TO ALL ARTICLE II RETIRED PERSONS
This notice is to advise you of certain restrictions on employment after retirement. Your retirement benefit consists of a pension portion (the largest part generated by City contributions) and an annuity portion (generated by member’s contributions).
The following paragraphs address the pension portion only the annuity portion of your retirement benefit was purchased by your contributions and is not affected. Also, continuation of your annuity portion maintains your eligibility for medical benefits. An active member of the pension system is one who is in the active service of a governmental agency. He/she may or may not make contributions to the pension system, but he/she is earning future pension benefit credits. A passive member is one who is receiving benefits. The following paragraphs are a guide to the statutory restrictions on retiree employment. Each retiree should review the statutes cited to ensure compliance and to avoid jeopardizing their pension benefit. Questions regarding these statutory restrictions should be submitted to the Police Pension Fund in writing. You will receive a written reply, a copy of which will be made a part of your pension records.
SERVICE & VESTED INTEREST RETIREES
According to Section 1117 of the New York City Charter, the pension portion of the retirement benefit is suspended or forfeited for all retired persons who are employed by New York State or any of its political subdivisions and earn over $1,800.00 per year.
However, Section 211 of the New York State Retirement and Social Security Law allows a person retired for other than physical disability to be employed by New York State or one of its political subdivisions if the agency wishing to employ the person obtains approval from the New York State Civil Service Commission or others empowered to grant such approval. This is commonly known as the “211 waiver.”
In addition, if the prospective employer is New York City (except the NYC Department of Education), the salary or compensation is limited to the difference between the yearly pension amount and the current salary or compensation the pension was based on. Earnings in excess of that amount will result in the recoupment of overpayment.
Section 212 of the New York State Retirement and Social Security Law permits employment by New York State or one of its political subdivisions without approval for non-disability-retired persons if the salary or compensation is less than an amount set by State legislature each year (currently $30,000). Under Section 212, you must notify the Police Pension Fund in writing if you intend to exercise this right.
For Service Retirees or Vested Retirees who are publicly employed with New York State, there shall be no earnings limitations in, or after, the calendar year in which the retiree attains age 65.
In all cases, under Section 40-C-9 of the New York State Retirement and Social Security Law, any retired person may not join another New York State Retirement System as an active member while receiving a pension benefit from the Police Pension Fund. If a retired person chooses to do so, the pension portion payments must be suspended. When active membership ceases, the pension portion will be reinstated.
NOTE: It is the responsibility of the Service Retiree or Vested Retiree to verify that the prospective employer has obtained a waiver under Section 211, and that this waiver continues in force throughout the duration of employment.
PUBLIC BENEFIT CORPORATIONS
The Office of the Corporation Counsel has interpreted Section 1117 of the New York City Charter as not applying to PUBLIC BENEFIT CORPORATIONS, so that retired City employees can work for such corporations without suspension of benefits. The Corporation Counsel has determined the following Authorities to be Public Benefit Corporations.
- New York City Housing Authority
- New York City Transit Authority
- New York State Dormitory Authority
- Off-Track Betting Corporation
- New York City Health & Hospitals Corporation
- Metropolitan Transit Authority
- Urban Development Corporation
- New York / New Jersey Port Authority
- Water Front Commission
- New York City School Construction Authority
- New York City Convention Operating Corporation
The above list is not all inclusive. Members who feel that the Public Benefit Corporation exemption applies to a prospective employer should write to request a written opinion, from the Executive Director, NYC Police Pension Fund. **
DISABILITY RETIREES
According to Section 1117 of the New York City Charter, the pension portion of the retirement benefit is suspended or forfeited for all retired persons who are employed by New York State or any of its political sub-divisions. However, Article II persons retired for Ordinary or Accident Disability prior to the 20th anniversary of their appointment to the Police Department are not governed by Section 1117 of the New York City Charter and may be so employed.
Persons retired for ordinary accidental disability prior to the 20th anniversary of their appointment to the Police Department are subject to the provisions of Section 13-254 of the New York City Administrative Code. Section 13-254 limits earnings to the difference between the pension portion and the combined total of the current salary plus overtime; night shift, differential and vacation pay for the next higher rank than that of the retiree at the time of retirement.
(The retiree’s uniform allowance shall be included at the rate for the rank of the retired person at the time of retirement.) Earnings in excess of this difference will result in the recoupment of overpayment in pension monies.
After the 20th anniversary of their appointment to the Police Department, persons retired for ordinary or accident disability are no longer subject to the provisions of 13-254 (earnings limitations). However, they now fall under Section 1117 of the New York City Charter and, furthermore, are excluded from the exemption provisions of Sections 211 or 212 of the New York State Retirement and Social Security Law. Therefore, disability retirees who are employed by New York State (or any of its political subdivisions) after the 20th anniversary of their appointment to the New York City Police Department will have their pension benefit suspended.
**In all cases, under Section 40-C-9 of the New York State Retirement and Social Security Law, any retired person may not join another New York State Retirement System as an active member while receiving a pension benefit from the Police Pension Fund. If a retired person chooses to do so, the pension portion must be suspended. When active membership ceases, pension portion payments will be reinstated.