S T A T E O F N E W Y O R K
________________________________________________________________________
10920
I N A S S E M B L Y
April 30, 2010
___________
Introduced by M. of A. GUNTHER, CALHOUN -- read once and referred to the
Committee on Governmental Employees
AN ACT to provide temporary retirement incentive for certain public
employees
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. This act enacts into law components of legislation that
would establish an age 55/25 temporary incentive for certain public
employees.
S 2. Legislative findings. The legislature finds and declares that the
retirement benefit for certain public employees who are above age 55 and
with 25 years of service provided for in this act is intended only to be
temporary in nature for employees who are eligible to receive and quali-
fy for the applicable benefit during the applicable time periods speci-
fied in this act. Further, nothing in this act shall be construed to
create an expectation of a future or continuing retirement benefit for
any public employee who is not eligible to receive and qualify for the
retirement benefits herein during the applicable time periods.
S 3. Definitions. As used in this act, unless the context clearly
requires otherwise:
(a) "Retirement system" means the New York state and local employees'
retirement system and the New York state teachers' retirement system.
(b) "Teachers' retirement system" means the New York state teachers'
retirement system.
(c) "Participating employer" means a public school district or board
of cooperative educational services district.
(d) "Educational employer" means a participating employer which is a
school district, a board of cooperative educational services, a voca-
tional education and extension board, an institution for the instruction
of the deaf and of the blind as enumerated in section 4201 of the educa-
tion law, or a school district as enumerated in section 1 of chapter 566
of the laws of 1967, as amended; who employ members who hold positions
represented by the recognized collective bargaining units affiliated
with the New York state united teachers employee organization who
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD16917-02-0
A. 10920 2
participate in the New York state teachers' retirement system and the
New York state and local employees' retirement system.
(e) "Eligible employee" means a person who is a member of a retirement
system, who is a school administrator of a participating employer,
including but not limited to a superintendent, an associate or assistant
superintendent, a principal, assistant principal, supervisor or depart-
ment chairperson, who makes an election under section five of this act.
(f) "Active service" means service while being paid on the payroll,
provided that (i) a leave of absence with pay shall be deemed active
service; (ii) other approved leave without pay not to exceed twelve
weeks from February 1, 2010 and the commencement of the designated open
period; and (iii) the period of time subsequent to the June 2010 school
term and on or before August 31, 2010 for a teacher (or other employee
as defined in this act, employed on a school-year basis) who is other-
wise in active service on the effective date of this act shall be deemed
active service.
(g) "Open period" means the period beginning with the commencement
date as defined in subdivision (h) of this section; provided, however,
for the state-operated institutions of the state university of New York
and community colleges, the open period shall be as specified by the
appropriate board of trustees, and shall be ninety days in length;
provided however that there shall be only one such open period and any
such period shall not extend beyond August 31, 2010 for educational
employers and shall not extend beyond December 31, 2010 for the state-
operated institutions of the state university of New York and community
colleges. For the purposes of retirement pursuant to this act, a service
retirement application must be filed with the appropriate retirement
system not less than fourteen days prior to the effective date of the
retirement, unless a shorter time period is permitted under law.
(h) "Commencement date" means the first day the retirement benefit
mandated by this act shall be made available, which shall mean a date or
dates on or after the effective date of this act to be determined by a
participating employer; provided, however, that for an educational
employer, the commencement date shall be June 1, 2010.
S 4. Notwithstanding any other provision of law, any eligible employee
serving in an eligible title who (a) has been continuously in the active
service of a participating employer from February 1, 2010 to the date
immediately prior to the commencement date of the applicable open peri-
od, (b) files an application for service retirement that is effective
during the open period, and (c) is otherwise eligible for a service
retirement as of the effective date of the application for retirement
shall be entitled to the retirement benefit provided in section five of
this act.
S 5. Notwithstanding any other provision of law, an eligible employee
who is: (a) a member of a retirement system, and (b) entitled to a
retirement benefit pursuant to section four of this act may retire
during the open period without the reduction of his or her retirement
benefit that would otherwise be imposed by article 11 or 15 of the
retirement and social security law if he or she has attained the age of
55 and has completed at least 25 or more years of creditable service. An
eligible employee who is covered by the provisions of articles 11 and 15
of the retirement and social security law shall retire under the
provisions of articles 11 and 15 of the retirement and social security
law.
S 6. Notwithstanding any other provision of law, this act shall have
no impact on retirement incentives, options or inducements offered as
A. 10920 3
part of a contractual agreement between an eligible employee and eligi-
ble employer which were negotiated prior to the effective date of this
act.
S 7. Severability clause. If any clause, sentence, paragraph, subdi-
vision, section or part of this act shall be adjudged by any court of
competent jurisdiction to be invalid, such judgment shall not affect,
impair, or invalidate the remainder thereof, but shall be confined in
its operation to the clause, sentence, paragraph, subdivision, section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the legislature that this act would have been enacted even if such
invalid provisions had not been included herein.
S 8. This act shall take effect immediately.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50: This bill
would eliminate the early retirement reductions of Tier 2, 3 and 4
members of the New York State and Local Employees' Retirement System
(ERS) and the New York State Teachers' Retirement System who are
employed by educational institutions, community colleges, or SUNY and
who are employed as principals, superintendents or department chair-
persons and who retire within their employer's 90 day open election
period, which may not extend beyond December 31, 2010.
The exact number of members who would be affected by this legislation
cannot be readily determined. However, we anticipate that very few
members will be affected by this legislation.
If this bill is enacted, insofar as it affects the New York State and
Local Employees' Retirement System (ERS), the additional cost for each
member who receives these benefits will vary depending on the member's
age, years of service, plans and final average salary. We estimate that
the per-member cost could average approximately 110% of a member's final
average salary. Any costs incurred would be borne by the State of New
York and the participating employers in the ERS.
This estimate, dated April 26, 2010, and intended for use only during
the 2010 Legislative Session, is Fiscal Note No. 2010-147, prepared by
the Actuary for the New York State and Local Employees' Retirement
System.