Permits retired members of the New York state teachers' retirement system to purchase retirement service credit for Korean conflict military duty; provides for recalculation of retirement allowance and adjustments of payments.
STATE OF NEW YORK
________________________________________________________________________
8488
2011-2012 Regular Sessions
IN ASSEMBLY
June 17, 2011
___________
Introduced by M. of A. RABBITT -- read once and referred to the Commit-
tee on Governmental Employees
AN ACT to amend the retirement and social security law, in relation to
authorizing certain veterans of the Korean conflict to obtain retire-
ment service credit in the New York state teachers' retirement system
for such service
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision 4 of section 1000 of the retirement and social
2 security law, as added by chapter 548 of the laws of 2000, is amended to
3 read as follows:
4 4. (a) To obtain such credit, a member shall pay such retirement
5 system, for deposit in the fund used to accumulate employer contrib-
6 utions, a sum equal to the product of the number of years of military
7 service being claimed and three percent of such member's compensation
8 earned during the twelve months of credited service immediately preced-
9 ing the date that the member made application for credit pursuant to
10 this section. If permitted by rule or regulation of the applicable
11 retirement system, the member may pay such member costs by payroll
12 deduction for a period which shall not exceed the time period of mili-
13 tary service to be credited pursuant to this section. In the event the
14 member leaves the employer payroll prior to completion of payment, he or
15 she shall forward all remaining required payments to the appropriate
16 retirement system prior to the effective date of retirement. If the full
17 amount of such member costs is not paid to the appropriate retirement
18 system prior to the member's retirement, the amount of service credited
19 shall be proportional to the total amount of the payments made prior to
20 retirement.
21 (b) Notwithstanding the provisions of subdivision six of this section
22 or any other provision of law, a retired member of the New York state
23 teachers' retirement system may make application for the benefits of
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD03888-02-1
A. 8488 2
1 this section within one year of the effective date of this paragraph for
2 service during the Korean conflict. Upon the granting of such applica-
3 tion, the retirement allowance of such retired member shall be recalcu-
4 lated and any deficiency owed to him or her shall be paid to him or her
5 in a lump sum, with regular interest, within thirty days of the granting
6 of such application. Within sixty days of the granting of such applica-
7 tion, the retirement system shall calculate, and such retired member
8 shall pay such retirement system, with regular interest, for deposit in
9 the fund used to accumulate employer contributions, a sum equal to the
10 product of the number of years of military service being claimed and
11 three percent of such member's compensation earned during the twelve
12 months of credited service immediately preceding the date of his or her
13 retirement. At the election of such retired member, he or she may offset
14 the payment due to him or her against the payment due from him or her
15 and, if any balance remains to be paid by him or her, he or she shall
16 pay such balance within such sixty day period.
17 § 2. This act shall take effect immediately.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
This bill would amend subdivision 4 of Section 1000 of the Retirement
and Social Security Law to permit eligible retired members to claim
service credit for up to three years of military service performed
during the Korean Conflict. To obtain such credit, the member shall
deposit in the pension accumulation fund, with regular interest, a sum
equal to the product of the period of military service being claimed and
three percent of his final annual full-time rate of compensation earned
during the twelve months of service immediately prior to retirement.
This increase in benefit will be provided prospectively, and addi-
tionally a lump sum representing the sum of the increases retroactively,
back to the date of retirement, with regular interest, shall be paid
within 30 days of the granting of credit.
The annual cost to the employers of members of the New York State
Teachers' Retirement System for this benefit is estimated to be $42.5
million or .28% of payroll if this bill is enacted.
The source of this estimate is Fiscal Note 2011-60 dated June 10, 2011
prepared by the Actuary of the New York State Teachers' Retirement
System and is intended for use only during the 2011 Legislative Session.
