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S09296 Summary:

S09296 Actions:

S09296 Committee Votes:

S09296 Floor Votes:

S09296 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          9296
 
                    IN SENATE
 
                                      May 13, 2022
                                       ___________
 
        Introduced  by  Sen. RYAN -- (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
 
        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]  section  two  hundred  eleven or two [hyndred]
     7  hundred twelve of the retirement and social security law, and is  eligi-
     8  ble for membership in the retirement system, he [thereupon] or she shall
     9  become  a  member and his or her retirement allowance shall be suspended
    10  in the 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] they shall:
    14    1. Be credited with all member service earned [by him] since he or she
    15  last became a member of the retirement system, and
    16    2. Receive a retirement allowance which shall consist of[:
    17    (a) An annuity as provided in subdivision five of section five hundred
    18  three  of this article plus an annuity which is the actuarial equivalent
    19  of any contributions made by him since he last became a member, and
    20    (b) The] the pension which he or she was receiving  immediately  prior
    21  to  his or her last restoration to membership as provided in subdivision
    22  five of this section [five  hundred  three  of  this  article],  plus  a
    23  pension  based upon the [member] service credit earned [by him] since he
    24  or she last became a member. Such latter pension shall be computed as if
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11041-03-2
        S. 9296                             2

     1  [he] they were a new member when he or she rejoined the system  pursuant
     2  to the provisions of this subdivision.
     3    b.  Where  such  member shall have earned at least [five] two years of
     4  [member] service credit after restoration to active service,  the  total
     5  service  credit to which he or she was entitled at the time of [his] the
     6  earlier retirement may, at his or her option, again be credited  to  him
     7  or  her and upon [his] subsequent retirement he or she shall be credited
     8  in addition for purposes of computation of the pension  portion  of  the
     9  retirement  allowance  with all [member] service credit earned by him or
    10  her subsequent to [his] the last restoration to membership.  Such  total
    11  service  credit to which he or she was entitled at the time of [his] the
    12  earlier retirement shall be so credited only  in  the  event  that  such
    13  member  returns to the retirement system with regular interest the actu-
    14  arial equivalent of the amount of the pension [he] received, or  in  the
    15  event that such amount is not so repaid the actuarial equivalent thereof
    16  shall be deducted from his or her subsequent retirement allowance.
    17    c.  Notwithstanding  the  foregoing  provisions of this subdivision, a
    18  retired member who is receiving a retirement allowance  for  other  than
    19  physical disability, and who returns to active public service, may elect
    20  not  to  be  restored to membership in the retirement system until he or
    21  she has rendered one year of service  following  his  return  to  public
    22  service.  In  such  event  his  or  her  retirement  allowance  shall be
    23  suspended during such year of service in the same manner as provided  in
    24  subdivision  five  of this section [five hundred three of this article].
    25  Upon restoration to membership following  completion  of  such  year  of
    26  service,  his  or her service in such year shall be deemed to be service
    27  while a member for purposes of subdivision b  of  section  five  hundred
    28  twelve  of  this article. He or she may purchase [member] service credit
    29  for such year, which shall be deemed earned [member] service credit.  If
    30  a retired member receiving a retirement benefit allowance for other than
    31  physical disability, returns to active public service, and is then inel-
    32  igible  for  membership  in the retirement system, his or her retirement
    33  allowance shall be suspended in the same  manner  as  provided  in  this
    34  section.
    35    d.  Notwithstanding  any  other  provision  of this article, a retired
    36  member who rejoins the system under the provisions of [paragraphs a or c
    37  of] this subdivision shall only be entitled to a death benefit according
    38  to the provisions of paragraph two of  subdivision  b  of  section  five
    39  hundred  twelve  of this article and of no other subdivision thereof and
    40  for the purposes of said paragraph two of subdivision b of section  five
    41  hundred  twelve  the credited service as a teacher shall be service as a
    42  teacher credited since last joining the system.
    43    § 2. This act shall take effect on the sixtieth  day  after  it  shall
    44  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  State  Teachers'  Retirement
        System,  who  returns to active service and suspends their pension bene-
        fit, to elect to combine their service  credit  earned  prior  to  their
        retirement  with  the  service  credit earned after their restoration to
        active service, provided they have earned at least two years of  service
        credit  since  restoration to active service. The law currently requires
        five years of service credit since  restoration  to  active  service  to
        combine  all  service  credit. In either case the member must return the
        amount of pension previously received, or have their benefit reduced for
        life based upon the actuarial equivalent of the prior pension  received.
        S. 9296                             3
 
        This  bill would take effect on the sixtieth day after it shall become a
        law.
          The annual cost to the employers of members of the New      York State
        Teachers'  Retirement  System is estimated to 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. Actuari-
        al assumptions and methods are provided in the System's Actuarial  Valu-
        ation Report.
          The  source  of  this estimate is Fiscal Note 2022-1 dated October 18,
        2021 prepared by the Actuary of the New York State Teachers'  Retirement
        System and is intended for use only during the 2022 Legislative Session.
        I,  Richard A. Young, am the Chief Actuary for the New York State Teach-
        ers' Retirement System. I am a member of the American Academy of Actuar-
        ies and I meet the Qualification Standards of the  American  Academy  of
        Actuaries to render the actuarial opinion contained herein.