S T A T E O F N E W Y O R K
________________________________________________________________________
4069
2009-2010 Regular Sessions
I N S E N A T E
April 8, 2009
___________
Introduced by Sens. FLANAGAN, SEWARD, VOLKER -- read twice and ordered
printed, and when printed to be committed to the Committee on Civil
Service and Pensions
AN ACT to amend the retirement and social security law, in relation to
benefits of members subject to article 11 and article 15 who retire
prior to the normal retirement age with twenty-five years of service
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Paragraph 1 of subdivision b of section 442 of the retire-
ment and social security law, as amended by chapter 306 of the laws of
1996, is amended to read as follows:
1. A member who is a peace officer employed by the unified court
system or a member of a teacher's retirement system or a member of the
New York state and local employees' retirement system OR A MEMBER OF THE
NEW YORK CITY EMPLOYEES' RETIREMENT SYSTEM OR A MEMBER OF THE NEW YORK
CITY BOARD OF EDUCATION RETIREMENT SYSTEM may retire without reduction
of his OR HER retirement benefit upon his OR HER attainment of at least
fifty-five years of age and completion of [thirty] TWENTY-FIVE or more
years of service; and
S 2. Paragraph 1 of subdivision d of section 445-d of the retirement
and social security law, as amended by chapter 509 of the laws of 2001,
is amended to read as follows:
1. In addition to the member contributions required by section 13-125
or 13-162 of the administrative code or section eight or thirty of the
BERS rules and regulations, each participant in the age fifty-five
improved benefit retirement program shall contribute, subject to the
applicable provisions of section 13-125.2 of the administrative code or
subdivision nineteen of section twenty-five hundred seventy-five of the
education law, an additional percentage or additional percentages of his
or her compensation to the retirement system of which he or she is a
member in accordance with the following schedule:
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00702-03-9
S. 4069 2
(i) (A) each such participant shall contribute an additional four and
thirty-five one-hundredths percent of his or her compensation earned
from all credited CPP qualifying service (whether or not in a physically
taxing position) rendered on and after the starting date of the age
fifty-five improved benefit retirement program and prior to the
commencement date of the first payroll period which begins after January
first, nineteen hundred ninety-eight (1) while such person is a partic-
ipant in such program; and (2) before such person becomes such a partic-
ipant pursuant to paragraph one or two of subdivision b of this section
(whether or not rendered in a New York city eligible position); and (3)
after such person ceases to be a participant, but before he or she again
becomes such a participant pursuant to paragraph five of such subdivi-
sion b (whether or not rendered in a New York city eligible position);
and
(B) each such participant shall contribute an additional two and
eighty-five one-hundredths percent of his or her compensation earned
from all credited CPP qualifying service (whether or not in a physically
taxing position) rendered on and after the commencement date of the
first payroll period which begins after January first, nineteen hundred
ninety-eight and prior to the commencement date of the first payroll
period which begins subsequent to the effective date of [the] chapter
FIVE HUNDRED NINE of the laws of two thousand one which amended this
item AND PRIOR TO THE COMMENCEMENT DATE OF THE FIRST PAYROLL PERIOD
WHICH BEGINS AFTER JULY FIRST, TWO THOUSAND NINE (1) while such person
is a participant in such program; and (2) before such person becomes
such a participant pursuant to paragraph one or two of subdivision b of
this section (whether or not rendered in a New York city eligible posi-
tion); and (3) after such person ceases to be a participant, but before
he or she again becomes such a participant pursuant to paragraph five of
such subdivision b (whether or not rendered in a New York city eligible
position); and
(C) each such participant shall contribute an additional one and
eighty-five one-hundredths percent of his or her compensation earned
from all credited CPP qualifying service (whether or not in a physically
taxing position) rendered on and after the commencement date of the
first payroll period which begins subsequent to the effective date of
[the] chapter FIVE HUNDRED NINE of the laws of two thousand one which
added this item (1) while such person is a participant in such program;
and (2) before such person becomes such a participant pursuant to para-
graph one or two of subdivision b of this section (whether or not
rendered in a New York city eligible position); and (3) after such
person ceases to be a participant, but before he or she again becomes
such a participant pursuant to paragraph five of such subdivision b
(whether or not rendered in a New York city eligible position); and
(ii) each such participant who is employed in a physically taxing
position (as defined in paragraph eleven of subdivision a of this
section) shall contribute, in addition to the additional member contrib-
utions required to be made at the percentage of compensation specified
in subparagraph (i) of this paragraph for the credited CPP qualifying
service specified in such subparagraph (i), an additional one and nine-
ty-eight one-hundredths percent of his or her compensation earned from
that portion of such credited CPP qualifying service which is rendered
in a physically taxing position on and after the starting date of the
age fifty-five improved benefit retirement program (A) while such person
is a participant in such program; and (B) before such person becomes
such a participant pursuant to paragraph one or two of subdivision b of
S. 4069 3
this section; and (C) after such person ceases to be a participant, but
before he or she again becomes such a participant pursuant to paragraph
five of such subdivision b.
S 3. Subdivision a of section 603 of the retirement and social securi-
ty law, as amended by section 3 of chapter 19 of the laws of 2008, is
amended to read as follows:
a. The service retirement benefit specified in section six hundred
four of this article shall be payable to members who have met the mini-
mum service requirements upon retirement and attainment of age sixty-
two, other than members who are eligible for early service retirement
pursuant to subdivision c of section six hundred four-b of this article,
subdivision c of section six hundred four-c of this article, SUCH
SECTION AS ADDED BY CHAPTER FOUR HUNDRED SEVENTY-TWO OF THE LAWS OF
NINETEEN HUNDRED NINETY-FIVE, subdivision d of section six hundred
four-d of this article, subdivision c of section six hundred four-e of
this article, subdivision c of section six hundred four-f of this arti-
cle, subdivision c of section six hundred four-g of this article, subdi-
vision c of section six hundred four-h of this article or subdivision c
of section six hundred four-i of this article, provided, however, a
member who is a peace officer employed by the unified court system or a
member of a teachers' retirement system or the New York state and local
employees' retirement system OR THE NEW YORK CITY EMPLOYEES' RETIREMENT
SYSTEM OR THE NEW YORK CITY BOARD OF EDUCATION RETIREMENT SYSTEM may
retire without reduction of his or her retirement benefit upon attain-
ment of at least fifty-five years of age and completion of [thirty]
TWENTY-FIVE or more years of service.
S 3-a. Subdivision a of section 603 of the retirement and social secu-
rity law, as amended by section 3-a of chapter 19 of the laws of 2008,
is amended to read as follows:
a. The service retirement benefit specified in section six hundred
four of this article shall be payable to members who have met the mini-
mum service requirements upon retirement and attainment of age sixty-
two, other than members who are eligible for early service retirement
pursuant to subdivision c of section six hundred four-b of this article,
subdivision c of section six hundred four-c of this article, SUCH
SECTION AS ADDED BY CHAPTER FOUR HUNDRED SEVENTY-TWO OF THE LAWS OF
NINETEEN HUNDRED NINETY-FIVE, subdivision d of section six hundred
four-d of this article, subdivision c of section six hundred four-e of
this article, subdivision c of section six hundred four-f of this arti-
cle, subdivision c of section six hundred four-g of this article, subdi-
vision c of section six hundred four-h of this article or subdivision c
of section six hundred four-i of this article provided, however, a
member who is a peace officer employed by the unified court system or a
member of a teachers' retirement system or the New York state and local
employees' retirement system OR THE NEW YORK CITY EMPLOYEES' RETIREMENT
SYSTEM OR THE NEW YORK CITY BOARD OF EDUCATION RETIREMENT SYSTEM may
retire without reduction of his or her retirement benefit upon attain-
ment of at least fifty-five years of age and completion of [thirty]
TWENTY-FIVE or more years of service.
S 4. Paragraph 1 of subdivision i of section 603 of the retirement and
social security law, as amended by chapter 19 of the laws of 2008, is
amended to read as follows:
1. A member of a teachers' retirement system or the New York state and
local employees' retirement system who has met the minimum service
requirements but who has less than [thirty] TWENTY-FIVE years of credit-
ed service may retire prior to normal retirement age, but no earlier
S. 4069 4
than attainment of age fifty-five, in which event, unless such person is
a member of the New York city teachers' retirement system who is other-
wise eligible for early service retirement pursuant to subdivision c of
section six hundred four-i of this article, the amount of his or her
retirement benefit otherwise computed without optional modification
shall be reduced in accordance with the following schedule:
(i) for each of the first twenty-four full months that retirement
predates age sixty-two, one-half of one per centum per month; and
(ii) for each full month that retirement predates age sixty, one-quar-
ter of one per centum per month, but in no event shall retirement be
permitted prior to attainment of age fifty-five.
S 5. Paragraph 1 of subdivision d of section 604-c of the retirement
and social security law, as amended by chapter 509 of the laws of 2001,
is amended to read as follows:
1. In addition to the member contributions required by section six
hundred thirteen of this article, each participant in the twenty-five-
year early retirement program shall contribute (subject to the applica-
ble provisions of subdivision d of section six hundred thirteen of this
article) an additional percentage or additional percentages of his or
her compensation to the retirement system of which he or she is a member
in accordance with the following schedule:
(i) (A) each such participant shall contribute an additional four and
thirty-five one-hundredths percent of his or her compensation earned
from all credited service (whether or not in a physically taxing posi-
tion) rendered on and after the starting date of the twenty-five-year
early retirement program and prior to the commencement date of the first
payroll period which begins after January first, nineteen hundred nine-
ty-eight (1) while such person is a participant in such program; and (2)
before such person becomes such a participant pursuant to paragraph one
or two of subdivision b of this section (whether or not rendered in a
New York city eligible position); and (3) after such person ceases to be
a participant, but before he or she again becomes such a participant
pursuant to paragraph five of such subdivision b (whether or not
rendered in a New York city eligible position); and
(B) each such participant shall contribute an additional two and
eighty-five one-hundredths percent of his or her compensation earned
from all credited service (whether or not in a physically taxing posi-
tion) rendered on and after the commencement date of the first payroll
period which begins after January first, nineteen hundred ninety-eight
and prior to the commencement date of the first payroll period which
begins subsequent to the effective date of [the] chapter FIVE HUNDRED
NINE of the laws of two thousand one which amended this item AND PRIOR
TO THE COMMENCEMENT DATE OF THE FIRST PAYROLL PERIOD WHICH BEGINS AFTER
JULY FIRST, TWO THOUSAND NINE (1) while such person is a participant in
such program; and (2) before such person becomes such a participant
pursuant to paragraph one or two of subdivision b of this section
(whether or not rendered in a New York city eligible position); and (3)
after such person ceases to be a participant, but before he or she again
becomes such a participant pursuant to paragraph five of such subdivi-
sion b (whether or not rendered in a New York city eligible position);
and
(C) each such participant shall contribute an additional one and
eighty-five one-hundredths percent of his or her compensation earned
from all credited service (whether or not in a physically taxing posi-
tion) rendered on and after the commencement date of the first payroll
period which begins subsequent to the effective date of [the] chapter
S. 4069 5
FIVE HUNDRED NINE of the laws of two thousand one which added this item
(1) while such person is a participant in such program; and (2) before
such person becomes such a participant pursuant to paragraph one or two
of subdivision b of this section (whether or not rendered in a New York
city eligible position); and (3) after such person ceases to be a
participant, but before he or she again becomes such a participant
pursuant to paragraph five of such subdivision b (whether or not
rendered in a New York city eligible position); and
(ii) each such participant who is employed in a physically taxing
position (as defined in paragraph eleven of subdivision a of this
section) shall contribute, in addition to the additional member contrib-
utions required to be made at the percentage of compensation specified
in subparagraph (i) of this paragraph for the credited service specified
in such subparagraph (i), an additional one and ninety-eight one-hun-
dredths percent of his or her compensation earned from that portion of
such credited service which is rendered in a physically taxing position
on and after the starting date of the twenty-five-year early retirement
program (A) while such person is a participant in such program; and (B)
before such person becomes such a participant pursuant to paragraph one
or two of subdivision b of this section; and (C) after such person ceas-
es to be a participant, but before he or she again becomes such a
participant pursuant to paragraph five of such subdivision b.
(iii) notwithstanding the provisions of subparagraphs (i) and (ii) of
this paragraph, a person who becomes a participant in the twenty-five-
year early retirement program provided by this section, who prior to
such membership was subject to the provisions of section six hundred
four-b of this article, shall not be required to pay the additional
member contributions required by subparagraphs (i) and (ii) of this
paragraph for any period of credited service before which such person
became a participant pursuant to paragraph one or two of subdivision b
of this section and during which such participant was subject to the
provisions of such section six hundred four-b and no additional employee
contributions were required of such member.
S 6. Paragraph 1 of subdivision f of section 604-d of the retirement
and social security law, as amended by chapter 509 of the laws of 2001,
is amended to read as follows:
1. In addition to the member contributions required by section six
hundred thirteen of this article, each participant in the age fifty-sev-
en retirement program shall contribute (subject to the applicable
provisions of subdivision d of section six hundred thirteen of this
article) an additional percentage or additional percentages of his or
her compensation to the retirement system of which he or she is a member
in accordance with the following schedule:
(i) (A) each such participant shall contribute an additional four and
thirty-five one-hundredths percent of his or her compensation earned
from all credited service (whether or not in a physically taxing posi-
tion) rendered prior to the commencement date of the first payroll peri-
od which begins after January first, nineteen hundred ninety-eight (1)
while such person is a participant in such program; and (2) before such
person becomes such a participant pursuant to paragraph one or three of
subdivision c of this section (whether or not rendered in a New York
city eligible position, and whether rendered before or after the enact-
ment date of the age fifty-seven retirement program); and (3) after such
person ceases to be a participant, but before he or she again becomes
such a participant pursuant to paragraph five of such subdivision c
(whether or not rendered in a New York city eligible position); and
S. 4069 6
(B) each such participant shall contribute an additional two and
eighty-five one-hundredths percent of his or her compensation earned
from all credited service (whether or not in a physically taxing posi-
tion) rendered on and after the commencement date of the first payroll
period which begins after January first, nineteen hundred ninety-eight
and prior to the commencement date of the first payroll period which
begins subsequent to the effective date of [the] chapter FIVE HUNDRED
NINE of the laws of two thousand one which amended this item AND PRIOR
TO THE COMMENCEMENT DATE OF THE FIRST PAYROLL PERIOD WHICH BEGINS AFTER
JULY FIRST, TWO THOUSAND NINE (1) while such person is a participant in
such program; and (2) before such person becomes such a participant
pursuant to paragraph one or three of subdivision c of this section
(whether or not rendered in a New York city eligible position); and (3)
after such person ceases to be a participant, but before he or she again
becomes such a participant pursuant to paragraph five of such subdivi-
sion c (whether or not rendered in a New York city eligible position);
and
(C) each such participant shall contribute an additional one and
eighty-five one-hundredths percent of his or her compensation earned
from all credited service (whether or not in a physically taxing posi-
tion) rendered on and after the commencement date of the first payroll
period which begins subsequent to the effective date of [the] chapter
FIVE HUNDRED NINE of the laws of two thousand one which added this item
(1) while such person is a participant in such program; and (2) before
such person becomes such a participant pursuant to paragraph one or
three of subdivision c of this section (whether or not rendered in a New
York city eligible position); and (3) after such person ceases to be a
participant, but before he or she again becomes such a participant
pursuant to paragraph five of such subdivision c (whether or not
rendered in A New York city eligible position); and
(ii) each such participant who is employed in a physically taxing
position (as defined in paragraph eleven of subdivision a of section six
hundred four-c of this article) shall contribute, in addition to the
additional member contributions required to be made at the percentage of
compensation specified in subparagraph (i) of this paragraph for the
credited service specified in such subparagraph (i), an additional one
and ninety-eight one-hundredths percent of his or her compensation
earned from that portion of such credited service which is rendered in a
physically taxing position (A) while such person is a participant in
such program; and (B) before such person becomes such a participant
pursuant to paragraph one or three of subdivision c of this section
(whether rendered before or after the enactment date of the age fifty-
seven retirement program); and (C) after such person ceases to be a
participant, but before he or she again becomes such a participant
pursuant to paragraph five of such subdivision c.
(iii) notwithstanding the provisions of subparagraphs (i) and (ii) of
this paragraph, a person who becomes a participant in the age fifty-sev-
en early retirement program provided by this section, who prior to such
membership was subject to the provisions of section six hundred four-b
of this article, shall not be required to pay the additional member
contributions required by subparagraphs (i) and (ii) of this paragraph
for any period of credited service before which such person became a
participant pursuant to paragraph one or three of subdivision c of this
section and during which such participant was subject to the provisions
of such section six hundred four-b and no additional employee contrib-
utions were required of such member.
S. 4069 7
S 7. This act shall take effect immediately and shall be deemed to
have been in full force and effect on and after June 30, 2009; provided,
however, that the amendments to subdivisions a and i of section 603,
paragraph 1 of subdivision d of section 604-c and paragraph 1 of subdi-
vision f of section 604-d of the retirement and social security law made
by sections three, three-a, four, five and six of this act shall not
affect the expiration of and shall expire on the same date as article 15
of such law, pursuant to section 615 of the retirement and social secu-
rity law; and provided, further, that the amendments to subdivision a of
section 603 of the retirement and social security law made by section
three of this act shall be subject to the expiration and reversion of
such subdivision pursuant to section 13 of chapter 682 of the laws of
2003, as amended, when upon such date the provisions of section three-a
of this act shall take effect.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
This bill would allow Tier 2, 3 and 4 members of the New York State
and Local Employees' Retirement System and certain other public retire-
ment systems to retire without a benefit reduction due to early retire-
ment upon the attainment of age fifty-five (55) and the completion of at
least twenty-five (25) years of service. It would also amend the employ-
ee contribution payment schedule for certain members of the New York
City Employees' Retirement System who are covered under the Optional Age
Fifty-Five Improved Retirement Benefit Program. This bill would be
deemed to be in effect on June 30, 2009.
Insofar as this bill would affect the New York State and Local Employ-
ees' Retirement System, if it is enacted, we anticipate that there would
be estimated additional annual contributions of approximately $67
million to the State of New York and $95 million to the participating
employers in the New York State and Local Employees' Retirement System.
This estimate, dated December 1, 2008 and intended for use only during
the 2009 Legislative Session, is Fiscal Note No. 2009-19, prepared by
the Actuary for the New York State and Local Employees' Retirement
System.
