a. Any member who:
(1) discontinues police service on or after July first, nineteen hundred sixty-nine, other than by death, retirement or dismissal; and
(2) prior to such discontinuance, completed five or more years of allowable police service; and
(3) does not withdraw his or her accumulated deductions in whole or in part; and
(4) at least thirty days prior to the date of such discontinuance, files a duly executed application for a deferred retirement allowance hereunder; shall have a vested right to receive a deferred retirement allowance as provided in this section.
b. (1) Upon such discontinuance under the conditions and in compliance with the provisions of subdivision a of this section, such deferred retirement allowance shall vest automatically.
(2) Such retirement allowance shall become payable on the earliest date on which such discontinued member could have retired for service if discontinuance had not occurred.
c. Such deferred retirement allowance shall consist of:
(1) an annuity which is the actuarial equivalent of an amount equal to the member's accumulated deductions for the period of his or her police service, plus any accumulated contributions transferred to his or her credit pursuant to section forty-three of the retirement and social security law, as the total of such accumulated deductions and contributions is on the earliest date on which such member could have retired for service; and
(2) a pension, which together with his or her annuity shall be equal to:
(i) in the case of any discontinued member whose minimum period for service retirement is twenty years, two and one-half per cent of his or her annual earnable compensation on the date of his or her discontinuance of police service, multiplied by a number equal to the number of years of allowable police service credited to him or her on the date of such discontinuance, plus the number of his or her years of service for which credit was transferred pursuant to section forty-three of the retirement and social security law; or
(ii) in the case of any discontinued member whose minimum period for service retirement is twenty-five years, two per cent of his or her annual earnable compensation on the date of his or her discontinuance of police service, multiplied by a number equal to the number of years of allowable police service credited to him or her on the date of his or her discontinuance of police service, plus the number of years of his or her service for which credit was transferred pursuant to section forty-three of the retirement and social security law; and
(3) for each year, or fraction thereof, of his or her service credit transferred from the New York city employees' retirement system, a pension of fifty-five per cent of one-sixtieth of his or her final compensation if such service credit was for service rendered prior to October first, nineteen hundred fifty-one, or seventy-five per cent of one-sixtieth of his or her final compensation if such service was rendered on or after October first, nineteen hundred fifty-one.
d. For the purpose only of determining the pension portion of such retirement allowance pursuant to paragraphs one and two of subdivision c of this section, the annuity referred to in such paragraph one shall be computed as it would be (1) if it were not reduced by the actuarial equivalent of any outstanding loan, (2) if it were not increased by the actuarial equivalent of any additional contributions, (3) if it were not reduced by reason of the member's election to decrease his or her annuity contributions in order to apply the amount of such reduction in payment of his or her contributions for old-age and survivors insurance coverage and (4) as it would be without any optional modification.
e. Regular interest on the accumulated deductions of a discontinued member and on his or her reserve-for-increased-take-home-pay shall be credited after discontinuance of police service at the rate which would be applicable if he or she had not discontinued service.
f. If a discontinued member dies before attaining the earliest age at which he or she could have retired for service if discontinuance had not occurred, his or her accumulated deductions shall be paid (1) to the beneficiary designated by him or her pursuant to section 13-243 of this subchapter to receive his or her accumulated deductions in the event that such deductions were to become payable under such section, or (2) if such member had made no such designation, to his or her estate.
g. A discontinued member may elect any option under section 13-261 of this subchapter at any time prior to the first payment on account of his or her retirement allowance under this section.
h. Withdrawal of accumulated deductions, in whole or in part, after discontinuance of police service, shall terminate the right to a deferred retirement allowance under this section.
i. If a discontinued member who has not withdrawn his or her accumulated deductions in whole or in part shall subsequently re-enter police service before the earliest date on which such discontinued member could have retired for service if discontinuance had not occurred, he or she shall be entitled to the service credit and status to which he or she was entitled immediately prior to his or her discontinuance of police service and shall be credited with regular interest on his or her accumulated deductions and his or her reserve-for-increased-take-home-pay from the time of such discontinuance to the time of his or her re-entry into service, at the rate which would have been applicable if he or she had not discontinued service.
j. (1) If a discontinued member who has not withdrawn his or her accumulated deductions in whole or in part shall subsequently and on or after the earliest date on which such discontinued member could have retired for service if discontinuance had not occurred, re-enter police service, the payment of his or her pension only shall be suspended and forfeited during the period of such police service, except as herein otherwise provided.
(2) Such member may again become a member of the pension fund if, within ninety days after his or her return to service, he or she files a duly executed and acknowledged application for such membership.
(3) If such beneficiary shall again become a member of the pension fund, the payment of his or her annuity shall also be suspended and forfeited and his or her annuity reserve shall be transferred to his or her credit in the annuity savings fund and he or she shall become such member as a new entrant; provided, however, that he or she shall contribute to such fund at the rate (before modification, if any, to which such discontinued member may be entitled pursuant to section 13-226 of this subchapter) at which he or she would have been contributing if he or she had not discontinued police service. Upon his or her subsequent retirement, he or she shall be credited with all of his or her service as a member subsequent to his or her last restoration to membership and he or she shall receive therefor a retirement allowance, payable in such form as he or she shall select under section 13-261 of this subchapter, consisting of:
(i) an annuity which is the actuarial equivalent of his or her accumulated deductions at the time of such retirement; and
(ii) a pension equal to one-sixtieth of his or her average annual earnings from the date of his or her re-entry into membership to the date of his or her subsequent retirement, multiplied by the number of years of his or her allowable service in the police force rendered by him or her from such date of re-entry; and
(iii) a pension-providing-for-increased-take-home-pay which is the actuarial equivalent of the reserve-for-increased-take-home-pay to which he or she may be entitled, if any, for the period of his or her allowable service in the police force rendered by him or her from such date of re-entry.
(4) In addition, upon his or her subsequent retirement, he or she shall receive the pension which he or she was receiving or entitled to receive immediately prior to his or her last restoration.
(5) In lieu of suspension during restoration to police service of any benefits payable in the event of his or her death by reason of any optional selection in respect to his or her pension, any such beneficiary may pay to the fund or funds from which his or her ordinary pension was payable, the amount by which his or her ordinary pension exceeded the optional pension heretofore granted to him or her, in which event such optional benefit shall continue and be payable in the event of his or her death as though no payment was suspended.
k. Notwithstanding any other provision of law, a discontinued member with ten or more years of credited service in the pension fund who dies before a retirement benefit becomes payable and who is otherwise not entitled to a death benefit from the pension fund shall be deemed to have died on the last day that he or she was in service upon which his or her membership was based for purposes of eligibility for the payment of a death benefit pursuant to the provisions of section 13-243 of this title. The death benefit payable in such case shall be one-half of that which would have been payable had such member died on the last day that service was rendered.