such person is a member, provided he or she is such a sanitation member on the date such application is filed.

2. Subject to the provisions of paragraph six of this subdivision, any person who becomes a New York city sanitation member after the enactment date of the twenty-year retirement program and who, as such a sanitation member or otherwise, last became subject to the provisions of this article prior to such enactment date, may elect to become a participant in the twenty-year retirement program by filing, within ninety days after becoming such a sanitation member, a duly executed application for such participation with the retirement system of which such person is a member, provided he or she is such a sanitation member on the date such application is filed.

3. Any election to be a participant in the twenty-year retirement program shall be irrevocable.

4. Each New York city sanitation member who becomes subject to the provisions of this article on or after the enactment date of the twentyyear retirement program shall become a participant in the twenty-year retirement program on the date he or she becomes such a sanitation member.

5. Where any participant in the twenty-year retirement program shall cease to hold a position in the uniformed force of the New York city department of sanitation, he or she shall cease to be such a participant and, during any period in which such person does not hold such a uniformed sanitation position, he or she shall not be a participant in the twenty-year retirement program and shall not be eligible for the benefits of subdivision c of this section.

6. Where any participant in the twenty-year retirement program terminates service in the uniformed force of the New York city department of sanitation and returns to such service as a New York city sanitation member at a later date, he or she shall again become such a participant on that date.

c. Service retirement benefits. 1. A participant in the twenty-year retirement program:

(1) who has completed twenty or more years of allowable service in the uniformed sanitation force; and

(ii) who has paid, before the effective date of retirement, all additional member contributions and interest (if any) required by subdivision e of this section; and

(iii) who files with the retirement system of which he or she is a member an application for service retirement setting forth at what time he or she desires to be retired; and

(iv) who shall be a participant in the twenty-year retirement program at the time so specified for his or her retirement; shall be retired pursuant to the provisions of this section affording early service retirement.

2. (i) Notwithstanding any other provision of law to the contrary, the early service retirement benefit for participants in the twenty-year retirement program who retire pursuant to paragraph one of this subdivision shall be a pension consisting of:

(A) an amount, on account of the required minimum period of service, equal to one-half of his or her final average salary; plus

(B) an amount for each additional year of allowable service in the uniformed sanitation force, or fraction thereof, beyond such required minimum period of service equal to one and one-half percent of his or her final compensation; plus

(C) an amount for each year, or fraction thereof, of credited service other than allowable service in the uniformed sanitation force equal to one percent of his or her final compensation.

(ii) The maximum pension computed without optional modification payable pursuant to subparagraph (1) of this paragraph shall equal that payable upon completion of thirty years of service.

d. Vesting. 1. A participant in the twenty-year retirement program who:

(i) discontinues city-service and service as a member of the uniformed force of the New York city department of sanitation, other than by death or retirement; and

(ii) prior to such discontinuance, completed fifteen but less than twenty years of allowable service in the uniformed sanitation force; and EXPLANATION-Matter in italics is new; matter in brackets [] is old law

(iii) has paid, prior to such discontinuance, all additional member contributions and interest (if any) required by subdivision e of this section; and

(iv) does not withdraw in whole or in part his or her accumulated member contributions pursuant to section six hundred thirteen of this article unless such participant thereafter returns to public service and repays the amounts so withdrawn, together with interest, pursuant such section six hundred thirteen of this article; shall be entitled to receive a deferred vested benefit as provided in this subdivision.

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2. (1) Upon such discontinuance under the conditions and in compliance with the provisions of paragraph one of this subdivision, such deferred vested benefit shall vest automatically.

(ii) Such vested benefit shall become payable on the earliest date on which such discontinued member could have retired for service if such discontinuance had not occurred.

3. Such deferred vested benefit shall be a pension consisting of: (i) an amount equal to two and one-half percent of such discontinued member's final average salary, multiplied by the number of years of allowable service in the uniformed sanitation force credited to such discontinued member on the date of such discontinuance; plus

(ii) an amount for each year, or fraction thereof, of credited service other than allowable service in the uniformed sanitation force equal to one percent of his or her final compensation.

e. Additional member contributions. 1. In addition to the member contributions required by section six hundred thirteen of this article, each participant in the twenty-year retirement program shall contribute to the retirement system of which he or she is a member (subject to the applicable provisions of section 13-125.1 of the administrative code) an additional five and thirty-five one-hundredths percent of his or her compensation earned from all allowable service in the uniformed sanitation force rendered on and after the starting date of the twenty-year retirement program. A participant in the twenty-year retirement program shall contribute additional member contributions only until he or she has thirty years of allowable service in the uniformed sanitation force. 2. (i) Commencing with the payroll period which begins on the starting date of the twenty-year retirement program (for a person who elects to become a participant prior to such starting date), or commencing with the first full payroll period after a person becomes such a participant (for a person who becomes a participant on or after such starting date), additional member contributions at the rate specified in paragraph of this subdivision shall be deducted (subject to the applicable provisions of section 13-125.1 of the administrative code) from the compensation of such participant on each and every payroll of such participant for each and every payroll period.

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(ii) (A) Where any additional member contributions required by paragraph one of this subdivision are not paid by deductions from a participant's compensation pursuant to subparagraph (i) of this paragraph because such contributions are for service rendered in a payroll period prior to the actual commencement of deductions pursuant to such subparagraph (i), such amounts shall be paid by deductions from the compensation of such participant pursuant to item (B) of this subparagraph. (B) Commencing with the payroll period in which deductions of additional member contributions from a participant's compensation are begun pursuant to subparagraph (i) of this paragraph, in addition to such deductions required by such subparagraph (i), there shall be another deduction of additional member contributions made from the compensation of such participant at the rate specified in paragraph one of this subdivision (subject to the applicable provisions of section 13-125.1 of the administrative code) on each and every payroll period until the total amount of unpaid additional member contributions described in item (A) of this subparagraph, if any, has been paid by deductions from compensation pursuant to this subparagraph.

3.

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(1)(A) Where any additional member contributions required by paragraph one of this subdivision are not paid by deductions from participant's compensation pursuant to paragraph two of this subdivision, that participant shall be charged with a contribution deficiency consisting of such unpaid amounts, together with such interest thereon as required by subparagraph (ii) of this paragraph, compounded annually. (B) Except as provided in subparagraph (ii) of this paragraph, no participant shall be required to pay any interest on his or her contribution deficiency.

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(ii)(A) Should any person who, pursuant to paragraph eight of this subdivision, has withdrawn any additional member contributions (and any interest paid thereon) again become a participant in the twenty-year retirement program pursuant to paragraph six of subdivision b of this section, an appropriate amount shall be included in such participant's contribution deficiency (including interest thereon as calculated pursuant to item (B) of this subparagraph) as if such additional contributions had never been made.

(B) Interest on the amounts of additional member contributions included in a participant's contribution deficiency pursuant to item (A) of this subparagraph shall be calculated as if such additional member contributions had never been paid by a participant, and such interest shall accrue from the end of the payroll period to which an amount of additional member contributions is attributable, until such amount is paid to the retirement system.

(C) The rate of interest to be applied to each such amount during the period for which interest accrues on that amount shall be five percent per annum, compounded annually.

4.

A participant, while he or she is a New York city sanitation member, shall pay the total amount of his or her contribution deficiency to retirement system in accordance with payment procedures which shall be established by the executive director of the retirement system, and approved by the board of trustees of the retirement system.

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5. Where a contribution deficiency chargeable to a participant pursuant to paragraph three of this subdivision has not been paid in full before the effective date of retirement, that participant shall not be eligible to retire pursuant to subdivision c of this section.

6. Where a contribution deficiency chargeable to a participant pursuant to paragraph three of this subdivision has not been paid in full before the date of discontinuance of service, that participant shall not be entitled to a deferred vested benefit pursuant to subdivision d of this section.

7. Where a participant has not paid in full any contribution deficiency chargeable to him or her pursuant to paragraph three of this subdivision, and a benefit, other than a refund of member contributions pursuant to section six hundred thirteen of this article or a refund of additional member contributions pursuant to paragraph eight of this subdivision, becomes payable under this article to the participant his or her designated beneficiary or estate, the actuarial equivalent of any such unpaid amount shall be deducted from the benefit otherwise payable.

or

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8. (1) Such additional member contributions (and any interest thereon) shall be paid into the contingent reserve fund of the retirement system of which the participant is a member and shall not for any purpose be deemed to be member contributions or accumulated contributions of a member under section six hundred thirteen of this article or otherwise while he or she is a participant in the twenty-year retirement program

or otherwise.

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(ii) (A) Should a participant in the twenty-year retirement program who has rendered less than fifteen years of allowable service in the uniformed sanitation force cease to hold a position in the uniformed force of the New York city department of sanitation for any reason whatsoever, his or her accumulated additional member contributions made pursuant to this subdivision (together with any interest thereon paid the retirement system) may be withdrawn by him or her pursuant to procedures promulgated in regulations of the board of trustees of the retirement system, together with interest thereon at the rate of five percent per annum, compounded annually.

(B) Upon the death of a participant in the twenty-year retirement program, there shall be paid to such person as he or she has nominated or shall nominate to receive his or her accumulated member contributions by written designation duly executed and filed with the retirement system during the lifetime of such participant, or, to his or her estate if no such person is nominated, his or her accumulated additional member contributions made pursuant to this subdivision (including any interest thereon paid to the retirement system), together with interest thereon at the rate of five percent per annum, compounded annually.

(iii) Except as provided in subparagraph (ii) of this paragraph, no member while he or she is a participant or otherwise, shall have a right EXPLANATION-Matter in italics is new; matter in brackets [ ] is old law

to withdraw such additional member contributions or an interest thereon from the retirement system.

9. No member of a public retirement system shall be permitted to borrow any portion of the additional member contributions (including any interest paid thereon by the participant) which are subject to this subdivision.

§ 6. Subdivision a-1 of section 13-125. 1 of the administrative code of the city of New York is amended by adding two new paragraphs 3 and 4 to read as follows:

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(3) shall, in the case of a sanitation member (as defined in subdivision sixty-four of section 13-101 of this chapter) who is a participant in the twenty-year improved benefit retirement program (as defined in paragraph six of subdivision a of section four hundred forty-five-b of the retirement and social security law), pick up and pay to the retirement system all additional member contributions which otherwise would be required to be deducted from such member's compensation pursuant to paragraph two of subdivision d of such section four hundred fortyfive-b, and shall effect such pick up on each and every payroll of such participant for each and every payroll period with respect to which such paragraph two would otherwise require such deductions; and

(4) shall, in the case of a sanitation member (as defined in subdivision sixty-four of section 13-101 of this chapter) who is a participant in the twenty-year retirement program (as defined in paragraph five of subdivision a of section six hundred four-a of the retirement and social security law), pick up and pay to the retirement system all additional member contributions which otherwise would be required to be deducted from such member's compensation pursuant to paragraph two of subdivision e of such section six hundred four-a, and shall effect such pick up on each and every payroll of such participant for each and every payroll period with respect to which such paragraph two would otherwise require such deductions.

§ 7. Subdivision d of section 13-125. 1 of the administrative code of the city of New York, as amended by chapter 936 of the laws of 1990, is amended to read as follows:

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d. (1) For the purpose of determining the retirement system rights, benefits and privileges of any uniformed force member whose uniformed force member contributions eligible for pick up by the employer are picked up pursuant to this section (including the procurement of loans by any such member who is a Tier I member or Tier II member), such picked up member contributions shall be deemed to be and treated (i) member contributions made by such member pursuant to law and (ii) as a part of such member's accumulated deductions, if he or she is a Tier I member or a Tier II member and (iii) as a part of such member's accumulated contributions under section five hundred seventeen of the retirement and social security law, if such member is a Tier III member and (iv) as a part of such member's contributions under section six hundred thirteen of such law, if such member is a Tier IV member.

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(2) For the purpose of determining the retirement system rights, benefits and privileges of any correction member (as defined in subdivision forty of section 13-101 of this chapter) who is a participant in the twenty-year improved benefit retirement program (as defined in paragraph six of subdivision a of section four hundred forty-five-a of the retirement and social security law), the additional member contributions of such participant picked up pursuant to paragraph one of subdivision a-one of this section shall be deemed to be and treated as a part such member's additional member contributions under paragraphs one and two of subdivision d of such section four hundred forty-five-a. (3) For the purpose of determining the retirement system rights, benefits and privileges of any member of the uniformed correction force (as defined in subdivision thirty-nine of section 13-101 of this chapter) who is a participant in the twenty-year retirement program (as defined in paragraph five of subdivision a of section five hundred four-a of the retirement and social security law), the additional member contributions of such participant picked up pursuant to paragraph two of subdivision a-one of this section shall be deemed to be and treated as a part of such member's additional member contributions under paragraphs one and two of subdivision e of such section five hundred four-a.

(4) For the purpose of determining the retirement system rights, benefits and privileges of any sanitation member (as defined in subdivision sixty-four of section 13-101 of this chapter) who is a participant in the twenty-year improved benefit retirement program (as defined in paragraph six of subdivision a of section four hundred forty-five-b of the

retirement and social security law), the additional member contributions of such participant picked up pursuant to paragraph three of subdivision a-one of this section shall be deemed to be and treated as a part of such member's additional member contributions under paragraphs one and two of subdivision d of such section four hundred forty-five-b.

(5) For the purpose of determining the retirement system rights, benefits and privileges of any sanitation member (as defined in subdivision sixty-four of section 13-101 of this chapter) who is a participant in the twenty-year retirement program (as defined in paragraph five of subdivision a of section six hundred four-a of the retirement and social security law) the additional member contributions of such participant picked up pursuant to paragraph four of subdivision a-one of this section shall be deemed to be and treated as a part of such member's additional member contributions under paragraph's one and two of subdivision e of such section six hundred four-a.

[(4)] (6) Interest on contributions picked up for any uniformed force member pursuant to this section (other than additional member contributions picked up pursuant to subdivision a-one of this section) shall accrue in favor of the member and be payable by his or her public employer at the same rate, for the same time periods, in the same manner and under the same circumstances as interest would be required to accrue in favor of the member and be payable by the public employer on such contributions if they were made by such member in the absence of a pick up program applicable to such member under the provisions of this section. [(5)] (7) Where member contributions of any uniformed force member who is a Tier I member or Tier II member are picked up and paid into the annuity savings fund pursuant to this section, such picked up contributions shall be credited to a separate account within the individual account of such member in such fund, so that a separate record of the amount of such picked up contributions is maintained.

[(6)] (8) Where member contributions of any uniformed force member who is a Tier III member are picked up and paid, pursuant to this section, into the special fund maintained by the retirement system pursuant to subdivision à of section five hundred seventeen of the retirement and social security law, and where member contributions of any uniformed force member who is a Tier IV member are picked up and paid, pursuant to this section, into the special fund maintained by the retirement system pursuant to subdivision a of section six hundred thirteen of such law, such picked up contributions shall be credited to a separate account within the individual account of such member in such fund, so that separate record of the amount of such picked up contributions is maintained.

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[(7)] (9) Nothing contained in this subdivision d shall be construed as granting member contributions or additional member contributions picked up under this section any status, under federal law, other than as employer contributions, pursuant to subsection h of section four hundred fourteen of the United States internal revenue code, for the federal purposes for which such subsection h so classifies such picked up contributions.

§ 8. Nothing contained in sections six and seven of this act shall be construed to create any contractual right with respect to members to whom such sections apply. The provisions of such sections are intended to afford members the advantages of certain benefits contained in the internal revenue code, and the effectiveness and existence of such sections and benefits they confer are completely contingent thereon.

§ 9. This act shall take effect immediately, provided, however, that: (a) The amendment to section 603 of the retirement and social security law made by section four of this act and the provisions of section five of this act adding a new section 604-a to such law shall not affect the expiration of certain provisions contained therein as SO provided by section 615 of the retirement and social security law.

(b) The provisions of sections six and seven of this act shall remain in force and effect only so long as, pursuant to federal law, contributions picked up under such sections are not includible as gross income of a member for federal income tax purposes until distributed or made available to the member.

FISCAL NOTE. -This fiscal note describes the cost estimate of amending the New York state retirement and social security law to create a EXPLANATION-Matter in italics is new; matter in brackets [ ] is old law