Senate Bill S7135A

2011-2012 Legislative Session

Relates to certain members who re-enter public service

download bill text pdf

Archive: Last Bill Status - In Senate Committee Civil Service And Pensions Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 01, 2012	print number 7135a
Jun 01, 2012	amend and recommit to civil service and pensions
Apr 30, 2012	referred to civil service and pensions

Bill Amendments

co-Sponsors

2011-S7135 - Details

See Assembly Version of this Bill:: A7703
Current Committee:: Senate Civil Service And Pensions
Law Section:: Retirement and Social Security Law
Laws Affected:: Amd §645, R & SS L
Versions Introduced in Other Legislative Sessions:: 2009-2010: A7219
2013-2014: S5165, A7490
2015-2016: S4644, A5596

2011-S7135 - Summary

Relates to certain members who re-enter public service; extends tier reinstatement provisions to a retiree of a public retirement system who was an active member of a public retirement system on or after January 1, 1989.

2011-S7135 - Sponsor Memo

                                BILL NUMBER:S7135

TITLE OF BILL:
An act
to amend the retirement and social security law,
in relation to certain
members who re-enter public service

PURPOSE OR GENERAL IDEA OF BILL:
This bill seeks to
reinstate the remaining public employees who lost their tier
membership due to family care giving responsibilities. By moving the
effective date of Chapter 640 to January 1, 1989, this bill will
reinstate the remainder of the retirement system members who were
deprived of their membership in superior pension plans due to the
break in the service rules.

SUMMARY OF PROVISIONS:
This bill amends subdivisions 2 and 4 of section
545 of the retirement and social security law.

JUSTIFICATION:
This bill gives New York. State the opportunity
to correct a longstanding inequity at a moderate cost. In 1998, the
Governor signed a law reinstating New York State and City active
teachers to their original pension system tier membership. In 1999,

pursuant to 55944, the Governor signed a law expanding the
reinstatement to all active public employees. In the Governor's press
release, he affirmed the importance of righting the inequity done to
thousands of public employees who were forced out of their jobs and
pension plan due to pregnancy and family care giving
responsibilities. Each member who was reinstated forfeited any claim
to a return of the contributions they had made to the retirement
systems while they were members of lesser tiers.
However, reinstated members were refunded the amounts that they had
paid to the retirements systems for prior service credit purchases.
This bill pertains to a very limited and definable number of
retirement system members. Public employees before 1973 were assured
by pension system representatives that they could leave and return to
work without effect on their benefits. For example, a New York State
teacher who left teaching, generally for reasons related to the
female work pattern i.e. childbirth and attending to small children,
stayed out beyond the "break in service" period, and returned to find
themselves in a lesser pension plan. Had they been properly informed,
they could have taught as little as twenty days in anyone year within
the five year period and remained in Tier 1 when they returned to
full time teaching. The average teacher lost between $9,000 and
$11,000 per year in pension benefits and the right to retire at age
55 instead of 52 without penalty. It is unlikely that any members of
the police and fire pension systems will be eligible because so few
women were members in the 1960s and early 70s. As to the New York

City Teachers pension plan, the vast majority of teachers that left
for care giving responsibilities
were protected by the generous New York City maternity rules.

LEGISLATIVE HISTORY:
2009/10 A.7219  Died Gov't Employees, S.3634 Died Civil Service
2007/08 A.9524  Died Gov't Employees, S.4447 Passed Senate
2005/06 A.5131  Died Gov't Employees, S.3518 Passed Senate
2003/04 A.539   Died Gov't Employees, S.3039 Died Rules
2001/02 A.2903  Died Gov't Employees, S.2172 Died Civil Service &
        Pensions
1999/00 A.10911 Died Gov't Employees, S.6127 Died Civil Service &
        Pensions

FISCAL IMPLICATIONS:

EFFECTIVE DATE:
This act shall take
effect immediately but shall only apply to persons alive as of the
effective date of this act and shall apply to payments made
on or after the effective date of this act; and
provided further, that any retirees qualifying under this act shall
have their retirement allowance recalculated from July 1, 2011 or the
date of reinstatement, whichever is later.

2011-S7135 - Bill Text download pdf

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

                                  7135

                            I N  S E N A T E

                             April 30, 2012
                               ___________

Introduced  by  Sens.  SEWARD,  LARKIN,  LIBOUS, YOUNG -- 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
  certain members who re-enter public service

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

  Section  1.  Subdivisions 2 and 4 of section 645 of the retirement and
social security law, subdivision 2 as amended by chapter 322 of the laws
of 2002 and subdivision 4 as added by chapter 640 of the  laws  of  1998
and  as  renumbered  by  chapter 646 of the laws of 1999, are amended to
read as follows:
  2. Notwithstanding any other provision of law, any person [other  than
a retiree of a public retirement system,] who previously was a member of
a  public  retirement system and whose membership in such public retire-
ment system ceased by reason of (i) insufficient  service  credit,  (ii)
withdrawal  of accumulated contributions, or (iii) withdrawal of member-
ship, upon rejoining such public retirement  system  or  another  public
retirement  system,  shall be deemed to have been a member of his or her
current retirement system during the entire period  of  time  commencing
with and subsequent to the original date of such previous ceased member-
ship,  provided  that  such person (a) makes application therefor to the
administrative head of his or her current public retirement system,  and
(b)  repays  the  amount  refunded,  if  any,  at the time such previous
membership ceased, together with interest at the rate  of  five  percent
per  annum  compounded annually from the date of such refund through the
date of repayment. Upon such reinstatement of date of  membership,  such
member  shall  be entitled to all the rights, benefits and privileges to
which he or she would have been entitled had his or her current  member-
ship  begun  on such original date of membership except that, solely for
the purposes of granting  retirement  credit  to  members  of  a  public
retirement  system  other  than  the  New York city teachers' retirement
system for service credited during such previous ceased membership where
such was in a public retirement system other than the  member's  current

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

                                                           LBD02318-03-2

S. 7135                             2

retirement  system,  such previously credited service shall be deemed to
be prior service, not subsequent service.  Furthermore, any such  member
whose  original  date  of  membership  was prior to July first, nineteen
hundred  seventy-three shall be entitled to all the rights, benefits and
privileges to which he or she would have been entitled  had  he  or  she
been  in  active  service  on  June thirtieth, nineteen hundred seventy-
three. Any contribution made to the public retirement system pursuant to
article fourteen or fifteen of this chapter by a member who rejoined his
or her current system on or after July twenty-seventh, nineteen  hundred
seventy-six shall not be refunded.
  4.  The provisions of this article shall be applicable to a person who
[is, on the date this article becomes effective]  WAS  A  MEMBER  ON  OR
BEFORE JANUARY FIRST, NINETEEN HUNDRED EIGHTY-NINE, or who subsequent to
such date becomes, a member of a public retirement system.
  S  2.  This  act shall take effect immediately and shall only apply to
all persons who are alive as of the effective date of this act and shall
apply to payments made on or after the effective date of this  act;  and
provided further, that any retirees qualifying under this act shall have
their retirement allowance recalculated from July 1, 2011 or the date of
reinstatement, whichever is later.

co-Sponsors

2011-S7135A (ACTIVE) - Details

See Assembly Version of this Bill:: A7703
Current Committee:: Senate Civil Service And Pensions
Law Section:: Retirement and Social Security Law
Laws Affected:: Amd §645, R & SS L
Versions Introduced in Other Legislative Sessions:: 2009-2010: A7219
2013-2014: S5165, A7490
2015-2016: S4644, A5596

2011-S7135A (ACTIVE) - Summary

2011-S7135A (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S7135A

TITLE OF BILL:
An act to amend the retirement and social security law, in relation to
certain members who re-enter public service

PURPOSE:
This bill seeks to reinstate the remaining public employees who lost
their tier membership due to family care giving responsibilities. By
moving the effective date of Chapter 640 to January I, 1989, this bill
will reinstate the remainder of the retirement system members who were
deprived of their membership in superior pension plans due to the break
in the service rules.

SUMMARY OF PROVISIONS:
This bill amends subdivisions 2 and 4 of section 645 of the retirement
and social security law.

JUSTIFICATION:
This bill gives New York State the opportunity to correct a long-stand-
ing inequity at a moderate cost. In 1998, the Governor signed a law
reinstating New York State and City active teachers to their original
pension system tier membership. In 1999, pursuant to 55944, the Governor
signed a law expanding the reinstatement to all active public employees.
In the Governor's press release, he affirmed the importance of righting
the inequity done to thousands of public employees who were forced opt

of their jobs and pension plan due to pregnancy and family care giving
responsibilities. Each member who was reinstated forfeited any claim to
a return of the contributions they had made to the retirement systems
while they were members of lesser tiers.  However, reinstated members
were. refunded the amounts that they had paid to the retirements systems
for prior service credit purchases.  This bill pertains to a very limit-
ed and definable number of retirement system members. Public employees
before 1973 were assured by pension system representatives that they
could leave and return to work without effect on their benefits. For
example, a New York State teacher who left teaching, generally for
reasons related to the female work pattern i.e. childbirth and attending
to small children, stayed out beyond the "break in service" period, and
returned to find themselves in a lesser pension plan. Had they been
properly informed, they could have taught as little as twenty days in
anyone year within the five year period and remained in Tier I when they
returned to full time teaching. The average teacher lost between $9,000
and $1,000 per year in pension benefits and the right to retire at age
55 instead of 52 without penalty. It is unlikely that any members of the
police and fire pension systems will be eligible because so few women
were members in the 1960s and early 70s. As to the New York City Teach-
ers pension plan, the vast majority of teachers that left for care
giving responsibilities were protected by the generous New York City
maternity rules.

LEGISLATIVE HISTORY:

2009/10 A.7219 Died Gov't Employees, S.3634 Died Civil Service
2007/08 A.9524 Died Gov't Employees, S.4447 Passed Senate
2005/06 A.5131 Died Gov't Employees, S.3518 Passed Senate
2003/04 A.5392 Died Gov't Employees, S.3039 Died Rules
2001/02 A.2903 Died Gov't Employees, S.2172 Died Civil
        Service & Pensions
1999/00 A.10911 Died Gov't Employees, S.6127 Died Civil
        Service & Pensions

FISCAL IMPLICATIONS:

FISCAL NOTE #2012-143 - PURSUANT TO LEGISLATIVE LAW,
SECTION 50:
This bill would allow certain living retirees of New York public
retirement systems who retired prior to December 16, 1999 and who
previously were members of a New York Public retirement system to be
deemed to have become members of the systems from which they retired
as of the original date of such previous ceased membership. Tier 3
and 4 retirees of the New York State and Local Employees' Retirement
System or the New York State Teachers' Retirement System who become
Tier I or 2 retirees and who have already purchased their previous
service would receive a refund of these contributions. No benefits
will be deemed to have accrued prior to the effective date of this act.

If this bill is enacted, insofar as this bill affects the New York
State and Local Employees' Retirement System (NYS&LERS),
approximately 1,484 retirees of the NYS&LERS will be affected. The
estimated additional annual increase in contributions would be
approximately $15.9 million. This cost will be shared by the State of
New York and all participating employers in the NYS&LERS.

Insofar as this bill would affect employers in the New York State and
Local Police and Fire Retirement System (NYS&LPERS), the estimated
additional costs would be negligible.

In addition there will be cost for retirees who had a previous ceased
membership with a public employee retirement system other than the
NYS&LERS or the NYS&LPFRS. These costs would depend upon the number
of retirees affected and upon each retiree's age, salary, credited
service, plan coverage and tier. The number of retirees with such
previous ceased membership with another public retirement system
cannot be readily determined. These additional costs would be shared
by the State of New York and all participating employers in their
respective systems.

This estimate, dated May 24, 2012 and intended for use only during
the, 2012 Legislative Session is Fiscal Note No. 2012-143, prepared
by the Actuary for the NYS&LERS and the NYS&LPFRS.

FISCAL NOTE - PURSUANT TO LEGISLATIVE LAW, SECTION 50:
This bill would amend subdivisions 2 and 4 of section 645 of the
Retirement and Social.

Security Law to extend the tier reinstatement provisions to any
retiree of a public retirement system. The retiree must be alive as
of the effective date of the bill in order to be eligible; This bill
only applies to payments made on or after the effective date of this
act.

The annual cost to the employers of members of the New York State
Teachers' Retirement System for this benefit is estimated to be $7.0
million or .0515 of payroll if this bill is enacted.

The source of this estimate is Fiscal Note 2011-42 dated May 4, 2011
prepared by the Actuary of the New York State Teachers' Retirement
System and is intended for use only during the 2011 legislative
session.

EFFECTIVE DATE:
This act shall take effect immediately but shall only apply to persons
alive as of the effective date of this act and shall Apply to
payments made on or after the effective date of this act; and provided
further, that any retirees qualifying under this act shall have their
retirement allowance recalculated from July 1, 2012 or the date of
reinstatement, whichever is later.

2011-S7135A (ACTIVE) - Bill Text download pdf

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

                                 7135--A

                            I N  S E N A T E

                             April 30, 2012
                               ___________

Introduced  by  Sens.  SEWARD,  LARKIN,  LIBOUS, YOUNG -- read twice and
  ordered printed, and when printed to be committed to the Committee  on
  Civil  Service  and  Pensions  --  committee discharged, bill amended,
  ordered reprinted as amended and recommitted to said committee

AN ACT to amend the retirement and social security law, in  relation  to
  certain members who re-enter public service

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

  Section 1. Subdivisions 2 and 4 of section 645 of the  retirement  and
social security law, subdivision 2 as amended by chapter 322 of the laws
of  2002  and  subdivision 4 as added by chapter 640 of the laws of 1998
and as renumbered by chapter 646 of the laws of  1999,  are  amended  to
read as follows:
  2.  Notwithstanding any other provision of law, any person [other than
a retiree of a public retirement system,] who previously was a member of
a public retirement system and whose membership in such  public  retire-
ment  system  ceased  by reason of (i) insufficient service credit, (ii)
withdrawal of accumulated contributions, or (iii) withdrawal of  member-
ship,  upon  rejoining  such  public retirement system or another public
retirement system, shall be deemed to have been a member of his  or  her
current  retirement  system  during the entire period of time commencing
with and subsequent to the original date of such previous ceased member-
ship, provided that such person (a) makes application  therefor  to  the
administrative  head of his or her current public retirement system, and
(b) repays the amount refunded,  if  any,  at  the  time  such  previous
membership  ceased,  together  with interest at the rate of five percent
per annum compounded annually from the date of such refund  through  the
date  of  repayment. Upon such reinstatement of date of membership, such
member shall be entitled to all the rights, benefits and  privileges  to
which  he or she would have been entitled had his or her current member-
ship begun on such original date of membership except that,  solely  for
the  purposes  of  granting  retirement  credit  to  members of a public
retirement system other than the  New  York  city  teachers'  retirement
system for service credited during such previous ceased membership where

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

                                                           LBD02318-05-2

S. 7135--A                          2

such  was  in a public retirement system other than the member's current
retirement system, such previously credited service shall be  deemed  to
be  prior service, not subsequent service.  Furthermore, any such member
whose  original  date  of  membership  was prior to July first, nineteen
hundred seventy-three shall be entitled to all the rights, benefits  and
privileges  to  which  he  or she would have been entitled had he or she
been in active service on  June  thirtieth,  nineteen  hundred  seventy-
three. Any contribution made to the public retirement system pursuant to
article fourteen or fifteen of this chapter by a member who rejoined his
or  her current system on or after July twenty-seventh, nineteen hundred
seventy-six shall not be refunded.
  4. The provisions of this article shall be applicable to a person  who
[is,  on  the  date  this  article becomes effective] WAS A MEMBER ON OR
BEFORE JANUARY FIRST, NINETEEN HUNDRED EIGHTY-NINE, or who subsequent to
such date becomes, a member of a public retirement system.
  S 2. This act shall take effect immediately and shall  only  apply  to
all persons who are alive as of the effective date of this act and shall
apply  to  payments made on or after the effective date of this act; and
provided further, that any retirees qualifying under this act shall have
their retirement allowance recalculated from July 1, 2012 or the date of
reinstatement, whichever is later.
  FISCAL NOTE.-- Pursuant to Legislative Law, Section 50:
  This bill would allow certain  living  retirees  of  New  York  public
retirement systems who retired prior to December 16, 1999 and who previ-
ously  were  members of a New York public retirement system to be deemed
to have become members of the systems from which they retired as of  the
original  date of such previous ceased membership. Tier 3 and 4 retirees
of the New York State and Local Employees' Retirement System or the  New
York  State  Teachers' Retirement System who become Tier 1 or 2 retirees
and who have already purchased their previous service  would  receive  a
refund  of  these  contributions.    No  benefits will be deemed to have
accrued prior to the effective date of this act.
  In addition, this bill would also affect retirees who had  a  previous
ceased  membership  with  a public employee retirement system other than
the NYS & LERS or the NYS & LPFRS.
  If this bill is enacted, insofar as this bill  affects  the  New  York
State  and Local Employees' Retirement System (ERS), approximately 1,484
retirees of the ERS will be affected. The estimated  past  service  cost
would be approximately $15.9 million.
  Pursuant to section 25 of the Retirement and Social Security Law, this
ERS  past service cost would be borne by the State of New York and would
require an itemized appropriation by the State of New York sufficient to
pay the cost of the provision. The State may amortize this past  service
cost  over  a period of 5 years. The first year cost, including interest
would be approximately $3.7 million.
  Insofar as this bill would affect employers in the New York State  and
Local Police and Fire Retirement System (PFRS), the estimated additional
costs  would  be negligible. These costs would be shared by the State of
New York and the participating employers in the PFRS.
  Summary of relevant resources:
  Data: March 31, 2011 Actuarial Year End  File  with  distributions  of
membership  and  other  statistics  displayed  in the 2011 Report of the
Actuary and 2011 Comprehensive Annual Financial Report.
  Assumptions and Methods: 2010 and 2011  Annual  Report  to  the  Comp-
troller  on  Actuarial  Assumptions,  Codes Rules and Regulations of the
State of New York: Audit and Control.

S. 7135--A                          3

  Market Assets and GASB Disclosures: March 31, 2011 New York State  and
Local  Retirement System Financial Statements and Supplementary Informa-
tion.
  Valuations  of Benefit Liabilities and Actuarial Assets: summarized in
the 2011 Actuarial Valuations report.
  I am a member of the American Academy of Actuaries and meet the Quali-
fication Standards to render the actuarial opinion contained herein.
  This estimate, dated May 24, 2012 and intended for use only during the
2012 Legislative Session, is Fiscal Note No. 2012-143, prepared  by  the
Actuary  for  the  New York State and Local Employees' Retirement System
and the New York State and Local Police and Fire Retirement System.

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Senate Bill S7135A

Sponsored By

Archive: Last Bill Status - In Senate Committee Civil Service And Pensions Committee

Actions

Bill Amendments

co-Sponsors

2011-S7135 - Details

2011-S7135 - Summary

2011-S7135 - Sponsor Memo

2011-S7135 - Bill Text download pdf

co-Sponsors

2011-S7135A (ACTIVE) - Details

2011-S7135A (ACTIVE) - Summary

2011-S7135A (ACTIVE) - Sponsor Memo

2011-S7135A (ACTIVE) - Bill Text download pdf

Comments

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Senate Bill S7135A

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Sponsored By

James L. Seward

Archive: Last Bill Status - In Senate Committee Civil Service And Pensions Committee

Actions

Bill Amendments

co-Sponsors

William Larkin

Tom Libous

Catharine Young

2011-S7135 - Details

2011-S7135 - Summary

2011-S7135 - Sponsor Memo

2011-S7135 - Bill Text download pdf

co-Sponsors

William Larkin

Tom Libous

Catharine Young

2011-S7135A (ACTIVE) - Details

2011-S7135A (ACTIVE) - Summary

2011-S7135A (ACTIVE) - Sponsor Memo

2011-S7135A (ACTIVE) - Bill Text download pdf

Comments