Assembly Bill A5314

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

                                  5314

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            February 12, 2009
                               ___________

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

AN ACT to amend the education law and the retirement and social security
  law, in relation to disability retirement benefits provided by 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 511 of the education law is amended by adding a new
subdivision 10 to read as follows:
  10. A MEMBER WHO HAS BEEN RETIRED  FOR  DISABILITY  PURSUANT  TO  THIS
SECTION  SHALL,  UPON  ATTAINMENT  OF  AGE  SIXTY-TWO, BE ENTITLED TO AN
UPWARD ADJUSTMENT IN THE AMOUNT OF THE  MEMBER'S  DISABILITY  RETIREMENT
ALLOWANCE DETERMINED PRIOR TO OPTIONAL MODIFICATION TO THE AMOUNT OF THE
DEFERRED  SERVICE  RETIREMENT  ALLOWANCE  DETERMINED  PRIOR  TO OPTIONAL
MODIFICATION WHICH WOULD HAVE BEEN PAYABLE TO  SUCH  MEMBER  BASED  UPON
SUCH MEMBER'S ACTUAL CREDITED SERVICE AND FINAL AVERAGE SALARY AS OF THE
EFFECTIVE  DATE  OF  THE  MEMBER'S DISABILITY RETIREMENT, HAD THE MEMBER
COMMENCED RECEIVING SUCH DEFERRED SERVICE RETIREMENT  ALLOWANCE  AT  AGE
SIXTY-TWO, WHERE THE AMOUNT OF THE MEMBER'S DISABILITY RETIREMENT ALLOW-
ANCE  PRIOR  TO  OPTIONAL  MODIFICATION  IS LESS THAN THE AMOUNT OF SUCH
DEFERRED SERVICE RETIREMENT ALLOWANCE PRIOR  TO  OPTIONAL  MODIFICATION.
NOTHING  IN  THIS  SUBDIVISION SHALL AUTHORIZE ANY CHANGE IN THE FORM OF
RETIREMENT ALLOWANCE UNDER  WHICH  THE  MEMBER  WAS  RETIRED.  WHERE  AN
OPTIONAL  FORM OF RETIREMENT ALLOWANCE HAD BEEN ELECTED BY THE MEMBER AT
RETIREMENT, THE MEMBER'S OPTIONAL RETIREMENT ALLOWANCE AND ANY  SURVIVOR
PORTION  OF  THE  ALLOWANCE  SHALL BE CALCULATED USING THE OPTION FACTOR
USED TO COMPUTE SUCH BENEFITS AT THE TIME THE  MEMBER  RETIRED.  IF  THE
MEMBER  HAD  ELECTED  AN OPTIONAL FORM OF RETIREMENT ALLOWANCE REQUIRING
THE PAYMENT OF A LIFETIME  SURVIVOR  BENEFIT  ONLY  AND  DIED  PRIOR  TO
ATTAINING  AGE  SIXTY-TWO, AND SUCH LIFETIME SURVIVOR BENEFIT WOULD HAVE
BEEN ADJUSTED UPWARD UPON THE MEMBER'S  ATTAINING  AGE  SIXTY-TWO,  SUCH
LIFETIME  SURVIVOR BENEFIT SHALL BE ADJUSTED UPWARD, COMMENCING WHEN THE
MEMBER WOULD HAVE ATTAINED AGE SIXTY-TWO.

              

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07457-01-9

A. 5314                             2

  S 2. Section 605 of the retirement and social security law is  amended
by adding a new subdivision k to read as follows:
  K.  A MEMBER OF THE NEW YORK STATE TEACHERS' RETIREMENT SYSTEM WHO HAS
BEEN RETIRED FOR DISABILITY PURSUANT TO THIS SECTION SHALL, UPON ATTAIN-
MENT OF AGE SIXTY-TWO, BE ENTITLED TO AN UPWARD ADJUSTMENT IN THE AMOUNT
OF THE MEMBER'S DISABILITY  RETIREMENT  ALLOWANCE  DETERMINED  PRIOR  TO
OPTIONAL  MODIFICATION  TO  THE  AMOUNT  OF  THE DEFERRED VESTED BENEFIT
DETERMINED PRIOR TO OPTIONAL MODIFICATION WHICH WOULD HAVE BEEN  PAYABLE
TO  SUCH  MEMBER  BASED  UPON  SUCH MEMBER'S ACTUAL CREDITED SERVICE AND
FINAL AVERAGE SALARY AS OF THE EFFECTIVE DATE OF THE MEMBER'S DISABILITY
RETIREMENT, HAD THE MEMBER  COMMENCED  RECEIVING  SUCH  DEFERRED  VESTED
BENEFIT  AT  AGE  SIXTY-TWO, WHERE THE AMOUNT OF THE MEMBER'S DISABILITY
RETIREMENT ALLOWANCE PRIOR TO OPTIONAL MODIFICATION  IS  LESS  THAN  THE
AMOUNT  OF  SUCH DEFERRED VESTED BENEFIT PRIOR TO OPTIONAL MODIFICATION.
NOTHING IN THIS SUBDIVISION SHALL AUTHORIZE ANY CHANGE IN  THE  FORM  OF
RETIREMENT  ALLOWANCE  UNDER  WHICH  THE  MEMBER  WAS  RETIRED. WHERE AN
OPTIONAL FORM OF RETIREMENT ALLOWANCE HAD BEEN ELECTED BY THE MEMBER  AT
RETIREMENT,  THE MEMBER'S OPTIONAL RETIREMENT ALLOWANCE AND ANY SURVIVOR
PORTION OF THE ALLOWANCE SHALL BE CALCULATED  USING  THE  OPTION  FACTOR
USED  TO  COMPUTE  SUCH  BENEFITS AT THE TIME THE MEMBER RETIRED. IF THE
MEMBER HAD ELECTED AN OPTIONAL FORM OF  RETIREMENT  ALLOWANCE  REQUIRING
THE  PAYMENT  OF  A  LIFETIME  SURVIVOR  BENEFIT  ONLY AND DIED PRIOR TO
ATTAINING AGE SIXTY-TWO, AND SUCH LIFETIME SURVIVOR BENEFIT  WOULD  HAVE
BEEN  ADJUSTED  UPWARD  UPON  THE MEMBER'S ATTAINING AGE SIXTY-TWO, SUCH
LIFETIME SURVIVOR BENEFIT SHALL BE ADJUSTED UPWARD, COMMENCING WHEN  THE
MEMBER WOULD HAVE ATTAINED AGE SIXTY-TWO.
  S  3.  This act shall take effect June 30, 2009 and shall apply to the
affected disability benefits payable on or after such date, 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 and shall apply to the affected
disability benefits payable on or after such  date;  provided,  however,
that the amendments to section 605 of the retirement and social security
law, made by section two of this act, shall not affect the expiration of
such  section 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 authorize an increase in retirement benefit at age  62
for  disabled  members of the New York State Teachers' Retirement System
whose disability retirement benefit is less than the service  retirement
benefit the member would have received at age 62. This increase would be
equal  to the difference, if any, between the current disability retire-
ment benefit and the service retirement benefit the  member  would  have
received  starting  at  age  62  based  on  the member's actual credited
service and final average salary as of the member's  effective  date  of
disability retirement. If the member elected an optional form of benefit
requiring  the  payment of a lifetime survivor annuity and dies prior to
attainment of age 62, such lifetime survivor benefit shall  be  adjusted
upward  if  appropriate,  commencing when the member would have attained
age 62.
  The annual cost to the employers of members  of  the  New  York  State
Teachers'  Retirement  System  for  this benefit is estimated to be $4.1
million or .03% of payroll if this bill is enacted.
  The source of this estimate is Fiscal Note 2009-1  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.