Bill Text: NY S03510 | 2009-2010 | General Assembly | Amended

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Bill Title: Permits certain eligible vested members of the NYS teachers' in tiers 3 and 4 who have ceased teaching to withdraw from such system and to transfer such credits to another state's retirement system; requires return of accumulated member contributions.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed - Dead) 2010-06-16 - referred to ways and means [S03510 Detail]

Download: New_York-2009-S03510-Amended.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                        3510--A
                              2009-2010 Regular Sessions
                                   I N  S E N A T E
                                    March 20, 2009
                                      ___________
       Introduced by Sens. SAVINO, DIAZ, HUNTLEY, ONORATO -- (at request of the
         New  York State Teachers' Retirement System) -- read twice and ordered
         printed, and when printed to be committed to the  Committee  on  Civil
         Service  and Pensions -- recommitted to the Committee on Civil Service
         and Pensions in accordance with Senate Rule 6,  sec.  8  --  committee
         discharged, bill amended, ordered reprinted as amended and recommitted
         to said committee
       AN  ACT  to  amend the education law, in relation to the right of vested
         members to withdraw from  the  New  York  state  teachers'  retirement
         system
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. Section 512 of the education law is amended by adding a new
    2  subdivision g to read as follows:
    3    G. NOTWITHSTANDING ANY OTHER PROVISION OF   LAW TO THE  CONTRARY,  ANY
    4  MEMBER  OF  THE RETIREMENT SYSTEM SUBJECT TO ARTICLE FOURTEEN OR FIFTEEN
    5  OF THE RETIREMENT AND SOCIAL SECURITY LAW  WHO  HAS  PERMANENTLY  CEASED
    6  TEACHING  SHALL HAVE THE RIGHT TO ELECT THE RETURN OF HIS OR HER ACCUMU-
    7  LATED CONTRIBUTIONS AND THEREBY TERMINATE HIS OR HER MEMBERSHIP  IN  THE
    8  RETIREMENT  SYSTEM WITHOUT REGARD TO THE AMOUNT OF SERVICE TO HIS OR HER
    9  CREDIT, PROVIDED A PUBLIC EMPLOYEE RETIREMENT SYSTEM  IN  ANOTHER  STATE
   10  HAS CERTIFIED IN A MANNER SATISFACTORY TO THE SYSTEM THAT SUCH MEMBER IS
   11  A  MEMBER  OF  SUCH  OTHER RETIREMENT SYSTEM, HAS AT LEAST FIVE YEARS OF
   12  RETIREMENT CREDIT IN SUCH OTHER SYSTEM, AND IS ELIGIBLE, UPON THE TERMI-
   13  NATION OF HIS OR HER MEMBERSHIP IN  THE  SYSTEM,  TO  OBTAIN  RETIREMENT
   14  CREDIT  IN  SUCH  OTHER RETIREMENT SYSTEM FOR THE SERVICE WHICH HAS BEEN
   15  CREDITED TO HIS OR HER MEMBERSHIP IN THE SYSTEM.  UPON  REFUND  OF  SUCH
   16  ACCUMULATED  CONTRIBUTIONS,  ANY  AND  ALL OBLIGATIONS OF THE RETIREMENT
   17  SYSTEM TO SUCH MEMBER SHALL BE TOTALLY DISCHARGED. THE RETIREMENT  BOARD
   18  IS AUTHORIZED TO ADOPT SUCH RULES AND REGULATIONS AS MAY BE NECESSARY TO
   19  IMPLEMENT THIS SUBDIVISION.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD07440-03-0
       S. 3510--A                          2
    1    S 2. This act shall take effect immediately.
         FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
         This  bill  would  amend Section 512 of the Education Law to allow any
       member of the  New  York  State  Teachers'  Retirement  System  (NYSTRS)
       subject  to  Article  14 or 15 of the Retirement and Social Security Law
       who has permanently ceased teaching to elect  to  receive  a  refund  of
       their  accumulated member contributions and thereby terminate membership
       in the NYSTRS provided he or she is a member of another state's  retire-
       ment  system,  has  at least five years of service credit in such system
       and is eligible to obtain retirement credit  for  this  service  in  the
       other  retirement  system.  All  rights  to any future benefits from the
       NYSTRS would be forfeited. Currently, members  who  cease  teaching  and
       have  greater  than 10 years of service credit do not have the option of
       electing to receive their accumulated member contributions in lieu of  a
       monthly  benefit at retirement. In the vast majority of cases, the pres-
       ent value of the retirement benefit is much greater than  the  value  of
       the accumulated member contributions.
         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 2010-3 dated October 13,
       2009 prepared by the Actuary of the New York State Teachers'  Retirement
       System and is intended for use only during the 2010 Legislative Session.