A10529 Summary:

BILL NOA10529
 
SAME ASSAME AS S07462-B
 
SPONSORRules (Burke)
 
COSPNSR
 
MLTSPNSR
 
Amd §503, Ed L
 
Allows retired employees of the New York state teachers' retirement system who return to active service and suspend their pension benefit to elect to combine their service credit earned prior to retirement with the service credit earned after their restoration to active service, provided they have earned at least two years of service credit since such restoration.
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A10529 Actions:

BILL NOA10529
 
06/02/2024referred to governmental employees
06/04/2024reference changed to ways and means
06/06/2024reported referred to rules
06/06/2024reported
06/06/2024rules report cal.519
06/06/2024substituted by s7462b
 S07462 AMEND=B RYAN
 05/30/2023REFERRED TO CIVIL SERVICE AND PENSIONS
 06/01/2023COMMITTEE DISCHARGED AND COMMITTED TO RULES
 06/01/2023ORDERED TO THIRD READING CAL.1553
 06/07/2023PASSED SENATE
 06/07/2023DELIVERED TO ASSEMBLY
 06/07/2023referred to governmental employees
 01/03/2024died in assembly
 01/03/2024returned to senate
 01/03/2024REFERRED TO CIVIL SERVICE AND PENSIONS
 05/01/2024AMEND AND RECOMMIT TO CIVIL SERVICE AND PENSIONS
 05/01/2024PRINT NUMBER 7462A
 05/07/2024REPORTED AND COMMITTED TO FINANCE
 06/03/2024AMEND AND RECOMMIT TO FINANCE
 06/03/2024PRINT NUMBER 7462B
 06/04/2024COMMITTEE DISCHARGED AND COMMITTED TO RULES
 06/04/2024ORDERED TO THIRD READING CAL.1703
 06/06/2024PASSED SENATE
 06/06/2024DELIVERED TO ASSEMBLY
 06/06/2024referred to ways and means
 06/06/2024substituted for a10529
 06/06/2024ordered to third reading rules cal.519
 06/06/2024passed assembly
 06/06/2024returned to senate
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A10529 Committee Votes:

RULES Chair:Pretlow DATE:06/06/2024AYE/NAY:28/0 Action: Favorable
HeastieExcusedBarclayExcused
WeinsteinAyeHawleyAye
PretlowAyeGiglioAye
CookAyeBlankenbushAye
GlickAyeNorrisAye
AubryAyeRaAye
DinowitzAyeBrabenecAye
ColtonAyePalmesanoAye
MagnarelliAyeReillyAye
PaulinAye
Peoples-StokesAye
BenedettoAye
LavineAye
LupardoAye
ZebrowskiAye
ThieleAye
BraunsteinAye
DickensExcused
DavilaAye
HyndmanAye
RozicAye
BronsonAye

WAYS AND MEANS Chair:Weinstein DATE:06/06/2024AYE/NAY:35/0 Action: Favorable refer to committee Rules
WeinsteinAyeRaAye
GlickAyeFitzpatrickAye
PretlowAyeHawleyAye
ColtonAyeBlankenbushAye
CookAyeNorrisAye
AubryAyeBrabenecAye
BenedettoAyePalmesanoAye
WeprinAyeWalshAye
RamosAyeDeStefanoAye
BraunsteinAyeManktelowAye
McDonaldAyeSmullenAye
RozicAye
DinowitzAye
MagnarelliAye
ZebrowskiAye
BronsonAye
DilanAye
SeawrightAye
HyndmanAye
WalkerAye
Bichotte HermelAye
SimonAye
CruzAye
FahyAye

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A10529 Floor Votes:

There are no votes for this bill in this legislative session.
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A10529 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A10529
 
SPONSOR: Rules (Burke)
  TITLE OF BILL: An act to amend the education law, in relation to allowing retirees of the New York state teachers' retirement system who suspend their retire- ment the option of a benefit recalculation after two years of service   PURPOSE OF THE BILL: The New York State Teachers' Retirement System (NYSTRS) proposes an amendment to Education Law Section 503(11) to mirror the provisions of Retirement and Social Security Law Section 101, the provisions available to members of the New York State and Local Employees' Retirement System (NYSLRS), The purpose of this amendment is to maintain consistency in the law for members of the state systems (NYSLRS and NYSTRS). The amend- ments to Education Law Section 503(11) would allow retired members of NYSTRS to suspend their retirement, return to work and have the option of a benefit recalculation after working at least two years of addi- tional public service,   SUMMARY AND JUSTIFICATION: Under the current statute, Education Law Section 503(11)(b), NYSTRS retirees are permitted to suspend their retirement and return to work to have their benefit recalculated after five years or alternatively upon re-retiring with at least two years of service, they become eligible to receive two separate retirement benefits, In order to avail themselves of the recalculation after five years of additional service, the member is required to pay back all the pension benefits received under the original retirement benefit, with interest, or take an actuarial equiv- alent lifetime reduction. The intent of these provisions, Education Law Section 503 and Retirement and Social Security Law Section 101, is to allow members of NYSTRS and NYSLRS, as public, employees, the opportu- nity to have all their public service under either two separate retire- ment benefits or the option of a combined retirement benefit, if the recalculation requirements are satisfied. The amendments to Education Law Section 503(11) update the law to reflect the requirements under Retirement and Social Security Law Section 101, and would allow NYSTRS members to avail themselves of a recalculation after two years of member service credit after restoration to active service, provided, such members return to the retirement system with regular interest the actuarial equivalent of the amount of the retirement allowance received in the first retirement or repayment of same through actuarial lifetime reduction. In addition, the System recognizes that allowing retirees the option of recalculating their benefit after two years of service, instead of five years, may assist those who believe they attained a service credit mark- er, but discover:after the het and post verification of service record with the school district that they had not, For example, in some cases, members retiring believe they have reached their intended service credit milestone, twenty years, but once the service has been verified with the employer the service credit is less than what was anticipated. At that point, It could be very difficult for the retiree to return to the posi- tion they retired from or even find a similar position, much less for an additional five years. Reducing the benefit recalculation requirement to two years, Would provide a more reasonable avenue to real* such miscal- oulations, equitably avail NYSTRS retirees of the same recalculation already provided in law for NYSLRS retirees, and may provide employers with Opportunities to hire an experienced worker to fill in during a transition and assist in Succession planning. This legislation was captured under veto message 138 of the laws of 2022 for the reason that the funding source was not identified, The System's fiscal note was appended to the bill and provided that due to the nature of this legislation NYSTRS is unable to ascertain the exact number of members who will pursue the recalculation upon restoration to member- ship. Accordingly, it is not possible to state that there will be no cost to the bill, An individual's life circumstances determine how and when a member retires and then elects to return to public service. The law does currently require, however, that for a member to afford them- selves of the benefit recalculation addressed in this legislation the member must remit the repayment of all pension received under the first retirement plus interest or repayment through an actuarial reduction, With that said, there may be a cost associated due to. the employer contribution rate collected and applicable at the time of the service and that is reflected in the negligible cost in the fiscal note appended. The amendments sought by this proposed legislation seek to update the application of the law and provide NYSTRS members with the similar option currently available to other state employees.   EFFECTIVE DATE OF THE BILL: This act shall take effect on the sixtieth day after it shall have become a law.   OTHER AGENCIES TO WHOM THE BILL MAY BE OF INTEREST: Division of the Budget, Department of Financial Services,   BUDGETARY IMPLICATIONS OF THE BILL: If this bill is enacted, the annual cost to the employers of members of the New York State Teachers' Retirement System Is estimated to be negli- gible. NOTE: This bill was prepared under the direction of the New York State Teachers' Retirement System Board and was Introduced at its request. FISCAL NOTE 2024-2 October 16, 2023 This fiscal note was requested by the New York State Teachers' Retire- ment System. Pursuant to Section 50 of the Legislative Law, the fiscal note that must be appended in its entirety to this bill is: "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 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 and they pay back their prior pension received or have the new benefit reduced for life based upon the actuarial equiv- alent 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 restora- tion. This bill would make this eligibility the same for teachers as it is for state employees, 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 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 state- ments and can also be found in the System's Annual Report. Actuarial assumptions and methods are provided in the System's Actuarial Valuation 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 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."
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A10529 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          10529
 
                   IN ASSEMBLY
 
                                      June 2, 2024
                                       ___________
 
        Introduced  by  COMMITTEE  ON RULES -- (at request of M. of A. Burke) --
          (at request of the New York State Teachers' Retirement System) -- read
          once and referred to the Committee on Governmental Employees
 
        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[:
    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] such employee was receiving immediate-
    21  ly  prior  to  [his]  the  last restoration to membership as provided in
    22  subdivision five of this section [five hundred three of  this  article],
    23  plus  a  pension  based upon the [member] service credit earned [by him]
    24  since [he] such employee last became a member. Such latter pension shall
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
        A                                                          LBD15831-01-4

        A. 10529                            2
 
     1  be computed as if [he] they were a new member when  [he]  they  rejoined
     2  the system pursuant 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] such member was entitled at the time of
     6  [his] the earlier retirement may, at [his] their option, again be  cred-
     7  ited to [him] them and upon [his] subsequent retirement [he] such member
     8  shall be credited in addition for purposes of computation of the pension
     9  portion  of  the  retirement  allowance with all [member] service credit
    10  earned [by him] subsequent to [his] the last restoration to  membership.
    11  Such  total service credit to which [he] such member was entitled at the
    12  time of [his] the earlier retirement shall be so credited  only  in  the
    13  event  that  such  member  returns to the retirement system with regular
    14  interest the actuarial equivalent of the  amount  of  the  pension  [he]
    15  received, or in the event that such amount is not so repaid the actuari-
    16  al  equivalent thereof shall be deducted from [his] such member's subse-
    17  quent 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]
    22  such  retired  member  has  rendered one year of service following [his]
    23  their return to public service.  In  such  event  [his]  the  retirement
    24  allowance  shall  be  suspended  during such year of service in the same
    25  manner as provided in subdivision five of  this  section  [five  hundred
    26  three  of  this  article].  Upon  restoration  to  membership  following
    27  completion of such year of service, [his] service in such year shall  be
    28  deemed  to  be  service  while a member for purposes of subdivision b of
    29  section five hundred twelve of this article.  [He] Such  retired  member
    30  may  purchase  [member]  service  credit  for  such year, which shall be
    31  deemed earned [member] service credit.  If a retired member receiving  a
    32  retirement benefit allowance for other than physical disability, returns
    33  to  active  public service, and is then ineligible for membership in the
    34  retirement system, the retirement allowance shall be  suspended  in  the
    35  same manner as provided in this 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]  such  paragraph  two  of  subdivision  b  of
    42  section  five  hundred twelve the credited service as a teacher shall be
    43  service as a 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

        A. 10529                            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.  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.
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