Bill Text: NY A07784 | 2013-2014 | General Assembly | Amended
Bill Title: Relates to the form of payment of retirement benefits for certain public retirees and beneficiaries; requires the payment of retirement benefits by the New York state and local employees' retirement system and the New York state and local police and fire retirement system by direct deposit or debit card.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2014-02-05 - print number 7784a [A07784 Detail]
Download: New_York-2013-A07784-Amended.html
S T A T E O F N E W Y O R K
________________________________________________________________________
7784--A
2013-2014 Regular Sessions
I N A S S E M B L Y
June 4, 2013
___________
Introduced by M. of A. ABBATE -- (at request of the State Comptroller)
-- read once and referred to the Committee on Governmental Employees
-- recommitted to the Committee on Governmental Employees in accord-
ance with Assembly Rule 3, sec. 2 -- committee discharged, bill
amended, ordered reprinted as amended and recommitted to said commit-
tee
AN ACT to amend the retirement and social security law, in relation to
the form of payment of retirement benefits for certain public retirees
and beneficiaries
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Section 100 of the retirement and social security law is
2 amended to read as follows:
3 S 100. Payment of retirement allowances. A. Retirement allowances
4 shall be payable on the first day of each and every month beginning on
5 the first day of the month following the effective date of retirement.
6 Upon the death of a retired member, however, the retirement allowance
7 due for that part of the month prior to his OR HER death shall be paid
8 forthwith.
9 B. 1. BEGINNING ON A DATE TO BE DETERMINED BY THE COMPTROLLER, BUT NO
10 SOONER THAN JANUARY FIRST, TWO THOUSAND SIXTEEN, ANY RETIREMENT BENEFIT
11 PAID IN REGULAR PERIODIC INSTALLMENTS TO A PERSON WHO IS A RETIREE OR
12 BENEFICIARY OF THE RETIREMENT SYSTEM PRIOR TO, ON OR AFTER THE EFFECTIVE
13 DATE OF THIS SUBDIVISION SHALL BE MADE BY DIRECT DEPOSIT OR DEBIT CARD,
14 AS ELECTED BY SUCH RETIREE OR BENEFICIARY, AND ADMINISTERED ELECTRON-
15 ICALLY, IN ACCORDANCE WITH SUCH GUIDELINES AS MAY BE SET FORTH BY THE
16 RETIREMENT SYSTEM. THE RETIREMENT SYSTEM SHALL NOTIFY ANY OF ITS RETI-
17 REES AND BENEFICIARIES THAT ARE CURRENTLY NOT RECEIVING THEIR RETIREMENT
18 PAYMENT BY DIRECT DEPOSIT OF THE PROVISIONS OF THIS PARAGRAPH PRIOR TO
19 SUCH PARAGRAPH BEING IMPLEMENTED.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09754-08-3
A. 7784--A 2
1 2. A RETIREE OR BENEFICIARY MAY SUBMIT A REQUEST FOR EXEMPTION FROM
2 PARAGRAPH ONE OF THIS SUBDIVISION ON A FORM PROVIDED BY THE RETIREMENT
3 SYSTEM. THE RETIREMENT SYSTEM MAY APPROVE SUCH REQUEST PURSUANT TO REGU-
4 LATIONS PROMULGATED BY THE COMPTROLLER UPON A DEMONSTRATION OF HARDSHIP.
5 S 2. Section 400 of the retirement and social security law, as added
6 by chapter 1000 of the laws of 1966, is amended to read as follows:
7 S 400. Payment of retirement allowances. A. Retirement allowances
8 shall be payable on the first day of each and every month beginning on
9 the first day of the month following the effective date of retirement.
10 Upon the death of a retired member, however, the retirement allowance
11 due for that part of the month prior to his OR HER death shall be paid
12 forthwith.
13 B. 1. BEGINNING ON A DATE TO BE DETERMINED BY THE COMPTROLLER, BUT NO
14 SOONER THAN JANUARY FIRST, TWO THOUSAND SIXTEEN, ANY RETIREMENT BENEFIT
15 PAID IN REGULAR PERIODIC INSTALLMENTS TO A PERSON WHO IS A RETIREE OR
16 BENEFICIARY OF THE RETIREMENT SYSTEM PRIOR TO, ON OR AFTER THE EFFECTIVE
17 DATE OF THIS SUBDIVISION SHALL BE MADE BY DIRECT DEPOSIT OR DEBIT CARD,
18 AS ELECTED BY SUCH RETIREE OR BENEFICIARY, AND ADMINISTERED ELECTRON-
19 ICALLY, IN ACCORDANCE WITH SUCH GUIDELINES AS MAY BE SET FORTH BY THE
20 RETIREMENT SYSTEM. THE RETIREMENT SYSTEM SHALL NOTIFY ANY OF ITS RETI-
21 REES AND BENEFICIARIES THAT ARE CURRENTLY NOT RECEIVING THEIR RETIREMENT
22 PAYMENT BY DIRECT DEPOSIT OF THE PROVISIONS OF THIS PARAGRAPH PRIOR TO
23 SUCH PARAGRAPH BEING IMPLEMENTED.
24 2. A RETIREE OR BENEFICIARY MAY SUBMIT A REQUEST FOR EXEMPTION FROM
25 PARAGRAPH ONE OF THIS SUBDIVISION ON A FORM PROVIDED BY THE RETIREMENT
26 SYSTEM. THE RETIREMENT SYSTEM MAY APPROVE SUCH REQUEST PURSUANT TO REGU-
27 LATIONS PROMULGATED BY THE COMPTROLLER UPON A DEMONSTRATION OF HARDSHIP.
28 S 3. This act shall take effect on the one hundred eightieth day after
29 it shall have become a law. Effective immediately the comptroller is
30 authorized to promulgate any rules and regulations and take any other
31 measures necessary to implement this act on its effective date.
32 FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
33 This bill would require the payment of retirement benefits by the New
34 York State and Local Employees' Retirement System (ERS) and the New York
35 State and Local Police and Fire Retirement System (PFRS) by direct
36 deposit or debit card, beginning on a date to be determined by the comp-
37 troller, but no sooner than January 1, 2016. A retiree or beneficiary of
38 these Systems prior to, on or after the effective date of this bill
39 shall elect either form of payment. Additionally this bill would allow a
40 retiree or beneficiary to submit a request for exemption from this
41 requirement.
42 If this bill is enacted, we anticipate that the printing and postage
43 savings will exceed the small initial administrative costs.
44 Summary of relevant resources:
45 The membership data used in measuring the impact of the proposed
46 change was the same as that used in the March 31, 2013 actuarial valu-
47 ation. Distributions and other statistics can be found in the 2013
48 Report of the Actuary and the 2013 Comprehensive Annual Financial
49 Report.
50 The actuarial assumptions and methods used are described in the 2010,
51 2011, 2012 and 2013 Annual Report to the Comptroller on Actuarial
52 Assumptions, and the Codes Rules and Regulations of the State of New
53 York: Audit and Control.
54 The Market Assets and GASB Disclosures are found in the March 31, 2013
55 New York State and Local Retirement System Financial Statements and
56 Supplementary Information.
A. 7784--A 3
1 I am a member of the American Academy of Actuaries and meet the Quali-
2 fication Standards to render the actuarial opinion contained herein.
3 This estimate, dated December 23, 2013, and intended for use only
4 during the 2014 Legislative Session, is Fiscal Note No. 2014-49,
5 prepared by the Actuary for the ERS and PFRS.
