N.Y. Comp. Codes R. & Regs. tit. 21 § 5010.2

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

Section 5010.2 - Withdrawal and refund of contributions

(a) In the event of termination of employment, other than as a result of transfer to another public employer, a Tier 3 member who has not accumulated at least 10 years of credited service may withdraw his accumulated contributions by filing an application for such withdrawal with the system. Upon such withdrawal, the membership of such member shall terminate and all rights in the system enjoyed by such member shall cease. In the event a Tier 3 membership shall terminate, other than as a result of transfer to another public employer, any contributions remaining to the credit of the member shall be refunded upon filing an application for such refund with the system. If the refund is paid as a result of the death of the member, his contributions shall be refunded to his designated beneficiary on file with the system or, in the absence of such nomination, to the member's estate.

(b) A person whose Tier 4 or 5 membership is terminated other than as a result of transfer, retirement or death, or a Tier 4 or 5 member who has not accumulated at least 10 years of credited service and who no longer is employed by a participating employer of this system in a position upon which his membership is based, may withdraw his member contributions by filing a written demand for withdrawal of contributions and membership with the system. Upon such withdrawal, the membership of such member shall terminate and all rights in the system enjoyed by such member shall cease. Upon the death of a person whose membership previously terminated due to lack of credited service and who did not withdraw his member contributions, or upon the death of a member, provided a death benefit pursuant to section 607 of the Retirement and Social Security Law is not paid, the member contributions of such person shall be refunded to such person as he shall have nominated to receive a death benefit by written designation duly executed and filed with the system, or, in the absence of such designation, to his estate. For purposes of such refunds, interest shall be credited at the rate of five percent per annum compounded annually to the date of termination of membership. Provided, however, if a death benefit is paid pursuant to section 607 of the Retirement and Social Security Law, such benefit shall be in lieu of the refund of such contributions, however, in no event shall such death benefit be less than the amount payable pursuant to this subdivision.

(c) Whenever a Tier 3, 4 or 5 member for whom a loan is outstanding becomes entitled to a refund of his or her contributions because of withdrawal from the system or death (in the case of an uninsured loan), the amount of any loan outstanding on such date, including accrued interest, shall be construed to already have been returned to such member and the refund of contributions to which he shall then be entitled shall be the net amount of such contributions together with interest thereon.

N.Y. Comp. Codes R. & Regs. Tit. 21 § 5010.2