Assembly Bill A10132

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

                                  10132

                          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 retirement and social security law, in relation to
  increasing the retiree earnings cap

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

  Section  1.  Subdivision 2 of section 212 of the retirement and social
security law, as amended by chapter 74 of the laws of 2006,  is  amended
to read as follows:
  2.  The earning limitations for retired persons in positions of public
service under this section shall be in  accordance  with  the  following
table:

        For the year                               Earnings limitation
        1996                                       $12,500
        1997                                       $13,500
        1998                                       $14,500
        1999                                       $15,500
        2000                                       $17,000
        2001                                       $18,500
        2002                                       $20,000
        2003                                       $25,000
        2004                                       $27,500
        2005 and 2006                              $27,500
        2007 [and thereafter] THROUGH 2012         $30,000
        2013 AND THEREAFTER                        $32,500
  S 2. This act shall take effect immediately.
  FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
  This  bill  would amend subdivision 2 of section 212 of the Retirement
and Social Security Law to increase the earnings limitation for  retired
members  in  positions  of public employment to $32,500 for the calendar
year 2013 and thereafter. The earnings limitation for the calendar  year
2012 is $30,000.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15587-02-2
              

A. 10132                            2

  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 2012-14 dated February 22,
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 would amend Section 212 of the Retirement and Social Securi-
ty Law to set the amount a retired person may earn in public  employment
without reduction in retirement allowance during the year 2013 and ther-
eafter, to $32,500.
  If this bill is enacted, insofar as it would affect the New York State
and  Local  Employees'  Retirement  System,  we  expect that a number of
members will retire earlier than they otherwise would have  due  to  the
expectation  of  collecting  both  a  pension  and  the salary they were
receiving before they retired. A significant number of members  changing
their  retirement  dates  will  result  in  a shorter funding period and
greater annual employer contributions. The extent  of  the  increase  in
employer  contributions  will  be  determined  by  the number of members
retiring early to collect both salary and pension.
  Insofar as this bill would affect the New York State and Local  Police
and  Fire Retirement System, there would be negligible additional annual
costs.
  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.
  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  November  21,  2011  and intended for use only
during the  2012  Legislative  Session,  is  Fiscal  Note  No.  2012-33,
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.