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
________________________________________________________________________
5100
2009-2010 Regular Sessions
IN SENATE
April 27, 2009
___________
Introduced by Sen. SAVINO -- read twice and ordered printed, and when
printed to be committed to the Committee on Civil Service and Pensions
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, 2009 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.
The annual cost to the employers of members of the New York State
Teachers' Retirement System for this benefit is estimated to be $720,000
or .005% of payroll if this bill is enacted.
The source of this estimate is Fiscal Note 2009-20 dated February 27,
2009 prepared by the Actuary of the New York State Teachers' Retirement
System and is intended for use only during the 2009 Legislative Session.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD10666-01-9
