Provides for payment of interest on payments due and owing, beginning with the 31st day after a NYS teachers' retirement system member's effective date of retirement; provides the rate of interest paid will be 5% and shall be paid at the time such outstanding benefits due and owing are made.
STATE OF NEW YORK
________________________________________________________________________
6826--A
2011-2012 Regular Sessions
IN ASSEMBLY
April 4, 2011
___________
Introduced by M. of A. ABBATE -- read once and referred to the Committee
on Governmental Operations -- reference changed to the Committee on
Governmental Employees -- recommitted to the Committee on Governmental
Employees in accordance with Assembly Rule 3, sec. 2 -- committee
discharged, bill amended, ordered reprinted as amended and recommitted
to said committee
AN ACT to amend the education law, in relation to payment of interest on
delayed benefits for members of the New York state teachers' retire-
ment system
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The education law is amended by adding a new section 540 to
2 read as follows:
3 § 540. Payment of interest on delayed benefits. Notwithstanding any
4 other provision of law, interest, at a rate of five percent per annum,
5 shall accrue on the outstanding amount of benefits due and owing
6 commencing with the thirty-first day after such member's effective date
7 of retirement in accordance with rules and regulations adopted by the
8 retirement board. Payment of such interest shall be made at the same
9 time that the payment of such outstanding benefits due and owing is
10 made.
11 § 2. This act shall take effect immediately and shall be deemed to be
12 in full force and effect on and after June 30, 2012 and shall apply to
13 any member of the New York state teachers' retirement system who retires
14 on or after such date.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
This bill amends the Education Law by adding a new section 540 to
provide for the payment of interest on benefits due and owing, beginning
with the thirty-first day after a member's effective date of retirement.
The rate of interest paid will be 5% and shall be paid at the time such
outstanding benefits due and owing are made.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD10575-02-2
A. 6826--A 2
The annual cost to the employers of members of the New York State
Teachers' Retirement System for this benefit is estimated to be $690,000
or .005% of payroll if this bill is enacted.
The source of this estimate is Fiscal Note 2012-6 dated January 20,
2012 prepared by the Actuary of the New York State Teachers' Retirement
System and is intended for use only during the 2012 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.
