§ 101. Reduction or suspension of benefits. a. If a retired member,
receiving a retirement allowance for other than physical disability,
returns to active public service, except as otherwise provided in this
section or section two hundred eleven or two hundred twelve of this
chapter, and is eligible for membership in the retirement system, he
thereupon shall become a member and his retirement allowance shall
cease. In such event, he shall contribute to the retirement system as if
he were a new member. Upon his subsequent retirement he shall:

1. Be credited with all member service earned by him since he last
became a member of the retirement system, and

2. Receive a retirement allowance which shall consist of:

(a) An annuity which is the actuarial equivalent of all his
accumulated contributions, and

(b) The pension including the
pension-providing-for-increased-take-home-pay which he was receiving
immediately prior to his last restoration to membership, plus a pension
including the pension-providing-for-increased-take-home-pay based upon
the member service credit earned by him since he last became a member.
Such latter pensions shall be computed as if he were a new member when
he last became a member.

Where such member shall have earned at least two years of member
service credit after restoration to active service, the total service
credit to which he was entitled at the time of his earlier retirement
may, at his option, again be credited to him and upon his subsequent
retirement he shall be credited in addition with all member service
earned by him subsequent to his last restoration to membership. Such
total service credit to which he was entitled at the time of his earlier
retirement shall be so credited only in the event that such member
returns to the retirement system with regular interest the actuarial
equivalent of the amount of the retirement allowance he received, or in
the event that such amount is not so repaid the actuarial equivalent
thereof shall be deducted from his subsequent retirement allowance.

Notwithstanding the foregoing provisions of this subdivision, a
retired member who is receiving a retirement allowance for other than
physical disability, and who returns to active public service, may elect
not to be restored to membership in the retirement system until he has
rendered one year of service following his return to public service. In
such event his retirement allowance shall be suspended during such year
of service as provided in subdivision b of this section. Upon
restoration to membership following completion of such year of service,
his service in such year shall be deemed to be service while a member
for purposes of subdivision b of section sixty of this chapter. He may
purchase member service credit for such year, which shall be deemed
earned member service credit. This paragraph shall not be construed to
authorize the return to public service of any person who is otherwise
not eligible therefor on account of having reached age seventy.

If a retired member receiving a retirement allowance for other than
physical disability, returns to active public service, and is then
ineligible for membership in the retirement system, his retirement
allowance shall be suspended in the same manner as provided in
subdivision b of this section.

b. Temporary service.

1. The payment of any retirement allowance, or of any benefit in lieu
thereof, on account of retirement for other than physical disability
shall be suspended as provided herein, during the time that the
beneficiary thereof is in receipt of other compensation paid from direct
or indirect state or municipal taxes:

(a) For temporary government or temporary public service other than
jury duty, or

(b) For service pursuant to subdivision d of this section where the
retired member continues as a beneficiary of the retirement system, or

(c) For service pursuant to subdivision e of this section where the
retired member has not elected to again become a member of the
retirement system.

2. In the case of a retirement allowance, without option, the amount
of the pension portion, including the
pension-providing-for-increased-take-home-pay, suspended for any period
shall be equal to the amount of such other compensation for the same
period.

3. In the case where an optional benefit in lieu of a retirement
allowance without option shall have been selected, the pension portion
thereof, including the pension-providing-for-increased-take-home-pay,
shall be suspended in such manner as the comptroller shall approve. The
amount so suspended shall be equal to the actuarial equivalent of the
amount by which the pension portion of the retirement allowance,
including the pension-providing-for-increased-take-home-pay, as it would
be without option, would be suspended pursuant to paragraph two of this
subdivision b. The retired member, however, may pay to the fund or funds
from which the pension portion of his retirement allowance, including
the pension-providing-for-increased-take-home-pay, is payable the
difference between the suspended portion thereof, without option, and
the suspended portion of the optional pension portion of the retirement
allowance, including the pension-providing-for-increased-take-home-pay,
granted to him. In such event any payments to his beneficiary shall be
made as if no suspension occurred.

4. In the case of a member whose compensation for public service is
equal to or greater than his final salary as defined herein, the annuity
portion of his retirement allowance shall be suspended during the period
that he is receiving such compensation. In the case of a member whose
compensation for public service is less than his final salary as defined
herein and who has retired without option, he shall be entitled to
receive that portion of his annuity computed without option which, when
added to his compensation for public service, does not exceed the
aforesaid final salary, except that in the case of a retired judge or
justice who serves as an official referee he shall receive that portion
of his annuity computed without option, which when added to the
compensation he is receiving from the state shall not exceed such final
salary paid by the state. Where an optional benefit has been selected in
lieu of a retirement allowance without option, the amount of the annuity
suspended shall be the actuarial equivalent of the amount that would
have been suspended if the retirement allowance had been without option.
In such a case the retired member may pay to the fund or funds, from
which the annuity portion of his retirement allowance is payable, the
difference between that portion of the annuity which is actually
suspended, in accordance with the provisions of this paragraph, and the
corresponding portion of the annuity without option. In such event any
payments to his beneficiary shall be made as if no suspension occurred.
The term "final salary", as used in this paragraph, shall mean the
maximum salary or compensation which the retired member currently would
be receiving in the position from which he last retired, if he had not
so retired, except in the case of an official referee shall mean his
final average salary had he retired at age seventy. If the position from
which he was so retired has been abolished the comptroller, upon the
basis of salary or compensation currently paid in similar or comparable
positions, shall determine the maximum amount of salary or compensation
which the retired member currently would be receiving in the abolished
position.

c. Retired judges or justices certified for service as justices of the
supreme court.

1. In the event that a judge or justice shall:

(a) Have retired and is receiving a retirement allowance from this
retirement system, or another retirement system of which he was a
member, and

(b) Be certified for service as a justice of the supreme court
pursuant to section one hundred fourteen or one hundred fifteen of the
judiciary law, his retirement allowance shall cease. He thereupon again
shall become a member of the retirement system of which he formerly was
a member. In such event he shall contribute, as if he were a new member,
to the annuity savings fund of this retirement system or to the
equivalent fund of such other retirement system.

2. Upon his subsequent retirement he shall:

(a) Be credited by the appropriate retirement system with all member
service earned by him since he last became a member thereof, and

(b) Receive a retirement allowance from such system which shall
consist of:

(1) An annuity which is the actuarial equivalent of all of the
member's accumulated contributions, and

(2) The pension, including the
pension-providing-for-increased-take-home-pay, which he was receiving
immediately prior to his last restoration to membership, plus a pension,
including the pension-providing-for-increased-take-home-pay, based upon
the member service credit earned by him since he last became a member.
Such latter pensions shall be computed as if he were a new member when
he last became a member.

3. The provisions of this subdivision c shall be controlling
notwithstanding any other provision of this chapter.

d. Election or appointment of retired members to certain public
offices.

1. A retired member, unless otherwise disqualified, shall be eligible
to:

(a) Election to a state office, or

(b) Appointment to fill a vacancy in an elective state office, or

(c) Appointment as an official referee.

2. In the event a retired member is so elected, except a retired
member so elected and who is receiving less than ten thousand dollars in
retirement allowance or benefit payments in any one year, or appointed,
or so qualifies, he may:

(a) Upon written notice to the comptroller, receive from the
retirement system the then present value of the annuity earned by his
accumulated contributions, and upon receipt thereof cease to be a
beneficiary of the retirement system, or

(b) Continue as a beneficiary of the retirement system, but with
payments of any retirement allowance or any benefit in lieu thereof, on
account of retirement for other than physical disability, suspended
during the time he is in receipt of compensation for state or public
service. Such suspension shall be governed by the provisions of
paragraphs two, three and four of subdivision b of this section.

3. The provisions of section one hundred fifty of the civil service
law shall govern with respect to state and local elective public
officers.

e. Legislative officers and employees.

In the case of any person who shall have retired after having served
as an officer or employee of the legislature for a period in excess of
fifteen years and whose return to active service shall be requested, in
a written certificate of and filed with the comptroller by:

1. The president pro tem of the senate, if the service be in the
senate, or

2. The speaker of the assembly, if the service be in the assembly, or

3. Both such officers, if the service be under the jurisdiction of the
senate and assembly jointly, except that the president of the senate and
the speaker of the assembly shall be authorized to make such request in
a case where they are empowered to make such an appointment,
the provisions of subdivision a of this section shall not be applicable
unless the officer or employee so returned to active service shall file
with the comptroller, within thirty days thereafter, a written notice
that he elects to be subject to the provisions thereof. In the event he
does not so elect, the provisions of subdivision b of this section shall
be applicable to him.