NY State Senate Bill 2023-S7462A

Senate Bill S7462A

2023-2024 Legislative Session

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

download bill text pdf

Current Bill Status - In Senate Committee Finance Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 07, 2024	reported and committed to finance
May 01, 2024	print number 7462a
May 01, 2024	amend and recommit to civil service and pensions
Jan 03, 2024	referred to civil service and pensions returned to senate died in assembly
Jun 07, 2023	referred to governmental employees delivered to assembly passed senate
Jun 01, 2023	ordered to third reading cal.1553 committee discharged and committed to rules
May 30, 2023	referred to civil service and pensions

Votes

- Jun 7, 2023 - Floor Vote
  S7462A
  
  61
  
  Aye
  
  0
  
  Nay
  
  0
  
  Absent
  
  2
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 7, 2023
      
      aye (61)
      
      Addabbo Jr.
      
      Ashby
      
      Bailey
      
      Borrello
      
      Breslin
      
      Brisport
      
      Brouk
      
      Canzoneri-Fitzpatrick
      
      Chu
      
      Cleare
      
      Comrie
      
      Fernandez
      
      Gallivan
      
      Gianaris
      
      Gonzalez
      
      Gounardes
      
      Griffo
      
      Harckham
      
      Helming
      
      Hinchey
      
      Hoylman-Sigal
      
      Jackson
      
      Kavanagh
      
      Kennedy
      
      Krueger
      
      Lanza
      
      Liu
      
      Mannion
      
      Martinez
      
      Martins
      
      Mattera
      
      May
      
      Mayer
      
      Murray
      
      Myrie
      
      O'Mara
      
      Oberacker
      
      Ortt
      
      Palumbo
      
      Parker
      
      Persaud
      
      Ramos
      
      Rhoads
      
      Rivera
      
      Rolison
      
      Ryan
      
      Salazar
      
      Sanders Jr.
      
      Scarcella-Spanton
      
      Sepúlveda
      
      Serrano
      
      Skoufis
      
      Stavisky
      
      Stec
      
      Stewart-Cousins
      
      Tedisco
      
      Thomas
      
      Walczyk
      
      Webb
      
      Weber
      
      Weik
      
      excused (2)
      
      Cooney
      
      Felder
  Jun 1, 2023 - Rules Committee Vote
  S7462A
  
  20
  
  Aye
  
  0
  
  Nay
  
  1
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Rules Committee Vote: Jun 1, 2023
      
      aye (20)
      
      Addabbo Jr.
      
      Bailey
      
      Breslin
      
      Comrie
      
      Fernandez
      
      Gallivan
      
      Gianaris
      
      Griffo
      
      Helming
      
      Kennedy
      
      Krueger
      
      Liu
      
      Mayer
      
      O'Mara
      
      Ortt
      
      Parker
      
      Sepúlveda
      
      Stec
      
      Stewart-Cousins
      
      Thomas
      
      aye wr (1)
      
      Lanza
  May 7, 2024 - Civil Service And Pensions Committee Vote
  S7462A
  
  7
  
  Aye
  
  0
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Civil Service And Pensions Committee Vote: May 7, 2024
      
      aye (7)
      
      Addabbo Jr.
      
      Chu
      
      Gounardes
      
      Jackson
      
      Mattera
      
      Scarcella-Spanton
      
      Weik

Bill Amendments

Original

A (Active)

co-Sponsors

2023-S7462 - Details

Current Committee:: Senate Finance
Law Section:: Education Law
Laws Affected:: Amd §503, Ed L
Versions Introduced in 2021-2022 Legislative Session:: S9296

2023-S7462 - Summary

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.

2023-S7462 - Sponsor Memo

                                 
BILL NUMBER: S7462

SPONSOR: RYAN
 
TITLE OF BILL:

An act to amend the education law, in relation to allowing retirees of
the New York state teachers' retirement system who suspend their retire-
ment the option of a benefit recalculation after two years of service

 
PURPOSE OF THE BILL:

The New York State Teachers' Retirement System (NYSTRS) proposes an
amendment to Education Law Section 503(11) to mirror the provisions of
Retirement and Social Security Law Section 101, the provisions available
to members of the New York State and Local Employees' Retirement System
(NYSLRS). The purpose of this amendment is to maintain consistency in
the law for members of the state systems (NYSLRS and NYSTRS). The amend-
ments to Education Law Section 503(11) would allow retired members of
NYSTRS to suspend their retirement, return to work and have the option
of a benefit recalculation after working at least two years of addi-
tional public service.

SUMMARY AND JUSTIFICATION:

Under the current statute, Education Law Section 503(11)(b), NYSTRS
retirees are permitted to suspend their retirement and return to work to
have their benefit recalculated after five years or alternatively upon
re-retiring with at least two years of service, they become eligible to
receive two separate retirement benefits. In order to avail themselves
of the recalculation after five years of additional service, the member
is required to pay back all the pension benefits received under the
original retirement benefit, with interest, or take an actuarial equiv-
alent lifetime reduction. The intent of these provisions, Education Law
Section 503 and Retirement and Social Security Law Section 101, is to
allow members of NYSTRS and NYSLRS, as public employees, the opportunity
to have all their public service under either two separate retirement
benefits or the option of a combined retirement benefit, if the recalcu-
lation requirements are satisfied.

The amendments to Education Law Section 503(11) update the law to
reflect the requirements under Retirement and Social Security Law
Section 101, and would allow NYSTRS members to avail themselves of a
recalculation after two years of member service credit after restoration
to active service, provided, such members return to the retirement
system with regular interest the actuarial equivalent of the amount of
the retirement allowance received in the first retirement or repayment
of same through actuarial lifetime reduction.

In addition, the System recognizes that allowing retirees the option of
recalculating their benefit after two years of service, instead of five
years, may assist those who believe they attained a service credit mark-
er, but discover after the fact and post verification of service record
with the school district that they had not. For example, in some cases,
members retiring believe they have reached their intended service credit
milestone, twenty years, but once the service has been verified with the
employer the service credit is less than what was anticipated. At that
point, it could be very difficult for the retiree to return to the posi-
tion they retired from or even find a similar position, much less for an
additional five years. Reducing the benefit recalculation requirement to
two years, would provide a more reasonable avenue to rectify such
miscalculations, equitably avail NYSTRS retirees of the same recalcu-
lation already provided in law for NYSLRS retirees, and may provide
employers with opportunities to hire an experienced worker to fill in
during a transition and assist in succession planning.

This legislation was captured under veto message 138 of the laws of 2022
for the reason that the finding source was not identified. The System's
fiscal note was appended to the bill and provided that due to the nature
of this legislation NYSTRS is unable to ascertain the exact number of
members who will pursue the recalculation upon restoration to member-
ship.

Accordingly, it is not possible to state that there will be no cost to
the bill. An individual's life circumstances determine how and when a
member retires and then elects to return to public service.  The law
does currently require, however, that for a member to afford themselves
of the benefit recalculation addressed in this legislation the member
must remit the repayment of all pension received under the first retire-
ment plus interest or repayment through an actuarial reduction. With
that said, there may be a cost associated due to the employer contrib-
ution rate collected and applicable at the time of the service and that
is reflected in the negligible cost in the fiscal note appended.

The amendments sought by this proposed legislation seek to update the
application of the law and provide NYSTRS members with the similar
option currently available to other state employees.

 
EFFECTIVE DATE OF THE BILL:

This act shall take effect on the sixtieth day after it shall have
become a law.

 
OTHER AGENCIES TO WHOM THE BILL MAY BE OF INTEREST:

Division of the Budget, Department of Financial Services.

 
BUDGETARY IMPLICATIONS OF THE BILL:

If this bill is enacted, the annual cost to the employers of members of
the New York State Teachers' Retirement System is estimated to be negli-
gible.

NOTE: This bill was prepared under the direction of the New York State
Teachers' Retirement System Board and was introduced at its request.

2023-S7462 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7462
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                               May 30, 2023
                                ___________
 
 Introduced  by  Sen.  RYAN  --  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:
 
   Section 1. Subdivision 11 of section 503  of  the  education  law,  as
 added  by  chapter  507 of the laws of 1972 and as renumbered by chapter
 512 of the laws of 1976, is amended to read as follows:
   11. a. If a retired member, receiving a retirement allowance for other
 than disability, returns to active public service, except  as  otherwise
 provided  in  [sections]  SECTION  two  hundred  eleven or two [hyndred]
 HUNDRED twelve of the retirement and social security law, and is  eligi-
 ble for membership in the retirement system, he [thereupon] OR SHE shall
 become  a  member and his OR HER retirement allowance shall be suspended
 in the same manner as provided in subdivision five of THIS section [five
 hundred three of this article. In such event, he shall contribute to the
 retirement system as if he were a new  member].  Upon  [his]  subsequent
 retirement [after at least two years of service he] THEY shall:
   1. Be credited with all member service earned [by him] since he OR SHE
 last became a member of the retirement system, and
   2. Receive a retirement allowance which shall consist of[:
   (a) An annuity as provided in subdivision five of section five hundred
 three  of this article plus an annuity which is the actuarial equivalent
 of any contributions made by him since he last became a member, and
   (b) The] THE pension which he OR SHE was receiving  immediately  prior
 to  his OR HER last restoration to membership as provided in subdivision
 five of THIS section [five  hundred  three  of  this  article],  plus  a
 pension  based upon the [member] service credit earned [by him] since he
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11631-01-3

 S. 7462                             2
 
 OR SHE last became a member. Such latter pension shall be computed as if
 [he] THEY were a new member when he OR SHE rejoined the system  pursuant
 to the provisions of this subdivision.
   b.  Where  such  member shall have earned at least [five] TWO years of
 [member] service credit after restoration to active service,  the  total
 service  credit to which he OR SHE was entitled at the time of [his] THE
 earlier retirement may, at his OR HER option, again be credited  to  him
 OR  HER and upon [his] subsequent retirement he OR SHE shall be credited
 in addition for purposes of computation of the pension  portion  of  the
 retirement  allowance  with all [member] service CREDIT earned by him OR
 HER subsequent to [his] THE last restoration to membership.  Such  total
 service  credit to which he OR SHE was entitled at the time of [his] THE
 earlier retirement shall be so credited only  in  the  event  that  such
 member  returns to the retirement system with regular interest the actu-
 arial equivalent of the amount of the pension [he] received, or  in  the
 event that such amount is not so repaid the actuarial equivalent thereof
 shall be deducted from his OR HER subsequent retirement allowance.
   c.  Notwithstanding  the  foregoing  provisions of this subdivision, a
 retired member who is receiving a retirement allowance  for  other  than
 physical disability, and who returns to active public service, may elect
 not  to  be  restored to membership in the retirement system until he OR
 SHE has rendered one year of service following  his  OR  HER  return  to
 public  service.  In such event his OR HER retirement allowance shall be
 suspended during such year of service in the same manner as provided  in
 subdivision  five  of THIS section [five hundred three of this article].
 Upon restoration to membership following  completion  of  such  year  of
 service,  his  OR HER service in such year shall be deemed to be service
 while a member for purposes of subdivision b  of  section  five  hundred
 twelve  of  this article. He OR SHE may purchase [member] service credit
 for such year, which shall be deemed earned [member] service credit.  IF
 A RETIRED MEMBER RECEIVING A RETIREMENT BENEFIT ALLOWANCE FOR OTHER THAN
 PHYSICAL DISABILITY, RETURNS TO ACTIVE PUBLIC SERVICE, AND IS THEN INEL-
 IGIBLE  FOR  MEMBERSHIP  IN THE RETIREMENT SYSTEM, HIS OR HER RETIREMENT
 ALLOWANCE SHALL BE SUSPENDED IN THE SAME  MANNER  AS  PROVIDED  IN  THIS
 SECTION.
   d.  Notwithstanding  any  other  provision  of this article, a retired
 member who rejoins the system under the provisions of [paragraphs a or c
 of] this subdivision shall only be entitled to a death benefit according
 to the provisions of paragraph two of  subdivision  b  of  section  five
 hundred  twelve  of this article and of no other subdivision thereof and
 for the purposes of said paragraph two of subdivision b of section  five
 hundred  twelve  the credited service as a teacher shall be service as a
 teacher credited since last joining the system.
   § 2. This act shall take effect on the sixtieth  day  after  it  shall
 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 York State Teachers' Retirement
 System (NYSTRS), who  returns  to  active  service  and  suspends  their
 pension  benefit,  to elect to combine their service credit earned prior
 to their retirement with the service credit earned after their  restora-
 tion  to active service, provided they have earned at least two years of
 service credit since restoration and they pay back their  prior  pension
 received or have the new benefit reduced for life based upon the actuar-
 ial  equivalent of the prior pension received. Current law requires five
 years of service credit since restoration to combine all service  credit
 S. 7462                             3

 into  one  pension benefit. State employees and other members of the New
 York State and Local Retirement System (NYS&LRS) are eligible to combine
 their service credit after earning two years  of  service  credit  after
 restoration. This bill would make this eligibility the same for teachers
 as  it is for state employees. This bill would take effect on the sixti-
 eth day after it shall become a law.
   The annual cost to the employers of members  of  the  New  York  State
 Teachers' Retirement System would 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 2023-14 dated  January  20,
 2023  prepared by the Actuary of the New York State Teachers' Retirement
 System and is intended for use only during the 2023 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.

co-Sponsors

2023-S7462A (ACTIVE) - Details

Current Committee:: Senate Finance
Law Section:: Education Law
Laws Affected:: Amd §503, Ed L
Versions Introduced in 2021-2022 Legislative Session:: S9296

2023-S7462A (ACTIVE) - Summary

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.

2023-S7462A (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S7462A

SPONSOR: RYAN
 
TITLE OF BILL:

An act to amend the education law, in relation to allowing retirees of
the New York state teachers' retirement system who suspend their retire-
ment the option of a benefit recalculation after two years of service

 
PURPOSE OF THE BILL:

The New York State Teachers' Retirement System (NYSTRS) proposes an
amendment to Education Law Section 503(11) to mirror the provisions of
Retirement and Social Security Law Section 101, the provisions available
to members of the New York State and Local Employees' Retirement System
(NYSLRS). The purpose of this amendment is to maintain consistency in
the law for members of the state systems (NYSLRS and NYSTRS). The amend-
ments to Education Law Section 503(11) would allow retired members of
NYSTRS to suspend their retirement, return to work and have the option
of a benefit recalculation after working at least two years of addi-
tional public service.

SUMMARY AND JUSTIFICATION:

Under the current statute, Education Law Section 503(11)(b), NYSTRS
retirees are permitted to suspend their retirement and return to work to
have their benefit recalculated after five years or alternatively upon
re-retiring with at least two years of service, they become eligible to
receive two separate retirement benefits. In order to avail themselves
of the recalculation after five years of additional service, the member
is required to pay back all the pension benefits received under the
original retirement benefit, with interest, or take an actuarial equiv-
alent lifetime reduction. The intent of these provisions, Education Law
Section 503 and Retirement and Social Security Law Section 101, is to
allow members of NYSTRS and NYSLRS, as public employees, the opportunity
to have all their public service under either two separate retirement
benefits or the option of a combined retirement benefit, if the recalcu-
lation requirements are satisfied.

The amendments to Education Law Section 503(11) update the law to
reflect the requirements under Retirement and Social Security. Law
Section 101, and would allow NYSTRS members to avail themselves of a
recalculation after two years of member service credit after restoration
to active service, provided, such members return to the retirement
system with regular interest the actuarial equivalent of the amount of
the retirement allowance received in the first retirement or repayment
of same through actuarial lifetime reduction.

In addition, the System recognizes that allowing retirees the option of
recalculating their benefit after two years of service, instead of five
years, may assist those who believe they attained a service credit mark-
er, but discover after the fact and post verification of service record
with the school district that they had not. For example, in some cases,
members retiring believe they have reached their intended service credit
milestone, twenty years, but once the service has been verified with the
employer the service credit is less than what was anticipated. At that
point, it could be very difficult for the retiree to return to the posi-
tion they retired from or even find a similar position, much less for an
additional five years. Reducing the benefit recalculation requirement to
two years, would provide a more reasonable avenue to rectify such
miscalculations, equitably avail NYSTRS retirees of the same recalcu-
lation already provided in law for NYSLRS retirees, and may provide
employers with opportunities to hire an experienced worker to fill in
during a transition and assist in succession planning.

This legislation was captured under veto message 138 of the laws of 2022
for the reason that the finding source was not identified. The System's
fiscal note was appended to the bill and provided that due to the nature
of this legislation NYSTRS is unable to ascertain the exact number of
members who will pursue the recalculation upon restoration to member-
ship.

Accordingly, it is not possible to state that there will be no cost to
the bill. An individual's life circumstances determine how and when a
member retires and then elects to return to public service. The law does
currently require, however, that for a member to afford themselves of
the benefit recalculation addressed in this legislation the member must
remit the repayment of all pension received under the first retirement
plus interest or repayment through an actuarial reduction. With that
said, there may be a cost associated due to the employer contribution
rate collected and applicable at the time of the service and that is
reflected in the negligible cost in the fiscal note appended.

The amendments sought by this proposed legislation seek to update the
application of the law and provide NYSTRS members with the similar
option currently available to other state employees.

 
EFFECTIVE DATE OF THE BILL:

This act shall take effect on the sixtieth day after it shall have
become a law.

 
OTHER AGENCIES TO WHOM THE BILL MAY BE OF INTEREST:

Division of the.  Budget, Department of Financial Services.

 
BUDGETARY IMPLICATIONS OF THE BILL:

If this bill is enacted, the annual cost to the employers of members of
the New York State Teachers' Retirement System is estimated to be negli-
gible.

NOTE: This bill was prepared under the direction of the New York State
Teachers' Retirement System Board and was introduced at its request.

2023-S7462A (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7462--A
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                               May 30, 2023
                                ___________
 
 Introduced  by  Sens.  RYAN,  CHU  --  (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 Committee 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  commit-
   tee
 
 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:
 
   Section  1.  Subdivision  11  of  section 503 of the education law, as
 added by chapter 507 of the laws of 1972 and as  renumbered  by  chapter
 512 of the laws of 1976, is amended to read as follows:
   11. a. If a retired member, receiving a retirement allowance for other
 than  disability,  returns to active public service, except as otherwise
 provided in [sections] SECTION  two  hundred  eleven  or  two  [hyndred]
 HUNDRED  twelve of the retirement and social security law, and is eligi-
 ble for membership in the retirement system, [he thereupon] SUCH RETIRED
 MEMBER shall become a member and [his] SUCH MEMBER'S  retirement  allow-
 ance  shall  be  suspended in the same manner as provided in subdivision
 five of THIS section [five hundred three of this article. In such event,
 he shall contribute to the  retirement  system  as  if  he  were  a  new
 member].  Upon  [his] subsequent retirement [after at least two years of
 service he] THEY shall:
   1. Be credited with all member service earned [by him] since [he] SUCH
 RETIRED MEMBER last became a member of the retirement system, and
   2. Receive a retirement allowance which shall consist of[:

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11631-02-4
 S. 7462--A                          2

   (a) An annuity as provided in subdivision five of section five hundred
 three of this article plus an annuity which is the actuarial  equivalent
 of any contributions made by him since he last became a member, and
   (b)  The] THE pension which [he] SUCH MEMBER was receiving immediately
 prior to [his] SUCH MEMBER'S last restoration to membership as  provided
 in  subdivision  five  of THIS section [five hundred three of this arti-
 cle], plus a pension based upon the [member] service credit  earned  [by
 him]  since  [he]  SUCH MEMBER last became a member. Such latter pension
 shall be computed as if [he] THEY were  a  new  member  when  [he]  SUCH
 MEMBER  rejoined  the system pursuant to the provisions of this subdivi-
 sion.
   b. Where such member shall have earned at least [five]  TWO  years  of
 [member]  service  credit after restoration to active service, the total
 service credit to which [he] SUCH MEMBER was entitled  at  the  time  of
 [his]  THE  earlier retirement may, at [his] SUCH MEMBER'S option, again
 be credited to [him] SUCH MEMBER and upon  [his]  subsequent  retirement
 [he]  SUCH MEMBER shall be credited in addition for purposes of computa-
 tion of the  pension  portion  of  the  retirement  allowance  with  all
 [member]  service CREDIT earned by [him] SUCH MEMBER subsequent to [his]
 THE last restoration to membership.  Such total service credit to  which
 [he]  SUCH  MEMBER was entitled at the time of [his] THE earlier retire-
 ment shall be so credited only in the event that such member returns  to
 the  retirement system with regular interest the actuarial equivalent of
 the amount of the pension [he] received,  or  in  the  event  that  such
 amount  is  not  so  repaid  the  actuarial  equivalent thereof shall be
 deducted from [his] SUCH MEMBER'S subsequent retirement allowance.
   c. Notwithstanding the foregoing provisions  of  this  subdivision,  a
 retired  member  who  is receiving a retirement allowance for other than
 physical disability, and who returns to active public service, may elect
 not to be restored to membership in the  retirement  system  until  [he]
 SUCH  RETIRED  MEMBER  has  rendered one year of service following [his]
 SUCH MEMBER'S return  to  public  service.  In  such  event  [his]  SUCH
 MEMBER'S  retirement  allowance  shall  be suspended during such year of
 service in the same manner as  provided  in  subdivision  five  of  THIS
 section  [five  hundred  three  of  this article].   Upon restoration to
 membership following completion of such  year  of  service,  [his]  SUCH
 MEMBER'S  service  in  such  year  shall be deemed to be service while a
 member for purposes of subdivision b of section five hundred  twelve  of
 this  article. [He] SUCH MEMBER may purchase [member] service credit for
 such year, which shall be deemed earned [member] service  credit.  IF  A
 RETIRED  MEMBER  RECEIVING A RETIREMENT BENEFIT ALLOWANCE FOR OTHER THAN
 PHYSICAL DISABILITY, RETURNS TO ACTIVE PUBLIC SERVICE, AND IS THEN INEL-
 IGIBLE FOR MEMBERSHIP IN THE RETIREMENT SYSTEM,  SUCH  RETIRED  MEMBER'S
 RETIREMENT  ALLOWANCE  SHALL BE SUSPENDED IN THE SAME MANNER AS PROVIDED
 IN THIS SECTION.
   d. Notwithstanding any other provision  of  this  article,  a  retired
 member who rejoins the system under the provisions of [paragraphs a or c
 of] this subdivision shall only be entitled to a death benefit according
 to  the  provisions  of  paragraph  two of subdivision b of section five
 hundred twelve of this article and of no other subdivision  thereof  and
 for  the purposes of said paragraph two of subdivision b of section five
 hundred twelve the credited service as a teacher shall be service  as  a
 teacher credited since last joining the system.
   §  2.  This  act  shall take effect on the sixtieth day after it shall
 have become a law.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
 S. 7462--A                          3
 
   This bill would amend subdivision 11 of Section 503 of  the  Education
 Law to allow a retired member of the New York State Teachers' Retirement
 System  (NYSTRS),  who  returns  to  active  service  and suspends their
 pension benefit, to elect to combine their service credit  earned  prior
 to  their retirement with the service credit earned after their restora-
 tion to active service, provided they have earned at least two years  of
 service  credit  since restoration and they pay back their prior pension
 received or have the new benefit reduced for life based upon the actuar-
 ial equivalent of the prior pension received. Current law requires  five
 years  of service credit since restoration to combine all service credit
 into one pension benefit. State employees and other members of  the  New
 York State and Local Retirement System (NYS&LRS) are eligible to combine
 their  service  credit  after  earning two years of service credit after
 restoration. This bill would make this eligibility the same for teachers
 as it is for state employees. This bill would take effect on the  sixti-
 eth day after it shall become a law.
   The  annual  cost  to  the  employers of members of the New York State
 Teachers' Retirement System would 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 2024-2 dated October 16,
 2023 prepared by the Actuary of the New York State Teachers'  Retirement
 System and is intended for use only during the 2024 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.

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Senate Bill S7462A

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Sponsored By

Sean M. Ryan

Current Bill Status - In Senate Committee Finance Committee

Bill Amendments

co-Sponsors

Iwen Chu

2023-S7462 - Details

2023-S7462 - Summary

2023-S7462 - Sponsor Memo

2023-S7462 - Bill Text download pdf

co-Sponsors

Iwen Chu

2023-S7462A (ACTIVE) - Details

2023-S7462A (ACTIVE) - Summary

2023-S7462A (ACTIVE) - Sponsor Memo

2023-S7462A (ACTIVE) - Bill Text download pdf

Comments