A02823 Summary:

BILL NO    A02823A

SAME AS    Same as S 2341-A

SPONSOR    Abbate

COSPNSR    Schroeder, Russell

MLTSPNSR   Cook, Greene, Pheffer, Titone

Amd S532, Ed L

Extends the minimum retirement benefit provision for retirees of the New York
state teachers' retirement system who retired prior to June 1, 1980.

A02823 Actions:

BILL NO    A02823A

01/21/2009 referred to governmental employees
01/06/2010 referred to governmental employees
01/26/2010 amend and recommit to governmental employees
01/26/2010 print number 2823a

A02823 Votes:

A02823 Memo:

BILL NUMBER:A2823A

TITLE  OF  BILL:   An act to amend the education law, in relation to the
minimum retirement allowance for members of the New York state teachers'
retirement system who retired prior to July 1, 1980

PURPOSE: This bill would extend  the  minimum  retirement  allowance  to
retirees  of  the New York State Teachers' Retirement System who retired
prior to July 1, 1980 and increase the minimum retirement allowance  for
such retirees to $550 per year of New York State service up to a 35 year
maximum of $19, 250,

SUMMARY  OF  PROVISIONS:  This bill would amend the minimum supplemental
benefit for the longest retired teachers in subdivision e  of  Education
Law S532. It would extend the minimum supplemental benefit to all teach-
ers  who retired prior to July 1, 1980, as opposed to July 1, 1970 under
current law. It would also modestly raise  the  minimum  annual  benefit
from  $500  to  $550  per year of New York state service up to a 35 year
maximum of $19, 250 (versus $17,500  currently).  The  Retirement  Board
believes this measure represents appropriate relief for the most deserv-
ing  segment  of  the  retired  membership  body. It is anticipated that
approximately 2,500 of the longest retired teachers would  benefit  from
this bill.

JUSTIFICATION:  Public policy has long recognized the need for a minimum
benefit for long retired teachers whose benefits have been eroded by the
effects of inflation over  time.  That  minimum  benefit,  contained  in
subdivision  e  of  section  532  of  the Education Law, has operated to
provide a greater increase in the pensions of the longest retired teach-
ers than  they  otherwise  would  have  been  entitled  to  under  other
provisions  of law. In recognition of their particular need, subdivision
e has been updated periodically so as to modestly increase  their  bene-
fits.  The  most recent amendment was made by Chapter 580 of the Laws of
2001.

PRIOR LEGISLATIVE HISTORY: None.

FISCAL IMPLICATIONS: The Actuary of the New York State Teachers' Retire-
ment System has estimated that the additional annual cost  to  employers
of  members  of  the New York State Teachers' Retirement System would be
$1.9 million or .01% of payroll if this bill is enacted

EFFECTIVE DATE: This bill would take effect June 30, 2010,  except  that
if  this  act shall have become a law on or after June 30, 2010 this act
shall take effect immediately and shall be deemed to have been  in  full
force and effect on and after June 30, 2010.