senate Bill S4496

Amended

Relates to the minimum retirement allowance for certain pensioners who retired prior to July 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

  • 03 / Apr / 2013
    • REFERRED TO CIVIL SERVICE AND PENSIONS
  • 08 / Jan / 2014
    • REFERRED TO CIVIL SERVICE AND PENSIONS
  • 24 / Feb / 2014
    • AMEND AND RECOMMIT TO CIVIL SERVICE AND PENSIONS
  • 24 / Feb / 2014
    • PRINT NUMBER 4496A

Summary

Relates to the minimum retirement allowance for certain pensioners who retired prior to July 1, 1980.

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Bill Details

Versions:
S4496
S4496A
Legislative Cycle:
2013-2014
Current Committee:
Senate Civil Service And Pensions
Law Section:
Education Law
Laws Affected:
Amd ยง532, Ed L

Sponsor Memo

BILL NUMBER:S4496

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 of the Bill

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

Summary and 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
last amendment was made by Chapter 580 of the Laws of 2001.

This bill would amend the minimum supplemental benefit for the longest
retired teachers in subdivision e of Section 532 of the Education Law.
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 1,200 of the longest retired teachers would benefit
from this bill.

Effective Date of the Bill

This act shall take effect June 30, 2013, except that if this act
shall have become a law on or after June 30, 2013 this act. shall take
effect immediately and shall be deemed to have been in full force and
effect on and after June 30, 2013.

Other Agencies to Whom the Bill May Be of Interest

Division of the Budget, Department of Financial Services.

Budgetary Implications of the Bill

The annual cost to the employers of members of the New York State
Teachers' Retirement System for this benefit is estimated to be $1.0
million or .01% of payroll.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  4496

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              April 3, 2013
                               ___________

Introduced by Sen. LIBOUS -- (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 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] THIRTEEN a basic
supplemental 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.
  S 2. This act shall take effect June 30, 2013, except that if this act
shall have become  law on or after June 30, 2013, this  act  shall  take
effect  immediately  and  shall be deemed to have been in full force and
effect on and after June 30, 2013.
  FISCAL NOTE.--Pursuant to Legislative Law, Section 50:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08980-01-3

S. 4496                             2

  This bill would extend the minimum retirement  benefit  provision  for
retirees  of the New York State Teachers' Retirement System contained in
Section 532(e) 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
2013.
  The  annual  cost  to  the  employers of members of the New York State
Teachers' Retirement System for this benefit is  estimated  to  be  $1.0
million or .01% of payroll.
  The  source of this estimate is Fiscal Note 2013-1 dated September 19,
2012 prepared by the Actuary of the New York State Teachers'  Retirement
System and is intended for use only during the 2013 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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