senate Bill S5165
(R, C, IP) 51st Senate District
- In Committee
- On Floor Calendar
- Passed Senate
- Passed Assembly
- Delivered to Governor
- Signed/Vetoed by Governor
Relates to certain members who re-enter public service; extends tier reinstatement provisions to a retiree of a public retirement system who was an active member of a public retirement system on or after January 1, 1989.
- See Assembly Version of this Bill:
- Legislative Cycle:
- Senate Civil Service And Pensions
- Law Section:
- Retirement and Social Security Law
- Laws Affected:
- Amd §645, R & SS L
- Versions Introduced in Previous Legislative Cycles:
2011-2012: S7135A, A7703A
2009-2010: A7219A, A7219A
2007-2008: A9524A, A9524A
TITLE OF BILL: An act to amend the retirement and social security
law, in relation to certain members who re-enter public service
PURPOSE: This bill seeks to reinstate the remaining public employees
who lost their tier membership due to family care giving
responsibilities. By moving the effective date of Chapter 640 to
January 1, 1989, this bill will reinstate the remainder of the
retirement system members who were deprived of their membership in
superior pension plans due to the break in the service rules.
SUMMARY OF PROVISIONS: This bill amends subdivisions 2 and 4 of
section 645 of the retirement and social security law.
JUSTIFICATION: This bill gives New York. State the opportunity to
correct a long-standing inequity at a moderate cost. In 1998. the
Governor signed a law reinstating New York State and City active
teachers to their original pension system tier membership. In 1999,
pursuant to S5944, the Governor signed a law expanding the
reinstatement to all active public employees. In the Governor's press
release, he affirmed the importance of righting the inequity done to
thousands of public employees who were forced out of their jobs and
pension plan due to pregnancy and family care giving responsibilities.
Each member who was reinstated forfeited any claim to a return of the
contributions they had made to the retirement systems while they were
members of lesser tiers.
However, reinstated members were. refunded the amounts that they had
paid to the retirements systems for prior service credit purchases.
This bill pertains to a very limited and definable number of
retirement system members. Public employees before 1973 were assured
by pension system representatives that they could leave and return to
work without effect on their benefits. For example, a New York State
teacher who left teaching, generally for reasons related to the female
work pattern i.e. childbirth and attending to small children, stayed
out beyond the "break in service" period, and returned to find
themselves in a lesser pension plan. Had they been properly informed,
they could have taught as little as twenty days in anyone year within
the five year period and remained in Tier 1 when they returned to full
time teaching. The average teacher lost between $9,000 and $11,000 per
year in pension benefits and the right to retire at age 55 instead of
52 without penalty. It is unlikely that any members of the police and
fire pension systems will be eligible because so few women were
members in the 1960s and early 70s. As to the New York City Teachers
pension plan, the vast majority of teachers that left for care giving
responsibilities were protected by the generous New York City
LEGISLATIVE HISTORY: 2011/12 A7703 Died Gov't Employees, S7135 Died
Civil Service 2009/10 A7219 Died Gov't Employees, S3634 Died Civil
Service 2007/08 A9524 Died Gov't Employees, S4447 Passed Senate
2005/06 A5131 Died Gov't Employees, S3518 Passed Senate 2003/04 A5392
Died Gov't Employees, S3039 Died Rules 2001/02 A2903 Died Gov't
Employees, S2172 Died Civil Service & Pensions 1999/00 A10911 Died
Gov't Employees, S6127 Died Civil Service & Pensions
FISCAL NOTE - PURSUANT TO LEGISLATIVE LAW, SECTION 50: This bill
would allow certain living retirees of New York public-retirement
systems who retired prior to December 16, 1999 and who previously were
members of a New York Public retirement system to be deemed to have
become members of the systems from which they retired as of the
original date of such previous ceased membership. Tier 3 and 4
retirees of the New York State and Local Employees' Retirement System
or the New York State Teachers' Retirement System who become Tier 1 or
2 retirees and who have already purchased their previous service would
receive a refund of these contributions. No benefits will be deemed to
have accrued prior to the effective date of this act.
In addition, this bill would also affect retirees who had a previous
ceased membership with a public employee retirement system other than
the NYS&LERS or the NYS&LPFRS.
If this bill is enacted, insofar as this bill affects the New York
State and Local Employees' Retirement System (ERS), approximately
1,434 retirees of the ERS will be affected. The estimated past service
cost would be approximately $15.1 million.
Pursuant to section 25 of the Retirement and Social Security Law, this
ERS past service cost would be borne by the State of New York and
would require an itemized appropriation by the State of New York
sufficient to pay the cost of the provision. The State may amortize
this past service cost over a period of 5 years. The first year cost,
including interest would be approximately $3.5 million.
Insofar as this bill would affect employers in the New York State and
Local Police and Fire Retirement System (PERS), the estimated
additional costs would be negligible. These costs would be shared by
the State of New York and the participating employers in the PFRS.
Summary of relevant resources: Data: March 31, 2012 Actuarial Year
End File with distributions of membership and other statistics
displayed in the 2012 Report of the Actuary and 2012 Comprehensive
Annual Financial Report.
Assumptions and Methods: 2010, 2011 and 2012 Annual Report of the
Comptroller on Actuarial Assumptions, Codes Rules and Regulations of
the State of New York: Audit and Control.
Market Assets and GASB Disclosures: March 31, 2012 New York State and
Local Retirement System Financial Statements and Supplementary
Valuations of Benefit Liabilities and Actuarial Assets: summarized in
the 2012 Actuarial Valuations report.
I am a member of the American Academy of Actuaries and meet the
Qualification Standards to render the actuarial opinion contained
This estimate, dated January 29, 2013 and intended for use only during
the 2013 Legislative Session, is Fiscal Note No. 2013-53, prepared by
the Actuary for the New York State and Local Employees' Retirement
System and the New York State and Local Police and Fire Retirement
FISCAL NOTE - PURSUANT TO LEGISLATIVE LAW, SECTION 50: This bill
would amend subdivisions 2 and 4 of Section 645 of the Retirement and
Social Security Law to extend the tier reinstatement provisions to any
retiree of a public retirement system. The retiree must be alive as of
the effective date of the bill in order to be eligible. This bill only
applies to payments made on or after the effective date of this act.
The annual cost to the employers of members of the New York State
Teachers' Retirement System for this benefit is estimated to be $6.0
million or .04% of payroll if this bill is enacted.
The source of this estimate is Fiscal Note 2013-30 dated May 9, 2013
prepared by the Actuary of the New York State Teachers' Retirement
System and is intended for use only during the 2013 Legislative
Session. 1, Richard A. Young, am the Actuary for the New York State
Teachers' Retirement System. I am a member o the American Academy of
Actuaries and I meet the Qualification Standards of the American
Academy of Actuaries to render the actuarial opinion contained herein.
EFFECTIVE DATE: This act shall take effect immediately but shall only
apply to persons alive as of the effective date of this act and shall
apply to payments made on or after the effective date of this act; and
provided further, that any retirees qualifying under this act shall
have their retirement allowance recalculated from July 1, 2013 or the
date of reinstatement, whichever is later.
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