Allows retirees of the New York state teachers' retirement system who suspend their retirement the option of a benefit recalculation after two years of service.
STATE OF NEW YORK
________________________________________________________________________
7462
2023-2024 Regular Sessions
IN SENATE
May 30, 2023
___________
Introduced by Sen. RYAN -- 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
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD11631-01-3
S. 7462 2
1 or she last became a member. Such latter pension shall be computed as if
2 [he] they were a new member when he or she rejoined the system pursuant
3 to the provisions of this subdivision.
4 b. Where such member shall have earned at least [five] two years of
5 [member] service credit after restoration to active service, the total
6 service credit to which he or she was entitled at the time of [his] the
7 earlier retirement may, at his or her option, again be credited to him
8 or her and upon [his] subsequent retirement he or she shall be credited
9 in addition for purposes of computation of the pension portion of the
10 retirement allowance with all [member] service credit earned by him or
11 her subsequent to [his] the last restoration to membership. Such total
12 service credit to which he or she was entitled at the time of [his] the
13 earlier retirement shall be so credited only in the event that such
14 member returns to the retirement system with regular interest the actu-
15 arial equivalent of the amount of the pension [he] received, or in the
16 event that such amount is not so repaid the actuarial equivalent thereof
17 shall be deducted from his or her subsequent retirement allowance.
18 c. Notwithstanding the foregoing provisions of this subdivision, a
19 retired member who is receiving a retirement allowance for other than
20 physical disability, and who returns to active public service, may elect
21 not to be restored to membership in the retirement system until he or
22 she has rendered one year of service following his or her return to
23 public service. In such event his or her retirement allowance shall be
24 suspended during such year of service in the same manner as provided in
25 subdivision five of this section [five hundred three of this article].
26 Upon restoration to membership following completion of such year of
27 service, his or her service in such year shall be deemed to be service
28 while a member for purposes of subdivision b of section five hundred
29 twelve of this article. He or she may purchase [member] service credit
30 for such year, which shall be deemed earned [member] service credit. If
31 a retired member receiving a retirement benefit allowance for other than
32 physical disability, returns to active public service, and is then inel-
33 igible for membership in the retirement system, his or her retirement
34 allowance shall be suspended in the same manner as provided in this
35 section.
36 d. Notwithstanding any other provision of this article, a retired
37 member who rejoins the system under the provisions of [paragraphs a or c
38 of] this subdivision shall only be entitled to a death benefit according
39 to the provisions of paragraph two of subdivision b of section five
40 hundred twelve of this article and of no other subdivision thereof and
41 for the purposes of said paragraph two of subdivision b of section five
42 hundred twelve the credited service as a teacher shall be service as a
43 teacher credited since last joining the system.
44 § 2. This act shall take effect on the sixtieth day after it shall
45 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
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
S. 7462 3
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. Actuari-
al assumptions and methods are provided in the System's Actuarial Valu-
ation Report.
The source of this estimate is Fiscal Note 2023-14 dated January 20,
2023 prepared by the Actuary of the New York State Teachers' Retirement
System and is intended for use only during the 2023 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.
