S T A T E O F N E W Y O R K
________________________________________________________________________
2947--A
2009-2010 Regular Sessions
I N A S S E M B L Y
January 22, 2009
___________
Introduced by M. of A. McENENY, CANESTRARI, GALEF -- Multi-Sponsored by
-- M. of A. COLTON, COOK, GLICK, MAYERSOHN, ORTIZ, PAULIN, WRIGHT --
read once and referred to the Committee on Governmental Employees --
recommitted to the Committee on Governmental Employees in accordance
with Assembly Rule 3, sec. 2 -- committee discharged, bill amended,
ordered reprinted as amended and recommitted to said committee
AN ACT to amend the retirement and social security law, in relation to
retirement options of married members
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Paragraph 2 of subdivision bb of section 90 of the retire-
ment and social security law, as amended by chapter 163 of the laws of
1959, is amended to read as follows:
2. (A) Notwithstanding any other provision of this section, but except
where payment of accumulated contributions, an ordinary death benefit,
or both, is or are required pursuant to subdivision dd of section
fifty-one of this article or subdivision aa of section sixty of this
article, retirement OF MEMBERS WHO LAST JOINED THE RETIREMENT SYSTEM ON
OR BEFORE DECEMBER THIRTY-FIRST, TWO THOUSAND TEN shall be on the basis
of "Option One-half" unless the member files an effective election
pursuant to this section to retire on a different basis. [The
provisions of this paragraph two shall apply to cases where retirement
shall become effective on or after May first, nineteen hundred fifty-
four.]
(B) NOTWITHSTANDING ANY OTHER PROVISIONS OF THIS SECTION, BUT EXCEPT
WHERE PAYMENT OF ACCUMULATED CONTRIBUTIONS, AN ORDINARY DEATH BENEFIT OR
BOTH IS REQUIRED PURSUANT TO SUBDIVISION DD OF SECTION FIFTY-ONE OF THIS
ARTICLE OR SUBDIVISION AA OF SECTION SIXTY OF THIS ARTICLE, RETIREMENT
OF MEMBERS WHO LAST JOINED THE RETIREMENT SYSTEM ON OR AFTER JANUARY
FIRST, TWO THOUSAND ELEVEN SHALL BE ON THE BASIS OF "OPTION ONE-HALF" IF
THE MEMBER IS NOT MARRIED AT THE TIME OF RETIREMENT, OR ON THE BASIS OF
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00986-03-0
A. 2947--A 2
THE JOINT ALLOWANCE-HALF OPTION, WITH THE SPOUSE AS BENEFICIARY, IF THE
MEMBER IS MARRIED AT THE TIME OF RETIREMENT, UNLESS THE MEMBER FILES AN
EFFECTIVE ELECTION PURSUANT TO THIS SECTION TO RETIRE ON A DIFFERENT
BASIS. IN ORDER TO BECOME EFFECTIVE, SUCH ELECTION MUST CONTAIN THE
SPOUSE'S SIGNED AND ACKNOWLEDGED WAIVER OF RIGHTS TO RECEIVE BENEFITS
UNDER THE "JOINT ALLOWANCE-HALF" OPTION. THE COMPTROLLER MAY PROMULGATE
REGULATIONS UNDER WHICH THE WAIVER OTHERWISE REQUIRED MAY BE EXCUSED ON
THE BASIS THAT THE SPOUSE CAN NOT BE LOCATED OR BECAUSE OF OTHER CIRCUM-
STANCES PROVIDED IN SUCH REGULATIONS.
S 2. Paragraph 2 of subdivision bb of section 390 of the retirement
and social security law, as added by chapter 1000 of the laws of 1966,
is amended to read as follows:
2. (A) Notwithstanding any other provision of this section, but except
where payment of accumulated contributions, an ordinary death benefit,
or both, is or are required pursuant to subdivision dd of section three
hundred fifty-one of this article or subdivision aa of section three
hundred sixty of this article, retirement OF MEMBERS WHO LAST JOINED THE
RETIREMENT SYSTEM ON OR BEFORE DECEMBER THIRTY-FIRST, TWO THOUSAND TEN
shall be on the basis of "Option One-half" unless the member files an
effective election pursuant to this section to retire on a different
basis. [The provisions of this paragraph two shall apply to cases where
retirement shall become effective on or after April first, nineteen
hundred sixty-seven.]
(B) NOTWITHSTANDING ANY OTHER PROVISIONS OF THIS SECTION, BUT EXCEPT
WHERE PAYMENT OF ACCUMULATED CONTRIBUTIONS, AN ORDINARY DEATH BENEFIT OR
BOTH IS REQUIRED PURSUANT TO SUBDIVISION DD OF SECTION THREE HUNDRED
FIFTY-ONE OF THIS ARTICLE OR SUBDIVISION AA OF SECTION THREE HUNDRED
SIXTY OF THIS ARTICLE, RETIREMENT OF MEMBERS WHO LAST JOINED THE RETIRE-
MENT SYSTEM ON OR AFTER JANUARY FIRST, TWO THOUSAND ELEVEN SHALL BE ON
THE BASIS OF "OPTION ONE-HALF" IF THE MEMBER IS NOT MARRIED AT THE TIME
OF RETIREMENT, OR ON THE BASIS OF THE JOINT ALLOWANCE-HALF OPTION, WITH
THE SPOUSE AS BENEFICIARY, IF THE MEMBER IS MARRIED AT THE TIME OF
RETIREMENT, UNLESS THE MEMBER FILES AN EFFECTIVE ELECTION PURSUANT TO
THIS SECTION TO RETIRE ON A DIFFERENT BASIS. IN ORDER TO BECOME EFFEC-
TIVE, SUCH ELECTION MUST CONTAIN THE SPOUSE'S SIGNED ACKNOWLEDGED WAIVER
OF RIGHTS TO RECEIVE BENEFITS UNDER THE "JOINT ALLOWANCE-HALF" OPTION.
THE COMPTROLLER MAY PROMULGATE REGULATIONS UNDER WHICH THE WAIVER OTHER-
WISE REQUIRED MAY BE EXCUSED ON THE BASIS THAT THE SPOUSE CAN NOT BE
LOCATED OR BECAUSE OF OTHER CIRCUMSTANCES PROVIDED IN SUCH REGULATIONS.
S 3. Section 514 of the retirement and social security law is amended
by adding a new subdivision e to read as follows:
E. 1. NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION, EXCEPT
WHERE PAYMENT OF ACCUMULATED CONTRIBUTIONS, AN ORDINARY DEATH BENEFIT OR
BOTH IS REQUIRED PURSUANT TO THIS ARTICLE, RETIREMENT OF MEMBERS OF THE
NEW YORK STATE AND LOCAL EMPLOYEES' RETIREMENT SYSTEM WHO LAST JOINED
SUCH SYSTEM ON OR BEFORE DECEMBER THIRTY-FIRST, TWO THOUSAND TEN SHALL
BE WITHOUT OPTIONAL MODIFICATION UNLESS THE MEMBER FILES AN EFFECTIVE
ELECTION PURSUANT TO THIS SECTION TO RETIRE ON A DIFFERENT BASIS.
2. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, EXCEPT WHERE PAYMENT OF
ACCUMULATED CONTRIBUTIONS, AN ORDINARY DEATH BENEFIT OR BOTH IS REQUIRED
PURSUANT TO THIS ARTICLE, RETIREMENT OF MEMBERS OF THE NEW YORK STATE
AND LOCAL EMPLOYEES' RETIREMENT SYSTEM WHO LAST JOINED SUCH SYSTEM ON OR
AFTER JANUARY FIRST, TWO THOUSAND ELEVEN SHALL BE WITHOUT OPTIONAL
MODIFICATION IF THE MEMBER IS NOT MARRIED AT THE TIME OF RETIREMENT, OR
ON THE BASIS OF OPTION TWO AS PROVIDED UNDER SUBDIVISION A OF THIS
SECTION, WITH THE SPOUSE AS BENEFICIARY TO RECEIVE A MONTHLY BENEFIT
A. 2947--A 3
EQUAL TO FIFTY PERCENT OF THE AMOUNT OF THE MEMBER'S MONTHLY BENEFIT, IF
THE MEMBER IS MARRIED AT THE TIME OF RETIREMENT, UNLESS THE MEMBER FILES
AN EFFECTIVE ELECTION PURSUANT TO THIS SECTION TO RETIRE ON A DIFFERENT
BASIS. IN ORDER TO BECOME EFFECTIVE, SUCH ELECTION MUST CONTAIN THE
SPOUSE'S SIGNED AND ACKNOWLEDGED WAIVER OF RIGHTS TO RECEIVE BENEFITS
UNDER THE OPTION TWO "JOINT ALLOWANCE-HALF" OPTION. THE COMPTROLLER MAY
PROMULGATE REGULATIONS UNDER WHICH THE WAIVER OTHERWISE REQUIRED MAY BE
EXCUSED ON THE BASIS THAT THE SPOUSE CAN NOT BE LOCATED OR OTHER CIRCUM-
STANCES PROVIDED IN SUCH REGULATIONS.
S 4. Subdivision d of section 610 of the retirement and social securi-
ty law is amended by adding a new paragraph 3 to read as follows:
3. (A) NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION, EXCEPT
WHERE PAYMENT OF ACCUMULATED CONTRIBUTIONS, AN ORDINARY DEATH BENEFIT OR
BOTH IS REQUIRED PURSUANT TO THIS ARTICLE, RETIREMENT OF MEMBERS OF THE
NEW YORK STATE AND LOCAL EMPLOYEES' RETIREMENT SYSTEM WHO LAST JOINED
SUCH SYSTEM ON OR BEFORE DECEMBER THIRTY-FIRST, TWO THOUSAND TEN SHALL
BE WITHOUT OPTIONAL MODIFICATION UNLESS THE MEMBER FILES AN EFFECTIVE
ELECTION PURSUANT TO THIS SECTION TO RETIRE ON A DIFFERENT BASIS.
(B) NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION, EXCEPT WHERE
PAYMENT OF ANY OTHER ACCUMULATED CONTRIBUTIONS, AN ORDINARY DEATH BENE-
FIT OR BOTH IS REQUIRED PURSUANT TO THIS ARTICLE, RETIREMENT OF MEMBERS
OF THE NEW YORK STATE AND LOCAL EMPLOYEES' RETIREMENT SYSTEM WHO LAST
JOINED SUCH SYSTEM ON OR AFTER JANUARY FIRST, TWO THOUSAND ELEVEN SHALL
BE WITHOUT OPTIONAL MODIFICATION IF THE MEMBER IS NOT MARRIED AT THE
TIME OF RETIREMENT, OR ON THE BASIS OF OPTION TWO AS PROVIDED UNDER
SUBDIVISION A OF THIS SECTION WITH THE SPOUSE AS BENEFICIARY TO RECEIVE
A MONTHLY BENEFIT EQUAL TO FIFTY PERCENT OF THE AMOUNT OF THE MEMBER'S
MONTHLY BENEFIT, IF THE MEMBER IS MARRIED AT THE TIME OF RETIREMENT,
UNLESS THE MEMBER FILES AN EFFECTIVE ELECTION PURSUANT TO THIS SECTION
TO RETIRE ON A DIFFERENT BASIS. IN ORDER TO BECOME EFFECTIVE, SUCH
ELECTION MUST CONTAIN THE SPOUSE'S SIGNED AND ACKNOWLEDGED WAIVER OF
RIGHTS TO RECEIVE BENEFITS UNDER THE OPTION TWO "JOINT ALLOWANCE-HALF"
OPTION. THE COMPTROLLER MAY PROMULGATE REGULATIONS UNDER WHICH THE WAIV-
ER OTHERWISE REQUIRED MAY BE EXCUSED ON THE BASIS THAT THE SPOUSE CAN
NOT BE LOCATED OR BECAUSE OF OTHER CIRCUMSTANCES PROVIDED IN SUCH REGU-
LATIONS.
S 5. This act shall take effect immediately.
FISCAL NOTE.-- Pursuant to Legislative Law, Section 50:
This bill would require a retiring married member, who last joined the
New York State and Local Employees' Retirement System or the New York
State and Local Police and Fire Retirement System on or after January 1,
2011, to choose the joint allowance-half option with spouse as benefici-
ary unless the member's spouse consents to the selection of a different
option.
If this bill is enacted, there would be a small administrative cost
for modifying the current option election forms. In addition, there
would be an administrative cost associated with the spousal consent
forms. These costs would be shared by the State of New York and all
participating employers in the New York State and Local Employees'
Retirement System and the New York State and Local Police and Fire
Retirement System.
This estimate, dated December 31, 2009, and intended for use only
during the 2010 Legislative Session, is Fiscal Note No. 2010-59,
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 System.