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S07462 Summary:

S07462 Actions:

S07462 Committee Votes:

S07462 Floor Votes:

S07462 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         7462--B
 
                               2023-2024 Regular Sessions
 
                    IN SENATE
 
                                      May 30, 2023
                                       ___________
 
        Introduced  by  Sens.  RYAN,  CHU  --  (at request of the New York State
          Teachers' Retirement System) -- read twice and  ordered  printed,  and
          when  printed  to  be  committed to the Committee on Civil Service and
          Pensions -- recommitted to the Committee on Civil Service and Pensions
          in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill
          amended, ordered reprinted as amended and recommitted to said  commit-
          tee  --  reported  favorably  from said committee and committed to the
          Committee on Finance -- committee discharged,  bill  amended,  ordered
          reprinted as amended and recommitted to said committee
 
        AN  ACT  to amend the education law, in relation to allowing retirees of
          the New York state  teachers'  retirement  system  who  suspend  their
          retirement  the  option  of a benefit recalculation after two years of
          service
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  Subdivision  11  of  section 503 of the education law, as
     2  added by chapter 507 of the laws of 1972 and as  renumbered  by  chapter
     3  512 of the laws of 1976, is amended to read as follows:
     4    11. a. If a retired member, receiving a retirement allowance for other
     5  than  disability,  returns to active public service, except as otherwise
     6  provided in sections two hundred eleven or two [hyndred] hundred  twelve
     7  of  the  retirement and social security law, and is eligible for member-
     8  ship in the retirement system, [he thereupon] such employee shall become
     9  a member and [his] their retirement allowance shall be suspended in  the
    10  same  manner  as  provided  in  subdivision  five  of this section [five
    11  hundred three of this article. In such event, he shall contribute to the
    12  retirement system as if he were a new  member].  Upon  [his]  subsequent
    13  retirement [after at least two years of service he] such employee shall:
    14    1. Be credited with all member service earned [by him] since [he] they
    15  last became a member of the retirement system, and
    16    2. Receive a retirement allowance which shall consist of[:

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11631-03-4
        S. 7462--B                          2

     1    (a) An annuity as provided in subdivision five of section five hundred
     2  three  of this article plus an annuity which is the actuarial equivalent
     3  of any contributions made by him since he last became a member, and
     4    (b) The] the pension which [he] such employee was receiving immediate-
     5  ly  prior  to  [his]  the  last restoration to membership as provided in
     6  subdivision five of this section [five hundred three of  this  article],
     7  plus  a  pension  based upon the [member] service credit earned [by him]
     8  since [he] such employee last became a member. Such latter pension shall
     9  be computed as if [he] they were a new member when  [he]  they  rejoined
    10  the system pursuant to the provisions of this subdivision.
    11    b.  Where  such  member shall have earned at least [five] two years of
    12  [member] service credit after restoration to active service,  the  total
    13  service  credit  to  which  [he] such member was entitled at the time of
    14  [his] the earlier retirement may, at [his] their option, again be  cred-
    15  ited to [him] them and upon [his] subsequent retirement [he] such member
    16  shall be credited in addition for purposes of computation of the pension
    17  portion  of  the  retirement  allowance with all [member] service credit
    18  earned [by him] subsequent to [his] the last restoration to  membership.
    19  Such  total service credit to which [he] such member was entitled at the
    20  time of [his] the earlier retirement shall be so credited  only  in  the
    21  event  that  such  member  returns to the retirement system with regular
    22  interest the actuarial equivalent of the  amount  of  the  pension  [he]
    23  received, or in the event that such amount is not so repaid the actuari-
    24  al  equivalent thereof shall be deducted from [his] such member's subse-
    25  quent retirement allowance.
    26    c. Notwithstanding the foregoing provisions  of  this  subdivision,  a
    27  retired  member  who  is receiving a retirement allowance for other than
    28  physical disability, and who returns to active public service, may elect
    29  not to be restored to membership in the  retirement  system  until  [he]
    30  such  retired  member  has  rendered one year of service following [his]
    31  their return to public service.  In  such  event  [his]  the  retirement
    32  allowance  shall  be  suspended  during such year of service in the same
    33  manner as provided in subdivision five of  this  section  [five  hundred
    34  three  of  this  article].  Upon  restoration  to  membership  following
    35  completion of such year of service, [his] service in such year shall  be
    36  deemed  to  be  service  while a member for purposes of subdivision b of
    37  section five hundred twelve of this article.  [He] Such  retired  member
    38  may  purchase  [member]  service  credit  for  such year, which shall be
    39  deemed earned [member] service credit.  If a retired member receiving  a
    40  retirement benefit allowance for other than physical disability, returns
    41  to  active  public service, and is then ineligible for membership in the
    42  retirement system, the retirement allowance shall be  suspended  in  the
    43  same manner as provided in this section.
    44    d.  Notwithstanding  any  other  provision  of this article, a retired
    45  member who rejoins the system under the provisions of [paragraphs a or c
    46  of] this subdivision shall only be entitled to a death benefit according
    47  to the provisions of paragraph two of  subdivision  b  of  section  five
    48  hundred  twelve  of this article and of no other subdivision thereof and
    49  for the purposes of [said]  such  paragraph  two  of  subdivision  b  of
    50  section  five  hundred twelve the credited service as a teacher shall be
    51  service as a teacher credited since last joining the system.
    52    § 2. This act shall take effect on the sixtieth  day  after  it  shall
    53  have become a law.
          FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
          This  bill  would amend subdivision 11 of Section 503 of the Education
        Law to allow a retired member of the New York State Teachers' Retirement
        S. 7462--B                          3
 
        System (NYSTRS), who  returns  to  active  service  and  suspends  their
        pension  benefit,  to elect to combine their service credit earned prior
        to their retirement with the service credit earned after their  restora-
        tion  to active service, provided they have earned at least two years of
        service credit since restoration and they pay back their  prior  pension
        received or have the new benefit reduced for life based upon the actuar-
        ial  equivalent of the prior pension received. Current law requires five
        years of service credit since restoration to combine all service  credit
        into  one  pension benefit. State employees and other members of the New
        York State and Local Retirement System (NYS&LRS) are eligible to combine
        their service credit after earning two years  of  service  credit  after
        restoration. This bill would make this eligibility the same for teachers
        as  it is for state employees. This bill would take effect on the sixti-
        eth day after it shall become a law.
          The annual cost to the employers of members  of  the  New  York  State
        Teachers' Retirement System would be negligible if this bill is enacted.
          Member  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
        Annual Report. System assets are as reported in the  System's  financial
        statements and can also be found in the System's Annual Report.  Actuar-
        ial assumptions and methods are provided in the System's Actuarial Valu-
        ation Report.
          The  source  of  this estimate is Fiscal Note 2024-2 dated October 16,
        2023 prepared by the Actuary of the New York State Teachers'  Retirement
        System and is intended for use only during the 2024 Legislation Session.
        I,  Richard A. Young, am the Chief Actuary for the New York State Teach-
        er's Retirement System. I am a member of the American Academy of Actuar-
        ies and I met the Qualification Standards of  the  American  Academy  of
        Actuaries to render the actuarial opinion contained herein.