Authorizes Walter M. Callahan, a retiree of the New York state and local employees' retirement system receiving retirement benefits, to transfer his membership to the New York state teachers' retirement system based upon subsequent employment as a business administrator by a school district.
STATE OF NEW YORK
________________________________________________________________________
4735
2009-2010 Regular Sessions
IN SENATE
April 27, 2009
___________
Introduced by Sen. LARKIN -- read twice and ordered printed, and when
printed to be committed to the Committee on Civil Service and Pensions
AN ACT to authorize Walter M. Callahan, a retiree receiving benefits
from the New York state and local employees' retirement system, to
retroactively terminate his retirement and transfer his membership in
such retirement to the New York state teachers' retirement system
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Notwithstanding any provision of law to the contrary,
2 Walter M. Callahan, a retired member of the New York state and local
3 employees' retirement system who has been receiving enhanced retirement
4 benefits pursuant to the retirement incentive enacted pursuant to chap-
5 ter 86 of the laws of 2000 since his retirement on November 4, 2000, who
6 on August 30, 2006 was appointed as a business administrator employed by
7 a school district, and who upon assuming such business administrator
8 position became a member of the New York state teachers' retirement
9 system, shall be entitled to elect to be deemed retroactively to have
10 transferred his membership in the New York state and local employees'
11 retirement system to the New York state teachers' retirement system
12 pursuant to section 43 of the retirement and social security law as of
13 November 3, 2000, provided that upon retirement from the New York state
14 teachers' retirement system, his retirement allowance shall be (a)
15 recalculated taking into account the forfeiture of his enhanced retire-
16 ment benefits by reason of his return to public service pursuant to
17 section 11 of chapter 41 of the laws of 1997, and (b) reduced by the
18 actuarial equivalent of the retirement benefits received by Walter M.
19 Callahan prior to his election pursuant to this section; and further,
20 provided, that Walter M. Callahan shall not be required to make any
21 employee contribution to the New York state teachers' retirement system
22 and upon retirement from the New York state teachers' retirement system,
23 his retirement allowance shall be increased by the actuarial equivalent
24 of the employee contributions he has made to the New York state teach-
25 ers' retirement system between August 30, 2006 and his election pursuant
26 to this section. In order to effect such retroactive transfer pursuant
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD05197-02-9
S. 4735 2
1 to this section, Walter M. Callahan shall provide, on or before December
2 31, 2009, notice to the comptroller and the governing body of the New
3 York state teachers' retirement system of his election to transfer his
4 membership in the New York state and local employees' retirement system
5 pursuant to this section.
6 § 2. Upon the election by Walter M. Callahan to take advantage of the
7 provisions of this act, the New York state and local employees' retire-
8 ment system shall transfer the amount of his pension reserve to the New
9 York state teachers' retirement system.
10 § 3. All costs incurred in implementing the provisions of this act,
11 unless otherwise stated, shall be borne by the New York state teachers'
12 retirement system.
13 § 4. This act shall take effect immediately.
FISCAL NOTE.--This legislation will allow Walter M. Callahan, a reti-
ree from the New York State and Local Employees' Retirement System, to
retroactively transfer his membership to the New York State Teachers'
Retirement System.
Insofar as this bill will affect the New York State and Local Employ-
ees' Retirement System, if it is enacted, Mr. Callahan will retroactive-
ly transfer to the New York State Teachers' Retirement System and there
will be a transfer of reserves from the New York State and Local Employ-
ees' Retirement System to the New York State Teachers' Retirement System
which will equal our liability due to Mr. Callahans' current pension.
Therefore, this legislation will generate no cost to the New York State
and Local Employees' Retirement System. This legislation, however, may
generate a cost to the New York State Teachers' Retirement System.
This estimate, dated January 27, 2009 and intended for use only during
the 2009 Legislative Session, is Fiscal Note No. 2009-117, prepared by
the Actuary for the New York State and Local Employees' Retirement
System.
FISCAL NOTE.--This bill would allow Walter M. Callahan, a retired
member of the New York State and Local Employees' Retirement System
(NYSLERS) and currently an active member of the New York State Teachers'
Retirement System (NYSTRS), to retroactively transfer his membership
from NYSLERS to NYSTRS pursuant to Section 43 of the Retirement and
Social Security Law. Upon his retirement from NYSTRS, his retirement
allowance shall be recalculated taking into account the forfeiture of
his enhanced retirement benefits by reason of his return to public
service pursuant to Section 11 of Chapter 41 of the Laws of 1997. Addi-
tionally, his retirement benefit shall be reduced by the actuarial
equivalent of the retirement benefits received from NYSLERS from Novem-
ber 4, 2000 through September 30, 2006. Mr. Callahan shall not be
required to make any further employee contributions to NYSTRS, and upon
retirement his benefit shall be increased by the actuarial equivalent of
employee contributions made to NYSTRS after August 30, 2006. Mr. Calla-
han must file a written request with the head of the New York State
Teachers' Retirement System on or before December 31, 2009.
The cost of this benefit is equal to the net increase in the present
value of liabilities, which is estimated to be $360,000. This cost will
be partially offset by the pension reserve transferred from the New York
State and Local Employees' Retirement System in accordance with this
bill.
The source of this estimate is Fiscal Note 2009-39 dated April 10,
2009 prepared by the Actuary of the New York State Teachers' Retirement
System and is intended for use only during the 2009 Legislative Session.
