STATE OF NEW YORK
________________________________________________________________________
10415
IN ASSEMBLY
May 26, 2016
___________
Introduced by M. of A. MAGEE -- read once and referred to the Committee
on Governmental Employees
AN ACT in relation to authorizing a retired employee of the Chittenango
central school district to rescind such employee's retirement option
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Notwithstanding any other provision of law, a member of the
2 New York state teachers' retirement system, who retired from Chittenango
3 central school district on July 1, 2003, and who at retirement had duly
4 elected a benefit payment option providing for the payment of a lesser
5 retirement allowance over the life of the retiree with the provision
6 that upon the retiree's death all or a portion of such allowance shall
7 be continued for the life of and paid to a beneficiary duly nominated by
8 the retiree at retirement, shall be permitted to rescind such election
9 due to the conviction of said beneficiary on August 26, 2015 of burglary
10 in the first degree, criminal use of a firearm in the first degree,
11 burglary in the second degree, sexual abuse in the first degree, stalk-
12 ing in the third degree, unlawful imprisonment in the first degree,
13 menacing in the second degree and harassment in the second degree and
14 the aforementioned crimes were committed against such retiree.
15 In order to rescind such election, the retiree must file a written
16 consent to make such change on a form prescribed by the system within
17 one year of the effective date of this act. Upon satisfactorily receiv-
18 ing such form and any documentation requested by the retirement system,
19 any and all obligations of the system to the beneficiary under the
20 retiree's option election shall be totally discharged and the retiree
21 shall thereafter be paid for the remainder of such retiree's life the
22 maximum single life benefit which would have been payable, had the reti-
23 ree made no such retirement option election at the time of retirement,
24 retroactive to August 27, 2015.
25 § 2. This act shall take effect immediately.
FISCAL NOTE. -- Pursuant to Legislative Law, Section 50:
This bill would allow a retired member of the New York State Teachers'
Retirement System (NYSTRS), who retired from Chittenango Central School
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD15029-02-6
A. 10415 2
District on July 1,2003 and who elected a benefit payment option provid-
ing for the payment of a lesser retirement allowance over the life of
the retiree with the provision that upon the retiree's death a portion
of such retirement allowance would be paid to a beneficiary, to rescind
such election due to the conviction of said beneficiary on August 26,
2015 of crimes committed against such retiree. In order to rescind such
election, the retiree must file a written consent to make such change on
a form prescribed by NYSTRS within one year of the effective date of
this act. Upon satisfactorily receiving such form and any documentation
requested by NYSTRS, any and all obligations of NYSTRS to the benefici-
ary under the retiree's benefit payment option shall be totally
discharged and the retiree shall thereafter receive the maximum single
life benefit for the remainder of such retiree's life, retroactive to
August 27, 2015.
It is estimated there would be no additional annual cost for this
benefit. Allowing retired members to change the terms of their option
after retirement creates the potential for anti-selection however.
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.
The source of this estimate is Fiscal Note 2016-26 dated May 12, 2016
prepared by the Actuary of the New York State Teachers' Retirement
System and is intended for use only during the 2016 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.
