S08602 Summary:

BILL NOS08602
 
SAME ASSAME AS A07449-A
 
SPONSORPARKER
 
COSPNSR
 
MLTSPNSR
 
 
Establishes an age 55/25 temporary retirement incentive for certain public employees who are members of the teachers' retirement system.
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S08602 Actions:

BILL NOS08602
 
06/18/2020REFERRED TO RULES
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S08602 Committee Votes:

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S08602 Floor Votes:

There are no votes for this bill in this legislative session.
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S08602 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          8602
 
                    IN SENATE
 
                                      June 18, 2020
                                       ___________
 
        Introduced  by  Sen.  PARKER -- read twice and ordered printed, and when
          printed to be committed to the Committee on Rules
 
        AN ACT to provide a temporary retirement incentive for  certain  members
          of 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. This act enacts into law  components  of  legislation  that
     2  would  establish an age 55/25 temporary retirement incentive for certain
     3  public employees.
     4    § 2. Legislative findings. The legislature finds and declares that the
     5  retirement benefit for certain public employees who are above age 55 and
     6  with 25 years of service provided for in this act is intended only to be
     7  temporary in nature for employees who are eligible to receive and quali-
     8  fy for the applicable benefit during the applicable time periods  speci-
     9  fied  in  this  act.  Further, nothing in this act shall be construed to
    10  create an expectation of a future or continuing retirement  benefit  for
    11  any  public  employee who is not eligible to receive and qualify for the
    12  retirement benefits herein during the applicable time periods.
    13    § 3. Definitions. As used in this  act,  unless  the  context  clearly
    14  requires otherwise:
    15    (a)  "Retirement system" means the New York state teachers' retirement
    16  system.
    17    (b) "Teachers' retirement system" means the New York  state  teachers'
    18  retirement system.
    19    (c)  "Educational  employer" means a participating employer which is a
    20  school district, a board of cooperative educational  services,  a  voca-
    21  tional education and extension board, an institution for the instruction
    22  of the deaf and of the blind as enumerated in section 4201 of the educa-
    23  tion law, or a school district as enumerated in section 1 of chapter 566
    24  of the laws of 1967, as amended.
    25    (d)  "Eligible  employee" means a person who is a member of the teach-
    26  ers' retirement system, who is an employee of an  educational  employer,
    27  who holds a position represented by the recognized collective bargaining
    28  units affiliated with the New York state united teachers employee organ-
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD07621-08-0

        S. 8602                             2
 
     1  ization  as  certified  by his or her employer, and who has attained the
     2  age of 55 and has at least 25 years of creditable service in the retire-
     3  ment system.  For the purposes of this act, the term "eligible employee"
     4  shall be deemed to include building level administrators, including, but
     5  not limited to, principals and assistant principals.
     6    (e)  "Active  service"  means service while being paid on the payroll,
     7  provided that (i) a leave of absence with pay  shall  be  deemed  active
     8  service;  (ii)  other  approved  leave  without pay not to exceed twelve
     9  weeks from March 1, 2020 and the commencement  of  the  designated  open
    10  period;  and (iii) the period of time subsequent to the June 2020 school
    11  term and on or before August 31, 2020 for a teacher (or  other  employee
    12  as  defined  in this act, employed on a school-year basis) who is other-
    13  wise in active service on the effective date of this act shall be deemed
    14  active service.
    15    (f) "Open period" means the period  beginning  with  the  commencement
    16  date  as defined in subdivision (g) of this section and shall be 60 days
    17  in length. For educational employers who make election  after  June  30,
    18  2020,  the  open period shall begin immediately after such election, and
    19  shall not extend beyond August 31, 2020. For the purposes of  retirement
    20  pursuant  to  this  act,  a service retirement application must be filed
    21  with the appropriate retirement system not less than 14  days  prior  to
    22  the  effective  date of retirement to become effective, unless a shorter
    23  time period is permitted under law.
    24    (g) "Commencement date" means the first  day  the  retirement  benefit
    25  mandated by this act shall be made available, which shall mean a date or
    26  dates on or after the effective date of this act to be determined by the
    27  educational  employer  which  elects  to participate pursuant to section
    28  four of this act, but no sooner than June 30, 2020.
    29    § 4. On or after June 30, 2020 an educational employer  may  elect  to
    30  provide its employees the retirement incentive authorized by this act by
    31  the  adoption  of  a  resolution  of  its governing body. A copy of such
    32  resolution shall be filed with the appropriate  retirement  system.  The
    33  resolution  shall  be  accompanied  by the affidavit of the school board
    34  president or trustee or other comparable official certifying the validi-
    35  ty of such resolution.
    36    § 5. Notwithstanding any other provision of law, any eligible employee
    37  serving in an eligible title who (a) has been continuously in the active
    38  service of an educational employer who has elected to participate in the
    39  retirement incentive provided in section six of this  act,  pursuant  to
    40  section  four  of  this  act, from March 1, 2020 to the date immediately
    41  prior to the commencement date of the applicable open period, (b)  files
    42  an  application for service retirement that is effective during the open
    43  period, and (c) is otherwise eligible for a service retirement as of the
    44  effective date of the application for retirement shall  be  entitled  to
    45  the retirement benefit provided in section six of this act.
    46    § 6. Notwithstanding any other provision of law, any eligible employee
    47  who  is:  (a) a member of the teachers' retirement system, and (b) enti-
    48  tled to retirement benefits pursuant to section five  of  this  act  may
    49  retire  during  the  open  period  without  the  reduction of his or her
    50  retirement benefit that would otherwise be imposed by article 11  or  15
    51  of  the retirement and social security law if he or she has attained the
    52  age of 55 and has completed at least 25  or  more  years  of  creditable
    53  service.  An eligible employee who is covered by the provisions of arti-
    54  cle 11 or 15 of the retirement and  social  security  law  shall  retire
    55  under  the  provisions  of article 11 or 15 of the retirement and social
    56  security law.

        S. 8602                             3
 
     1    § 7. The pension benefit costs of section six of  this  act  shall  be
     2  paid  by  employers  as  provided  by  applicable law for the retirement
     3  system covered by this act over  a  period  not  to  exceed  five  years
     4  commencing in the state fiscal year ending March 31, 2022.
     5    §  8.  Notwithstanding any other provision of law, this act shall have
     6  no impact on retirement incentives, options or  inducements  offered  as
     7  part  of  a  contractual  agreement  between an eligible employee and an
     8  educational employer which were negotiated prior to the  effective  date
     9  of this act.
    10    §  9. Severability clause.  If any clause, sentence, paragraph, subdi-
    11  vision, section or part of this act shall be adjudged by  any  court  of
    12  competent  jurisdiction  to  be invalid, such judgment shall not affect,
    13  impair, or invalidate the remainder thereof, but shall  be  confined  in
    14  its  operation  to the clause, sentence, paragraph, subdivision, section
    15  or part thereof directly involved in the controversy in which such judg-
    16  ment shall have been rendered. It is hereby declared to be the intent of
    17  the legislature that this act would  have  been  enacted  even  if  such
    18  invalid provisions had not been included herein.
    19    § 10. This act shall take effect immediately.
        FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
          This bill would provide a temporary retirement incentive to members of
        the  New York State Teachers' Retirement System during fiscal year 2020-
        2021.  This incentive would permit eligible members to retire without an
        early retirement reduction upon attainment of at least age  55  with  25
        years  of service.   Currently 30 years of service are required in order
        to retire without reduction for Tiers 2, 3, 4 and 5  members.  Currently
        Tier  6 members are required to attain age 63 in order to retire without
        reduction regardless of the number of years of service they  have.    In
        order  to  receive this benefit, a member of an employer who has elected
        to participate must retire during the  designated  60-day  open  period,
        beginning  on  or  after  June 30, 2020 and not extend beyond August 31,
        2020. In order to be eligible, a member must be an employee of an educa-
        tional employer and hold a position represented by one of the recognized
        collective bargaining units affiliated with the New  York  State  United
        Teachers  (NYSUT)  as  certified  by  his  or  her employer. In order to
        participate in this retirement incentive, the educational employer  must
        be  a  school  district,  a board of cooperative educational services, a
        vocational  education  and  extension  board,  an  institution  for  the
        instruction  of  the deaf and of the blind as enumerated in Section 4201
        of the Education Law or a school district as enumerated in Section 1  of
        Chapter  566  of  the Laws of 1967.   Employers who elect to participate
        would pay the cost of the retirement incentive  over  a  period  not  to
        exceed  five  years, beginning in the state fiscal year ending March 31,
        2022.
          The estimated increase in the present value of benefits  due  to  this
        temporary retirement incentive is approximately $220 million. The annual
        cost, over a five-year period, to the participating employers of members
        of  the  New  York State Teachers' Retirement System for this benefit is
        estimated to be $58.8 million  or  .34%  of  payroll  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
        Comprehensive Annual Financial  Report  (CAFR).  System  assets  are  as
        reported  in the System's financial statements, and can also be found in

        S. 8602                             4
 
        the CAFR. Actuarial assumptions and methods are provided in the System's
        Actuarial Valuation Report.
          The  source of this estimate is Fiscal Note 2020-25 dated May 19, 2020
        prepared by the Actuary of  the  New  York  State  Teachers'  Retirement
        System and is intended for use only during the 2020 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.
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