Assembly Bill A2437

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

                                 2437--A

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            January 15, 2009
                               ___________

Introduced  by M. of A. ABBATE, REILLY, COLTON, SCHROEDER -- Multi-Spon-
  sored by -- M.  of A. COOK, PHEFFER -- read once and referred  to  the
  Committee  on  Governmental  Employees  --  committee discharged, bill
  amended, ordered reprinted as amended and recommitted to said  commit-
  tee

AN  ACT  to amend the retirement and social security law, in relation to
  retirement benefits

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

  Section  1.  Subdivision b of section 604 of the retirement and social
security law, as amended by chapter 266 of the laws of 1998, is  amended
to read as follows:
  b.  The  service  retirement  benefit  at  normal retirement age for a
member with twenty years or more of credited service shall be a  retire-
ment allowance equal to one-fiftieth of final average salary times years
of credited service [not in excess of thirty years.
  Credited service in excess of thirty years shall provide an additional
retirement  allowance equal to three-two hundredths of the final average
salary for each year of credited service in excess of thirty years].
  S 2. This act shall take effect immediately and  shall  be  deemed  to
have  been in full force and effect on and after June 30, 2009; provided
that subdivision b of section 604 of the retirement and social  security
law  amended by section one of this act shall expire on the same date as
such section expires pursuant to section 615 of such law.
  FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
  This bill would amend Article 15 of the Retirement and Social Security
Law to provide that members who retire after the completion of more than
thirty (30) years of service would receive an allowance based on two (2)
percent of final average salary for each  year  of  service.  This  bill
shall be deemed in effect on and after June 30, 2009.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05608-02-9

              

A. 2437--A                          2

  Insofar as this bill would affect the New York State and Local Employ-
ees' Retirement System, if it is enacted, we anticipate that there would
be estimated additional annual costs of approximately $48 million to the
State  of New York and $67 million to the participating employers in the
New York State and Local Employees' Retirement System.
  This estimate, dated December 1, 2008 and intended for use only during
the  2009  Legislative  Session, is Fiscal Note No. 2009-57, prepared by
the Actuary for the New  York  State  and  Local  Employees'  Retirement
System.
  FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
  This  bill  would amend subdivision b of section 604 of the Retirement
and Social Security Law to modify the current benefit formula by replac-
ing the 1.5% pension factor for years of service credit in excess of  30
with  a  2.0%  pension  factor. This formula is applicable to Tier 3 and
Tier 4 members of the New York State Teachers' Retirement System.
  The annual cost to the employer of  members  of  the  New  York  State
Teachers'  Retirement  System  for this benefit is estimated to be $80.1
million or 0.54% of payroll if this bill is enacted.
  The source of this estimate is Fiscal Note 2009-28 dated March 9, 2009
prepared by the Actuary of  the  New  York  State  Teachers'  Retirement
System and is intended for use only during the 2009 Legislative Session.