S T A T E O F N E W Y O R K
________________________________________________________________________
5513--A
2011-2012 Regular Sessions
I N A S S E M B L Y
February 22, 2011
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Introduced by M. of A. ABBATE -- (at request of the New York State
Teachers' Retirement System) -- read once and referred to the Commit-
tee on Governmental Employees -- recommitted to the Committee on
Governmental Employees in accordance with Assembly Rule 3, sec. 2 --
committee discharged, bill amended, ordered reprinted as amended and
recommitted to said committee
AN ACT to amend the education law and the retirement and social security
law, in relation to disability retirement benefits provided by the New
York state teachers' retirement system
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 511 of the education law is amended by adding a new
subdivision 10 to read as follows:
10. A MEMBER WHO HAS BEEN RETIRED FOR DISABILITY PURSUANT TO THIS
SECTION SHALL, UPON ATTAINMENT OF AGE SIXTY-TWO, BE ENTITLED TO AN
UPWARD ADJUSTMENT IN THE AMOUNT OF THE MEMBER'S DISABILITY RETIREMENT
ALLOWANCE DETERMINED PRIOR TO OPTIONAL MODIFICATION TO THE AMOUNT OF THE
DEFERRED SERVICE RETIREMENT ALLOWANCE DETERMINED PRIOR TO OPTIONAL
MODIFICATION WHICH WOULD HAVE BEEN PAYABLE TO SUCH MEMBER BASED UPON
SUCH MEMBER'S ACTUAL CREDITED SERVICE AND FINAL AVERAGE SALARY AS OF THE
EFFECTIVE DATE OF THE MEMBER'S DISABILITY RETIREMENT, HAD THE MEMBER
COMMENCED RECEIVING SUCH DEFERRED SERVICE RETIREMENT ALLOWANCE AT AGE
SIXTY-TWO, WHERE THE AMOUNT OF THE MEMBER'S DISABILITY RETIREMENT ALLOW-
ANCE PRIOR TO OPTIONAL MODIFICATION IS LESS THAN THE AMOUNT OF SUCH
DEFERRED SERVICE RETIREMENT ALLOWANCE PRIOR TO OPTIONAL MODIFICATION.
NOTHING IN THIS SUBDIVISION SHALL AUTHORIZE ANY CHANGE IN THE FORM OF
RETIREMENT ALLOWANCE UNDER WHICH THE MEMBER WAS RETIRED. WHERE AN
OPTIONAL FORM OF RETIREMENT ALLOWANCE HAD BEEN ELECTED BY THE MEMBER AT
RETIREMENT, THE MEMBER'S OPTIONAL RETIREMENT ALLOWANCE AND ANY SURVIVOR
PORTION OF THE ALLOWANCE SHALL BE CALCULATED USING THE OPTION FACTOR
USED TO COMPUTE SUCH BENEFITS AT THE TIME THE MEMBER RETIRED. IF THE
MEMBER HAD ELECTED AN OPTIONAL FORM OF RETIREMENT ALLOWANCE REQUIRING
THE PAYMENT OF A LIFETIME SURVIVOR BENEFIT ONLY AND DIED PRIOR TO
ATTAINING AGE SIXTY-TWO, AND SUCH LIFETIME SURVIVOR BENEFIT WOULD HAVE
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08932-02-2
A. 5513--A 2
BEEN ADJUSTED UPWARD UPON THE MEMBER'S ATTAINING AGE SIXTY-TWO, SUCH
LIFETIME SURVIVOR BENEFIT SHALL BE ADJUSTED UPWARD, COMMENCING WHEN THE
MEMBER WOULD HAVE ATTAINED AGE SIXTY-TWO.
S 2. Section 605 of the retirement and social security law is amended
by adding a new subdivision k to read as follows:
K. A MEMBER OF THE NEW YORK STATE TEACHERS' RETIREMENT SYSTEM WHO HAS
BEEN RETIRED FOR DISABILITY PURSUANT TO THIS SECTION SHALL, UPON ATTAIN-
MENT OF AGE SIXTY-TWO, BE ENTITLED TO AN UPWARD ADJUSTMENT IN THE AMOUNT
OF THE MEMBER'S DISABILITY RETIREMENT ALLOWANCE DETERMINED PRIOR TO
OPTIONAL MODIFICATION TO THE AMOUNT OF THE DEFERRED VESTED BENEFIT
DETERMINED PRIOR TO OPTIONAL MODIFICATION WHICH WOULD HAVE BEEN PAYABLE
TO SUCH MEMBER BASED UPON SUCH MEMBER'S ACTUAL CREDITED SERVICE AND
FINAL AVERAGE SALARY AS OF THE EFFECTIVE DATE OF THE MEMBER'S DISABILITY
RETIREMENT, HAD THE MEMBER COMMENCED RECEIVING SUCH DEFERRED VESTED
BENEFIT AT AGE SIXTY-TWO, WHERE THE AMOUNT OF THE MEMBER'S DISABILITY
RETIREMENT ALLOWANCE PRIOR TO OPTIONAL MODIFICATION IS LESS THAN THE
AMOUNT OF SUCH DEFERRED VESTED BENEFIT PRIOR TO OPTIONAL MODIFICATION.
NOTHING IN THIS SUBDIVISION SHALL AUTHORIZE ANY CHANGE IN THE FORM OF
RETIREMENT ALLOWANCE UNDER WHICH THE MEMBER WAS RETIRED. WHERE AN
OPTIONAL FORM OF RETIREMENT ALLOWANCE HAD BEEN ELECTED BY THE MEMBER AT
RETIREMENT, THE MEMBER'S OPTIONAL RETIREMENT ALLOWANCE AND ANY SURVIVOR
PORTION OF THE ALLOWANCE SHALL BE CALCULATED USING THE OPTION FACTOR
USED TO COMPUTE SUCH BENEFITS AT THE TIME THE MEMBER RETIRED. IF THE
MEMBER HAD ELECTED AN OPTIONAL FORM OF RETIREMENT ALLOWANCE REQUIRING
THE PAYMENT OF A LIFETIME SURVIVOR BENEFIT ONLY AND DIED PRIOR TO
ATTAINING AGE SIXTY-TWO, AND SUCH LIFETIME SURVIVOR BENEFIT WOULD HAVE
BEEN ADJUSTED UPWARD UPON THE MEMBER'S ATTAINING AGE SIXTY-TWO, SUCH
LIFETIME SURVIVOR BENEFIT SHALL BE ADJUSTED UPWARD, COMMENCING WHEN THE
MEMBER WOULD HAVE ATTAINED AGE SIXTY-TWO.
S 3. This act shall take effect June 30, 2012 and shall apply to the
affected disability benefits payable on or after such date, except that
if this act shall have become a law after June 30, 2012, this act shall
take effect immediately and shall be deemed to have been in full force
and effect on and after June 30, 2012 and shall apply to the affected
disability benefits payable on or after such date.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
This bill would authorize an increase in retirement benefit at age 62
for disabled members of the New York State Teachers' Retirement System
whose disability retirement benefit is less than the service retirement
benefit the member would have received at age 62. This increase would be
equal to the difference, if any, between the current disability retire-
ment benefit and the service retirement benefit the member would have
received starting at age 62 based on the member's actual credited
service and final average salary as of the member's effective date of
disability retirement. If the member elected an optional form of benefit
requiring the payment of a lifetime survivor annuity and dies prior to
attainment of age 62, such lifetime survivor benefit shall be adjusted
upward if appropriate, commencing when the member would have attained
age 62.
The annual cost to the employers of members of the New York State
Teachers' Retirement System for this benefit is estimated to be $4.6
million or .03% of payroll if this bill is enacted.
The source of this estimate is Fiscal Note 2012-1 dated October 3,
2011 prepared by the Actuary of the New York State Teachers' Retirement
System and is intended for use only during the 2012 Legislative Session.