Section 401. Reduction or suspension of benefits

a. If a retired member,
  receiving a retirement allowance for  other  than  physical  disability,
  returns  to  active public service, except as otherwise provided in this
  section or sections two hundred eleven or two  hundred  twelve  of  this
  chapter, and is eligible for membership in the policemen's and firemen's
  retirement system, he thereupon shall become a member and his retirement
  allowance  shall  cease.  In  such  event,  he  shall  contribute to the
  policemen's and firemen's retirement system as if he were a new  member.
  Upon his subsequent retirement he shall:
    1.  Be  credited  with  all member service earned by him since he last
  became a member of the policemen's and firemen's retirement system, and
    2. Received a retirement allowance which shall consist of:
    (a)  An  annuity  which  is  the  actuarial  equivalent  of  all   his
  accumulated contributions, and
    (b)            The           pension           including           the
  pension-providing-for-increased-take-home-pay  which  he  was  receiving
  immediately  prior to his last restoration to membership, plus a pension
  including the pension-providing-for-increased-take-home-pay  based  upon
  the  member  service credit earned by him since he last became a member.
  Such latter pensions shall be computed as if he were a new  member  when
  he last became a member.
    Where  such  member  shall  have  earned  at least two years of member
  service credit after restoration to active service,  the  total  service
  credit  to  which  he was entitled at the time of his earlier retirement
  may, at his option, again be credited to him  and  upon  his  subsequent
  retirement  he  shall  be  credited  in addition with all member service
  earned by him subsequent to his last  restoration  to  membership.  Such
  total service credit to which he was entitled at the time of his earlier
  retirement  shall  be  so  credited  only  in the event that such member
  returns to the policemen's and firemen's retirement system with  regular
  interest  the  actuarial  equivalent  of  the  amount  of the retirement
  allowance he received, or in the event that such amount is not so repaid
  the actuarial equivalent thereof shall be deducted from  his  subsequent
  retirement allowance.
    Notwithstanding  the  foregoing  provisions  of  this  subdivision,  a
  retired member who is receiving a retirement allowance  for  other  than
  physical disability, and who returns to active public service, may elect
  not  to  be  restored  to  membership  in  the policemen's and firemen's
  retirement system until he has rendered one year  of  service  following
  his  return  to  public  service. In such event his retirement allowance
  shall  be  suspended  during  such  year  of  service  as  provided   in
  subdivision  b of this section. Upon restoration to membership following
  completion of such year of service, his service in such  year  shall  be
  deemed  to  be  service  while a member for purposes of subdivision b of
  section three hundred sixty of this  chapter.  He  may  purchase  member
  service  credit  for  such  year,  which  shall  be deemed earned member
  service credit. This paragraph shall not be construed to  authorize  the
  return  to  public  service  of any person who is otherwise not eligible
  therefor on account of having reached age seventy.
    If a retired member receiving a retirement allowance  for  other  than
  physical  disability,  returns  to  active  public  service, and is then
  ineligible for membership in the policemen's  and  firemen's  retirement
  system,  his  retirement allowance shall be suspended in the same manner
  as provided in subdivision b of this section.
    b. Temporary service.
    1. The payment of any retirement allowance, or  any  benefit  in  lieu
  thereof,  on  account  of  retirement for other than physical disability
  shall be  suspended  as  provided  herein,  during  the  time  that  the

  beneficiary thereof is in receipt of other compensation paid from direct
  or indirect state or municipal taxes:
    (a)  For  temporary  government or temporary public service other than
  jury duty, or
    (b) For service pursuant to subdivision c of this  section  where  the
  retired  member  continues  as  a  beneficiary  of  the  policemen's and
  firemen's retirement system.
    2. In the case of a retirement allowance, without option,  the  amount
  of        the        pension        portion,        including        the
  pension-providing-for-increased-take-home-pay, suspended for any  period
  shall  be  equal  to  the amount of such other compensation for the same
  period.
    3. In the case where an optional  benefit  in  lieu  of  a  retirement
  allowance  without  option shall have been selected, the pension portion
  thereof,  including  the   pension-providing-for-increase-take-home-pay,
  shall  be suspended in such manner as the comptroller shall approve. The
  amount so suspended shall be equal to the actuarial  equivalent  of  the
  amount  by  which  the  pension  portion  of  the  retirement allowance,
  including the pension-providing-for-increased-take-home-pay, as it would
  be without option, would be suspended pursuant to paragraph two of  this
  subdivision b. The retired member, however, may pay to the fund or funds
  from  which  the  pension portion of his retirement allowance, including
  the  pension-providing-for-increased-take-home-pay,   is   payable   the
  difference  between  the  suspended portion thereof, without option, and
  the suspended portion of the optional pension portion of the  retirement
  allowance,  including the pension-providing-for-increased-take-home-pay,
  granted to him. In such event any payments to his beneficiary  shall  be
  made as if no suspension occurred.
    4.  In  the  case of a member whose compensation for public service is
  equal to or greater than his final salary as defined herein, the annuity
  portion of his retirement allowance shall be suspended during the period
  that he is receiving such compensation. In the case of  a  member  whose
  compensation for public service is less than his final salary as defined
  herein  and  who  has  retired  without  option, he shall be entitled to
  receive that portion of his annuity computed without option which,  when
  added  to  his  compensation  for  public  service,  does not exceed the
  aforesaid final salary. Where an optional benefit has been  selected  in
  lieu of a retirement allowance without option, the amount of the annuity
  suspended  shall  be  the  actuarial equivalent of the amount that would
  have been suspended if the retirement allowance had been without option.
  In such a case the retired member may pay to the  fund  or  funds,  from
  which  the  annuity  portion of his retirement allowance is payable, the
  difference between  that  portion  of  the  annuity  which  is  actually
  suspended,  in accordance with the provisions of this paragraph, and the
  corresponding portion of the annuity without option.
    In such even any payments to his beneficiary shall be made  as  if  no
  suspension occurred. The term "final salary", as used in this paragraph,
  shall  mean  the maximum salary or compensation which the retired member
  currently would be receiving in the position from which he last retired,
  if he had not so retired. If the position from which he was  so  retired
  has  been  abolished  the  comptroller,  upon  the  basis  of  salary or
  compensation currently paid in similar or  comparable  positions,  shall
  determine the maximum amount of salary or compensation which the retired
  member currently would be receiving in the abolished position.
    The   provisions   of   this   subdivision   c  shall  be  controlling
  notwithstanding any other provision of this chapter.
    c. Election or  appointment  of  retired  members  to  certain  public
  offices.

    1.  A retired member, unless otherwise disqualified, shall be eligible
  to:
    (a) Election to a state office, or
    (b) Appointment to fill a vacancy in an elective state office.
    2.  In  the  event  a  retired  member is so elected, except a retired
  member so elected and who is receiving less than ten thousand dollars in
  retirement allowance or benefit payments in any one year,  or  appointed
  or so qualifies, he may:
    (a)   Upon  written  notice  to  the  comptroller,  receive  from  the
  policemen's and firemen's retirement system the then  present  value  of
  the  annuity  earned  by his accumulated contributions, and upon receipt
  thereof cease to be a  beneficiary  of  the  policemen's  and  firemen's
  retirement system, or
    (b)  Continue  as  a  beneficiary  of  the  policemen's  and firemen's
  retirement system, but with payments of any retirement allowance or  any
  benefit  in  lieu  thereof,  on  account  of  retirement  for other than
  physical disability, suspended during the  time  he  is  in  receipt  of
  compensation  for  state  or  public  service.  Such suspension shall be
  governed by  the  provisions  of  paragraphs  two,  three  and  four  of
  subdivision b of this section.
    3.  The  provisions of subdivision one of section one hundred fifty of
  the civil service law shall govern  with  respect  to  state  and  local
  elective public officers.
    d.  Privilege  of  certain  retired  members,  retired  for other than
  physical disability, to undertake public employment.
    1. Notwithstanding any inconsistent provisions of this section  or  of
  section  one  hundred  fifty  of the civil service law the provisions of
  this section shall be suspended to the  extent  necessary  to  permit  a
  retired  member  to  continue as such and to earn not to exceed eighteen
  hundred dollars per calendar year as compensation in any position  of  a
  temporary, seasonal or occasional nature in government service or public
  service,  provided  he  duly  executes  and files with the comptroller a
  statement that he elects to have the provisions of  this  subdivision  f
  apply to him, and:
    (a)  His retirement allowance, computed without optional modification,
  does not exceed thirty-five hundred dollars per year, or
    (b) His retirement allowance, computed without optional  modification,
  exceeds thirty-five hundred dollars per year and he annually waives that
  portion  which  is  in  excess  of  thirty-five  hundred dollars by duly
  executing and filing with the comptroller  a  waiver  of  the  aforesaid
  excess portion. The waiver shall be irrevocable during the calendar year
  in which it is filed.
  A  statement of election executed and filed pursuant to this subdivision
  f may be withdrawn by a retired  member  at  any  time  by  a  statement
  similarly executed and filed.
    2.  The privilege granted by this subdivision f, to retired members to
  continue as such and to earn compensation in positions of  a  temporary,
  seasonal  or  occasional  nature in government service or public service
  shall remain in full force and effect until July first, nineteen hundred
  sixty-five.