Bill Text: NY S09296 | 2021-2022 | General Assembly | Introduced
Bill Title: Allows retirees of the New York state teachers' retirement system who suspend their retirement the option of a benefit recalculation after two years of service.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Vetoed) 2022-12-16 - VETOED MEMO.138 [S09296 Detail]
Download: New_York-2021-S09296-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 9296 IN SENATE May 13, 2022 ___________ Introduced by Sen. RYAN -- (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, in relation to allowing retirees of the New York state teachers' retirement system who suspend their retirement the option of a benefit recalculation after two years of service The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subdivision 11 of section 503 of the education law, as 2 added by chapter 507 of the laws of 1972 and as renumbered by chapter 3 512 of the laws of 1976, is amended to read as follows: 4 11. a. If a retired member, receiving a retirement allowance for other 5 than disability, returns to active public service, except as otherwise 6 provided in [sections] section two hundred eleven or two [hyndred] 7 hundred twelve of the retirement and social security law, and is eligi- 8 ble for membership in the retirement system, he [thereupon] or she shall 9 become a member and his or her retirement allowance shall be suspended 10 in the same manner as provided in subdivision five of this section [five11hundred three of this article. In such event, he shall contribute to the12retirement system as if he were a new member]. Upon [his] subsequent 13 retirement [after at least two years of service he] they shall: 14 1. Be credited with all member service earned [by him] since he or she 15 last became a member of the retirement system, and 16 2. Receive a retirement allowance which shall consist of[:17(a) An annuity as provided in subdivision five of section five hundred18three of this article plus an annuity which is the actuarial equivalent19of any contributions made by him since he last became a member, and20(b) The] the pension which he or she was receiving immediately prior 21 to his or her last restoration to membership as provided in subdivision 22 five of this section [five hundred three of this article], plus a 23 pension based upon the [member] service credit earned [by him] since he 24 or she last became a member. Such latter pension shall be computed as if EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD11041-03-2S. 9296 2 1 [he] they were a new member when he or she rejoined the system pursuant 2 to the provisions of this subdivision. 3 b. Where such member shall have earned at least [five] two years of 4 [member] service credit after restoration to active service, the total 5 service credit to which he or she was entitled at the time of [his] the 6 earlier retirement may, at his or her option, again be credited to him 7 or her and upon [his] subsequent retirement he or she shall be credited 8 in addition for purposes of computation of the pension portion of the 9 retirement allowance with all [member] service credit earned by him or 10 her subsequent to [his] the last restoration to membership. Such total 11 service credit to which he or she was entitled at the time of [his] the 12 earlier retirement shall be so credited only in the event that such 13 member returns to the retirement system with regular interest the actu- 14 arial equivalent of the amount of the pension [he] received, or in the 15 event that such amount is not so repaid the actuarial equivalent thereof 16 shall be deducted from his or her subsequent retirement allowance. 17 c. Notwithstanding the foregoing provisions of this subdivision, a 18 retired member who is receiving a retirement allowance for other than 19 physical disability, and who returns to active public service, may elect 20 not to be restored to membership in the retirement system until he or 21 she has rendered one year of service following his return to public 22 service. In such event his or her retirement allowance shall be 23 suspended during such year of service in the same manner as provided in 24 subdivision five of this section [five hundred three of this article]. 25 Upon restoration to membership following completion of such year of 26 service, his or her service in such year shall be deemed to be service 27 while a member for purposes of subdivision b of section five hundred 28 twelve of this article. He or she may purchase [member] service credit 29 for such year, which shall be deemed earned [member] service credit. If 30 a retired member receiving a retirement benefit allowance for other than 31 physical disability, returns to active public service, and is then inel- 32 igible for membership in the retirement system, his or her retirement 33 allowance shall be suspended in the same manner as provided in this 34 section. 35 d. Notwithstanding any other provision of this article, a retired 36 member who rejoins the system under the provisions of [paragraphs a or c37of] this subdivision shall only be entitled to a death benefit according 38 to the provisions of paragraph two of subdivision b of section five 39 hundred twelve of this article and of no other subdivision thereof and 40 for the purposes of said paragraph two of subdivision b of section five 41 hundred twelve the credited service as a teacher shall be service as a 42 teacher credited since last joining the system. 43 § 2. This act shall take effect on the sixtieth day after it shall 44 have become a law. FISCAL NOTE.--Pursuant to Legislative Law, Section 50: This bill would amend subdivision 11 of Section 503 of the Education Law to allow a retired member of the New State Teachers' Retirement System, who returns to active service and suspends their pension bene- fit, to elect to combine their service credit earned prior to their retirement with the service credit earned after their restoration to active service, provided they have earned at least two years of service credit since restoration to active service. The law currently requires five years of service credit since restoration to active service to combine all service credit. In either case the member must return the amount of pension previously received, or have their benefit reduced for life based upon the actuarial equivalent of the prior pension received.S. 9296 3 This bill would take effect on the sixtieth day after it shall become a law. 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. 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 Annual Report. System assets are as reported in the System's financial statements and can also be found in the System's Annual Report. Actuari- al assumptions and methods are provided in the System's Actuarial Valu- ation Report. The source of this estimate is Fiscal Note 2022-1 dated October 18, 2021 prepared by the Actuary of the New York State Teachers' Retirement System and is intended for use only during the 2022 Legislative Session. I, Richard A. Young, am the Chief Actuary for the New York State Teach- ers' Retirement System. I am a member of the American Academy of Actuar- ies and I meet the Qualification Standards of the American Academy of Actuaries to render the actuarial opinion contained herein.