Bill Text: NY A10128 | 2011-2012 | General Assembly | Introduced
Bill Title: Lengthens the time period in which an employee must elect a public retirement plan.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2012-05-09 - referred to governmental employees [A10128 Detail]
Download: New_York-2011-A10128-Introduced.html
S T A T E O F N E W Y O R K
________________________________________________________________________
10128
I N A S S E M B L Y
May 9, 2012
___________
Introduced by M. of A. ABBATE -- read once and referred to the Committee
on Governmental Employees
AN ACT to amend the education law, in relation to election of a public
retirement plan
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Subdivision 1 of section 393 of the education law, as
2 amended by chapter 696 of the laws of 1965, is amended to read as
3 follows:
4 1. Election of the optional retirement program.
5 (a) Each eligible employee initially appointed on or after July first,
6 nineteen hundred sixty-four, within [thirty] THREE HUNDRED SIXTY-FIVE
7 days of his OR HER entry into service, shall elect (i) to join either
8 the New York state teachers' retirement system or the New York state
9 employees' retirement system or other public retirement system in this
10 state in accordance with the provisions of law applicable thereto or
11 (ii) to elect the optional retirement program established pursuant to
12 this article; provided however, that (1) such persons initially entering
13 service during the period July first, nineteen hundred sixty-four
14 through November fourth, nineteen hundred sixty-four may defer such
15 election until December fourth, nineteen hundred sixty-four, and (2)
16 eligible employees of an electing employer initially appointed on or
17 after the effective date of the election to offer such program may defer
18 such election until the [ninetieth] THREE HUNDRED SIXTY-FIFTH day
19 following [such effective date of the election to offer such program
20 established by an electing employer] THE FIRST DAY OF HIS OR HER ENTRY
21 INTO SERVICE. Any such deferred election shall be effective as of the
22 date of entry into service or the effective date of such offer, whichev-
23 er is later.
24 (b) In the event an eligible employee fails to make an election as
25 provided in paragraph (a) of this subdivision, he OR SHE shall be deemed
26 to have elected membership in the New York state teachers' retirement
27 system, or such public retirement system in this state in which his
28 membership may be otherwise required in accordance with law, except that
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD15596-01-2
A. 10128 2
1 eligible employees of institutions under the management and control of
2 Cornell university or Alfred university as the representative of the
3 state university trustees shall be deemed to have elected membership in
4 the New York state employees' retirement system. Such membership shall
5 be effective as of the date of entry into service, or in the case of
6 membership in the New York city [employees] EMPLOYEES' retirement
7 system, at the time otherwise required by law.
8 (c) The amount, if any, required to have been contributed by any
9 employee in accordance with an election, a deferred election or failure
10 to elect pursuant to paragraph (a) or paragraph (b) of this subdivision
11 shall be collected by payroll deductions in such manner as may be
12 provided by the comptroller for employees of state university electing
13 the optional retirement program, or by the appropriate fiscal officer
14 for employees of an electing employer, or in the case of membership in
15 either the New York state employees' retirement system or the New York
16 state teachers' retirement system or other public retirement system in
17 this state, by the retirement system concerned.
18 (d) Eligible employees other than those employed by an electing
19 employer appointed on or before June thirtieth, nineteen hundred sixty-
20 four, may elect the optional retirement program established pursuant to
21 this article. Such election shall be made on or before December fourth,
22 nineteen hundred sixty-four, and shall become effective as of January
23 first, nineteen hundred sixty-five. Eligible employees of an electing
24 employer appointed before the effective date of the election to offer
25 such program may elect the optional retirement program established
26 pursuant to this article. Such election shall be made on or before the
27 [ninetieth] THREE HUNDRED SIXTY-FIFTH day following [the effective date
28 of such offer] THE FIRST DAY OF HIS OR HER ENTRY INTO SERVICE and shall
29 become effective [on or as of the first day of January next following
30 the effective date of such offer] AS OF THE DATE OF ENTRY INTO SERVICE.
31 (e) Any state employee or employee of an electing employer who becomes
32 eligible to elect the optional retirement program by reason of (i) the
33 certification of the position held by him pursuant to [paragraph] SUBDI-
34 VISION three of section three hundred ninety of this article or (ii) his
35 appointment, promotion, transfer or reclassification to a position
36 previously so certified, may elect the optional retirement program
37 established pursuant to this article. Such election shall be made within
38 [thirty] THREE HUNDRED SIXTY-FIVE days after notice in writing to such
39 employee of his eligibility, and shall become effective [on the date of
40 such election] AS OF THE DATE OF ENTRY INTO SERVICE, except that in no
41 case shall such election by a state employee become effective prior to
42 January first, nineteen hundred sixty-five, or in the case of an eligi-
43 ble employee of an electing employer, prior to the first day of January
44 next following the effective date of the offer of such program.
45 (f) Any eligible employee who was employed by the University of
46 Buffalo prior to its merger into state university and who elected to
47 continue in the retirement program theretofore provided by the Universi-
48 ty of Buffalo in accordance with section three of chapter nine hundred
49 eighty of the laws of nineteen hundred sixty-two and who elects the
50 optional retirement program established pursuant to this article as
51 provided in paragraphs (d) or (e) of this subdivision shall become inel-
52 igible to continue in the retirement program provided by the University
53 of Buffalo prior to merger on the effective date of such election. Such
54 election shall constitute a waiver of all rights and benefits provided
55 under sections three and seven of chapter nine hundred eighty of the
56 laws of nineteen hundred sixty-two.
A. 10128 3
1 (g) No election by an eligible employee of the optional retirement
2 program shall be effective unless it shall be accompanied by an appro-
3 priate application, where required, for the issuance of a contract or
4 contracts under the program.
5 S 2. Subdivision 1 of section 6253 of the education law, as added by
6 chapter 1028 of the laws of 1965, is amended to read as follows:
7 1. Election of the optional retirement program. (a) Each eligible
8 employee initially appointed on or after the effective date of the
9 election to offer such program established by the board shall, within
10 [thirty] THREE HUNDRED SIXTY-FIVE days of his OR HER entry into service,
11 elect (i) to join the New York city teachers' retirement system in
12 accordance with the provisions of law applicable thereto, or (ii) to
13 elect the optional retirement program established pursuant to this arti-
14 cle; provided however, that such persons initially appointed on or after
15 the effective date of the election to offer such program may defer such
16 election until the [ninetieth] THREE HUNDRED SIXTY-FIFTH day following
17 [such effective date of the election to offer such program established
18 by the board] HIS OR HER ENTRY INTO SERVICE. Any such deferred election
19 shall be effective as of the date of entry into service.
20 (b) In the event an eligible employee fails to make an election as
21 provided in paragraph (a) of this subdivision, he OR SHE shall be deemed
22 to have elected membership in the New York City teachers' retirement
23 system. Such membership shall be effective as of the date of entry into
24 service.
25 (c) The amount, if any, required to have been contributed by any
26 employee in accordance with an election, a deferred election or failure
27 to elect pursuant to paragraph (a) or (b) of this subdivision shall be
28 collected by payroll deductions in such manner as may be provided by the
29 comptroller for those persons electing the optional retirement program,
30 or in the case of membership in the New York city teachers' retirement
31 system, by the retirement system.
32 (d) Eligible employees appointed before the effective date of the
33 election to offer such program may elect the optional retirement program
34 established pursuant to this article. Such election shall be made on or
35 before the [ninetieth] THREE HUNDRED SIXTY-FIFTH day following the
36 effective date of such offer, and shall become effective [on or] as of
37 the [first day of January next following the effective date of such
38 offer] DATE OF ENTRY INTO SERVICE.
39 (e) Any employee who becomes eligible to elect the optional retirement
40 program by reason of his OR HER appointment, promotion, transfer or
41 reclassification to an eligible position may elect the optional retire-
42 ment program established pursuant to this article. Such election shall
43 be made within [thirty] THREE HUNDRED SIXTY-FIVE days after notice in
44 writing to such employee of his OR HER eligibility, and shall become
45 effective [on the date of such election, except that in no case shall
46 such election become effective prior to the first day of January next
47 following the effective date of the offer of such program] AS OF THE
48 FIRST DAY OF ENTRY INTO SERVICE.
49 (f) No election by an eligible employee of the optional retirement
50 program shall be effective unless it shall be accompanied by an appro-
51 priate application, where required, for the issuance of a contract or
52 contracts under the program.
53 S 3. This act shall take effect immediately.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
This bill would amend Section 393 and Section 6253 of the Education
Law to extend the statutory time period for certain employees of the
A. 10128 4
State University of New York, the City University of New York and commu-
nity colleges to select membership in a public retirement plan or the
optional retirement plan from thirty days to three hundred and sixty-
five days.
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 2012-7 dated January 20,
2012 prepared by the Actuary of the New York State Teachers' Retirement
System and is intended for use only during the 2012 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.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
This bill amends Sections 393 and 6253 of the education law to extend
the waiting period for option retirement plan selection from thirty days
to one year.
The City University of New York's Office of Faculty and Staff
Relations has determined that there is no fiscal impact.
This fiscal note, dated December 2, 2011, is intended for use only
during the 2011-2012 Legislative Session.
