Bill Text: NY A07449 | 2019-2020 | General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Establishes an age 55/25 temporary retirement incentive for certain public employees who are members of the teachers' retirement system.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced) 2020-05-28 - print number 7449a [A07449 Detail]

Download: New_York-2019-A07449-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          7449
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                       May 3, 2019
                                       ___________
        Introduced  by M. of A. RAMOS -- read once and referred to the Committee
          on Governmental Employees
        AN ACT to provide temporary  retirement  incentive  for  certain  public
          employees
          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.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD07621-02-9

        A. 7449                             2
     1    (d)  "Eligible  employee" means a person who is a member of the teach-
     2  ers' retirement system, who is an employee of an  educational  employer,
     3  who holds a position represented by the recognized collective bargaining
     4  units affiliated with the New York state united teachers employee organ-
     5  ization  as  certified  by his or her employer, and who has attained the
     6  age of fifty-five and has  at  least  twenty-five  years  of  creditable
     7  service in the retirement system.
     8    (e)  "Active  service"  means service while being paid on the payroll,
     9  provided that (i) a leave of absence with pay  shall  be  deemed  active
    10  service;  (ii)  other  approved  leave  without pay not to exceed twelve
    11  weeks from March 1, 2019 and the commencement  of  the  designated  open
    12  period;  and (iii) the period of time subsequent to the June 2019 school
    13  term and on or before August 31, 2019 for a teacher (or  other  employee
    14  as  defined  in this act, employed on a school-year basis) who is other-
    15  wise in active service on the effective date of this act shall be deemed
    16  active service.
    17    (f) "Open period" means the period  beginning  with  the  commencement
    18  date  as defined in subdivision (g) of this section and shall be 60 days
    19  in length. For educational employers who make election  after  June  30,
    20  2019,  the  open period shall begin immediately after such election, and
    21  shall not extend beyond August 31, 2019. For the purposes of  retirement
    22  pursuant  to  this  act,  a service retirement application must be filed
    23  with the appropriate retirement system not less than 14  days  prior  to
    24  the  effective  date of retirement to become effective, unless a shorter
    25  time period is permitted under law.
    26    (g) "Commencement date" means the first  day  the  retirement  benefit
    27  mandated by this act shall be made available, which shall mean a date or
    28  dates on or after the effective date of this act to be determined by the
    29  educational  employer  which  elects  to participate pursuant to section
    30  four of this act, but no sooner than June 30, 2019.
    31    § 4. On or after June 30, 2019 an educational employer  may  elect  to
    32  provide its employees the retirement incentive authorized by this act by
    33  the  adoption  of  a  resolution  of  its governing body. A copy of such
    34  resolution shall be filed with the appropriate  retirement  system.  The
    35  resolution  shall  be  accompanied  by the affidavit of the school board
    36  president or trustee or other comparable official certifying the validi-
    37  ty of such resolution.
    38    § 5. Notwithstanding any other provision of law, any eligible employee
    39  serving in an eligible title who (a) has been continuously in the active
    40  service of an educational employer who has elected to participate in the
    41  retirement incentive provided in section six of this  act,  pursuant  to
    42  section  four  of  this  act, from March 1, 2019 to the date immediately
    43  prior to the commencement date of the applicable open period, (b)  files
    44  an  application for service retirement that is effective during the open
    45  period, and (c) is otherwise eligible for a service retirement as of the
    46  effective date of the application for retirement shall  be  entitled  to
    47  the retirement benefit provided in section six of this act.
    48    § 6. Notwithstanding any other provision of law, any eligible employee
    49  who  is:  (a) a member of the teachers' retirement system, and (b) enti-
    50  tled to retirement benefits pursuant to section five  of  this  act  may
    51  retire  during  the  open  period  without  the  reduction of his or her
    52  retirement benefit that would otherwise be imposed by article 11  or  15
    53  of  the retirement and social security law if he or she has attained the
    54  age of 55 and has completed at least 25  or  more  years  of  creditable
    55  service.  An eligible employee who is covered by the provisions of arti-
    56  cle 11 or 15 of the retirement and  social  security  law  shall  retire

        A. 7449                             3
     1  under  the  provisions  of article 11 or 15 of the retirement and social
     2  security law.
     3    §  7.  The  pension  benefit costs of section six of this act shall be
     4  paid by employers as provided  by  applicable  law  for  the  retirement
     5  system  covered  by  this  act  over  a  period not to exceed five years
     6  commencing in the state fiscal year ending March 31, 2021.
     7    § 8. Notwithstanding any other provision of law, this act  shall  have
     8  no  impact  on  retirement incentives, options or inducements offered as
     9  part of a contractual agreement between  an  eligible  employee  and  an
    10  educational  employer  which were negotiated prior to the effective date
    11  of this act.
    12    § 9. Severability clause.  If any clause, sentence, paragraph,  subdi-
    13  vision,  section  or  part of this act shall be adjudged by any court of
    14  competent jurisdiction to be invalid, such judgment  shall  not  affect,
    15  impair,  or  invalidate  the remainder thereof, but shall be confined in
    16  its operation to the clause, sentence, paragraph,  subdivision,  section
    17  or part thereof directly involved in the controversy in which such judg-
    18  ment shall have been rendered. It is hereby declared to be the intent of
    19  the  legislature  that  this  act  would  have been enacted even if such
    20  invalid provisions had not been included herein.
    21    § 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  2019-
        2020.  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, 2019 and not  extend  beyond  August  31,
        2019. 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,
        2021.
          The estimated increase in the present value of benefits  due  to  this
        temporary retirement incentive is approximately $214 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 $57.6 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

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        reported  in the System's financial statements, and can also be found in
        the CAFR. Actuarial assumptions and methods are provided in the System's
        Actuarial Valuation Report.
          The  source  of  this  estimate is Fiscal Note 2019-25 dated April 26,
        2019 prepared by the Actuary of the New York State Teachers'  Retirement
        System and is intended for use only during the 2019 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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