Section 331. Participation by public or quasi-public organizations

a. Any
  public or quasi-public organization which heretofore  joined  the  state
  employees'  retirement  system,  on behalf of its policemen and firemen,
  shall  on  and  after  April  first,   nineteen   hundred   sixty-seven,
  participate, on behalf of such policemen and firemen, in the policemen's
  and  firemen's  retirement  system  pursuant  to  the provisions of this
  article.
    b. On and after April first, nineteen hundred sixty-seven, any  public
  or  quasi-public  organization  created wholly or partly or deriving its
  powers by the legislature of the state and  which  organization  employs
  policemen  and  firemen  engaged in service to the public, by resolution
  legally adopted by its governing body and approved by  the  comptroller,
  may  elect  to  have  its  policemen  and  firemen  become  eligible  to
  participate in the New York state and local police and  fire  retirement
  system. Acceptance of the officers and employees of such an employer for
  membership  in  the  New York state and local police and fire retirement
  system shall be optional with the comptroller. If he shall approve their
  participation, such organization, except  as  specifically  provided  in
  this  article  to  the  contrary,  shall  thereafter  be  treated  as  a
  participating employer. Notwithstanding the foregoing provisions of this
  subdivision, The Long Island Rail Road Company, upon its election  filed
  with  the comptroller, shall participate in the New York state and local
  police and fire retirement system with respect to LIRR  police  officers
  as  defined  in  paragraph two of subdivision a of section three hundred
  eighty-nine of this article who are referred to in  paragraph  three  of
  subdivision  b  or  in  paragraph  one of subdivision c of section three
  hundred forty of this article, their benefits to be as  provided  in  or
  pursuant  to  such section three hundred eighty-nine, provided that such
  election may only be made subsequent to the latest date of the enactment
  of federal legislation or  receipt  of  assurance  or  relief  from  the
  relevant federal agency or agencies for all of the following: removal of
  such  LIRR  police  officers  from coverage under the Federal Employers'
  Liability Act and the federal Railway Labor Act, removal  of  such  LIRR
  police  officers from coverage under the federal Railroad Retirement Act
  and the federal Railroad Unemployment Insurance Act  and  exemption  for
  such  LIRR  police  officers  and  The Long Island Railroad Company from
  liability either for taxes under the federal Railroad Retirement Tax Act
  or the federal Railroad Unemployment Repayment Tax, and further provided
  that the authority for such election shall expire and be null  and  void
  if  each  such  enactment  or  receipt is not effected on or before June
  fifteenth, nineteen hundred ninety-six.
    c. The officers and employees of such organization shall  be  credited
  with  such  periods  of  prior  service  as  shall be certified by their
  employer for service rendered to it, or its predecessor, or  the  state,
  or  in any other capacity approved by such employer and the comptroller.
  Service for such employer after  the  date  on  which  it  commences  to
  participate  in  the  policemen's and firemen's retirement system and on
  account of which such employer pays contributions shall be considered as
  member service. An officer or employee of such employer who, as  of  the
  date  he  is so approved for membership in the policemen's and firemen's
  retirement system, is already a member thereof, shall not have his total
  credit reduced by such approval. Any reserve held on account of any such
  officer or employee in the pension accumulation fund shall be used as an
  offset against the deficiency contribution payable  thereafter  by  such
  employer  on  account  of such officer or employee for any prior service
  credit and any such previous credit. Except  as  otherwise  provided  in
  this  article, a policeman or fireman of such employer who, by reason of
  his service, is a member of any  other  governmental  retirement  system

  shall not participate in the policemen's and firemen's retirement system
  on  that  part  of  his  compensation so covered. The term "governmental
  retirement system," as used  in  this  subdivision,  shall  include  any
  retirement  system  wholly  or  partly  maintained  by  this state, by a
  municipality of this state, by another state  or  political  subdivision
  thereof,  by  the United States government, or by any foreign country or
  political subdivision thereof.
    The provision in subdivision b of section three hundred thirty-one  of
  the retirement and social security law limiting participation in the New
  York  state  policemen's  and  firemen's  retirement system by reason of
  membership in another governmental retirement system shall not  diminish
  or  in any other way affect the prior or continual membership in the New
  York state policemen's and firemen's retirement system, or any rights or
  benefits heretofore or hereafter arising therefrom, of  any  officer  or
  employee  of  a  public  or  quasi-public organization who (1) is in the
  service of such employer at the time this act takes effect,  or  was  in
  such  service prior thereto, and (2) by reason of such service is or was
  a member of any  retirement  system  maintained  by  the  United  States
  government.
    d. An agreement, made by such an employer pursuant to this section, to
  contribute   on   account   of  its  officers  and  employees  shall  be
  irrevocable.  In the event that such employer  for  any  reason  becomes
  financially  unable to make the contributions required on account of its
  officers and  employees,  it  shall  be  deemed  to  be  in  default.  A
  certificate to such effect thereupon shall be sent by the comptroller to
  the  employer and to the state superintendent of insurance. Every member
  of the policemen's and firemen's retirement system, who was  an  officer
  or  employee  of  such employer at the time of default, upon demand made
  within ninety days thereafter, shall  be  entitled  to  discontinue  his
  membership  in  the policemen's and firemen's retirement system and to a
  refund of his accumulated  contributions.  As  of  a  date  ninety  days
  following  the  date  of such certificate of default, the actuary of the
  policemen's and firemen's retirement  system,  by  actuarial  valuation,
  shall  determine  the  amount  of  the  reserves held on account of each
  active member and pensioner of such employer. He shall  credit  to  each
  such  member  and  pensioner the amount of reserve so held. In the event
  such an active member does  not  discontinue  his  membership  and  thus
  become  entitled  to  the  refund  of his accumulated contributions, the
  reserve so  credited,  together  with  the  amount  of  his  accumulated
  contributions  shall  be  used to provide him a paid up deferred annuity
  beginning at age sixty. The reserve of each pensioner shall be  used  in
  providing  such part of his existing pension as the reserve so held will
  provide, which pension, together with his annuity, shall  thereafter  be
  payable  to  him.  The  rights and privileges of both active members and
  pensioners of such employer shall thereupon terminate except as  to  the
  payment  of  the  deferred annuities so provided for the previous active
  members and the annuities and the pensions, or  parts  thereof  provided
  for the pensioners.
    e.  Notwithstanding  anything  to  the  contrary,  the policemen's and
  firemen's retirement system shall not be liable for the payment  of  any
  pensions  or  other  benefits  on  account of the officers, employees or
  pensioners of any employer under this section for  which  reserves  have
  not  been  previously created from funds contributed by such employer or
  its officers or employees for such benefits. This  provision  shall  not
  apply to any municipality which elected to participate in the retirement
  system  under  former  section  seventy-five-a of this law prior to July
  first, nineteen hundred forty-eight.