N.Y. Comp. Codes R. & Regs. tit. 21 § 5007.2

Current through Register Vol. 46, No. 50, December 11, 2024

Section 5007.2 - Active membership refunds

(a) Refund on demand. A member who ceases to be a teacher and has not vested or become a discontinued member under the provisions of the Optional Retirement Program shall be entitled to a refund of his/her accumulated contributions on demand.

(b) Crediting of interest on refund of accumulated contributions. A member who applies for a refund of his/her accumulated contributions shall receive interest credited to such contributions to the date of refund.

(c) Refund with loan outstanding. Where a member has a current outstanding loan and withdraws from the system, such loan shall become due and payable. This outstanding loan will be satisfied effective the date of refund of the withdrawal. The amount of the loan still outstanding, including interest and insurance, shall be deemed to have been refunded to the member. In such cases the member shall be entitled to the net amount of his/her accumulated contributions, less the outstanding loan balance.

(d) Refund of military service payments. Where a member dies prior to retirement or withdraws from membership and was required to pay the employer's share as provided by section 243 of the Military Law or subdivision 10 of section 503 of the Education Law for the purchase of military service credit, a refund of this employer's share plus interest shall be granted from the pension accumulation fund.

(e) Refund upon death of member. Upon the death of a member, either the member's designated beneficiary on file with the system or, in the absence of such a nomination, the member's estate, shall be entitled to his/her accumulated contributions.

(f) Refund of excess special service retirement contributions.

(1) A member having withdrawn an election to contribute towards special service retirement, upon application filed with the system, shall be entitled to a refund of the special service retirement contributions.

(2) Where a member who applies for and is granted a refund of special service retirement contributions has an outstanding loan, said refund shall not exceed an amount which would cause the remaining balance of said loan to exceed 75 percent of the amount remaining in the member's account in the annuity savings fund, after the refund is made.

(3) Where a member who defaults on a loan subsequently applies for and is granted a refund of special service retirement contributions, such refund shall be computed as of the date of default, with interest credited to the date of refund and in accordance with paragraph (2) of this subdivision.

N.Y. Comp. Codes R. & Regs. Tit. 21 § 5007.2