§ 528. Pensions-providing-for-increased-take-home-pay. 1.
Notwithstanding any other provision of law to the contrary,

a. beginning with the payroll period the first day of which is nearest
to April first, nineteen hundred sixty, and ending with the payroll
period immediately prior to that the first day of which is nearest to
April first, nineteen hundred seventy, the contribution of each member
of the retirement system who is a teacher within the provisions of
subdivision four of section five hundred one of this article in the
employ of the state of New York shall be reduced by five per centum of
the compensation paid such member, and

b. beginning with the payroll period the first day of which is nearest
to April first, nineteen hundred sixty-four, and ending with the payroll
period immediately prior to that the first day of which is nearest to
April first, nineteen hundred seventy, the contribution of each member
of the retirement system who is a teacher within the provisions of
subdivision four of section five hundred one of this article in the
employ of the state of New York shall be reduced by an additional three
per centum of the compensation paid such member, and

c. beginning with the payroll period the first day of which is nearest
to April first, nineteen hundred sixty-six, and ending with the payroll
period immediately prior to that the first day of which is nearest to
April first, nineteen hundred seventy, the contribution of each member
of the retirement system who is a teacher within the provisions of
subdivision four of section five hundred one of this article in the
employ of the state of New York whose rate of contribution is in excess
of eight per centum shall be suspended.

Where a member's rate of contribution is less than the per centum by
which his contribution is reduced, such rate shall be discontinued. A
member whose rate of contribution shall be reduced pursuant to the
provisions of this subdivision shall be deemed to have elected to have
his rate so reduced unless he files an election pursuant to the
provisions of subdivision two of this section.

2. Any member whose rate of contribution is reduced pursuant to the
provisions of subdivision one of this section may by a written notice,
duly acknowledged and filed with the retirement board within one year
after such reduction or within one year after he last became a member,
whichever is later, elect to make an additional contribution in addition
to other contributions otherwise allowed in this article equal to the
amount of such reduction. One year or more after the filing of such
notice a member may withdraw such election by filing a written notice
duly acknowledged and filed with the retirement board.

3. For the period of time as the provisions of this section shall be
in effect, contributions for each member of the system whose rate of
contribution is reduced by virtue of the provisions of subdivision one
of this section shall be made to the pension accumulation fund by the
state of New York in the same manner and at the same time as other
contributions made by the state as employer of members of the retirement
system at a rate fixed by the actuary which shall be computed to be
sufficient to provide pensions-providing-for-increased-take-home-pay and
other benefits which become payable on account of members in the employ
of the state. The actuary engaged by the retirement board shall compute
an additional contribution to be known as the "special deficiency
contribution to provide a reserve-for-increased-take-home-pay." The
amount of the reserve-for-increased-take-home-pay shall be the present
value of that per centum of the member's compensation by which his
contribution is reduced, or would otherwise be reduced if his rate of
contribution equaled or exceeded eight per centum, during the period for
which his rate of contribution was reduced as provided in subdivision
one, plus regular and additional interest thereon to the date that
pension and other benefits become payable.

4. Upon retirement a member whose rate of contribution shall be
reduced pursuant to the provisions of subdivision one of this section
will receive, in addition to the annuity and other pension benefits
provided by this article, a pension which is the actuarial equivalent of
the reserve-for-increased-take-home-pay to which he may be entitled, if
any.

5. In addition to the return of accumulated contributions and the
death benefit provided by the provisions of section five hundred twelve
of this article, upon the death of a member who died before the
effective date of his retirement and was in service upon which his
membership was based when he died or was on the payroll in such service
and paid within a period of twelve months prior to his death and had not
been otherwise gainfully employed since he ceased to be on such payroll,
and provided further, he had credit for one or more years of service
while actually a member, then the reserve-for-increased-take-home-pay
attributable to such member shall be paid in the same manner and at the
same time as the death benefit is paid by reason of such member's
membership in the retirement system.

6. The reserve-for-increased-take-home-pay shall be a portion of the
pension accumulation fund and upon the retirement of a new entrant an
amount equal to the reserve-for-increased-take-home-pay for such member
shall be transferred from the pension accumulation fund to the pension
reserve fund.

7. If a person has been a member of the retirement system and
contributions have been made by the state as his employer to provide a
reserve-for-increased-take-home-pay and such person has ceased to be a
member of the system and upon rejoining the retirement system claims
credit for such period, the member shall not be required to pay for such
years of service as a contribution shall have been made by the state for
pensions-providing-for-increased-take-home-pay pursuant to the
provisions of this section.

8. Commencing with the payroll period the first day of which is
nearest to April first, nineteen hundred sixty-one, the provisions of
this section shall not apply to any member for any period or periods
during which he ceases or has ceased contributing toward retirement
pursuant to subdivision one of section five hundred sixteen of this
article, provided, however, that such member shall receive credit
pursuant to this section for such period or periods for which he
contributes or has contributed toward retirement.