The Court of Appeals of the State of New York has determined that a member of the Retirement System who was granted a leave of absence without pay for medical reasons, pursuant to the rules and regulations of the Department of Civil Service, continued to be in service upon which her membership was based for the duration of the leave granted. The Appellate Division, Third Department, has determined that a member of a retirement system who was granted a leave of absence without pay for medical reasons continues to be in service upon which membership in the system is based. In accordance with the above judicial principles, the Comptroller has determined that a member of the retirement system who is receiving benefit payments from either Workers' Compensation or other employer-funded disability programs and whose employment has not terminated by resignation, employer action or any other means, shall be considered to be in service upon which membership in the system is based, for the purposes of meeting certain statutory filing deadlines.

Sections 5.2 and 22.2 of the rules and regulations of the Department of Civil Service direct that a permanent State employee may, in the discretion of the appointing authority, be granted a leave of absence from his position without pay for a period not exceeding two years, and such leave may be extended beyond two years, for periods aggregating not in excess of an additional two years, only with the approval of the Civil Service Commission.

Sections 62, 63, 362, 363, 363-b, 363-c, 506 and 507 of the Retirement and Social Security Law, relating disability retirement, provide the applicant must file application for benefits while in service, or within certain statutorily provided time periods after discontinuance from service. Sections 507-a and 605 of the Retirement and Social Security Law, relating to disability retirement, provide the applicant must file an application within specified time periods from the last date the member was being paid on the payroll. Any retirement granted pursuant to these sections shall be effective as of a date approved by the Comptroller.

Sections 60, 60-a, 60-b, 448, 508 and 606 of the Retirement and Social Security Law, relating to ordinary death benefits, provide that a death benefit shall be payable if the member dies while in service upon which the membership is based.

This Part is promulgated to provide the criteria for determining whether members of the New York State Employees' Retirement System and the New York State Policemen's and Firemen's Retirement System who are either on a leave of absence without pay for medical reasons or receiving benefit payments from either Workers' Compensation or other employer-funded disability programs are to be considered in service for the purpose of filing an application for disability retirement and for eligibility for certain death benefits.