Bill Text: NY A08488 | 2011-2012 | General Assembly | Introduced

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Bill Title: Permits retired members of the New York state teachers' retirement system to purchase retirement service credit for Korean conflict military duty; provides for recalculation of retirement allowance and adjustments of payments.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2012-05-15 - held for consideration in governmental employees [A08488 Detail]

Download: New_York-2011-A08488-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         8488
                              2011-2012 Regular Sessions
                                 I N  A S S E M B L Y
                                     June 17, 2011
                                      ___________
       Introduced  by M. of A. RABBITT -- read once and referred to the Commit-
         tee on Governmental Employees
       AN ACT to amend the retirement and social security law, in  relation  to
         authorizing  certain veterans of the Korean conflict to obtain retire-
         ment service credit in the New York state teachers' retirement  system
         for such service
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. Subdivision 4 of section 1000 of the retirement and  social
    2  security law, as added by chapter 548 of the laws of 2000, is amended to
    3  read as follows:
    4    4.  (A)  To  obtain  such  credit,  a member shall pay such retirement
    5  system, for deposit in the fund used  to  accumulate  employer  contrib-
    6  utions,  a  sum  equal to the product of the number of years of military
    7  service being claimed and three percent of  such  member's  compensation
    8  earned  during the twelve months of credited service immediately preced-
    9  ing the date that the member made application  for  credit  pursuant  to
   10  this  section.  If  permitted  by  rule  or regulation of the applicable
   11  retirement system, the member may  pay  such  member  costs  by  payroll
   12  deduction  for  a period which shall not exceed the time period of mili-
   13  tary service to be credited pursuant to this section. In the  event  the
   14  member leaves the employer payroll prior to completion of payment, he or
   15  she  shall  forward  all  remaining required payments to the appropriate
   16  retirement system prior to the effective date of retirement. If the full
   17  amount of such member costs is not paid to  the  appropriate  retirement
   18  system  prior to the member's retirement, the amount of service credited
   19  shall be proportional to the total amount of the payments made prior  to
   20  retirement.
   21    (B)  NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION SIX OF THIS SECTION
   22  OR ANY OTHER PROVISION OF LAW, A RETIRED MEMBER OF THE  NEW  YORK  STATE
   23  TEACHERS'  RETIREMENT  SYSTEM  MAY  MAKE APPLICATION FOR THE BENEFITS OF
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD03888-02-1
       A. 8488                             2
    1  THIS SECTION WITHIN ONE YEAR OF THE EFFECTIVE DATE OF THIS PARAGRAPH FOR
    2  SERVICE DURING THE KOREAN CONFLICT.  UPON THE GRANTING OF SUCH  APPLICA-
    3  TION,  THE RETIREMENT ALLOWANCE OF SUCH RETIRED MEMBER SHALL BE RECALCU-
    4  LATED  AND ANY DEFICIENCY OWED TO HIM OR HER SHALL BE PAID TO HIM OR HER
    5  IN A LUMP SUM, WITH REGULAR INTEREST, WITHIN THIRTY DAYS OF THE GRANTING
    6  OF SUCH APPLICATION. WITHIN SIXTY DAYS OF THE GRANTING OF SUCH  APPLICA-
    7  TION,  THE  RETIREMENT  SYSTEM  SHALL CALCULATE, AND SUCH RETIRED MEMBER
    8  SHALL PAY SUCH RETIREMENT SYSTEM, WITH REGULAR INTEREST, FOR DEPOSIT  IN
    9  THE  FUND  USED TO ACCUMULATE EMPLOYER CONTRIBUTIONS, A SUM EQUAL TO THE
   10  PRODUCT OF THE NUMBER OF YEARS OF MILITARY  SERVICE  BEING  CLAIMED  AND
   11  THREE  PERCENT  OF  SUCH  MEMBER'S COMPENSATION EARNED DURING THE TWELVE
   12  MONTHS OF CREDITED SERVICE IMMEDIATELY PRECEDING THE DATE OF HIS OR  HER
   13  RETIREMENT. AT THE ELECTION OF SUCH RETIRED MEMBER, HE OR SHE MAY OFFSET
   14  THE  PAYMENT  DUE  TO HIM OR HER AGAINST THE PAYMENT DUE FROM HIM OR HER
   15  AND, IF ANY BALANCE REMAINS TO BE PAID BY HIM OR HER, HE  OR  SHE  SHALL
   16  PAY SUCH BALANCE WITHIN SUCH SIXTY DAY PERIOD.
   17    S 2. This act shall take effect immediately.
         FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
         This  bill would amend subdivision 4 of Section 1000 of the Retirement
       and Social Security Law to permit  eligible  retired  members  to  claim
       service  credit  for  up  to  three  years of military service performed
       during the Korean Conflict. To obtain  such  credit,  the  member  shall
       deposit  in  the pension accumulation fund, with regular interest, a sum
       equal to the product of the period of military service being claimed and
       three percent of his final annual full-time rate of compensation  earned
       during  the  twelve  months  of service immediately prior to retirement.
       This increase in benefit  will  be  provided  prospectively,  and  addi-
       tionally a lump sum representing the sum of the increases retroactively,
       back  to  the  date  of retirement, with regular interest, shall be paid
       within 30 days of the granting of credit.
         The annual cost to the employers of members  of  the  New  York  State
       Teachers'  Retirement  System  for this benefit is estimated to be $42.5
       million or .28% of payroll if this bill is enacted.
         The source of this estimate is Fiscal Note 2011-60 dated June 10, 2011
       prepared by the Actuary of  the  New  York  State  Teachers'  Retirement
       System and is intended for use only during the 2011 Legislative Session.