Bill Text: NY S06537 | 2021-2022 | General Assembly | Introduced


Bill Title: Relates to the transfer of pension reserves between public retirement systems of the state for certain members who are transferring ten or more years of credited service.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed - Dead) 2022-01-05 - REFERRED TO CIVIL SERVICE AND PENSIONS [S06537 Detail]

Download: New_York-2021-S06537-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          6537

                               2021-2022 Regular Sessions

                    IN SENATE

                                       May 5, 2021
                                       ___________

        Introduced by Sen. REICHLIN-MELNICK -- (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

        AN  ACT  to  amend the education law, the retirement and social security
          law, the administrative code of the city of New York, and chapter  666
          of  the  laws of 1990, amending the administrative code of the city of
          New York and the education law relating to the availability  of  addi-
          tional  pension  benefits,  in  relation  to  the transfer of reserves
          between public retirement systems of the state for certain members

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  Subdivision  5  of  section  522 of the education law, as
     2  amended by chapter 41 of the  laws  of  2009,  is  amended  to  read  as
     3  follows:
     4    5.  Notwithstanding any other provision of law to the contrary, except
     5  for the purposes of providing the benefits, if any, of subdivision  four
     6  of  this  section,  with  respect  to transfers pursuant to this section
     7  which occur on or after the effective date of the chapter of the laws of
     8  two thousand twenty-one that amended this subdivision, no transfer of  a
     9  pension reserve pursuant to subdivision one or two of this section shall
    10  be  required  when  the  member is transferring from a public [employee]
    11  retirement system of [this] the state  [to  any  other  public  employee
    12  retirement  system  of  this state] with less than ten years of credited
    13  service with the transferring retirement system at the time the transfer
    14  is initiated. With respect to transfers pursuant to subdivision  one  or
    15  two  of  this  section which occur on or after the effective date of the
    16  chapter of the laws of two thousand twenty-one that amended this  subdi-
    17  vision,  the  transfer  of  a pension reserve shall be required when the
    18  member is transferring ten or more years  of  credited  service  from  a
    19  public  retirement  system  of this state to any other public retirement

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11221-01-1

        S. 6537                             2

     1  system of this state.  For the purpose of giving the transferring member
     2  such status and crediting such service in the retirement system to which
     3  the member is transferring as such member was allowed in the  retirement
     4  system  from  which  the  member  has transferred, the transfer shall be
     5  deemed complete upon receipt by the transferee retirement system of  (a)
     6  a  statement  from  the transferor retirement system of the transferring
     7  member's date of membership in the transferor  retirement  system,  tier
     8  status,  service  credited to the transferred membership, and such other
     9  information as the transferee retirement system may require to  effectu-
    10  ate the transfer, [and] (b) such member's accumulated contributions from
    11  the  transferor retirement system, if same had not been previously with-
    12  drawn, or notice from the transferor retirement system that such  member
    13  had  no accumulated contributions, or notice from the transferor retire-
    14  ment system that such member's accumulated contributions had been  with-
    15  drawn  and  the  amount  thereof  and,  as applicable, receipt from such
    16  member of such member's accumulated contributions and interest, and  (c)
    17  the pension reserve in the case of a member who transfers in ten or more
    18  years of credited service.
    19    § 2. Subdivision k of section 43 of the retirement and social security
    20  law, as amended by chapter 41 of the laws of 2009, is amended to read as
    21  follows:
    22    k.  Notwithstanding any other provision of this section, any member of
    23  the New York state and local employees' retirement  system  or  the  New
    24  York  city  teachers'  retirement  system  who retired from service from
    25  either the New York city employees' retirement system or  the  New  York
    26  city  board  of  education  retirement  system as a member of the career
    27  pension plan maintained by such system and who, but for the fact that he
    28  or she retired, would be eligible for transfer and who has not, in fact,
    29  received a pension payment from such system shall be permitted to trans-
    30  fer his or her retirement system membership pursuant to  the  provisions
    31  of  this section. In such event, the application for retirement shall be
    32  deemed to have been rescinded and the retirement system from  which  the
    33  service  shall be transferred shall transfer the appropriate reserves as
    34  provided by this section, provided, however, that with respect to trans-
    35  fers pursuant to this subdivision which occur on or after  [the  twenty-
    36  sixth day of October, two thousand four] the effective date of the chap-
    37  ter   of   the  laws  of  two  thousand  twenty-one  that  amended  this
    38  subdivision, except for the purposes of providing the benefits, if  any,
    39  of  subdivision four of section five hundred twenty-two of the education
    40  law, no determination of a reserve pursuant to  subdivision  c  of  this
    41  section  or  transfer thereof pursuant to the first sentence of subdivi-
    42  sion d of this section shall be required in the  case  of  any  transfer
    43  pursuant  to  this  subdivision  with  less  than  ten years of credited
    44  service with the transferring retirement system at the time the transfer
    45  is initiated.  With respect to transfers pursuant to this section  which
    46  occur  on  or after the effective date of the chapter of the laws of two
    47  thousand twenty-one that amended this subdivision,  the  transfer  of  a
    48  pension reserve shall be required when the member is transferring ten or
    49  more  years  of  credited service from a public retirement system of the
    50  state to any other public retirement system of the state.  Notwithstand-
    51  ing the provision of this subdivision or any other provision of law,  an
    52  individual  who  transfers  pursuant  to  this  subdivision shall not be
    53  required to render any minimum period of service following  transfer  in
    54  order  to  be  eligible  to receive the full benefit provided hereunder.
    55  Notwithstanding the foregoing, a retiree covered by  either  the  career
    56  pension  plan or the fifty-five-year-increased-service-fraction plan who

        S. 6537                             3

     1  has received a pension payment or payments from  such  system  shall  be
     2  eligible  for  the  provisions  of this subdivision upon payment, to the
     3  retirement system from which the pension payment or payments were  made,
     4  of  an  amount  equal  to  such  pension payment or payments. After such
     5  payments and the pension reserve, in the case of a member who  transfers
     6  in  ten  or  more  years  of credited service, are received, such person
     7  shall be permitted to transfer his or her retirement  system  membership
     8  pursuant to the provisions of this section.
     9    § 3. Subdivision 1 of section 43 of the retirement and social security
    10  law, as amended by chapter 41 of the laws of 2009, is amended to read as
    11  follows:
    12    l.  Notwithstanding  any  other provision of law to the contrary, with
    13  respect to transfers pursuant to this section which occur  on  or  after
    14  [the  twenty-sixth day of October, two thousand four] the effective date
    15  of the chapter of the laws of two thousand twenty-one that amended  this
    16  subdivision,  except for the purposes of providing the benefits, if any,
    17  of subdivision four of section five hundred twenty-two of the  education
    18  law,  no  determination  of  a reserve pursuant to subdivision c of this
    19  section or transfer thereof pursuant to the first sentence  of  subdivi-
    20  sion  d  of  this  section shall be required in the case of any transfer
    21  pursuant to this section with less than ten years  of  credited  service
    22  with  the  transferring  retirement  system  at the time the transfer is
    23  initiated. With respect to transfers  pursuant  to  this  section  which
    24  occur  on  or after the effective date of the chapter of the laws of two
    25  thousand twenty-one that amended this subdivision,  the  transfer  of  a
    26  pension reserve shall be required when the member is transferring ten of
    27  more  years  of  credited service from a public retirement system of the
    28  state to any other public retirement system  of  the  state.    For  the
    29  purpose of giving the transferring member such status and crediting such
    30  service  in  the  second retirement system as such member was allowed in
    31  the first retirement system in those cases  to  which  this  subdivision
    32  shall  apply,  the transfer shall be deemed complete upon receipt by the
    33  second retirement system of:
    34    1. a statement from the first retirement system  of  the  transferring
    35  member's date of membership in the first retirement system, tier status,
    36  service  credited  to  such membership being transferred, and such other
    37  information as the second retirement system may  require  to  effectuate
    38  the transfer; [and]
    39    2.  such  member's accumulated contributions from the first retirement
    40  system, if same had not been previously withdrawn, or  notice  from  the
    41  first  retirement  system  that  such member had no accumulated contrib-
    42  utions, or notice from the first retirement system  that  such  member's
    43  accumulated contributions had been withdrawn and the amount thereof and,
    44  as  applicable,  receipt  from  such member of such member's accumulated
    45  contributions and interest; and
    46    3. the pension reserve in the case of a member who transfers in ten or
    47  more years of credited service.
    48    § 4. Subdivision h of section 343 of the retirement and social securi-
    49  ty law, as amended by chapter 533 of the laws of  2015,  is  amended  to
    50  read as follows:
    51    h.  Notwithstanding  any  other provision of law to the contrary, with
    52  respect to transfers pursuant to this section which occur  on  or  after
    53  the effective date of the chapter of the laws of two thousand twenty-one
    54  that amended this subdivision, no determination of a reserve pursuant to
    55  subdivision  c of this section or transfer thereof pursuant to the first
    56  sentence of subdivision d of this section shall be required in the  case

        S. 6537                             4

     1  of any transfer pursuant to this section (other than a transfer from the
     2  New York state and local police and fire retirement system to either (1)
     3  the New York city police department subchapter two pension fund, (2) the
     4  New York city fire department subchapter two pension fund or (3) the MTA
     5  police  retirement  program  or  a transfer from either (i) the New York
     6  city police department subchapter two pension fund or (ii) the New  York
     7  city  fire  department subchapter two pension fund to either (A) the New
     8  York state and local police and fire retirement system or  (B)  the  MTA
     9  police  retirement  program or a transfer from the MTA police retirement
    10  program to the New York state  and  local  police  and  fire  retirement
    11  system)  in  the  case  of a member with less than ten years of credited
    12  service with the transferring retirement system at the time the transfer
    13  is initiated. With respect to transfers pursuant  to  such  subdivisions
    14  which occur on or after the effective date of the chapter of the laws of
    15  two thousand twenty-one that amended this subdivision, the transfer of a
    16  pension reserve shall be required when the member is transferring ten or
    17  more  years  of  credited service from a public retirement system of the
    18  state to any other public retirement system  of  the  state.    For  the
    19  purpose of giving the transferring member such status and crediting such
    20  service  in  the  second retirement system as such member was allowed in
    21  the first retirement system in those cases  to  which  this  subdivision
    22  shall  apply,  the transfer shall be deemed complete upon receipt by the
    23  second retirement system of:
    24    1. a statement from the first retirement system  of  the  transferring
    25  member's date of membership in the first retirement system, tier status,
    26  service  credited  to  such membership being transferred, and such other
    27  information as the second retirement system may  require  to  effectuate
    28  the transfer; [and]
    29    2.  such  member's accumulated contributions from the first retirement
    30  system, if same had not been previously withdrawn, or  notice  from  the
    31  first  retirement  system  that  such member had no accumulated contrib-
    32  utions, or notice from the first retirement system  that  such  member's
    33  accumulated contributions had been withdrawn and the amount thereof and,
    34  as  applicable,  receipt  from  such member of such member's accumulated
    35  contributions and interest; and
    36    3. the pension reserve in the case of a member who transfers in ten or
    37  more years of credited service.
    38    § 5. Paragraph 4 of subdivision a of section 13-143 of the administra-
    39  tive code of the city of New York, as added by chapter 647 of  the  laws
    40  of 2004, is amended to read as follows:
    41    (4)  Notwithstanding  the provisions of paragraph two of this subdivi-
    42  sion, with respect to transfers pursuant to this section which occur  on
    43  or  after  the effective date of the chapter of the laws of two thousand
    44  twenty-one that amended this paragraph, the actuary of the New York city
    45  employees' retirement system shall not  be  required  to  determine  the
    46  reserve  on  the  benefits  allowable  to the transferring member as the
    47  result of employer contributions, including  the  reserve-for-increased-
    48  take-home-pay,  and the transfer of such reserve, including the reserve-
    49  for-increased-take-home-pay, from the New York city  employees'  retire-
    50  ment  system  to said police pension fund [shall not be required] when a
    51  member is transferring with less than ten years of credited service with
    52  the transferring retirement system at the time the  transfer  is  initi-
    53  ated. With respect to transfers pursuant to this subdivision which occur
    54  on  or  after the effective date of the chapter of the laws of two thou-
    55  sand twenty-one that amended this paragraph, the transfer of  a  pension
    56  reserve  shall  be  required when the member is transferring ten or more

        S. 6537                             5

     1  years of credited service from a public retirement system of  the  state
     2  to  any  other public retirement system of the state.  The New York city
     3  employees' retirement system, within one  year  from  the  date  of  the
     4  request  for  the transfer of credit, shall comply with all requirements
     5  for completing the transfer imposed on it  by  the  provisions  of  this
     6  section,  including  the  pension  reserve  in  the case of a member who
     7  transfers ten or more years of credited service. Nothing  set  forth  in
     8  this  paragraph  shall  be deemed to modify the requirement set forth in
     9  paragraph two of this subdivision that  the  New  York  city  employees'
    10  retirement  system  transfer to said police pension fund the accumulated
    11  deductions of such member.
    12    § 6. Paragraph 4 of subdivision a of section 13-144 of the administra-
    13  tive code of the city of New York, as added by chapter 647 of  the  laws
    14  of 2004, is amended to read as follows:
    15    (4)  Notwithstanding  the provisions of paragraph two of this subdivi-
    16  sion, with respect to transfers pursuant to this section which occur  on
    17  or  after  the effective date of the chapter of the laws of two thousand
    18  twenty-one that amended this paragraph, the actuary of the New York city
    19  employees' retirement system shall not  be  required  to  determine  the
    20  reserve  on  the  benefits  allowable  to the transferring member as the
    21  result of employer contributions, including [the  reserve-for-increased-
    22  take-home-pay,  and]  the  transfer of such reserve[, including] and the
    23  reserve-for-increased-take-home-pay[,] from the New York city employees'
    24  retirement system to said fire department pension  fund  [shall  not  be
    25  required],  with less than ten years of credited service from the trans-
    26  ferring retirement system at the time  of  the  transfer  is  initiated.
    27  With  respect  to  transfers  pursuant to this section which occur on or
    28  after the effective date of the chapter of  the  laws  of  two  thousand
    29  twenty-one  that  amended  this  paragraph,  the  transfer  of a pension
    30  reserve pursuant to paragraph two of this subdivision shall be  required
    31  when  the  member  is transferring ten or more years of credited service
    32  from a public retirement system of the state to any other public retire-
    33  ment system of the  state.  The  New  York  city  employees'  retirement
    34  system, within one year from the date of the request for the transfer of
    35  credit,  shall  comply with all requirements for completing the transfer
    36  imposed on it by the provisions of this section, including  the  pension
    37  reverse  in  the  case  of  a  member who transfers ten or more years of
    38  member service credit.  Nothing set forth in  this  paragraph  shall  be
    39  deemed  to  modify  the  requirement  set forth in paragraph two of this
    40  subdivision that the New York city employees' retirement system transfer
    41  to said fire department pension fund the accumulated deductions of  such
    42  member.
    43    §  7.  Subdivision  d of section 3 of chapter 666 of the laws of 1990,
    44  amending the administrative code of the city of New York and the  educa-
    45  tion law relating to the availability of additional pension benefits for
    46  an  extended  second  public employment to certain retirees, as added by
    47  chapter 647 of the laws of 2004, is amended to read as follows:
    48    d. Notwithstanding the provisions of subdivision b of this section  or
    49  any  other  provision  of law to the contrary, with respect to transfers
    50  pursuant to this section which occur on or after the effective  date  of
    51  the  chapter  of  the  laws of two thousand twenty-one that amended this
    52  subdivision, no determination or transfer of the reserve on the benefits
    53  allowable to the transferring member as the result of employer  contrib-
    54  utions,  including  the  reserve-for-increased-take-home-pay,  shall  be
    55  required for a member with less than ten years of credited service  from
    56  the  transferring  system  at  the  time the transfer is initiated. With

        S. 6537                             6

     1  respect to transfers pursuant to this section which occur  on  or  after
     2  the effective date of the chapter of the laws of two thousand twenty-one
     3  that  amended  this subdivision, the transfer of a pension reserve shall
     4  be required when the member is transferring ten or more years of credit-
     5  ed  service  from  a public retirement system of this state to any other
     6  public retirement system of the state.
     7    § 8. This act shall take effect immediately and  shall  apply  to  any
     8  covered  membership transfer initiated on or after the effective date of
     9  this act; provided, however, that no provision of this act shall  affect
    10  the  transfer of reserves required with respect to transfers between any
    11  two of the New York state and local police and fire  department  system,
    12  the  New York city police department subchapter two pension fund and the
    13  New York city fire department  subchapter  two  pension  fund  and  with
    14  respect  to  transfers from the New York state and local police and fire
    15  retirement system to the metropolitan  transportation  authority  police
    16  pension fund.
          FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
          This  bill  would  amend  Section 522 of the Education Law and various
        sections of the Retirement and Social Security Law and  the  Administra-
        tive  Code  of the City of New York to reinstate the transfer of pension
        reserves in cases in which a member of  the  New  York  State  Teachers'
        Retirement System (NYSTRS) or any Retirement System of the State or City
        of  New  York  transfers a membership with ten or more years of credited
        service at the time the transfer  is  initiated.  This  act  shall  take
        effect  immediately and shall apply to any membership transfer initiated
        on or after the effective date of this act.
          It is estimated that there will be no additional annual  cost  to  the
        employers  of  members  of  the NYSTRS if this bill is enacted. In fact,
        this bill will greatly increase equity between the retirement systems of
        the state by ensuring that a member who  transfers  with  a  significant
        liability  will bring with him or her the pension reserve accumulated by
        the prior retirement system in order to offset the liability assumed  by
        the  new retirement system. Member data is from the System's most recent
        actuarial valuation files, consisting of data provided by the  employers
        to the Retirement System. Data distributions and statistics can be found
        in  the  System's  Comprehensive  Annual Financial Report (CAFR). System
        assets are as reported in the System's financial statements and can also
        be found in the CAFR. Actuarial assumptions and methods are provided  in
        the System's Actuarial Valuation Report.
          The  source  of  this estimate is Fiscal Note 2021-4 dated October 19,
        2020 prepared by the Actuary of the New York State Teachers'  Retirement
        System and is intended for use only during the 2021 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.
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