S T A T E O F N E W Y O R K
________________________________________________________________________
5151
2009-2010 Regular Sessions
I N A S S E M B L Y
February 10, 2009
___________
Introduced by M. of A. ABBATE -- 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 transfers of a pension reserve
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivision 5 of section 522 of the education law, as added
by chapter 647 of the laws of 2004, is amended to read as follows:
5. Notwithstanding any other provision of law to the contrary, EXCEPT
FOR THE PURPOSES OF PROVIDING THE BENEFITS, IF ANY, OF SUBDIVISION FOUR
OF THIS SECTION, with respect to transfers pursuant to this section
which occur on or after the effective date of this subdivision, no
transfer of a pension reserve pursuant to subdivision one or two of this
section shall be required when the member is transferring from a public
employee retirement system of this state to any other public employee
retirement system of this state. For the purpose of giving the trans-
ferring member such status and crediting such service in the retirement
system to which the member is transferring as such member was allowed in
the retirement system from which the member has transferred, the trans-
fer shall be deemed complete upon receipt by the transferee retirement
system of (a) a statement from the transferor retirement system of the
transferring member's date of membership in the transferor retirement
system, tier status, service credited to the transferred membership, and
such other information as the transferee retirement system may require
to effectuate the transfer, and (b) such member's accumulated contrib-
utions from the transferor retirement system, if same had not been
previously withdrawn, or notice from the transferor retirement system
that such member had no accumulated contributions, or notice from the
transferor retirement system that such member's accumulated contrib-
utions had been withdrawn and the amount thereof and, as applicable,
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06286-02-9
A. 5151 2
receipt from such member of such member's accumulated contributions and
interest.
S 2. Subdivision k of section 43 of the retirement and social security
law, as amended by chapter 647 of the laws of 2004, is amended to read
as follows:
k. Notwithstanding any other provision of this section, any member of
the New York state and local employees' retirement system or the New
York city teachers' retirement system who retired from service from
either the New York city employees' retirement system or the New York
city board of education retirement system as a member of the career
pension plan maintained by such system and who, but for the fact that he
or she retired, would be eligible for transfer and who has not, in fact,
received a pension payment from such system shall be permitted to trans-
fer his or her retirement system membership pursuant to the provisions
of this section. In such event, the application for retirement shall be
deemed to have been rescinded and the retirement system from which the
service shall be transferred shall transfer the appropriate reserves as
provided by this section, provided, however, that with respect to trans-
fers pursuant to this subdivision which occur on or after the [effective
date of the chapter of the laws of two thousand four which amended this
subdivision] TWENTY-SIXTH DAY OF OCTOBER, TWO THOUSAND FOUR, EXCEPT FOR
THE PURPOSES OF PROVIDING THE BENEFITS, IF ANY, OF SUBDIVISION FOUR OF
SECTION FIVE HUNDRED TWENTY-TWO OF THE EDUCATION LAW, no determination
of a reserve pursuant to subdivision c of this section or transfer ther-
eof pursuant to the first sentence of subdivision d of this section
shall be required in the case of any transfer pursuant to this subdivi-
sion. Notwithstanding the provision of this subdivision or any other
provision of law, an individual who transfers pursuant to this subdivi-
sion shall not be required to render any minimum period of service
following transfer in order to be eligible to receive the full benefit
provided hereunder. Notwithstanding the foregoing, a retiree covered by
either the career pension plan or the fifty-five-year-increased-ser-
vice-fraction plan who has received a pension payment or payments from
such system shall be eligible for the provisions of this subdivision
upon payment, to the retirement system from which the pension payment or
payments were made, of an amount equal to such pension payment or
payments. After such payments are received, such person shall be permit-
ted to transfer his or her retirement system membership pursuant to the
provisions of this section.
S 3. Subdivision l of section 43 of the retirement and social security
law, as added by chapter 647 of the laws of 2004, is amended to read as
follows:
l. Notwithstanding any other provision of law to the contrary, with
respect to transfers pursuant to this section which occur on or after
the [effective date of this subdivision] TWENTY-SIXTH DAY OF OCTOBER,
TWO THOUSAND FOUR, EXCEPT FOR THE PURPOSES OF PROVIDING THE BENEFITS, IF
ANY, OF SUBDIVISION FOUR OF SECTION FIVE HUNDRED TWENTY-TWO OF THE
EDUCATION LAW, no determination of a reserve pursuant to subdivision c
of this section or transfer thereof pursuant to the first sentence of
subdivision d of this section shall be required in the case of any
transfer pursuant to this section. For the purpose of giving the trans-
ferring member such status and crediting such service in the second
retirement system as such member was allowed in the first retirement
system in those cases to which this subdivision shall apply, the trans-
fer shall be deemed complete upon receipt by the second retirement
system of:
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1. a statement from the first retirement system of the transferring
member's date of membership in the first retirement system, tier status,
service credited to such membership being transferred, and such other
information as the second retirement system may require to effectuate
the transfer; and
2. such member's accumulated contributions from the first retirement
system, if same had not been previously withdrawn, or notice from the
first retirement system that such member had no accumulated contrib-
utions, or notice from the first retirement system that such member's
accumulated contributions had been withdrawn and the amount thereof and,
as applicable, receipt from such member of such member's accumulated
contributions and interest.
S 4. This act shall take effect immediately and shall be deemed to
have been in full force and effect on and after October 26, 2004.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
This bill would amend section 522 of the Education Law and section 43
of the Retirement and Social Security Law to once again require the
transfer of reserves for former members of the New York City Teachers'
Retirement System (NYCTRS) who transferred to the New York State Teach-
ers' Retirement System (NYSTRS) and meet the eligibility requirements of
subdivision 4 of section 522. Subdivision 4 provides a benefit for
former NYCTRS members who had at least 20 years of service and whose
date of membership is prior to 7/27/76 and whose transfer reserves,
including ITHP, exceeds their accrued liability in the NYSTRS. Any
"excess ITHP" resulting from this calculation is given to the member.
Subdivision 5 ended the practice of transferring reserves between these
retirement systems in 2004.
It is estimated that there will be no additional annual cost to the
employers of members of the New York State Teachers' Retirement System
if this bill is enacted. Reserves will be transferred from the NYCTRS to
the NYSTRS on behalf of these individuals.
The source of this estimate is Fiscal Note 2009-12 dated January 30,
2009 prepared by the Actuary of the New York State Teachers' Retirement
System and is intended for use only during the 2009 Legislative Session.