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A07452 Summary:

BILL NOA07452
 
SAME ASNo Same As
 
SPONSORAbbate
 
COSPNSR
 
MLTSPNSR
 
Amd 509, Ed L; amd 446, 513 & 609, R & SS L; amd 13-505, NYC Ad Cd
 
Permits New York state teachers' and New York city teachers' retirement system members to obtain retirement credit for up to ten years of federal teaching service, including service with VISTA, Head Start and the Peace Corps, if such service would constitute service as a teacher had it been performed within NYS for a participating employer; provides that no such credit shall be allowed for any service for which the person is receiving a benefit or will be entitled to receive a benefit from some other public or private retirement system.
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A07452 Actions:

BILL NOA07452
 
04/26/2017referred to governmental employees
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A07452 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A7452
 
SPONSOR: Abbate
  TITLE OF BILL: An act to amend the education law, the retirement and social security law and the administrative code of the city of New York, in relation to permitting members of the New York state and New York city teachers' retirement systems to claim retirement credit for certain federal teaching service   PURPOSE: This bill would allow members of the Teachers' Retirement System to claim credit for up to ten years of teaching service rendered while in the employ of the Federal Government, including service in the Peace Corps, Head Start and VISTA.   SUMMARY OF PROVISIONS: This bill would amend section 509 of the Education law and sections 446, 513, and 609 of the Retirement and Social Security Law to permit members of the New York State Teacher's Retirement System to claim up to ten years of federal teaching service.   JUSTIFICATION: Since the retirement system was established in 1921, Tier I members of the New York State Teachers' Retirement System have been able to claim credit for up to ten years of public school teaching service performed in another state. However, if a member was employed by the Federal Government and taught in either another state or even in New York State, he/she is denied the retirement credit. An example would be teaching in the elementary schools at the Military Academy at West point, or service in organizations such as Head Start, the Peace Corps and VISTA. The knowledge and experience gained through these experiences is of great benefit to New York State's students and educational system. Enactment of this bill would correct this inequity by allowing such Tier I members to claim retirement credit for teaching service rendered while in the employ of the Federal Government. This bill also extends the provisions of claiming credit for federal teaching service to Tier II, III, IV, V and VI members.   LEGISLATIVE HISTORY: A.8944/S.6166 of 1996-97 A.3390/S.2157 of 1998-99 A.4977/S.4702 of 1999-2000 A.5656A/S.6200 of 2001-2002 S.3250/A.6178B of 2003-2004 S.3233A/A.8752A of 2005/2006 S.3406 of 2009/2010 A.7007 of 2016   FISCAL IMPLICATIONS: See Attached Fiscal Note   EFFECTIVE DATE: This act shall take effect June 30, 2017.
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A07452 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          7452
 
                               2017-2018 Regular Sessions
 
                   IN ASSEMBLY
 
                                     April 26, 2017
                                       ___________
 
        Introduced by M. of A. ABBATE -- read once and referred to the Committee
          on Governmental Employees
 
        AN  ACT  to  amend the education law, the retirement and social security
          law and the administrative code of the city of New York,  in  relation
          to  permitting  members of the New York state and New York city teach-
          ers' retirement systems to claim retirement credit for certain federal
          teaching service
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  Subdivision  2  of  section  509  of the education law is
     2  amended by adding a new paragraph d to read as follows:
     3    d. Notwithstanding any other provision of law, a member shall be enti-
     4  tled to obtain credit for up to ten years of service other than military
     5  service rendered in the employ  of  the  federal  government,  including
     6  service in the Peace Corps, VISTA, or Head Start, which would constitute
     7  service as a teacher, had it been performed within New York state for an
     8  employer  subject  to  the  provisions of this article. The crediting of
     9  service pursuant to this paragraph shall be in accordance with rules and
    10  regulations as shall be adopted by the retirement board,  provided  that
    11  such  rules  and  regulations  shall  be substantially equivalent to the
    12  rules and regulations otherwise applicable for the crediting of  service
    13  pursuant  to  this  section.  Provided, however, no such credit shall be
    14  allowed for any service for which the person is receiving a  benefit  or
    15  will be entitled to receive a benefit at any future time from some other
    16  public  or private retirement system or plan in this state, in any other
    17  state or from the federal government.
    18    § 2. Section 446 of the retirement and social security law is  amended
    19  by adding a new subdivision k to read as follows:
    20    k. Notwithstanding any other provision of law, a member of a teachers'
    21  retirement  system  subject  to  the provisions of this article shall be
    22  entitled to obtain credit for up to ten  years  of  service  other  than
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10868-01-7

        A. 7452                             2
 
     1  military  service  rendered  in  the  employ  of the federal government,
     2  including service in the Peace Corps, VISTA, or Head Start, which  would
     3  constitute  service  as a teacher, had it been performed within New York
     4  state  for  an  employer  subject to the provisions of this article. The
     5  crediting of service pursuant to this subdivision shall be in accordance
     6  with rules and regulations as shall be adopted by the  retirement  board
     7  of  such  retirement  system,  provided  that such rules and regulations
     8  shall be substantially equivalent to the rules and regulations otherwise
     9  applicable for the  crediting  of  service  pursuant  to  this  section.
    10  Provided,  however,  no such credit shall be allowed for any service for
    11  which the person is receiving a benefit or will be entitled to receive a
    12  benefit at any future time from some other public or private  retirement
    13  system  or  plan  in  this state, in any other state or from the federal
    14  government.
    15    § 3. Section 513 of the retirement and social security law is  amended
    16  by adding a new subdivision i to read as follows:
    17    i. Notwithstanding any other provision of law, a member of a teachers'
    18  retirement  system  subject  to  the provisions of this article shall be
    19  entitled to obtain credit for up to ten  years  of  service  other  than
    20  military  service  rendered  in  the  employ  of the federal government,
    21  including service in the Peace Corps, VISTA, or Head Start, which  would
    22  constitute  service  as a teacher, had it been performed within New York
    23  state for an  employer  subject  to  the  provisions  of  this  article,
    24  provided  such  member  makes  the  payments  required  pursuant  to the
    25  provisions of section five hundred seventeen of this article. The  cred-
    26  iting  of  service  pursuant  to this subdivision shall be in accordance
    27  with rules and regulations as shall be adopted by the  retirement  board
    28  of  such  retirement  system,  provided  that such rules and regulations
    29  shall be substantially equivalent to the rules and regulations otherwise
    30  applicable for the  crediting  of  service  pursuant  to  this  section.
    31  Provided,  however,  no such credit shall be allowed for any service for
    32  which the person is receiving a benefit or will be entitled to receive a
    33  benefit at any future time from some other public or private  retirement
    34  system  or  plan  in  this state, in any other state or from the federal
    35  government.
    36    § 4. Section 609 of the retirement and social security law is  amended
    37  by adding a new subdivision i to read as follows:
    38    i. Notwithstanding any other provision of law, a member of a teachers'
    39  retirement  system  subject  to  the provisions of this article shall be
    40  entitled to obtain credit for up to ten  years  of  service  other  than
    41  military  service  rendered  in  the  employ  of the federal government,
    42  including service in the Peace Corps, VISTA, or Head Start, which  would
    43  constitute  service  as a teacher, had it been performed within New York
    44  state for an  employer  subject  to  the  provisions  of  this  article,
    45  provided  such  member  makes  the  payments  required  pursuant  to the
    46  provisions of section six hundred thirteen of this article and paragraph
    47  two of subdivision b of this section. The crediting of service  pursuant
    48  to this subdivision shall be in accordance with rules and regulations as
    49  shall  be  adopted  by  the  retirement board of such retirement system,
    50  provided that such rules and regulations shall be  substantially  equiv-
    51  alent  to the rules and regulations otherwise applicable for the credit-
    52  ing of service pursuant to this section.   Provided,  however,  no  such
    53  credit  shall be allowed for any service for which the person is receiv-
    54  ing a benefit or will be entitled to receive a  benefit  at  any  future
    55  time from some other public or private retirement system or plan in this
    56  state, in any other state or from the federal government.

        A. 7452                             3
 
     1    §  5.  Subparagraph  (d)  of  paragraph  3 of subdivision a of section
     2  13-505 of the administrative code of the city of New York is amended  to
     3  read as follows:
     4    (d)  Credit  for  such  prior service up to a maximum of fifteen years
     5  shall be given only if application and payment therefor is made  by  the
     6  contributor  within the first four years subsequent to membership in the
     7  New York city teachers' retirement system  or  before  December  thirty-
     8  first,  [nineteen hundred sixty-nine] two thousand sixteen, whichever is
     9  later.
    10    § 6. Subdivision a of section 13-505 of the administrative code of the
    11  city of New York is amended by adding a new  paragraph  10  to  read  as
    12  follows:
    13    10.  Notwithstanding  any  other  provision  of law, a member shall be
    14  entitled to obtain credit for up to ten  years  of  service  other  than
    15  military  service  rendered  in  the  employ  of the federal government,
    16  including service in the Peace Corps, VISTA, or Head Start, which  would
    17  constitute  service  as a teacher, had it been performed within New York
    18  state for an employer subject to the provisions  of  this  chapter.  The
    19  crediting  of  service pursuant to this paragraph shall be in accordance
    20  with rules and regulations as shall be adopted by the retirement  board,
    21  provided  that  such rules and regulations shall be substantially equiv-
    22  alent to the rules and regulations otherwise applicable for the  credit-
    23  ing  of  service  pursuant to this section.   Provided, however, no such
    24  credit shall be allowed for any service for which the person is  receiv-
    25  ing  a  benefit  or  will be entitled to receive a benefit at any future
    26  time from some other public or private retirement system or plan in this
    27  state, in any other state or from the federal government.
    28    § 7. This act shall take effect June 30, 2017.
          FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
          This bill would amend section 509 of the Education  Law  and  sections
        446,  513,  and  609 of the Retirement and Social Security Law to permit
        members of the New York  State  Teachers'  Retirement  System  to  claim
        service  credit for up to ten years of federal teaching service (includ-
        ing Vista, Head Start, and the Peace Corps). Payments  for  such  credit
        must  be  made  by those members subject to Article 14 of the Retirement
        and Social Security Law in accordance with section 517 of such  law  and
        by  those  members  subject  to  Article 15 of the Retirement and Social
        Security Law in accordance with section 613 and paragraph 2 of  subdivi-
        sion b of section 609 of such law.
          It is not possible to determine the total annual cost to the employers
        of  members  of the New York State Teachers' Retirement System since the
        total amount of service credit which would be claimed  under  this  bill
        cannot  be  estimated.  However, the cost to the employers of members of
        the New York State  Teachers'  Retirement  System  is  estimated  to  be
        $22,200  per  year of service credited for Tier 1, 2, 3, 4 and 5 members
        and $17,300 per year of service credited for Tier 6 members if this bill
        is enacted.  These costs would be offset by member payments required  in
        accordance  with section 517 and section 613 and paragraph two of subdi-
        vision b of section 609 of the Retirement and Social Security Law.
          Employee data is from the System's  most  recent  actuarial  valuation
        files,  consisting  of  data provided by the employers to the Retirement
        System. Data distributions and statistics can be found in  the  System's
        Comprehensive  Annual  Financial  Report  (CAFR).  System  assets are as
        reported in the System's financial statements, and can also be found  in
        the CAFR. Actuarial assumptions and methods are provided in the System's
        Actuarial Valuation Report.

        A. 7452                             4
 
          The  source  of  this  estimate is Fiscal Note 2017-10 dated March 15,
        2017 prepared by the Actuary of the New York State Teachers'  Retirement
        System and is intended for use only during the 2017 Legislative Session.
        I,  Richard  A.  Young,  am the Actuary for the New York State Teachers'
        Retirement  System.  I  am a member of the American Academy of Actuaries
        and I meet the Qualification Standards of the American Academy of  Actu-
        aries to render the actuarial opinion contained herein.
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