senate Bill S6224A

Signed By Governor
2011-2012 Legislative Session

Relates to the right of vested members to withdraw from the New York city teachers' retirement system

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Archive: Last Bill Status Via A9157 - Signed by Governor


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Aug 17, 2012 signed chap.384
Aug 06, 2012 delivered to governor
Jun 21, 2012 returned to assembly
passed senate
3rd reading cal.1464
substituted for s6224a
Jun 21, 2012 substituted by a9157a
ordered to third reading cal.1464
committee discharged and committed to rules
May 31, 2012 print number 6224a
amend and recommit to cities
Jan 13, 2012 referred to cities

Votes

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Bill Amendments

Original
A (Active)
Original
A (Active)

S6224 - Bill Details

See Assembly Version of this Bill:
A9157A
Law Section:
New York City Administrative Code
Laws Affected:
Amd §13-541, NYC Ad Cd

S6224 - Bill Texts

view summary

Relates to the right of vested members to withdraw from the New York city teachers' retirement system; allows a member who has permanently ceased teaching in New York to elect to withdraw his/her accumulated contributions to enable the member to obtain credit for the teaching service in another state provided such member has at least five years of service credit in that system, and the withdrawal must be necessary in order for the member to obtain credit in the other system.

view sponsor memo
BILL NUMBER:S6224

TITLE OF BILL:
An act to amend the administrative code of the city of New York, in
relation to the right of vested members to withdraw from the New York
city teachers' retirement system

PURPOSE OF THE BILL:
This bill would allow certain Tiers 3, 4 and 5 vested members of the
New York City Teachers' Retirement System who have permanently ceased
teaching to withdraw from membership in the System.

SUMMARY AND JUSTIFICATION:
Tier 1 and 2 members of the System have an unrestricted right to
terminate their memberships with the System and withdraw their
accumulated contributions, if any, from the System. No similar right,
however, has been extended to members of the System provided benefits
under Articles 14 and 15 of the Retirement and Social Security Law.
Once Tier 3, 4 and 5 members have accumulated 10 years of credited
service with the system, they are locked into System membership even
where it may not be to their advantage.

It is not always to a Tier 3, 4 or 5 member's advantage to have
his/her membership in the System continue after he or she has ceased
teaching in New York state. Specifically, teachers who have been
compelled by circumstances to leave New York state and take up
residence in other states may have the opportunity to obtain credit
for their New York service in the public employee retirement systems
of other states provided they are not entitled to a benefit from the
system for that service. Allowing Tiers 3, 4 and 5 members to withdraw
from the System in that circumstance so that they can obtain credit
for their New York service in another state would make their service
portable.

This bill would amend the administrative code sec. 13-541. This would
allow a member of the system subject to Article 14 or 15 of the
Retirement and Social Security Law who has permanently ceased teaching
in New York to elect to withdraw his/her accumulated contributions and
thereby terminate his/her membership in the System where the purpose
of the withdrawal is to enable the member to obtain credit for the
teaching service in a public employee retirement system in another
state. The retirement system in the other state must certify that the
member seeking withdrawal is a member of that system, that the member
has at least five years of service credit in that system, and that
withdrawal from the System is necessary in order for the member to
obtain credit for the member's New York service in the other system.
Upon payment of the accumulated contributions to the member, any and
all obligations of the System to the member would cease. This
legislation parallels provisions of C.553 2011 which applies to
members of the NYS Teacher's Retirement System

FISCAL IMPLICATIONS:
There are no fiscal implications to the State.

EFFECTIVE DATE:
The bill would take effect immediately.


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

                                  6224

                            I N  S E N A T E

                            January 13, 2012
                               ___________

Introduced  by  Sen.  GOLDEN -- read twice and ordered printed, and when
  printed to be committed to the Committee on Cities

AN ACT to amend the administrative code of the  city  of  New  York,  in
  relation  to the right of vested members to withdraw from the New York
  city teachers' retirement system

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

  Section  1.  Section  13-541 of the administrative code of the city of
New York, as amended by chapter 854 of the laws of 1985, is  amended  to
read as follows:
  S  13-541 Termination of membership; resignation, transfer or dismiss-
al. 1. Withdrawals from the retirement association shall be by  resigna-
tion, by transfer, or by dismissal. Should a contributor resign from the
position  by  virtue  of  which  he  or  she  is a contributor under the
provisions of this chapter, or should he or she, upon transferring  from
such  a position to another position in the city-service, fail to become
a transferred-contributor as provided in section 13-523 of this chapter,
his or her membership in such association shall cease except as provided
in section 13-556 of this code and he or she shall be paid forthwith the
full amount of the accumulated deductions standing to the credit of  his
or her individual account in the annuity savings fund.
  2.  NOTWITHSTANDING  ANY  OTHER  PROVISION OF LAW TO THE CONTRARY, ANY
MEMBER OF THE RETIREMENT ASSOCIATION  SUBJECT  TO  ARTICLE  FOURTEEN  OR
FIFTEEN  OF  THE  RETIREMENT AND SOCIAL SECURITY LAW WHO HAS PERMANENTLY
CEASED TEACHING SHALL HAVE THE RIGHT TO ELECT THE RETURN OF HIS  OR  HER
ACCUMULATED CONTRIBUTIONS AND THEREBY TERMINATE HIS OR HER MEMBERSHIP IN
THE  RETIREMENT  ASSOCIATION  WITHOUT REGARD TO THE AMOUNT OF SERVICE TO
HIS OR HER CREDIT, PROVIDED  A  PUBLIC  EMPLOYEE  RETIREMENT  SYSTEM  IN
ANOTHER  STATE HAS CERTIFIED IN A MANNER SATISFACTORY TO THE SYSTEM THAT
SUCH MEMBER IS A MEMBER OF SUCH OTHER RETIREMENT SYSTEM,  HAS  AT  LEAST
FIVE  YEARS  OF RETIREMENT CREDIT IN SUCH OTHER SYSTEM, AND IS ELIGIBLE,
UPON THE TERMINATION OF HIS OR HER MEMBERSHIP IN THE SYSTEM,  TO  OBTAIN
RETIREMENT  CREDIT IN SUCH OTHER RETIREMENT SYSTEM FOR THE SERVICE WHICH
HAS BEEN CREDITED TO HIS OR HER MEMBERSHIP IN THE SYSTEM. UPON REFUND OF

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13999-01-2

S. 6224                             2

SUCH ACCUMULATED CONTRIBUTIONS, ANY AND ALL OBLIGATIONS OF  THE  RETIRE-
MENT  ASSOCIATION TO SUCH MEMBER SHALL BE TOTALLY DISCHARGED. THE TEACH-
ERS' RETIREMENT BOARD IS AUTHORIZED TO ADOPT SUCH RULES AND  REGULATIONS
AS MAY BE NECESSARY TO IMPLEMENT THIS SUBDIVISION.
  S 2. This act shall take effect immediately.

S6224A (ACTIVE) - Bill Details

See Assembly Version of this Bill:
A9157A
Law Section:
New York City Administrative Code
Laws Affected:
Amd §13-541, NYC Ad Cd

S6224A (ACTIVE) - Bill Texts

view summary

Relates to the right of vested members to withdraw from the New York city teachers' retirement system; allows a member who has permanently ceased teaching in New York to elect to withdraw his/her accumulated contributions to enable the member to obtain credit for the teaching service in another state provided such member has at least five years of service credit in that system, and the withdrawal must be necessary in order for the member to obtain credit in the other system.

view sponsor memo
BILL NUMBER:S6224A

TITLE OF BILL:
An act
to amend the administrative code of the city of New York, in relation to
the right of vested members to withdraw from the New York city teachers'
retirement system

PURPOSE OF THE BILL;
This bill would allow certain Tiers 3, 4 and 5 vested members of the
New York City Teachers' Retirement System who have permanently ceased
teaching to withdraw from membership in the System.

SUMMARY AND JUSTIFICATION:
Tier 1 and 2 members of the System have an unrestricted right to
terminate their memberships with the System and withdraw their
accumulated contributions, if any, from the System. No similar right,
however, has been extended to members of the System provided benefits
under Articles 14 and 15 of the Retirement and Social Security Law.
Once Tier 3, 4 and 5 members have accumulated 10 years of credited
service with the system, they are locked into System membership even
where it may not be to their advantage.

It is not always to a Tier 3, 4 or 5 member's advantage to have
his/her membership in the System continue after he or she has ceased
teaching in New York state. Specifically, teachers who have been
compelled by circumstances to leave New York state and take up
residence in other states may have the opportunity to obtain credit
for their New York service in the public employee retirement systems
of other states provided they are not entitled to a benefit from the
system for that service. Allowing Tiers 3, 4 and 5 members to
withdraw from the System in that circumstance so that they can obtain
credit for their New York service in another state would make their
service portable.

This bill would amend the administrative code sec. 13-541. This would
allow a member of the system subject to Article 14 or 15 of the
Retirement and Social Security Law who has permanently ceased
teaching in New York to elect to withdraw his/her accumulated
contributions and thereby terminate his/her membership in the System
where the purpose of the withdrawal is to enable the member to obtain
credit for the teaching service in a public employee retirement
system in another state. The retirement system in the other state
must certify that the member seeking withdrawal is a member of that
system, that the member has at least
five years of service credit in that system, and that withdrawal from
the System is necessary in order for the member to obtain credit for
the member's New York service in the other system. Upon payment of
the accumulated contributions to the member, any and all obligations
of the System to the member would cease. This legislation parallels
provisions of C.553 2011 which applies to members of the NYS
Teacher's Retirement System

FISCAL IMPLICATIONS:
There are no fiscal implications to the State.


EFFECTIVE DATE:
The bill would take effect immediately.

view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 6224--A

                            I N  S E N A T E

                            January 13, 2012
                               ___________

Introduced  by  Sen.  GOLDEN -- read twice and ordered printed, and when
  printed to be committed  to  the  Committee  on  Cities  --  committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

AN  ACT  to  amend  the  administrative code of the city of New York, in
  relation to the right of vested members to withdraw from the New  York
  city teachers' retirement system

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

  Section 1. Section 13-541 of the administrative code of  the  city  of
New  York,  as amended by chapter 854 of the laws of 1985, is amended to
read as follows:
  S 13-541 Termination of membership; resignation, transfer or  dismiss-
al.  1. Withdrawals from the retirement association shall be by resigna-
tion, by transfer, or by dismissal. Should a contributor resign from the
position by virtue of which  he  or  she  is  a  contributor  under  the
provisions  of this chapter, or should he or she, upon transferring from
such a position to another position in the city-service, fail to  become
a transferred-contributor as provided in section 13-523 of this chapter,
his or her membership in such association shall cease except as provided
in section 13-556 of this code and he or she shall be paid forthwith the
full  amount of the accumulated deductions standing to the credit of his
or her individual account in the annuity savings fund.
  2. NOTWITHSTANDING ANY OTHER PROVISION OF LAW  TO  THE  CONTRARY,  ANY
MEMBER  OF  THE  RETIREMENT  ASSOCIATION  SUBJECT TO ARTICLE FOURTEEN OR
FIFTEEN OF THE RETIREMENT AND SOCIAL SECURITY LAW  WHO  HAS  PERMANENTLY
CEASED  TEACHING  SHALL HAVE THE RIGHT TO ELECT THE RETURN OF HIS OR HER
ACCUMULATED CONTRIBUTIONS AND THEREBY TERMINATE HIS OR HER MEMBERSHIP IN
THE RETIREMENT ASSOCIATION WITHOUT REGARD TO THE AMOUNT  OF  SERVICE  TO
HIS  OR  HER  CREDIT,  PROVIDED  A  PUBLIC EMPLOYEE RETIREMENT SYSTEM IN
ANOTHER STATE HAS CERTIFIED IN A MANNER SATISFACTORY TO THE SYSTEM  THAT
SUCH  MEMBER  IS  A MEMBER OF SUCH OTHER RETIREMENT SYSTEM, HAS AT LEAST
FIVE YEARS OF RETIREMENT CREDIT IN SUCH OTHER SYSTEM, AND  IS  ELIGIBLE,
UPON  THE  TERMINATION OF HIS OR HER MEMBERSHIP IN THE SYSTEM, TO OBTAIN

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13999-03-2

S. 6224--A                          2

RETIREMENT CREDIT IN SUCH OTHER RETIREMENT SYSTEM FOR THE SERVICE  WHICH
HAS BEEN CREDITED TO HIS OR HER MEMBERSHIP IN THE SYSTEM. UPON REFUND OF
SUCH  ACCUMULATED  CONTRIBUTIONS, ANY AND ALL OBLIGATIONS OF THE RETIRE-
MENT  ASSOCIATION TO SUCH MEMBER SHALL BE TOTALLY DISCHARGED. THE TEACH-
ERS' RETIREMENT BOARD IS AUTHORIZED TO ADOPT SUCH RULES AND  REGULATIONS
AS MAY BE NECESSARY TO IMPLEMENT THIS SUBDIVISION.
  S 2. This act shall take effect immediately.
  FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
  PROVISIONS  OF  PROPOSED  LEGISLATION: This proposed legislation would
amend Administrative Code of the  City  of  New  York  ("ACNY")  Section
13-541  to  allow  certain  Tier III and Tier IV members of the New York
City Teacher's Retirement System ("TRS") to withdraw  their  memberships
from TRS under certain conditions.
  For  purposes  of  this  Fiscal Note, the references herein to Tier IV
include those TRS members who dates of membership are on or after  April
1, 2012 (a.k.a., Tier VI members).
  Specifically,  this  proposed  legislation  would permit a Tier III or
Tier IV member of TRS who has permanently ceased teaching to  elect  the
return  of his or her accumulated member contributions and terminate his
or her membership in TRS without regard to the amount of service to  his
or her credit.
  As  a  condition necessary to this election, a Public Employee Retire-
ment System ("PERS") in another state must certify in a manner satisfac-
tory to TRS that such member is a member of  such  other  PERS,  has  at
least  five years of retirement credit in such other PERS, and is eligi-
ble, upon the termination of his or her membership  in  TRS,  to  obtain
retirement  credit  in  such  other  PERS for the service which has been
credited to his or her membership in TRS.
  Upon refund to the member of his or her  accumulated  member  contrib-
utions,  any  and  all obligations of TRS to the member would be totally
discharged.
  The TRS Retirement Board would be authorized to adopt such  rules  and
regulations as may be necessary to implement this subdivision.
  Note:  One  of the consequences to a member withdrawing from TRS would
be to eliminate the opportunity of  the  member  to  receive  any  Other
Postemployment  Benefits  ("OPEB")  from  the  City of New York or other
former employer participating in TRS.
  FINANCIAL IMPACT - ACTUARIAL PRESENT VALUE OF  BENEFITS  AND  EMPLOYER
CONTRIBUTIONS:  For  most members likely to elect the provisions of this
proposed legislation, enactment would result in a  modest  reduction  in
the  Actuarial  Present Value of Benefits ("APVB") and employer contrib-
utions to TRS.
  OTHER COSTS: The enactment of this proposed legislation  would  result
in some administrative expenses for TRS.
  The enactment of this proposed legislation would, for certain members,
result  in  a  reduction in the obligations for OPEB benefits from their
former employers.
  STATEMENT OF ACTUARIAL OPINION: I, Robert C. North, Jr., am the  Chief
Actuary  for  the New York City Retirement Systems. I am a Fellow of the
Society of Actuaries and a Member of the American Academy of  Actuaries.
I  meet the Qualification Standards of the American Academy of Actuaries
to render the actuarial opinion contained herein.
  FISCAL NOTE IDENTIFICATION: This estimate is  intended  for  use  only
during  the  2012  Legislative Session. It is Fiscal Note 2012-11, dated
May 24, 2012 prepared by the Chief Actuary of the New York  City  Teach-
ers' Retirement System.

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