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A09157 Summary:

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A09157 Floor Votes:

A09157 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         9157--A
 
                   IN ASSEMBLY
 
                                    January 31, 2012
                                       ___________
 
        Introduced by M. of A. ABBATE -- read once and referred to the Committee
          on  Governmental  Employees  --  committee  discharged,  bill amended,
          ordered reprinted as amended and recommitted to said committee
 
        AN ACT to amend the administrative code of the  city  of  New  York,  in
          relation  to the right of vested members to withdraw from the New York
          city teachers' retirement system
 

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  Section  13-541 of the administrative code of the city of
     2  New York, as amended by chapter 854 of the laws of 1985, is  amended  to
     3  read as follows:
     4    §  13-541 Termination of membership; resignation, transfer or dismiss-
     5  al. 1. Withdrawals from the retirement association shall be by  resigna-
     6  tion, by transfer, or by dismissal. Should a contributor resign from the
     7  position  by  virtue  of  which  he  or  she  is a contributor under the
     8  provisions of this chapter, or should he or she, upon transferring  from
     9  such  a position to another position in the city-service, fail to become
    10  a transferred-contributor as provided in section 13-523 of this chapter,
    11  his or her membership in such association shall cease except as provided

    12  in section 13-556 of this code and he or she shall be paid forthwith the
    13  full amount of the accumulated deductions standing to the credit of  his
    14  or her individual account in the annuity savings fund.
    15    2.  Notwithstanding  any  other  provision of law to the contrary, any
    16  member of the retirement association  subject  to  article  fourteen  or
    17  fifteen  of  the  retirement and social security law who has permanently
    18  ceased teaching shall have the right to elect the return of his  or  her
    19  accumulated contributions and thereby terminate his or her membership in
    20  the  retirement  association  without regard to the amount of service to
    21  his or her credit, provided  a  public  employee  retirement  system  in
    22  another  state has certified in a manner satisfactory to the system that

    23  such member is a member of such other retirement system,  has  at  least
    24  five  years  of retirement credit in such other system, and is eligible,
    25  upon the termination of his or her membership in the system,  to  obtain
    26  retirement  credit in such other retirement system for the service which
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD13999-02-2
        A. 9157--A                          2
 
     1  has been credited to his or her membership in the system. Upon refund of
     2  such accumulated contributions, any and all obligations of  the  retire-

     3  ment  association to such member shall be totally discharged. The teach-
     4  ers'  retirement board is authorized to adopt such rules and regulations
     5  as may be necessary to implement this subdivision.
     6    § 2. This act shall take effect immediately.
          FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
          PROVISIONS OF PROPOSED LEGISLATION: This  proposed  legislation  would
        amend  Administrative  Code  of  the  City  of New York ("ACNY") Section
        13-541 to allow certain Tier III and Tier IV members  of  the  New  York
        City  Teacher's  Retirement System ("TRS") to withdraw their memberships
        from TRS under certain conditions.
          For purposes of this Fiscal Note, the references  herein  to  Tier  IV
        include  those TRS members who dates of membership are on or after April
        1, 2012 (a.k.a., Tier VI members).

          Specifically, this proposed legislation would permit  a  Tier  III  or
        Tier  IV  member of TRS who has permanently ceased teaching to elect the
        return of his or her accumulated member contributions and terminate  his
        or  her membership in TRS without regard to the amount of service to his
        or her credit.
          As a condition necessary to this election, a Public  Employee  Retire-
        ment System ("PERS") in another state must certify in a manner satisfac-
        tory  to  TRS  that  such  member is a member of such other PERS, has at
        least five years of retirement credit in such other PERS, and is  eligi-
        ble,  upon  the  termination  of his or her membership in TRS, to obtain
        retirement credit in such other PERS for  the  service  which  has  been
        credited to his or her membership in TRS.
          Upon  refund  to  the member of his or her accumulated member contrib-

        utions, any and all obligations of TRS to the member  would  be  totally
        discharged.
          The  TRS  Retirement Board would be authorized to adopt such rules and
        regulations as may be necessary to implement this subdivision.
          Note: One of the consequences to a member withdrawing from  TRS  would
        be  to  eliminate  the  opportunity  of  the member to receive any Other
        Postemployment Benefits ("OPEB") from the City  of  New  York  or  other
        former employer participating in TRS.
          FINANCIAL  IMPACT  -  ACTUARIAL PRESENT VALUE OF BENEFITS AND EMPLOYER
        CONTRIBUTIONS: For most members likely to elect the provisions  of  this
        proposed  legislation,  enactment  would result in a modest reduction in
        the Actuarial Present Value of Benefits ("APVB") and  employer  contrib-
        utions to TRS.
          OTHER  COSTS:  The enactment of this proposed legislation would result

        in some administrative expenses for TRS.
          The enactment of this proposed legislation would, for certain members,
        result in a reduction in the obligations for OPEB  benefits  from  their
        former employers.
          STATEMENT  OF ACTUARIAL OPINION: I, Robert C. North, Jr., am the Chief
        Actuary for the New York City Retirement Systems. I am a Fellow  of  the
        Society  of Actuaries and a Member of the American Academy of Actuaries.
        I meet the Qualification Standards of the American Academy of  Actuaries
        to render the actuarial opinion contained herein.
          FISCAL  NOTE  IDENTIFICATION:  This  estimate is intended for use only
        during the 2012 Legislative Session. It is Fiscal  Note  2012-11,  dated
        May  24,  2012 prepared by the Chief Actuary of the New York City Teach-
        ers' Retirement System.