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

                                  6712

                            I N  S E N A T E

                            January 29, 2010
                               ___________

Introduced by Sens. SAVINO, OPPENHEIMER -- read twice and ordered print-
  ed, and when printed to be committed to the Committee on Civil Service
  and Pensions

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 enable certain public employers to offer a temporary incentive for
certain public employees above age 55 and with 25 years of service.
  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 an educational employer, the state-
operated institutions of the state university of New York, and a  commu-
nity  college  operating  under a program of the state university of New
York, which participates in a  retirement  system  as  defined  in  this
section,  who  employs  members  who  hold  positions represented by the
recognized collective bargaining units  affiliated  with  the  New  York
state united teachers employee organization.
  d.  "Educational  employer"  means a participating employer which is a
school district, a board of cooperative educational  services,  a  voca-

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

                                                           LBD15624-01-0

S. 6712                             2

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
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 an employee of a participating employer and who  holds  a
position  represented  by  the  recognized  collective  bargaining units
affiliated with the New York state united teachers employee organization
who makes an election under section five of this act.
  f. "Active service" means service while being  paid  on  the  payroll,
provided  that  (a)  a  leave of absence with pay shall be deemed active
service; (b) other approved leave without pay not to exceed twelve weeks
from February 1, 2010 and the commencement of the designated open  peri-
od;  and  (c) 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 otherwise
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 appro-
priate board of trustees, and shall be ninety days in  length;  provided
however that there shall be only one such open period and any such peri-
od shall not extend beyond August 31, 2010 for educational employers and
shall  not extend beyond December 31, 2010 for the state-operated insti-
tutions 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 retirement to
become effective.
  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 3, 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
fifty-five and has completed at least twenty-five or more years of cred-

S. 6712                             3

itable  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
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, subdivi-
sion,  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 provide a temporary retirement incentive during fiscal
year 2010-2011. This incentive would permit eligible Tier  2,  3  and  4
members to retire without early retirement reductions upon attainment of
at  least age 55 with 25 years of service. Currently 30 years of service
are required in order to retire without reduction. In order  to  receive
this  benefit,  a  member  must retire during the designated 90-day open
period, beginning on June 3, 2010 for educational employers. In order to
be eligible, a member must be an employee of  a  participating  employer
and  hold  a  position  represented  by one of the recognized collective
bargaining units affiliated with the  New  York  State  United  Teachers
(NYSUT).  The  cost  of  this  incentive  will  be socialized across all
employers.
  The annual cost to the employers of members  of  the  New  York  State
Teachers'  Retirement  System  for this benefit is estimated to be $13.2
million or .09% of payroll if this bill is enacted.
  The source of this estimate is Fiscal Note 2010-06 dated  January  11,
2010  prepared by the Actuary of the New York State Teachers' Retirement
System and is intended for use only during the 2010 Legislative Session.
  FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
  This bill would eliminate the early retirement reductions for 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 whose
positions are represented by NYSUT and who retire within  their  employ-
er'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  cannot  be
readily determined.
  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.  We  anticipate that the number of participants will be
less than 1000. For every 100 participants, we estimate that there would
be an increase in the annual contributions of approximately $260,000  to

S. 6712                             4

the State of New York and $360,000 to the participating employers in the
ERS.
  This  estimate,  dated  January  12,  2010,  and intended for use only
during the  2010  Legislative  Session,  is  Fiscal  Note  No.  2010-66,
prepared  by  the  Actuary  for  the New York State and Local Employees'
Retirement System.