Assembly Bill A5313

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

                                 5313--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,
  PHEFFER -- (at request of the  New  York  State  Teachers'  Retirement
  System)  --  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 commit-
  tee

AN ACT to amend the education law, in relation to the  right  of  vested
  members  to  withdraw  from  the  New  York state teachers' retirement
  system

  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.  NOTWITHSTANDING  ANY  OTHER PROVISION OF  LAW TO THE CONTRARY, ANY
MEMBER OF THE RETIREMENT SYSTEM SUBJECT TO ARTICLE FOURTEEN  OR  FIFTEEN
OF  THE  RETIREMENT  AND  SOCIAL SECURITY LAW WHO HAS PERMANENTLY CEASED
TEACHING SHALL HAVE THE RIGHT TO ELECT THE RETURN OF HIS OR HER  ACCUMU-
LATED  CONTRIBUTIONS  AND THEREBY TERMINATE HIS OR HER MEMBERSHIP IN THE
RETIREMENT SYSTEM WITHOUT REGARD TO THE AMOUNT OF SERVICE TO HIS OR  HER
CREDIT,  PROVIDED  A  PUBLIC EMPLOYEE RETIREMENT SYSTEM IN ANOTHER STATE
HAS CERTIFIED IN A MANNER SATISFACTORY TO THE SYSTEM THAT SUCH MEMBER IS
A MEMBER OF SUCH OTHER RETIREMENT SYSTEM, HAS AT  LEAST  FIVE  YEARS  OF
RETIREMENT CREDIT IN SUCH OTHER SYSTEM, AND IS ELIGIBLE, UPON THE TERMI-
NATION  OF  HIS  OR  HER  MEMBERSHIP IN THE SYSTEM, TO OBTAIN RETIREMENT
CREDIT IN SUCH OTHER RETIREMENT SYSTEM FOR THE SERVICE  WHICH  HAS  BEEN
CREDITED  TO  HIS  OR  HER MEMBERSHIP IN THE SYSTEM. UPON REFUND OF SUCH
ACCUMULATED CONTRIBUTIONS, ANY AND ALL  OBLIGATIONS  OF  THE  RETIREMENT
SYSTEM  TO SUCH MEMBER SHALL BE TOTALLY DISCHARGED. THE RETIREMENT BOARD
IS AUTHORIZED TO ADOPT SUCH RULES AND REGULATIONS AS MAY BE NECESSARY TO
IMPLEMENT THIS SUBDIVISION.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07440-02-0
              

A. 5313--A                          2

  S 2. This act shall take effect immediately.
  FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
  This  bill  would  amend Section 512 of the Education Law to allow any
member of the  New  York  State  Teachers'  Retirement  System  (NYSTRS)
subject  to  Article  14 or 15 of the Retirement and Social Security Law
who has permanently ceased teaching to elect  to  receive  a  refund  of
their  accumulated member contributions and thereby terminate membership
in the NYSTRS provided he or she is a member of another state's  retire-
ment  system,  has  at least five years of service credit in such system
and is eligible to obtain retirement credit  for  this  service  in  the
other  retirement  system.  All  rights  to any future benefits from the
NYSTRS would be forfeited. Currently, members  who  cease  teaching  and
have  greater  than 10 years of service credit do not have the option of
electing to receive their accumulated member contributions in lieu of  a
monthly  benefit at retirement. In the vast majority of cases, the pres-
ent value of the retirement benefit is much greater than  the  value  of
the accumulated member contributions.
  The  annual  cost  to  the  employers of members of the New York State
Teachers' Retirement System is estimated to be negligible if  this  bill
is enacted.
  The  source  of  this estimate is Fiscal Note 2010-3 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.