Section 402. Recovery of disability beneficiaries

a. Once each year the
  comptroller may, and, upon his application, shall require a retiree on a
  disability allowance, under  the  minimum  age  or  period  for  service
  retirement  elected  by  him,  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 reductions
  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 policemen's and firemen's retirement 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  policemen's  and  firemen's  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 policemen's and firemen's retirement
  system. He thereafter shall contribute to the policemen's and  firemen's
  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 subesequent 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 policemen's and firemen's retirement
  system and his retirement allowance shall  cease.  He  thereafter  shall
  contribute  to  the  policemen's  and firemen's 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.
    f. In the case  of  members  who  have  changed  plans  prior  to  the
  effective  date  of  this  subdivision,  the plan providing the earliest
  minimum age or period of service shall be applied.
    f-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.
    g.  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.