Section 102. Recovery of disability beneficiaries

a.  Once  each year
  following the retirement of a member  on  a  disability  allowance,  the
  comptroller  may, and, upon the beneficiary's application, shall require
  such disability beneficiary  to  undergo  a  medical  examination.  Such
  examination shall be made at the place of residence of such beneficiary,
  or  at  any other place mutually agreed upon by the comptroller and such
  beneficiary. In the event that any  such  disability  beneficiary  shall
  refuse  to  submit  to a medical examination, the pension portion of his
  retirement             allowance,             including              the
  pension-providing-for-increased-take-home-pay,   shall  be  discontinued
  until his withdrawal of such refusal. If such refusal shall continue for
  one year, all his rights in and to his pension shall be forfeited.
    b. The pension,  including  the  pension-providing-for-increased-take-
  home-pay, of a disability beneficiary shall be reduced in the event that
  any  such  disability  beneficiary  is  engaged  in a gainful occupation
  paying more than the difference between his retirement allowance, as  it
  would  be  without  optional  modification  and  if  not  reduced by the
  actuarial equivalent of any outstanding loan and if not increased by the
  actuarial equivalent of any  additional  contributions,  and  his  final
  salary.  Such  reduction  shall  be  to  a  sum  which, when added to an
  annuity, as so computed, plus the amount so earnable by him, shall equal
  his final salary.  If  his  earning  capacity  thereafter  changes,  his
  pension  may  be  further  altered.  Any  such altered pension shall not
  exceed:
    1. The pension,  including  the  pension-providing-for-increased-take-
  home-pay, originally granted to such beneficiary, nor
    2. An amount which, when added to an annuity, as so computed, plus the
  sum earned by him, shall equal his final salary.
    In  the  case  where  an  optional  benefit  has  been  selected, such
  reduction shall be the same as the reduction  would  have  been  without
  optional modification. Where such reduction is greater than the pension,
  including   the  pension-providing-for-increased-take-home-pay,  payable
  under the option selected, the excess may be paid by the pensioner  into
  the  funds of the system, in which case the benefit due under the option
  shall be paid as if no reduction had occurred. If  such  excess  is  not
  paid  by the pensioner, the benefit otherwise due under the option shall
  be reduced by the actuarial equivalent of such excess. In no event shall
  the payment to the funds be greater  than  the  difference  between  the
  pension,  including  the  pension-providing-for-increased-take-home-pay,
  without optional modification and the pension,  including  the  pension-
  providing-for-increased-take-home-pay,  under  the  option selected. The
  pension, including the pension-providing-for-increased-take-home-pay  of
  a  disability  pensioner, shall not be reduced after he has attained the
  mandatory retirement age applicable to him or shall  have  attained  the
  age  or  performed the period of service specified by applicable law for
  eligibility for a service retirement benefit.
    c. In the event that the comptroller shall determine that a disability
  beneficiary is able to engage in a gainful occupation, he shall, if such
  beneficiary so requires, certify the name of  such  beneficiary  to  the
  state  civil service department or appropriate civil service commission.
  The state civil service department or such  municipal  commission  shall
  place  the  name  of  such  beneficiary, as a preferred eligible, on the
  appropriate eligible lists prepared by it for positions for  which  such
  beneficiary  is  stated  to be qualified in a salary grade not exceeding
  that from which he was last retired. If any such  beneficiary  shall  be
  offered  a  position  as a result of the placing of his name on any such
  civil service list, the amount of his disability pension, including  the
  pension-providing-for-increased-take-home-pay,  shall  be  reduced. Such

  reduction shall be to an amount which, when added to the  amount  earned
  or  earnable by him in such position, shall not exceed his final salary.
  A disability  beneficiary  restored  to  active  service  shall  not  be
  eligible  to  membership in the retirement system so long as he receives
  any                pension,                including                 the
  pension-providing-for-increased-take-home-pay.
    d.  In  the  event that a disability beneficiary is restored to active
  service of an employer, at a salary equal to or in excess of  his  final
  salary,  his  retirement  allowance  shall  cease. Such person thereupon
  again shall become a member of  the  retirement  system.  He  thereafter
  shall  contribute  to the retirement system in the same manner as and at
  the same rate that he paid prior to his disability retirement. The total
  service credit, to which he was entitled at the time of such retirement,
  again shall be credited to him. Upon his subsequent retirement, he shall
  be credited,  in  addition,  with  all  member  service  earned  by  him
  subsequent to his last restoration to membership.
    e.  In  the  event  that  a  disability  retiree is restored to active
  service of an employer, at a salary less than his final salary but equal
  to or in excess of the current minimum  salary  for  the  position  from
  which  he was last retired for disability, such person, if he so elects,
  shall again become a member of the retirement system and his  retirement
  allowance  shall cease. He thereafter shall contribute to the retirement
  system in the same manner as and at the same rate that he paid prior  to
  his  disability  retirement.  The  total service credit, to which he was
  entitled at the time of such retirement, again shall be credited to him.
  Upon his subsequent retirement, he shall be credited, in addition,  with
  all  member  service earned by him subsequent to his last restoration to
  membership.
    e-1. Notwithstanding any other provision of this section or any  other
  provision  of  law,  a  retiree  of  any  New  York state police or fire
  retirement system on a  disability  allowance  who  returns  to  gainful
  employment  as  an elected public official shall continue to receive the
  full  amount  of  his  or  her  retirement  allowance,   including   the
  pension-providing-for-increased-take-home-pay.
    f.  Notwithstanding  any  other  provision  of  this article, the term
  "final salary", as used in this section, shall mean the  maximum  salary
  or compensation which the retired member currently would be receiving in
  the  position next higher from which he was last retired for disability,
  if he had not been so retired, provided, however, that if  the  position
  from  which  he was so retired has been abolished, the comptroller, upon
  the basis of salary  or  compensation  currently  paid  by  the  retired
  member's  last  employer  to persons in similar or comparable positions,
  shall determine, for the purposes of this section, the maximum amount of
  salary or compensation which such  retired  member  currently  would  be
  receiving in such position.