§ 102. Recovery of disability beneficiaries. a. Once each year
following the retirement of a member on a disability allowance, the
comptroller may, and, upon the beneficiary's application, shall require
such disability beneficiary to undergo a medical examination. Such
examination shall be made at the place of residence of such beneficiary,
or at any other place mutually agreed upon by the comptroller and such
beneficiary. In the event that any such disability beneficiary shall
refuse to submit to a medical examination, the pension portion of his
retirement allowance, including the
pension-providing-for-increased-take-home-pay, shall be discontinued
until his withdrawal of such refusal. If such refusal shall continue for
one year, all his rights in and to his pension shall be forfeited.

b. The pension, including the pension-providing-for-increased-take-
home-pay, of a disability beneficiary shall be reduced in the event that
any such disability beneficiary is engaged in a gainful occupation
paying more than the difference between his retirement allowance, as it
would be without optional modification and if not reduced by the
actuarial equivalent of any outstanding loan and if not increased by the
actuarial equivalent of any additional contributions, and his final
salary. Such reduction shall be to a sum which, when added to an
annuity, as so computed, plus the amount so earnable by him, shall equal
his final salary. If his earning capacity thereafter changes, his
pension may be further altered. Any such altered pension shall not
exceed:

1. The pension, including the pension-providing-for-increased-take-
home-pay, originally granted to such beneficiary, nor

2. An amount which, when added to an annuity, as so computed, plus the
sum earned by him, shall equal his final salary.

In the case where an optional benefit has been selected, such
reduction shall be the same as the reduction would have been without
optional modification. Where such reduction is greater than the pension,
including the pension-providing-for-increased-take-home-pay, payable
under the option selected, the excess may be paid by the pensioner into
the funds of the system, in which case the benefit due under the option
shall be paid as if no reduction had occurred. If such excess is not
paid by the pensioner, the benefit otherwise due under the option shall
be reduced by the actuarial equivalent of such excess. In no event shall
the payment to the funds be greater than the difference between the
pension, including the pension-providing-for-increased-take-home-pay,
without optional modification and the pension, including the pension-
providing-for-increased-take-home-pay, under the option selected. The
pension, including the pension-providing-for-increased-take-home-pay of
a disability pensioner, shall not be reduced after he has attained the
mandatory retirement age applicable to him or shall have attained the
age or performed the period of service specified by applicable law for
eligibility for a service retirement benefit.

c. In the event that the comptroller shall determine that a disability
beneficiary is able to engage in a gainful occupation, he shall, if such
beneficiary so requires, certify the name of such beneficiary to the
state civil service department or appropriate civil service commission.
The state civil service department or such municipal commission shall
place the name of such beneficiary, as a preferred eligible, on the
appropriate eligible lists prepared by it for positions for which such
beneficiary is stated to be qualified in a salary grade not exceeding
that from which he was last retired. If any such beneficiary shall be
offered a position as a result of the placing of his name on any such
civil service list, the amount of his disability pension, including the
pension-providing-for-increased-take-home-pay, shall be reduced. Such
reduction shall be to an amount which, when added to the amount earned
or earnable by him in such position, shall not exceed his final salary.
A disability beneficiary restored to active service shall not be
eligible to membership in the retirement system so long as he receives
any pension, including the
pension-providing-for-increased-take-home-pay.

d. In the event that a disability beneficiary is restored to active
service of an employer, at a salary equal to or in excess of his final
salary, his retirement allowance shall cease. Such person thereupon
again shall become a member of the retirement system. He thereafter
shall contribute to the retirement system in the same manner as and at
the same rate that he paid prior to his disability retirement. The total
service credit, to which he was entitled at the time of such retirement,
again shall be credited to him. Upon his subsequent retirement, he shall
be credited, in addition, with all member service earned by him
subsequent to his last restoration to membership.

e. In the event that a disability retiree is restored to active
service of an employer, at a salary less than his final salary but equal
to or in excess of the current minimum salary for the position from
which he was last retired for disability, such person, if he so elects,
shall again become a member of the retirement system and his retirement
allowance shall cease. He thereafter shall contribute to the retirement
system in the same manner as and at the same rate that he paid prior to
his disability retirement. The total service credit, to which he was
entitled at the time of such retirement, again shall be credited to him.
Upon his subsequent retirement, he shall be credited, in addition, with
all member service earned by him subsequent to his last restoration to
membership.

e-1. Notwithstanding any other provision of this section or any other
provision of law, a retiree of any New York state police or fire
retirement system on a disability allowance who returns to gainful
employment as an elected public official shall continue to receive the
full amount of his or her retirement allowance, including the
pension-providing-for-increased-take-home-pay.

f. Notwithstanding any other provision of this article, the term
"final salary", as used in this section, shall mean the maximum salary
or compensation which the retired member currently would be receiving in
the position next higher from which he was last retired for disability,
if he had not been so retired, provided, however, that if the position
from which he was so retired has been abolished, the comptroller, upon
the basis of salary or compensation currently paid by the retired
member's last employer to persons in similar or comparable positions,
shall determine, for the purposes of this section, the maximum amount of
salary or compensation which such retired member currently would be
receiving in such position.