New York Codes, Rules and Regulations
Title 2 - DEPARTMENT OF AUDIT AND CONTROL
Chapter VI - New York State and Local Employees' Retirement System and New York State and Local Police and Fire Retirement System
Part 378 - Payment Of Member Cost For Purchase Of Military Service Pursuant To Section 1000 Of The Retirement And Social Security Law
Section 378.2 - Payment

(a) The Retirement System shall determine the member cost for the purchase of military service credit based upon three percent of the compensation earned by the member during the 12 months of credited service immediately preceding the date that the member filed the application for the credit.

(b) The member shall commence payment of the member cost within 45 days after notification by the Retirement System of the amount due. The Retirement System shall notify the member of the cost by certified mail, return receipt requested, or similar mailing service. The date of the notification letter shall be used to determine the start of the 45-day period for the commencement of payment.

(c) If the member has not commenced payment within such specified time period, the application for service credit for military service shall be void.

(d) In the event the member commences payment after such specified time period, the payment shall be deemed to be the filing of a new application and the Retirement System shall determine a new cost based upon three percent of the compensation earned by the member during 12 months of credited service immediately preceding the date of payment. The Retirement System shall advise the member of the new cost and the amount, if any, owed by the member or to be refunded by the Retirement System after consideration of the amount previously paid.

(e) Notwithstanding any provision of this plan to the contrary, contributions, benefits and service credit with respect to qualified military service will be provided in accordance with section 414(u) of the Internal Revenue Code of 1986, as amended. Effective for deaths occurring on or after January 1, 2007, if a member dies while performing qualified military service as defined in Internal Revenue Code section 414(u), the survivors of the member shall be entitled to any additional benefits as determined under Internal Revenue Code section 401(a)(37) provided under the retirement system had the member resumed his or her prior employment with an employer that maintains the system and then terminated employment on account of death, and service for vesting purposes shall be credited to such deceased member for the period of his or her qualified military service. For the purpose of this section, additional benefits shall not include benefit accruals relating to the period of qualified military service.