senate Bill S2341A

Extends the minimum retirement benefit provision for retirees of the New York state teachers' retirement system who retired prior to June 1, 1980

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 18 / Feb / 2009
    • REFERRED TO CIVIL SERVICE AND PENSIONS
  • 06 / Jan / 2010
    • REFERRED TO CIVIL SERVICE AND PENSIONS
  • 25 / Jan / 2010
    • AMEND AND RECOMMIT TO CIVIL SERVICE AND PENSIONS
  • 25 / Jan / 2010
    • PRINT NUMBER 2341A

Summary

Extends the minimum retirement benefit provision for retirees of the New York state teachers' retirement system who retired prior to June 1, 1980.

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Bill Details

See Assembly Version of this Bill:
A2823A
Versions:
S2341
S2341A
Legislative Cycle:
2009-2010
Current Committee:
Senate Civil Service And Pensions
Law Section:
Education Law
Laws Affected:
Amd §532, Ed L

Sponsor Memo

BILL NUMBER: S2341A

TITLE OF BILL :
An act to amend the education law, in relation to the minimum
retirement allowance for members of the New York state teachers'
retirement system who retired prior to July 1, 1980


PURPOSE :
This bill would extend the minimum retirement allowance to retirees of
the New York State Teachers' Retirement System who retired prior to
July 1, 1980 and increase the minimum retirement allowance for such
retirees to $550 per year of New York State service up to a 35 year
maximum of $19,250.

SUMMARY OF PROVISIONS :
This bill would amend the minimum supplemental benefit for the longest
retired teachers in subdivision e of Education Law §532. It would
extend the minimum supplemental benefit to all teachers who retired
prior to July 1, 1980, as opposed to July 1, 1970 under current law.
It would also modestly raise the minimum annual benefit from $500 to
$550 per year of New York state service up to a 35 year maximum of
$19,250 (versus $17,500 currently). The Retirement Board believes this
measure represents appropriate relief for the most deserving segment
of the retired membership body. It is anticipated that approximately
2,500 of the longest retired teachers would benefit from this bill.

JUSTIFICATION :
Public policy has long recognized the need for a minimum benefit for
long retired teachers whose benefits have been eroded by the effects
of inflation over time. That minimum benefit, contained in subdivision
e of section 532 of the Education Law, has operated to provide a
greater increase in the pensions of the longest retired teachers than
they otherwise would have been entitled to under other provisions of
law. In recognition of their particular need, subdivision e has been
updated periodically so as to modestly increase their benefits. The
most recent amendment was made by Chapter 580 of the Laws of 2001.

PRIOR LEGISLATIVE HISTORY :
2009 Session: S.2341

FISCAL IMPLICATIONS :
The Actuary of the New York State Teachers' Retirement System has
estimated that the additional annual cost to employers of members of
the New York State Teachers' Retirement System would be $1.9 million
or .01% of payroll if this bill is enacted.

EFFECTIVE DATE :
This bill would take effect June 30, 2010, except that if this act
shall have become a law on or after June 30, 2010 this act shall take
effect immediately and shall be deemed to have been in full force and
effect on and after June 30, 2010.
view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 2341--A

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                            February 18, 2009
                               ___________

Introduced  by  Sens.  SAVINO,  DIAZ, MONSERRATE, ONORATO, PARKER -- (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  Commit-
  tee  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 minimum retirement
  allowance  for  members  of  the  New  York state teachers' retirement
  system who retired prior to July 1, 1980

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Paragraph 1 of subdivision e of section 532 of the educa-
tion law, as amended by chapter 580 of the laws of 2001, is  amended  to
read as follows:
  1.  Each  pensioner  of  the retirement system who retired before July
first, nineteen hundred [seventy] EIGHTY shall be paid, commencing  with
a  payment  for the month of July two thousand [one] TEN a basic supple-
mental pension, the total of which when  added  to  his  OR  HER  yearly
retirement allowance computed without optional modification, but exclud-
ing  any  annuity derived from contributions made by members pursuant to
paragraphs a and b of subdivision three of section five hundred sixteen,
section five hundred twenty-eight,  section  five  hundred  twenty-nine,
section  five  hundred  thirty,  section  five  hundred thirty-three and
section five hundred thirty-five of this article, shall equal the lesser
of [seventeen thousand five hundred] NINETEEN THOUSAND TWO HUNDRED FIFTY
dollars or the sum of five  hundred  FIFTY  dollars  multiplied  by  the
number  of years of full-time New York state service not to exceed thir-
ty-five years with which he OR SHE was credited at the time  of  his  OR
HER retirement.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06326-03-0

S. 2341--A                          2

  S 2. This act shall take effect June 30, 2010, except that if this act
shall  have become a law after June 30, 2010, this act shall take effect
immediately and shall be deemed to have been in full force and effect on
and after June 30, 2010.

  FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
  This  bill  would  extend the minimum retirement benefit provision for
retirees of the New York State Teachers' Retirement System contained  in
subdivision e of Section 532 of the Education Law to members who retired
before  July  1, 1980. Currently only members who retired before July 1,
1970 are eligible. Additionally the  minimum  annual  benefit  would  be
increased  to  $550  for  each year of credited full-time New York State
service, up to 35 years, for a maximum benefit of $19,250.  The  benefit
is  currently  $500  for  each  year  up to 35, for a maximum benefit of
$17,500. The increased benefit would commence with  a  payment  for  the
month of July 2010.
  The  annual  cost  to  the  employers of members of the New York State
Teachers' Retirement System for this benefit is  estimated  to  be  $1.9
million or .01% of payroll.
  The  source  of  this estimate is Fiscal Note 2010-5 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.

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