Assembly Bill A5312

2009-2010 Legislative Session

Relates to the post-retirement benefit payable upon the death of a retiree of the New York state teachers' retirement system within the first 3 years of retirement

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Archive: Last Bill Status - In Assembly 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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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 26, 2010	print number 5312a
Jan 26, 2010	amend and recommit to governmental employees
Jan 06, 2010	referred to governmental employees
Feb 12, 2009	referred to governmental employees

Bill Amendments

Original

A (Active)

2009-A5312 - Details

Current Committee:: Assembly Governmental Employees
Law Section:: Education Law
Laws Affected:: Amd §§512, 448, 508 & 606, R & SS L
Versions Introduced in 2011-2012 Legislative Session:: A5514

2009-A5312 - Summary

Defers the reductions in the post-retirement death benefit payable to beneficiaries of Tier 2, 3 and 4 retirees of the New York state teachers' retirement system who die within the first three years of retirement; provides the same post-retirement death benefit to the beneficiaries of Tier 1 retirees who die within the first year of retirement.

2009-A5312 - Bill Text download pdf

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

                                  5312

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            February 12, 2009
                               ___________

Introduced  by  M.  of  A.  ABBATE  -- (at request of the New York State
  Teachers' Retirement System) -- read once and referred to the  Commit-
  tee on Governmental Employees

AN ACT to amend the education law and the retirement and social security
  law, in relation to the post-retirement death benefit payable upon the
  death  of  a retiree of the New York state teachers' retirement system
  within the first three years of retirement

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

  Section 1. Section 512 of the education law is amended by adding a new
subdivision g to read as follows:
  G.  IN  THE  CASE  OF A MEMBER OF THE SYSTEM WITH A DATE OF MEMBERSHIP
PRIOR TO THE FIRST DAY OF JULY, NINETEEN HUNDRED SEVENTY-THREE  WHO  HAS
BEEN  RETIRED,  THERE  SHALL BE PAYABLE, IN THE EVENT THE RETIRED MEMBER
DIES PRIOR TO THE COMMENCEMENT OF THE RETIRED MEMBER'S  SECOND  YEAR  IN
RETIREMENT,  A  DEATH  BENEFIT EQUAL TO THREE TIMES THE RETIRED MEMBER'S
REGULAR COMPENSATION EARNED DURING THE MEMBER'S LAST  TWELVE  MONTHS  OF
SERVICE, PROVIDED THE RETIRED MEMBER HAD DEATH BENEFIT COVERAGE IN FORCE
AT  THE  TIME OF RETIREMENT PURSUANT TO THIS SECTION OTHER THAN SUBDIVI-
SION E OF THIS SECTION.
  S 2. Section 448 of the retirement and social security law is  amended
by adding a new subdivision h to read as follows:
  H.  ANYTHING  IN PARAGRAPH TWO OF SUBDIVISION A OF THIS SECTION TO THE
CONTRARY NOTWITHSTANDING, IN THE CASE OF A MEMBER OF THE NEW YORK  STATE
TEACHERS'  RETIREMENT SYSTEM, THE POST-RETIREMENT DEATH BENEFIT PROVIDED
PURSUANT TO SUCH PARAGRAPH SHALL BE AS FOLLOWS: THE BENEFIT IN FORCE  AT
THE  TIME  OF  RETIREMENT  SHALL  CONTINUE WITHOUT REDUCTION DURING SUCH
MEMBER'S FIRST YEAR OF RETIREMENT; UPON COMPLETION OF THE FIRST YEAR  OF
RETIREMENT,  THE  BENEFIT  IN  FORCE  AT THE TIME OF RETIREMENT SHALL BE
REDUCED BY FIFTY PER CENTUM; UPON  COMPLETION  OF  THE  SECOND  YEAR  OF
RETIREMENT,  THE  BENEFIT  IN  FORCE  AT THE TIME OF RETIREMENT SHALL BE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07446-01-9

A. 5312                             2

REDUCED BY AN ADDITIONAL TWENTY-FIVE PER CENTUM.  UPON  COMMENCEMENT  OF
THE  FOURTH  YEAR  OF RETIREMENT, THE BENEFIT SHALL BE TEN PER CENTUM OF
THE BENEFIT IN FORCE AT THE TIME OF  RETIREMENT  (DISREGARDING  IN  SUCH
CASE ANY REDUCTIONS IN THE BENEFIT IN FORCE AT THE TIME OF RETIREMENT BY
REASON OF THE MEMBER HAVING ATTAINED AN AGE GREATER THAN SIXTY).
  S  3. Section 508 of the retirement and social security law is amended
by adding a new subdivision f to read as follows:
  F. ANYTHING IN PARAGRAPH TWO OF SUBDIVISION A OF THIS SECTION  TO  THE
CONTRARY  NOTWITHSTANDING, IN THE CASE OF A MEMBER OF THE NEW YORK STATE
TEACHERS' RETIREMENT SYSTEM, THE POST-RETIREMENT DEATH BENEFIT  PROVIDED
PURSUANT  TO SUCH PARAGRAPH SHALL BE AS FOLLOWS: THE BENEFIT IN FORCE AT
THE TIME OF RETIREMENT SHALL  CONTINUE  WITHOUT  REDUCTION  DURING  SUCH
MEMBER'S  FIRST YEAR OF RETIREMENT; UPON COMPLETION OF THE FIRST YEAR OF
RETIREMENT, THE BENEFIT IN FORCE AT THE  TIME  OF  RETIREMENT  SHALL  BE
REDUCED  BY  FIFTY  PER  CENTUM;  UPON  COMPLETION OF THE SECOND YEAR OF
RETIREMENT, THE BENEFIT IN FORCE AT THE  TIME  OF  RETIREMENT  SHALL  BE
REDUCED  BY  AN  ADDITIONAL TWENTY-FIVE PER CENTUM. UPON COMMENCEMENT OF
THE FOURTH YEAR OF RETIREMENT, THE BENEFIT SHALL BE TEN  PER  CENTUM  OF
THE  BENEFIT  IN  FORCE  AT THE TIME OF RETIREMENT (DISREGARDING IN SUCH
CASE ANY REDUCTIONS IN THE BENEFIT IN FORCE AT THE TIME OF RETIREMENT BY
REASON OF THE MEMBER HAVING ATTAINED AN AGE GREATER THAN SIXTY).
  S 4. Section 606 of the retirement and social security law is  amended
by adding a new subdivision f to read as follows:
  F.  ANYTHING  IN PARAGRAPH TWO OF SUBDIVISION A OF THIS SECTION TO THE
CONTRARY NOTWITHSTANDING, IN THE CASE OF A MEMBER OF THE NEW YORK  STATE
TEACHERS'  RETIREMENT SYSTEM, THE POST-RETIREMENT DEATH BENEFIT PROVIDED
PURSUANT TO SUCH PARAGRAPH SHALL BE AS FOLLOWS: THE BENEFIT IN FORCE  AT
THE  TIME  OF  RETIREMENT  SHALL  CONTINUE WITHOUT REDUCTION DURING SUCH
MEMBER'S FIRST YEAR OF RETIREMENT; UPON COMPLETION OF THE FIRST YEAR  OF
RETIREMENT,  THE  BENEFIT  IN  FORCE  AT THE TIME OF RETIREMENT SHALL BE
REDUCED BY FIFTY PER CENTUM; UPON  COMPLETION  OF  THE  SECOND  YEAR  OF
RETIREMENT,  THE  BENEFIT  IN  FORCE  AT THE TIME OF RETIREMENT SHALL BE
REDUCED BY AN ADDITIONAL TWENTY-FIVE PER CENTUM.  UPON  COMMENCEMENT  OF
THE  FOURTH  YEAR  OF RETIREMENT, THE BENEFIT SHALL BE TEN PER CENTUM OF
THE BENEFIT IN FORCE AT THE TIME OF  RETIREMENT  (DISREGARDING  IN  SUCH
CASE ANY REDUCTIONS IN THE BENEFIT IN FORCE AT THE TIME OF RETIREMENT BY
REASON OF THE MEMBER HAVING ATTAINED AN AGE GREATER THAN SIXTY).
  S 5. This act shall take effect June 30, 2009, except that if this act
shall  have become a law after June 30, 2009, 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,  however,  that  subdivision  f  of
section  508  and  subdivision  f  of  section 606 of the retirement and
social security law, as added by sections three and four  of  this  act,
shall not affect the expiration of such sections pursuant to section 615
of such law and shall be deemed to expire therewith.
  FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
  This bill would add a new subdivision g to section five hundred twelve
of the Education Law in order to provide a post-retirement death benefit
for Tier 1 members in their first year of retirement. This benefit would
equal  three  times  the  retired  member's  regular compensation earned
during the last twelve months of service. Additionally, this bill  would
add  a  new  subdivision h to section four hundred forty-eight and a new
subdivision f to sections five hundred eight and six hundred six of  the
Retirement  and Social Security Law in order to modify the current post-
retirement death benefit for Tiers 2, 3 and 4 members. The  post-retire-
ment  death  benefit would equal 100% of the benefit in force at retire-

A. 5312                             3

ment if death occurs in the first year of retirement, 50% of the benefit
in force at retirement if death occurs in the second year of retirement,
25% of the benefit in force at retirement if death occurs in  the  third
year of retirement, and 10% of the benefit in force at retirement, with-
out  regard  to  reductions for ages greater than 60, if death occurs in
the fourth or later year of retirement. This benefit is  also  effective
for currently retired members who die on or after June 30, 2009.
  The  annual  cost  to  the  employers of members of the New York State
Teachers' Retirement System for this benefit is estimated  to  be  $16.8
million or .12% of payroll if this bill is enacted.
  The  source  of  this estimate is Fiscal Note 2009-2 dated October 15,
2008 prepared by the Actuary of the New York State Teachers'  Retirement
System and is intended for use only during the 2009 Legislative Session.

2009-A5312A (ACTIVE) - Details

Current Committee:: Assembly Governmental Employees
Law Section:: Education Law
Laws Affected:: Amd §§512, 448, 508 & 606, R & SS L
Versions Introduced in 2011-2012 Legislative Session:: A5514

2009-A5312A (ACTIVE) - Summary

2009-A5312A (ACTIVE) - Sponsor Memo

                                BILL NUMBER:A5312A

TITLE OF BILL:  An act to amend the education law and the retirement and
social  security  law,  in relation to the post-retirement death benefit
payable upon the death of a retiree of  the  New  York  state  teachers'
retirement system within the first three years of retirement

PURPOSE  OF  THE BILL: This bill would defer the reductions in the post-
retirement death benefit payable to the beneficiaries of Tier 2, 3 and 4
retirees of the New York State Teachers' Retirement System who die with-
in the first three years of retirement and provide the same post-retire-
ment death benefit to the beneficiaries of Tier 1 retirees who die with-
in the first year of retirement.

SUMMARY AND JUSTIFICATION: Given increased  longevity,  it  often  makes
sense  for  a  retiring public school teacher to take his/her benefit in
the form of an annuity for his/her life only. Teachers retiring with the
single life annuity can expect to receive the maximum  possible  retire-
ment  benefit  over what will be a long life in retirement.  Conversely,
electing an optional form of retirement involving the receipt of a less-
er annual benefit in exchange for some form of survivor  protection  may
well not make sense to many retirees. The selection of an option results
in  an  immediate and permanent reduction in the retiree's benefit while
the survivor portion is only payable far in the future, if at all.

Although it often makes sense for retirees to retire with a single  life

annuity,  inevitably  some  of  those  retirees will die unexpectedly in
their first year of retirement. Such incidents previously led the Legis-
lature to provide for the continuation of death  benefit  coverage  into
retirement  so  as to provide a measure of additional financial security
to a retiree's spouse and dependents  in  the  event  of  the  retiree's
untimely  death  early  in retirement. Specifically, sections 448(a)(2),
508(a)(2) and 606(a)(2)  of  the  Retirement  and  Social  Security  Law
provide  a  death  benefit  payable  upon  the death of a Tier 2, 3 or 4
member who has retired from active service in the first year of  retire-
ment  equal  to  50% of the death benefit in force at retirement. If the
retiree dies in the second year of retirement, the death benefit is  25%
of  the  benefit  in force at retirement. Beginning in the third year of
retirement and continuing thereafter, the post-retirement death  benefit
is  10%  of  the  death  benefit in force at age GO or at retirement, if
retirement occurred prior to age 60. On the  other  hand,  there  is  no
post-retirement death benefit coverage in Tier 1.

Notwithstanding the existence of these measures to ameliorate the impact
of  a  retiree's  untimely  death  early  in retirement, recent untimely
deaths of retirees in their first  year  of  retirement  have  generated
calls  for even greater protection for retiree spouses and dependents in
such circumstances. Many of these calls arise because the deceased reti-
rees were in Tier I which, as  already  noted,  has  no  post-retirement
death benefit protection.

Unfortunately,  many of the proposals advanced to address this situation
have considerable problems of their own. For example,  there  have  been
proposals to require married members to retire under an optional form of
benefit  providing  a  lifetime  benefit  to  the surviving spouse. Most
married  members of the System, however, feel their freedom to make what
they believe is the best choice at retirement should not  be  interfered
with  merely because they happen to be married. Mandatory spousal survi-
vor benefits also require escape hatch procedures for those couples  who
would  not  want  or  need  survivor protection. These procedures can be
extremely difficult to implement and can result in a whole different set
of unfortunate incidents in which retirees wind up with mandated options
they neither wanted or needed. Other proposals would require the  System
to  make investigations of the circumstances of the retiree's death with
the payment of an additional  benefit  dependent  upon  the  finding  of
supposedly  special  circumstances warranting such payment while leaving
the prospect that the benefit will be denied in other circumstances.

Rather than some new approach which could very well create its  own  set
of  problems  and complexities for retirees and their spouses and depen-
dents, the Retirement Board believes the best approach to addressing the
untimely deaths of retirees early in  retirement  continues  to  be  the
approach   which  the  Legislature  has  already  adopted,  namely,  the
provision of a significant post retirement death benefit  in  the  first
years  of  retirement.  The  post-retirement death benefit is simple and
straightforward. If the member dies within the stated  period  of  time,
the benefit is paid.

The  renewed  concerns  about  untimely deaths are in all likelihood the
result of the fact that there is no  post-retirement  death  benefit  in
Tier  I, as well as a possible perception that the post retirement death
benefit in the later Tiers is not fully adequate. These concerns can  be
addressed  by  an  improvement  in the post-retirement death benefit, as
this bill proposes, namely to a full three times salary for Tier 2,3 and
4 members dying within the first year of retirement  and  extending  the
same  post-retirement  death  benefit  to  Tier I members who die in the
first year of retirement.

This bill adds a new subdivision g to section 512 of the  Education  Law
providing for a death benefit payable upon the death of a Tier 1 retiree
in the first year of retirement equal to three times the regular compen-
sation  earned  during  the member's last 12 months of service. The bill
would also amend RSSL §§448, 508 and 606 by adding a new subdivision  to
each  section.  Under the new subdivision the existing reductions in the
Tier 2, 3 and 4 death benefit would be delayed by a year in  each  case.
The  subdivision  would  provide Tier 2,3 and 4 retirees with a post-re-
tirement death benefit equal to 100% of the benefit in force at  retire-
ment if death occurs in the first year of retirement, 50% of the benefit
in force at retirement if death occurs in the second year of retirement,
25%  of  the benefit in force at retirement if death occurs in the third
year of retirement.  After the third year of  retirement,  the  post-re-
tirement  death  benefit would be 10% of the benefit in force at retire-

ment (disregarding any reductions in the benefit in force at  retirement
by reason of the member having attained an age greater than 60).

The  Retirement  Board  believes  these modest steps would appropriately
resolve the concerns expressed in a programmatic fashion which  is  easy
to  administer  without  imposing  any  significant  additional  cost on
participating employers.

BUDGETARY IMPLICATIONS OF THE BILL: The Actuary of the  New  York  State
Teachers'  Retirement  System  has  estimated that the additional annual
cost to employers of members of the New York State Teachers'  Retirement
System would be $16.8 million or .12% of payroll if this bill is passed.

EFFECTIVE  DATE  OF THE BILL: The bill would take effect effect June 30,
2010, except that if this act shall have become a law on or  after  June
30,  2010, this act shall take effect immediately and shall be deemed to
have been in full force and effect on and after June 30, 2010,

2009-A5312A (ACTIVE) - Bill Text download pdf

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

                                 5312--A

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            February 12, 2009
                               ___________

Introduced  by M. of A. ABBATE -- Multi-Sponsored by -- M. of A. COOK --
  (at request of the New York State Teachers' Retirement System) -- read
  once and referred to the Committee on Governmental Employees -- recom-
  mitted 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 education law and the retirement and social security
  law, in relation to the post-retirement death benefit payable upon the
  death  of  a retiree of the New York state teachers' retirement system
  within the first three years of retirement

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

  Section 1. Section 512 of the education law is amended by adding a new
subdivision g to read as follows:
  G.  IN  THE  CASE  OF A MEMBER OF THE SYSTEM WITH A DATE OF MEMBERSHIP
PRIOR TO THE FIRST DAY OF JULY, NINETEEN HUNDRED SEVENTY-THREE  WHO  HAS
BEEN  RETIRED,  THERE  SHALL BE PAYABLE, IN THE EVENT THE RETIRED MEMBER
DIES PRIOR TO THE COMMENCEMENT OF THE RETIRED MEMBER'S  SECOND  YEAR  IN
RETIREMENT,  A  DEATH  BENEFIT EQUAL TO THREE TIMES THE RETIRED MEMBER'S
REGULAR COMPENSATION EARNED DURING THE MEMBER'S LAST  TWELVE  MONTHS  OF
SERVICE, PROVIDED THE RETIRED MEMBER HAD DEATH BENEFIT COVERAGE IN FORCE
AT  THE  TIME OF RETIREMENT PURSUANT TO THIS SECTION OTHER THAN SUBDIVI-
SION E OF THIS SECTION.
  S 2. Section 448 of the retirement and social security law is  amended
by adding a new subdivision h to read as follows:
  H.  ANYTHING  IN PARAGRAPH TWO OF SUBDIVISION A OF THIS SECTION TO THE
CONTRARY NOTWITHSTANDING, IN THE CASE OF A MEMBER OF THE NEW YORK  STATE
TEACHERS'  RETIREMENT SYSTEM, THE POST-RETIREMENT DEATH BENEFIT PROVIDED
PURSUANT TO SUCH PARAGRAPH SHALL BE AS FOLLOWS: THE BENEFIT IN FORCE  AT
THE  TIME  OF  RETIREMENT  SHALL  CONTINUE WITHOUT REDUCTION DURING SUCH
MEMBER'S FIRST YEAR OF RETIREMENT; UPON COMPLETION OF THE FIRST YEAR  OF

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07446-02-0

A. 5312--A                          2

RETIREMENT,  THE  BENEFIT  IN  FORCE  AT THE TIME OF RETIREMENT SHALL BE
REDUCED BY FIFTY PER CENTUM; UPON  COMPLETION  OF  THE  SECOND  YEAR  OF
RETIREMENT,  THE  BENEFIT  IN  FORCE  AT THE TIME OF RETIREMENT SHALL BE
REDUCED  BY  AN  ADDITIONAL TWENTY-FIVE PER CENTUM. UPON COMMENCEMENT OF
THE FOURTH YEAR OF RETIREMENT, THE BENEFIT SHALL BE TEN  PER  CENTUM  OF
THE  BENEFIT  IN  FORCE  AT THE TIME OF RETIREMENT (DISREGARDING IN SUCH
CASE ANY REDUCTIONS IN THE BENEFIT IN FORCE AT THE TIME OF RETIREMENT BY
REASON OF THE MEMBER HAVING ATTAINED AN AGE GREATER THAN SIXTY).
  S 3. Section 508 of the retirement and social security law is  amended
by adding a new subdivision f to read as follows:
  F.  ANYTHING  IN PARAGRAPH TWO OF SUBDIVISION A OF THIS SECTION TO THE
CONTRARY NOTWITHSTANDING, IN THE CASE OF A MEMBER OF THE NEW YORK  STATE
TEACHERS'  RETIREMENT SYSTEM, THE POST-RETIREMENT DEATH BENEFIT PROVIDED
PURSUANT TO SUCH PARAGRAPH SHALL BE AS FOLLOWS: THE BENEFIT IN FORCE  AT
THE  TIME  OF  RETIREMENT  SHALL  CONTINUE WITHOUT REDUCTION DURING SUCH
MEMBER'S FIRST YEAR OF RETIREMENT; UPON COMPLETION OF THE FIRST YEAR  OF
RETIREMENT,  THE  BENEFIT  IN  FORCE  AT THE TIME OF RETIREMENT SHALL BE
REDUCED BY FIFTY PER CENTUM; UPON  COMPLETION  OF  THE  SECOND  YEAR  OF
RETIREMENT,  THE  BENEFIT  IN  FORCE  AT THE TIME OF RETIREMENT SHALL BE
REDUCED BY AN ADDITIONAL TWENTY-FIVE PER CENTUM.  UPON  COMMENCEMENT  OF
THE  FOURTH  YEAR  OF RETIREMENT, THE BENEFIT SHALL BE TEN PER CENTUM OF
THE BENEFIT IN FORCE AT THE TIME OF  RETIREMENT  (DISREGARDING  IN  SUCH
CASE ANY REDUCTIONS IN THE BENEFIT IN FORCE AT THE TIME OF RETIREMENT BY
REASON OF THE MEMBER HAVING ATTAINED AN AGE GREATER THAN SIXTY).
  S  4. Section 606 of the retirement and social security law is amended
by adding a new subdivision f to read as follows:
  F. ANYTHING IN PARAGRAPH TWO OF SUBDIVISION A OF THIS SECTION  TO  THE
CONTRARY  NOTWITHSTANDING, IN THE CASE OF A MEMBER OF THE NEW YORK STATE
TEACHERS' RETIREMENT SYSTEM, THE POST-RETIREMENT DEATH BENEFIT  PROVIDED
PURSUANT  TO SUCH PARAGRAPH SHALL BE AS FOLLOWS: THE BENEFIT IN FORCE AT
THE TIME OF RETIREMENT SHALL  CONTINUE  WITHOUT  REDUCTION  DURING  SUCH
MEMBER'S  FIRST YEAR OF RETIREMENT; UPON COMPLETION OF THE FIRST YEAR OF
RETIREMENT, THE BENEFIT IN FORCE AT THE  TIME  OF  RETIREMENT  SHALL  BE
REDUCED  BY  FIFTY  PER  CENTUM;  UPON  COMPLETION OF THE SECOND YEAR OF
RETIREMENT, THE BENEFIT IN FORCE AT THE  TIME  OF  RETIREMENT  SHALL  BE
REDUCED  BY  AN  ADDITIONAL TWENTY-FIVE PER CENTUM. UPON COMMENCEMENT OF
THE FOURTH YEAR OF RETIREMENT, THE BENEFIT SHALL BE TEN  PER  CENTUM  OF
THE  BENEFIT  IN  FORCE  AT THE TIME OF RETIREMENT (DISREGARDING IN SUCH
CASE ANY REDUCTIONS IN THE BENEFIT IN FORCE AT THE TIME OF RETIREMENT BY
REASON OF THE MEMBER HAVING ATTAINED AN AGE GREATER THAN SIXTY).
  S 5. This act shall take effect June 30, 2010, except that if this act
shall have become a law after June 30, 2010, this act shall take  effect
immediately and shall be deemed to have been in full force and effect on
and after June 30, 2010.
  FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
  This bill would add a new subdivision g to section five hundred twelve
of the Education Law in order to provide a post-retirement death benefit
for Tier 1 members in their first year of retirement. This benefit would
equal  three  times  the  retired  member's  regular compensation earned
during the last twelve months of service. Additionally, this bill  would
add  a  new  subdivision h to section four hundred forty-eight and a new
subdivision f to sections five hundred eight and six hundred six of  the
Retirement  and Social Security Law in order to modify the current post-
retirement death benefit for Tiers 2, 3 and 4 members. The  post-retire-
ment  death  benefit would equal 100% of the benefit in force at retire-
ment if death occurs in the first year of retirement, 50% of the benefit

A. 5312--A                          3

in force at retirement if death occurs in the second year of retirement,
25% of the benefit in force at retirement if death occurs in  the  third
year of retirement, and 10% of the benefit in force at retirement, with-
out  regard  to  reductions for ages greater than 60, if death occurs in
the fourth or later year of retirement. This benefit is  also  effective
for currently retired members who die on or after June 30, 2010.
  The  annual  cost  to  the  employers of members of the New York State
Teachers' Retirement System for this benefit is estimated  to  be  $18.1
million or .12% of payroll if this bill is enacted.
  The  source  of  this estimate is Fiscal Note 2010-2 dated October 13,
2009 prepared by the Actuary of the New York State Teachers'  Retirement
System and is intended for use only during the 2010 Legislative Session.

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Assembly Bill A5312

Sponsored By

Archive: Last Bill Status - In Assembly Committee

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2009-A5312 - Details

2009-A5312 - Summary

2009-A5312 - Bill Text download pdf

2009-A5312A (ACTIVE) - Details

2009-A5312A (ACTIVE) - Summary

2009-A5312A (ACTIVE) - Sponsor Memo

2009-A5312A (ACTIVE) - Bill Text download pdf

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Sponsored By

ABBATE

Archive: Last Bill Status - In Assembly Committee

Actions

Bill Amendments

2009-A5312 - Details

2009-A5312 - Summary

2009-A5312 - Bill Text download pdf

2009-A5312A (ACTIVE) - Details

2009-A5312A (ACTIVE) - Summary

2009-A5312A (ACTIVE) - Sponsor Memo

2009-A5312A (ACTIVE) - Bill Text download pdf

Comments