Bill Text: NY A07703 | 2011-2012 | General Assembly | Introduced


Bill Title: Relates to certain members who re-enter public service; extends tier reinstatement provisions to a retiree of a public retirement system who was an active member of a public retirement system on or after January 1, 1989.

Spectrum: Slight Partisan Bill (Democrat 64-28)

Status: (Introduced - Dead) 2012-05-31 - print number 7703a [A07703 Detail]

Download: New_York-2011-A07703-Introduced.html
                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         7703
                              2011-2012 Regular Sessions
                                 I N  A S S E M B L Y
                                     May 16, 2011
                                      ___________
       Introduced  by  M. of A. GUNTHER, CANESTRARI, COLTON, BENEDETTO, JAFFEE,
         SPANO, SCHIMEL, RUSSELL, BARRON, DenDEKKER, WEPRIN --  Multi-Sponsored
         by  -- M. of A. AMEDORE, ARROYO, AUBRY, BARCLAY, BOYLAND, BOYLE, BREN-
         NAN, BROOK-KRASNY, BURLING, BUTLER, CAHILL,  CALHOUN,  CASTRO,  CLARK,
         CONTE,  COOK,  CORWIN,  CROUCH,  CUSICK, CYMBROWITZ, DINOWITZ, DUPREY,
         ENGLEBRIGHT,  FINCH,  GABRYSZAK,  GALEF,  GIBSON,  GIGLIO,  GOTTFRIED,
         HAWLEY, HAYES, HEASTIE, HOOPER, HOYT, JACOBS, KAVANAGH, KOLB, LATIMER,
         LAVINE,  LIFTON,  P. LOPEZ,  V. LOPEZ, LUPARDO, MAGEE, MAISEL, MARKEY,
         McDONOUGH, McENENY,  McKEVITT,  MENG,  J. MILLER,  MILLMAN,  MOLINARO,
         OAKS,  ORTIZ,  PAULIN,  PEOPLES-STOKES, PERRY, PRETLOW, RABBITT, RAIA,
         RAMOS, REILICH, REILLY,  J. RIVERA,  N. RIVERA,  P. RIVERA,  ROBINSON,
         ROSENTHAL,  SAYWARD, SCARBOROUGH, SCHROEDER, SWEENEY, TEDISCO, THIELE,
         TITONE, TITUS, TOBACCO, WEISENBERG, WRIGHT, ZEBROWSKI -- read once and
         referred to the Committee on Governmental Employees
       AN ACT to amend the retirement and social security law, in  relation  to
         certain members who re-enter public service
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. Subdivisions 2 and 4 of section 645 of the  retirement  and
    2  social security law, subdivision 2 as amended by chapter 322 of the laws
    3  of  2002  and  subdivision 4 as added by chapter 640 of the laws of 1998
    4  and as renumbered by chapter 646 of the laws of  1999,  are  amended  to
    5  read as follows:
    6    2.  Notwithstanding any other provision of law, any person [other than
    7  a retiree of a public retirement system,] who previously was a member of
    8  a public retirement system and whose membership in such  public  retire-
    9  ment  system  ceased  by reason of (i) insufficient service credit, (ii)
   10  withdrawal of accumulated contributions, or (iii) withdrawal of  member-
   11  ship,  upon  rejoining  such  public retirement system or another public
   12  retirement system, shall be deemed to have been a member of his  or  her
   13  current  retirement  system  during the entire period of time commencing
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD02318-02-1
       A. 7703                             2
    1  with and subsequent to the original date of such previous ceased member-
    2  ship, provided that such person (a) makes application  therefor  to  the
    3  administrative  head of his or her current public retirement system, and
    4  (b)  repays  the  amount  refunded,  if  any,  at the time such previous
    5  membership ceased, together with interest at the rate  of  five  percent
    6  per  annum  compounded annually from the date of such refund through the
    7  date of repayment. Upon such reinstatement of date of  membership,  such
    8  member  shall  be entitled to all the rights, benefits and privileges to
    9  which he or she would have been entitled had his or her current  member-
   10  ship  begun  on such original date of membership except that, solely for
   11  the purposes of granting  retirement  credit  to  members  of  a  public
   12  retirement  system  other  than  the  New York city teachers' retirement
   13  system for service credited during such previous ceased membership where
   14  such was in a public retirement system other than the  member's  current
   15  retirement  system,  such previously credited service shall be deemed to
   16  be prior service, not subsequent service.  Furthermore, any such  member
   17  whose  original  date  of  membership  was prior to July first, nineteen
   18  hundred seventy-three shall be entitled to all the rights, benefits  and
   19  privileges  to  which  he  or she would have been entitled had he or she
   20  been in active service on  June  thirtieth,  nineteen  hundred  seventy-
   21  three. Any contribution made to the public retirement system pursuant to
   22  article fourteen or fifteen of this chapter by a member who rejoined his
   23  or  her current system on or after July twenty-seventh, nineteen hundred
   24  seventy-six shall not be refunded.
   25    4. The provisions of this article shall be applicable to a person  who
   26  [is,  on  the  date  this  article becomes effective] WAS A MEMBER ON OR
   27  BEFORE JANUARY FIRST, NINETEEN HUNDRED EIGHTY-NINE, or who subsequent to
   28  such date becomes, a member of a public retirement system.
   29    S 2. This act shall take effect immediately and shall  only  apply  to
   30  all persons who are alive as of the effective date of this act and shall
   31  apply  to  payments made on or after the effective date of this act; and
   32  provided further, that any retirees qualifying under this act shall have
   33  their retirement allowance recalculated from July 1, 2011 or the date of
   34  reinstatement, whichever is later.
         FISCAL NOTE.--
         This bill would allow certain  living  retirees  of  New  York  public
       retirement systems who retired prior to December 16, 1999 and who previ-
       ously  were  members of a New York public retirement system to be deemed
       to have become members of the systems from which they retired as of  the
       original  date of such previous ceased membership. Tier 3 and 4 retirees
       of the New York State and Local Employees' Retirement System or the  New
       York  State  Teachers' Retirement System who become Tier 1 or 2 retirees
       and who have already purchased their previous service  would  receive  a
       refund  of  these  contributions.    No  benefits will be deemed to have
       accrued prior to the effective date of this Act.
         If this bill is enacted, insofar as this bill  affects  the  New  York
       State and Local Employees' Retirement System (NYS & LERS), approximately
       1,534  retirees  of the NYS & LERS will be affected. The estimated addi-
       tional annual increase in  contributions  would  be  approximately  $2.1
       million.    This  cost  will  be shared by the State of New York and all
       participating employers in the NYS & LERS.
         Insofar as this bill would affect employers in the New York State  and
       Local  Police  and  Fire  Retirement System (NYS & LPFRS), the estimated
       additional costs would be negligible.
         In addition there will be costs for retirees who had a previous ceased
       membership with a public  employee  retirement  system  other  than  the
       A. 7703                             3
       NYS&LERS  or  the NYS&LPFRS. These costs would depend upon the number of
       retirees affected and upon each retiree's age, salary, credited service,
       plan coverage and tier. The number of retirees with such previous ceased
       membership  with  another  public  retirement  system  cannot be readily
       determined. These additional costs would be shared by the State  of  New
       York and all participating employers in their respective systems.
         This  estimate,  dated  April 8, 2011 and intended for use only during
       the 2011 Legislative Session, is Fiscal Note No. 2011-124,  prepared  by
       the Actuary for the NYS&LERS and the NYS&LPFRS.
         FISCAL  NOTE.--This  bill  would amend subdivisions 2 and 4 of section
       645 of the Retirement and Social Security Law to extend the  tier  rein-
       statement  provisions to any retiree of a public retirement system.  The
       retiree must be alive as of the effective date of the bill in  order  to
       be  eligible.  This  bill  only applies to payments made on or after the
       effective date of this act.
         The annual cost to the employers of members  of  the  New  York  State
       Teachers'  Retirement  System  for  this benefit is estimated to be $7.0
       million or .05% of payroll if this bill is enacted.
         The source of this estimate is Fiscal Note 2011-42 dated May  4,  2011
       prepared  by  the  Actuary  of  the  New York State Teachers' Retirement
       System and is intended for use only during the 2011 Legislative Session.
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