basis of the pension plan in effect with respect to such contributor at the time of his or her death or retirement shall, together with regular interest on such excess from the date on which he or she paid such excess, be deemed, for the purpose of computing the benefit payable by reason of such death or retirement, to be additional contributions by such contributor. 4. In the case of new-entrants who are members of the retirement system on July first, nineteen hundred sixty-nine and who have been serving as school secretaries, for all secretarial and clerical service rendered in regular employment in the civil service of the state of New York and its political subdivisions, except for service in cities having a population of one million or more, provided that for any such new-entrant who becomes a contributor for the first time after June thirtieth, nineteen hundred thirty-five, except as otherwise provided in this section, credit for service previous to becoming a contributor shall be given only to the extent that reserves sufficient to purchase credit for such previous service are paid in a lump sum by the contributor; provided, however, that no credit shall be purchasable if the contributor has obtained or is eligible to obtain credit for such service by transfer under section five hundred twenty-two of the education law or section forty-three of the retirement and social security law. Any special or general law, except section five hundred twenty-two of the education law and section forty-three of the retirement and social security law, to the contrary notwithstanding, the amount of money necessary to purchase such prior service or part thereof shall be the amount of money determined by the actuary to be equal to the reserve the city would have been required to contribute to the contingent reserve fund in the same manner as provided in section forty-three of the retirement and social security law, if such service or part thereof were rendered to the city while a member based upon the salary received and, except as otherwise provided in paragraph seven of this subdivision a, the rate applicable at the date of purchase. Credit for such prior service up to a maximum of fifteen years, less the amount of credit, if any, acquired pursuant to paragraph three of this subdivision, shall be given only if application and payment therefor is made by the contributor prior to January first, nineteen hundred seventy. Any lump sum paid by a contributor under this subdivision shall at no time be refunded. 5. (a) In the case of new-entrants who are members of the retirement system on July first, nineteen hundred sixty-nine and who have been serving as teachers of library, for all service as librarian rendered in regular employment in libraries within the state of New York supported in whole or in part by public funds, except for libraries maintained in the schools of cities having a population of one million or more, provided that for any such new-entrant who becomes a contributor for the first time after June thirtieth, nineteen hundred thirty-five, except as otherwise provided in this section, credit for service previous to becoming a contributor shall be given only to the extent that reserves sufficient to purchase credit for such previous service are paid in a lump sum by the contributor. Any special or general law, except section five hundred twenty-two of the education law and forty-three of the retirement and social security law, to the contrary notwithstanding, the amount of money necessary to purchase such prior service or part thereof shall be the amount of money determined by the actuary to be equal to the reserve the city would have been required to contribute to the contingent reserve fund in the same manner as provided in section forty-three of the retirement and social security law, if such service or part thereof were rendered to the city while a member based upon the salary received and, except as otherwise provided in subparagraph (c) of this paragraph five, the rate applicable at the date of purchase. Credit for such prior service up to a maximum of fifteen years, less the amount of credit, if any, acquired pursuant to paragraph three of this subdivision, shall be given only if application and payment therefor is made by the contributor prior to January first, nineteen hundred seventy. Any lump sum paid by a contributor under this subdivision shall at no time be refunded. (b) For purposes of this paragraph five, "service as librarian" shall mean service by a person trained in library science working in such regular employment as is deemed by the retirement board to be related to the functions of teacher of library in the city of New York, provided that such service was credited for retirement purposes in the New York state teachers' retirement system or in the New York state employees' retirement system but that credit for such service was not obtained nor is the contributor, at the time of application for purchase, eligible to obtain credit for such service by transfer under section five hundred twenty-two of the education law or section forty-three of the retirement and social security law. 6. Service, credit for which shall not exceed three years, in any branch of the armed forces of the United States prior to October first, nineteen hundred twenty, provided, however, that such member shall, for the period of service with the armed forces, contribute to the retirement system an amount he or she would have been required to contribute if such service was rendered to the city while a member, and provided further, that such member, during the period between the termination of such military service and the retirement of such member, shall have been credited with not less than fifteen years of member or restored member service. Duly executed applications for such service credit shall be filed with the retirement system before the first day of September, nineteen hundred fifty-nine. 7. Any contributor who files an application to purchase credit for prior outside service pursuant to paragraph four or paragraph five of this subdivision a and who thereafter seeks to elect to become a twenty-year pension plan contributor or an age-fifty-five-increased-benefits pension plan contributor shall not, whether or not he or she has paid the purchase price for such credit pursuant to such paragraph four or paragraph five, be eligible to become such a contributor unless he or she complies with the requirements of subparagraph (j) of paragraph three of this subdivision a. 8. Notwithstanding any other law to the contrary, a person who has previously transferred or who shall transfer from another retirement system to this system in accordance with section five hundred twenty-two of the education law, section forty-three of the retirement and social security law, or any other applicable law shall receive, in addition to his or her transferred service credit, all service credit to which he or she would have been entitled under paragraph one of subdivision a of this section had he or she not transferred from another retirement system, provided, however, that credit for such service was not included in the service credit transferred by the other retirement system. 9. Notwithstanding any other law to the contrary, a member who has received service credit for seniority and length of service purposes pursuant to subdivision eight of section eighty of the civil service law, shall receive service credit for retirement purposes for the same period provided the member pays into the annuity savings fund of the retirement system the amount of the employee contributions required to have been paid into the retirement system for such service, within one year from the date this paragraph shall have taken effect, and further provided that the member has not previously received credit for retirement purposes for the same period. b. Under such rules and regulations as such board shall adopt, each teacher shall file with such board a detailed statement of all such service rendered by him or her. As soon as practicable thereafter, such board shall verify such statement as to prior-service and shall issue to each teacher a certificate certifying to the aggregate length of his or her prior-service. Such certificate shall be final and conclusive as to his or her prior-service unless thereafter modified by: 1. Such board upon application by the teacher; or 2. By the board of education upon application by the teacher or by the retirement board, provided such application for modification be made to the board of education within one year after the issuance of a certificate or a modified certificate by the retirement board. c. A certificate for prior-service issued to a present-teacher shall certify the total length of prior-service allowance for such present-teacher through the sixteenth day of September, nineteen hundred seventeen. The time during which a contributor was absent on leave of absence without pay shall not be counted in computing the prior-service or the total-service of a contributor, unless allowed both by the head of the department in which such contributor was employed at the time such leave of absence was granted and by the retirement board. The time during which a contributor was absent on leave of absence on full pay or part-pay from the city-service shall be counted in computing the prior- service and the total-service of such contributor. For the purpose of computing prior-service the retirement board shall fix and determine by appropriate rules and regulations how much service rendered on the basis of the hour, day or session, or any other than a per annum basis, shall be the equivalent of a year of service. No allowance shall be made for such service as a substitute teacher, night school teacher, vacation school teacher, or for any service rendered in a position to which the contributor was not regularly appointed and served on a per annum salary, unless such service was city-service or teaching or supervisory service under regular appointment rendered in the public day schools other than summer schools of New York state for ten or more consecutive weeks, except such service rendered in the employ of the Works Progress Administration or of any other agency of the government of the United States on educational projects in the schools of the city of New York or in conjunction with educational projects of the board of education of the city of New York during the period commencing January first, nineteen hundred thirty-three and ending December thirty-first, nineteen hundred forty-three, as provided in subdivision (a) of paragraph three of this section. Except as to credits or allowances erroneously granted for attendance as a pupil at a training school for teachers, or clerical or mathematical errors in the computation of prior-service, a prior-service certificate issued to any contributor by the retirement board prior to the fourth day of May, nineteen hundred thirty-five and not modified prior to the fourth day of May, nineteen hundred thirty-six shall not have the service certified therein reduced. d. Notwithstanding any provision of law to the contrary, in the case of employees of the city university of New York, appointed subsequent to January first, nineteen hundred fifty-six, prior service for hourly teaching employment by this board shall be granted as follows: a credit of one year of city service for retirement purposes shall be allowed for a minimum of thirty weeks per year with an average service of fifteen hours of teaching per week (four hundred fifty hours per year), provided that no such employee shall receive more than one year of credit for service rendered during one calendar year. e. Notwithstanding any other provision of law, any contributor who is in the system as of April first, nineteen hundred sixty-three and whose prior-service certificate was issued prior to the fourth day of May, nineteen hundred thirty-five and not modified prior to the fourth day of May, nineteen hundred thirty-six may file an application with the retirement board on or before November first, nineteen hundred sixty-three for modification of said prior-service certificate for the purpose of claiming allowable retirement credit for prior city-service as teacher-in-training in the employ of the board of education of the city of New York. Such certificates shall be subject to review and modification by the retirement board and any such modified certificates are hereby validated and confirmed to the same extent and with the same effect as if issued after the fourth day of May, nineteen hundred thirty-six. The rate of contribution of any contributor whose prior-service certificate is modified pursuant to the provisions of this subdivision shall be increased so that the cost of the additional service credit is prorated over said contributor's anticipated years of service. f. Notwithstanding any other provision of law to the contrary, in computing the length of service of a contributor for retirement purposes under the provisions of this chapter, full credit up to the nearest number of years and months shall be given each contributor by the retirement board for all service that would have been creditable in one of the public retirement systems of the state, as defined in subdivision twenty-three of section five hundred one of the retirement and social security law, at the time the service was rendered, had the contributor been a member of such retirement system. Credit for such prior service up to a maximum of fifteen years shall be given only if application and payment therefor is made by the contributor within the first four years subsequent to membership in the New York city teachers' retirement system or before December thirty-first, two thousand two, whichever is later. Contributors shall have the right to purchase such prior service credit at the rate applicable to them as of the time of their entry into membership. * g. Notwithstanding any other provision of law, any member of the New York city teachers' retirement system eligible to purchase credit for prior service with a public employer pursuant to this section, may elect to purchase any or all of such service by executing a periodic payroll deduction agreement. Such agreement shall set forth the amount of prior service being purchased, the estimated total cost of such service credit, and the number of payroll periods in which such periodic payments shall be made. Such agreement shall be irrevocable, shall not be subject to amendment or modification in any manner, and shall expire only upon completion of payroll deductions specified therein. Notwithstanding the foregoing, any member who has entered into such a payroll deduction agreement and who terminates employment prior to completion of the payments required therein shall be credited with any service as to which such member shall have paid the contributions required under the terms of such agreement. * NB Effective until notice of ruling by Internal Revenue Service per ch. 627/2007 §22 * g. Notwithstanding any other provision of law, any member of the New York city teachers' retirement system eligible to purchase credit for prior service with a public employer pursuant to this section or credit for military service pursuant to article twenty of the retirement and social security law, may elect to purchase any or all of such service by executing a periodic payroll deduction agreement. Such agreement shall set forth the amount of prior service or military service being purchased, the estimated total cost of such service credit, and the number of payroll periods in which such periodic payments shall be made. Such agreement shall be irrevocable, shall not be subject to amendment or modification in any manner, and shall expire only upon completion of payroll deductions specified therein. Notwithstanding the foregoing, any member who has entered into such a payroll deduction agreement and who terminates employment prior to completion of the payments required therein shall be credited with any service as to which such member shall have paid the contributions required under the terms of such agreement. * NB Takes effect upon notice of ruling by Internal Revenue Service per ch. 627/2007 §22 -- expires per ch. 691/2004 §8