Bill Text: NY A05368 | 2011-2012 | General Assembly | Introduced

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Bill Title: Permits certain eligible vested members of the NYS teachers' retirement system in tiers 3 and 4 who have ceased teaching to withdraw from such system and to transfer such credits to another state's retirement system; requires return of accumulated member contributions.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Introduced - Dead) 2011-06-20 - substituted by s3401 [A05368 Detail]

Download: New_York-2011-A05368-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         5368
                              2011-2012 Regular Sessions
                                 I N  A S S E M B L Y
                                   February 16, 2011
                                      ___________
       Introduced  by  M.  of  A.  ABBATE  -- (at request of the New York State
         Teachers' Retirement System) -- read once and referred to the  Commit-
         tee on Governmental Employees
       AN  ACT  to  amend the education law, in relation to the right of vested
         members to withdraw from  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. Section 512 of the education law is amended by adding a new
    2  subdivision g to read as follows:
    3    G. NOTWITHSTANDING ANY OTHER PROVISION OF   LAW TO THE  CONTRARY,  ANY
    4  MEMBER  OF  THE RETIREMENT SYSTEM SUBJECT TO ARTICLE FOURTEEN OR FIFTEEN
    5  OF THE RETIREMENT AND SOCIAL SECURITY LAW  WHO  HAS  PERMANENTLY  CEASED
    6  TEACHING  SHALL HAVE THE RIGHT TO ELECT THE RETURN OF HIS OR HER ACCUMU-
    7  LATED CONTRIBUTIONS AND THEREBY TERMINATE HIS OR HER MEMBERSHIP  IN  THE
    8  RETIREMENT  SYSTEM WITHOUT REGARD TO THE AMOUNT OF SERVICE TO HIS OR HER
    9  CREDIT, PROVIDED A PUBLIC EMPLOYEE RETIREMENT SYSTEM  IN  ANOTHER  STATE
   10  HAS CERTIFIED IN A MANNER SATISFACTORY TO THE SYSTEM THAT SUCH MEMBER IS
   11  A  MEMBER  OF  SUCH  OTHER RETIREMENT SYSTEM, HAS AT LEAST FIVE YEARS OF
   12  RETIREMENT CREDIT IN SUCH OTHER SYSTEM, AND IS ELIGIBLE, UPON THE TERMI-
   13  NATION OF HIS OR HER MEMBERSHIP IN  THE  SYSTEM,  TO  OBTAIN  RETIREMENT
   14  CREDIT  IN  SUCH  OTHER RETIREMENT SYSTEM FOR THE SERVICE WHICH HAS BEEN
   15  CREDITED TO HIS OR HER MEMBERSHIP IN THE SYSTEM.  UPON  REFUND  OF  SUCH
   16  ACCUMULATED  CONTRIBUTIONS,  ANY  AND  ALL OBLIGATIONS OF THE RETIREMENT
   17  SYSTEM TO SUCH MEMBER SHALL BE TOTALLY DISCHARGED. THE RETIREMENT  BOARD
   18  IS AUTHORIZED TO ADOPT SUCH RULES AND REGULATIONS AS MAY BE NECESSARY TO
   19  IMPLEMENT THIS SUBDIVISION.
   20    S 2. This act shall take effect immediately.
         FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
         This  bill  would  amend Section 512 of the Education Law to allow any
       member of the  New  York  State  Teachers'  Retirement  System  (NYSTRS)
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD08931-01-1
       A. 5368                             2
       subject  to  Article  14 or 15 of the Retirement and Social Security Law
       who has permanently ceased teaching to elect  to  receive  a  refund  of
       their  accumulated member contributions and thereby terminate membership
       in  the NYSTRS provided he or she is a member of another state's retire-
       ment system, has at least five years of service credit  in  such  system
       and  is  eligible  to  obtain  retirement credit for this service in the
       other retirement system. All rights to  any  future  benefits  from  the
       NYSTRS  would  be  forfeited.  Currently, members who cease teaching and
       have greater than 10 years of service credit do not have the  option  of
       electing  to receive their accumulated member contributions in lieu of a
       monthly benefit at retirement. In the vast majority of cases, the  pres-
       ent  value  of  the retirement benefit is much greater than the value of
       the accumulated member contributions.
         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.
         The source of this estimate is Fiscal Note 2011-3 dated September  24,
       2010  prepared by the Actuary of the New York State Teachers' Retirement
       System and is intended for use only during the 2011 Legislative Session.