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

                                  10128

                          I N  A S S E M B L Y

                               May 9, 2012
                               ___________

Introduced by M. of A. ABBATE -- read once and referred to the Committee
  on Governmental Employees

AN  ACT  to amend the education law, in relation to election of a public
  retirement plan

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Subdivision  1  of  section  393 of the education law, as
amended by chapter 696 of the laws  of  1965,  is  amended  to  read  as
follows:
  1. Election of the optional retirement program.
  (a) Each eligible employee initially appointed on or after July first,
nineteen  hundred  sixty-four,  within [thirty] THREE HUNDRED SIXTY-FIVE
days of his OR HER entry into service, shall elect (i)  to  join  either
the  New  York  state  teachers' retirement system or the New York state
employees' retirement system or other public retirement system  in  this
state  in  accordance  with  the provisions of law applicable thereto or
(ii) to elect the optional retirement program  established  pursuant  to
this article; provided however, that (1) such persons initially entering
service  during  the  period  July  first,  nineteen  hundred sixty-four
through November fourth, nineteen  hundred  sixty-four  may  defer  such
election  until  December  fourth,  nineteen hundred sixty-four, and (2)
eligible employees of an electing employer  initially  appointed  on  or
after the effective date of the election to offer such program may defer
such  election  until  the  [ninetieth]  THREE  HUNDRED  SIXTY-FIFTH day
following [such effective date of the election  to  offer  such  program
established  by  an electing employer] THE FIRST DAY OF HIS OR HER ENTRY
INTO SERVICE. Any such deferred election shall be effective  as  of  the
date of entry into service or the effective date of such offer, whichev-
er is later.
  (b)  In  the  event  an eligible employee fails to make an election as
provided in paragraph (a) of this subdivision, he OR SHE shall be deemed
to have elected membership in the New York  state  teachers'  retirement
system,  or  such  public  retirement  system in this state in which his
membership may be otherwise required in accordance with law, except that

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

                                                           LBD15596-01-2

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eligible employees of institutions under the management and  control  of
Cornell  university  or  Alfred  university as the representative of the
state university trustees shall be deemed to have elected membership  in
the  New  York state employees' retirement system. Such membership shall
be effective as of the date of entry into service, or  in  the  case  of
membership  in  the  New  York  city  [employees]  EMPLOYEES' retirement
system, at the time otherwise required by law.
  (c) The amount, if any, required  to  have  been  contributed  by  any
employee  in accordance with an election, a deferred election or failure
to elect pursuant to paragraph (a) or paragraph (b) of this  subdivision
shall  be  collected  by  payroll  deductions  in  such manner as may be
provided by the comptroller for employees of state  university  electing
the  optional  retirement  program, or by the appropriate fiscal officer
for employees of an electing employer, or in the case of  membership  in
either  the  New York state employees' retirement system or the New York
state teachers' retirement system or other public retirement  system  in
this state, by the retirement system concerned.
  (d)  Eligible  employees  other  than  those  employed  by an electing
employer appointed on or before June thirtieth, nineteen hundred  sixty-
four,  may elect the optional retirement program established pursuant to
this article. Such election shall be made on or before December  fourth,
nineteen  hundred  sixty-four,  and shall become effective as of January
first, nineteen hundred sixty-five. Eligible employees  of  an  electing
employer  appointed  before  the effective date of the election to offer
such program may  elect  the  optional  retirement  program  established
pursuant  to  this article. Such election shall be made on or before the
[ninetieth] THREE HUNDRED SIXTY-FIFTH day following [the effective  date
of  such offer] THE FIRST DAY OF HIS OR HER ENTRY INTO SERVICE and shall
become effective [on or as of the first day of  January  next  following
the effective date of such offer] AS OF THE DATE OF ENTRY INTO SERVICE.
  (e) Any state employee or employee of an electing employer who becomes
eligible  to  elect the optional retirement program by reason of (i) the
certification of the position held by him pursuant to [paragraph] SUBDI-
VISION three of section three hundred ninety of this article or (ii) his
appointment, promotion,  transfer  or  reclassification  to  a  position
previously  so  certified,  may  elect  the  optional retirement program
established pursuant to this article. Such election shall be made within
[thirty] THREE HUNDRED SIXTY-FIVE days after notice in writing  to  such
employee  of his eligibility, and shall become effective [on the date of
such election] AS OF THE DATE OF ENTRY INTO SERVICE, except that  in  no
case  shall  such election by a state employee become effective prior to
January first, nineteen hundred sixty-five, or in the case of an  eligi-
ble  employee of an electing employer, prior to the first day of January
next following the effective date of the offer of such program.
  (f) Any eligible employee  who  was  employed  by  the  University  of
Buffalo  prior  to  its  merger into state university and who elected to
continue in the retirement program theretofore provided by the Universi-
ty of Buffalo in accordance with section three of chapter  nine  hundred
eighty  of  the  laws  of  nineteen hundred sixty-two and who elects the
optional retirement program established  pursuant  to  this  article  as
provided in paragraphs (d) or (e) of this subdivision shall become inel-
igible  to continue in the retirement program provided by the University
of Buffalo prior to merger on the effective date of such election.  Such
election  shall  constitute a waiver of all rights and benefits provided
under sections three and seven of chapter nine  hundred  eighty  of  the
laws of nineteen hundred sixty-two.

A. 10128                            3

  (g)  No  election  by  an eligible employee of the optional retirement
program shall be effective unless it shall be accompanied by  an  appro-
priate  application,  where  required, for the issuance of a contract or
contracts under the program.
  S  2.  Subdivision 1 of section 6253 of the education law, as added by
chapter 1028 of the laws of 1965, is amended to read as follows:
  1. Election of the optional  retirement  program.  (a)  Each  eligible
employee  initially  appointed  on  or  after  the effective date of the
election to offer such program established by the  board  shall,  within
[thirty] THREE HUNDRED SIXTY-FIVE days of his OR HER entry into service,
elect  (i)  to  join  the  New  York city teachers' retirement system in
accordance with the provisions of law applicable  thereto,  or  (ii)  to
elect the optional retirement program established pursuant to this arti-
cle; provided however, that such persons initially appointed on or after
the  effective date of the election to offer such program may defer such
election until the [ninetieth] THREE HUNDRED SIXTY-FIFTH  day  following
[such  effective  date of the election to offer such program established
by the board] HIS OR HER ENTRY INTO SERVICE.  Any such deferred election
shall be effective as of the date of entry into service.
  (b) In the event an eligible employee fails to  make  an  election  as
provided in paragraph (a) of this subdivision, he OR SHE shall be deemed
to  have  elected  membership  in the New York City teachers' retirement
system. Such membership shall be effective as of the date of entry  into
service.
  (c)  The  amount,  if  any,  required  to have been contributed by any
employee in accordance with an election, a deferred election or  failure
to  elect  pursuant to paragraph (a) or (b) of this subdivision shall be
collected by payroll deductions in such manner as may be provided by the
comptroller for those persons electing the optional retirement  program,
or  in  the case of membership in the New York city teachers' retirement
system, by the retirement system.
  (d) Eligible employees appointed before  the  effective  date  of  the
election to offer such program may elect the optional retirement program
established  pursuant to this article. Such election shall be made on or
before the [ninetieth]  THREE  HUNDRED  SIXTY-FIFTH  day  following  the
effective  date  of such offer, and shall become effective [on or] as of
the [first day of January next following  the  effective  date  of  such
offer] DATE OF ENTRY INTO SERVICE.
  (e) Any employee who becomes eligible to elect the optional retirement
program  by  reason  of  his  OR HER appointment, promotion, transfer or
reclassification to an eligible position may elect the optional  retire-
ment  program  established pursuant to this article. Such election shall
be made within [thirty] THREE HUNDRED SIXTY-FIVE days  after  notice  in
writing  to  such  employee  of his OR HER eligibility, and shall become
effective [on the date of such election, except that in  no  case  shall
such  election  become  effective prior to the first day of January next
following the effective date of the offer of such  program]  AS  OF  THE
FIRST DAY OF ENTRY INTO SERVICE.
  (f)  No  election  by  an eligible employee of the optional retirement
program shall be effective unless it shall be accompanied by  an  appro-
priate  application,  where  required, for the issuance of a contract or
contracts under the program.
  S 3. This act shall take effect immediately.
  FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
  This bill would amend Section 393 and Section 6253  of  the  Education
Law  to  extend  the  statutory time period for certain employees of the

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State University of New York, the City University of New York and commu-
nity colleges to select membership in a public retirement  plan  or  the
optional  retirement  plan  from thirty days to three hundred and sixty-
five days.
  The  annual  cost  to  the  employers of members of the new York State
Teachers' Retirement System is estimated to be negligible if  this  bill
is enacted.
  The  source  of  this estimate is Fiscal Note 2012-7 dated January 20,
2012 prepared by the Actuary of the New York State Teachers'  Retirement
System and is intended for use only during the 2012 Legislative Session.
I,  Richard  A.  Young,  am the Actuary for the New York State Teachers'
Retirement System. I am a member of the American  Academy  of  Actuaries
and  I meet the Qualification Standards of the American Academy of Actu-
aries to render the actuarial opinion contained herein.
  FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
  This bill amends Sections 393 and 6253 of the education law to  extend
the waiting period for option retirement plan selection from thirty days
to one year.
  The  City  University  of  New  York's  Office  of  Faculty  and Staff
Relations has determined that there is no fiscal impact.
  This fiscal note, dated December 2, 2011, is  intended  for  use  only
during the 2011-2012 Legislative Session.