BILL NUMBER:  S5669A

 TITLE OF BILL :
An act to authorize James Freitag to apply for retroactive membership
in the New York state teachers' retirement system


 PURPOSE OR GENERAL IDEA OF BILL :
To authorize James P. Freitag to apply for retroactive membership in
the New York State Teachers' Retirement System.

 SUMMARY OF SPECIFIC PROVISIONS :
This bill would grant retroactive Tier II status in the New York State
Teachers' Retirement System to James P.  Freitag by deeming him to
have been a member of such system since June 5, 1975.

 JUSTIFICATION :
James P. Freitag began his employment with the county of Cattaraugus
on June 5, 1975 and remained as a county employee for the next four
years. However, Mr. Freitag was not informed of his eligibility to
join the retirement system until August of 1978.  Several factors
contributed to the fact that Mr. Freitag was not given the same
opportunity to join the retirement system as other county employees
were.

Mr. Freitag was employed by the county as a provisional counselor from
              

June 5, 1975 until September 12, 1976 and then was called away to
active duty for the U.S. Army on September 11, 1976 until the summer
of 1978. He was on leave from the county, but remained as a
provisional competitive class employee.  Therefore, he was away on
active duty during the time period when other county employees were
informed by the county of the opportunity to join the New York State
and Local Employees' Retirement System (ERS). Mr. Freitag joined Tier
III of ERS at the first opportunity he was presented with, in August
1978.

Mr. Freitag was then employed by a public school in August 1979, at
which time he became a member of the New York State Teachers'
Retirement System (NYSTRS) transferring his membership from ERS where
he remained in Tier III.

The county and state have found for the following reasons that the
relief sought by Mr. Freitag is appropriate: First, he did not
expressly decline membership, second, he did not participate in any
procedure explaining the option to join the system as other county
employees did, and third, there is no record that Mr. Freitag was
afforded by the county the opportunity to participate in a procedure
that a reasonable person would recognize as an explanation or request
requiring a formal decision by him to join the public retirement
system until August, 1978. Since Tier II was closed off as of July 1,
1976 Mr. Freitag was not afforded the option to join Tier It as other
county employees were.

Both the county of Cattaraugus and the New York State Teachers'
Retirement System acknowledge that James P. Freitag was an eligible
employee as of June 5, 1975. This recognition should, in and of
itself, be proof that Mr. Freitag deserves to be granted Tier II
status.

 PRIOR LEGISLATIVE HISTORY :
This is a new bill, however, Mr. Freitag made his original request to
the Legislature for special legislation in 2004. The county and state
have finally come to agreement that without question, Mr. Freitag
should rightly be afforded this opportunity to join Tier II.

 FISCAL IMPLICATIONS :
If this is enacted, there will be an immediate past service cost of
approximately $57,000 which would be paid by the county of
Cattaraugus, New York State.

This estimate, dated February 25, 2009 is intended for use only during
the 2009 Legislative Session, as prepared by the Actuary for the
NYSTRS.

If Mr. Freitag is not granted the opportunity to join Tier II this
year, the estimated cost to the county, should it be enacted next
year, will go up significantly.

 EFFECTIVE DATE :
This act shall take effect immediately.