Bill Text: NY S05634 | 2017-2018 | General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relates to employer's duties regarding optional public retirement systems; provides for the automatic enrollment for employees whose right to membership has been made optional by the head of the public retirement system involved.

Spectrum: Partisan Bill (Democrat 7-0)

Status: (Introduced - Dead) 2017-06-21 - SUBSTITUTED BY A7193C [S05634 Detail]

Download: New_York-2017-S05634-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          5634
                               2017-2018 Regular Sessions
                    IN SENATE
                                     April 21, 2017
                                       ___________
        Introduced  by  Sen.  SAVINO -- read twice and ordered printed, and when
          printed to be committed to the Committee on Civil Service and Pensions
        AN ACT to amend the retirement and social security law, in  relation  to
          providing  for  the  automatic enrollment for employees whose right to
          membership has been made optional by the head of the public retirement
          system involved
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section  1.  Section  45 of the retirement and social security law, as
     2  added by chapter 878 of the laws of 1986, is amended to read as follows:
     3    § 45. Right to membership.   a. Upon the employment  of  any  employee
     4  whose  right  to  membership in a public retirement system of the state,
     5  which for purposes of this section shall include any  public  retirement
     6  system  other  than  the New York state teachers' retirement system, has
     7  been made optional by the head of the retirement  system  involved,  the
     8  employer shall provide the respective automatic contribution arrangement
     9  for  the  employee  to  join  the  retirement  system  ninety days after
    10  commencement of employment, with membership  in  the  retirement  system
    11  commencing  on  the  ninety-first  day after commencement of employment,
    12  provided that, if the employee files with the system an  application  to
    13  opt  out  of membership within ninety days after commencement of employ-
    14  ment, the employer shall refrain from  enrolling  the  employee  in  the
    15  retirement  system  unless and until such employee subsequently files an
    16  application for membership with the system. The automatic enrollment  of
    17  optional  employees  as  provided  for  in  this  section  shall  not be
    18  construed to modify the right of eligible employees  to  join  a  public
    19  retirement  system  as of the first date of covered employment by filing
    20  an application for  membership  with  the  system.  The  employer  shall
    21  further  inform  the employee in writing of the right to join the system
    22  as well as the fact that the employee shall be enrolled in  the  retire-
    23  ment  system  after  the ninetieth day after commencement of employment,
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10847-04-7
        S. 5634                             2
     1  unless such employee files with the system an application to opt out  of
     2  the system prior to such date.  Each such employee shall acknowledge the
     3  receipt of such notice by signing a copy thereof and filing it with such
     4  employer[;  provided, however, the failure to inform such employee shall
     5  not in any way be construed to waive the requirement that membership for
     6  such an employee commences only when an application  for  membership  is
     7  filed  with  the  system,  nor shall it be construed to waive any of the
     8  eligibility requirements for previous service  credit].    Any  eligible
     9  employee  who  elects  to  opt  out of membership in a public retirement
    10  system within the ninety day period shall retain the right to join  such
    11  system  by  subsequently filing an application for membership so long as
    12  such employee remains in covered employment.
    13    b. Each employer shall enroll in  the  applicable  retirement  system,
    14  every  current  employee  eligible  for,  but  not enrolled in, a public
    15  retirement system, on October first, two thousand eighteen, unless  such
    16  employee  files an application with the system to opt out of the retire-
    17  ment system by September thirtieth,  two  thousand  eighteen.  Automatic
    18  enrollment  in the retirement system shall not be construed to waive any
    19  of the eligibility requirements for previous service credit.
    20    c. The automatic enrollment of optional employees as provided  for  in
    21  this section shall not be construed to modify the rights and obligations
    22  of  any  employee who is a mandated member of a public retirement system
    23  under any applicable law, and such mandated members may not opt  out  of
    24  membership.
    25    § 2. This act shall take effect July 1, 2018.