S T A T E O F N E W Y O R K
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5514
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
AN ACT to amend the education law and the retirement and social security
law, in relation to the post-retirement death benefit payable upon the
death of a retiree of the New York state teachers' retirement system
within the first three years of retirement
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 512 of the education law is amended by adding a new
subdivision g to read as follows:
G. IN THE CASE OF A MEMBER OF THE SYSTEM WITH A DATE OF MEMBERSHIP
PRIOR TO THE FIRST DAY OF JULY, NINETEEN HUNDRED SEVENTY-THREE WHO HAS
BEEN RETIRED, THERE SHALL BE PAYABLE, IN THE EVENT THE RETIRED MEMBER
DIES PRIOR TO THE COMMENCEMENT OF THE RETIRED MEMBER'S SECOND YEAR IN
RETIREMENT, A DEATH BENEFIT EQUAL TO THREE TIMES THE RETIRED MEMBER'S
REGULAR COMPENSATION EARNED DURING THE MEMBER'S LAST TWELVE MONTHS OF
SERVICE, PROVIDED THE RETIRED MEMBER HAD DEATH BENEFIT COVERAGE IN FORCE
AT THE TIME OF RETIREMENT PURSUANT TO THIS SECTION OTHER THAN SUBDIVI-
SION E OF THIS SECTION.
S 2. Section 448 of the retirement and social security law is amended
by adding a new subdivision h to read as follows:
H. ANYTHING IN PARAGRAPH TWO OF SUBDIVISION A OF THIS SECTION TO THE
CONTRARY NOTWITHSTANDING, IN THE CASE OF A MEMBER OF THE NEW YORK STATE
TEACHERS' RETIREMENT SYSTEM, THE POST-RETIREMENT DEATH BENEFIT PROVIDED
PURSUANT TO SUCH PARAGRAPH SHALL BE AS FOLLOWS: THE BENEFIT IN FORCE AT
THE TIME OF RETIREMENT SHALL CONTINUE WITHOUT REDUCTION DURING SUCH
MEMBER'S FIRST YEAR OF RETIREMENT; UPON COMPLETION OF THE FIRST YEAR OF
RETIREMENT, THE BENEFIT IN FORCE AT THE TIME OF RETIREMENT SHALL BE
REDUCED BY FIFTY PER CENTUM; UPON COMPLETION OF THE SECOND YEAR OF
RETIREMENT, THE BENEFIT IN FORCE AT THE TIME OF RETIREMENT SHALL BE
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08933-01-1
A. 5514 2
REDUCED BY AN ADDITIONAL TWENTY-FIVE PER CENTUM. UPON COMMENCEMENT OF
THE FOURTH YEAR OF RETIREMENT, THE BENEFIT SHALL BE TEN PER CENTUM OF
THE BENEFIT IN FORCE AT THE TIME OF RETIREMENT (DISREGARDING IN SUCH
CASE ANY REDUCTIONS IN THE BENEFIT IN FORCE AT THE TIME OF RETIREMENT BY
REASON OF THE MEMBER HAVING ATTAINED AN AGE GREATER THAN SIXTY).
S 3. Section 508 of the retirement and social security law is amended
by adding a new subdivision g to read as follows:
G. ANYTHING IN PARAGRAPH TWO OF SUBDIVISION A OF THIS SECTION TO THE
CONTRARY NOTWITHSTANDING, IN THE CASE OF A MEMBER OF THE NEW YORK STATE
TEACHERS' RETIREMENT SYSTEM, THE POST-RETIREMENT DEATH BENEFIT PROVIDED
PURSUANT TO SUCH PARAGRAPH SHALL BE AS FOLLOWS: THE BENEFIT IN FORCE AT
THE TIME OF RETIREMENT SHALL CONTINUE WITHOUT REDUCTION DURING SUCH
MEMBER'S FIRST YEAR OF RETIREMENT; UPON COMPLETION OF THE FIRST YEAR OF
RETIREMENT, THE BENEFIT IN FORCE AT THE TIME OF RETIREMENT SHALL BE
REDUCED BY FIFTY PER CENTUM; UPON COMPLETION OF THE SECOND YEAR OF
RETIREMENT, THE BENEFIT IN FORCE AT THE TIME OF RETIREMENT SHALL BE
REDUCED BY AN ADDITIONAL TWENTY-FIVE PER CENTUM. UPON COMMENCEMENT OF
THE FOURTH YEAR OF RETIREMENT, THE BENEFIT SHALL BE TEN PER CENTUM OF
THE BENEFIT IN FORCE AT THE TIME OF RETIREMENT (DISREGARDING IN SUCH
CASE ANY REDUCTIONS IN THE BENEFIT IN FORCE AT THE TIME OF RETIREMENT BY
REASON OF THE MEMBER HAVING ATTAINED AN AGE GREATER THAN SIXTY).
S 4. Section 606 of the retirement and social security law is amended
by adding a new subdivision f to read as follows:
F. ANYTHING IN PARAGRAPH TWO OF SUBDIVISION A OF THIS SECTION TO THE
CONTRARY NOTWITHSTANDING, IN THE CASE OF A MEMBER OF THE NEW YORK STATE
TEACHERS' RETIREMENT SYSTEM, THE POST-RETIREMENT DEATH BENEFIT PROVIDED
PURSUANT TO SUCH PARAGRAPH SHALL BE AS FOLLOWS: THE BENEFIT IN FORCE AT
THE TIME OF RETIREMENT SHALL CONTINUE WITHOUT REDUCTION DURING SUCH
MEMBER'S FIRST YEAR OF RETIREMENT; UPON COMPLETION OF THE FIRST YEAR OF
RETIREMENT, THE BENEFIT IN FORCE AT THE TIME OF RETIREMENT SHALL BE
REDUCED BY FIFTY PER CENTUM; UPON COMPLETION OF THE SECOND YEAR OF
RETIREMENT, THE BENEFIT IN FORCE AT THE TIME OF RETIREMENT SHALL BE
REDUCED BY AN ADDITIONAL TWENTY-FIVE PER CENTUM. UPON COMMENCEMENT OF
THE FOURTH YEAR OF RETIREMENT, THE BENEFIT SHALL BE TEN PER CENTUM OF
THE BENEFIT IN FORCE AT THE TIME OF RETIREMENT (DISREGARDING IN SUCH
CASE ANY REDUCTIONS IN THE BENEFIT IN FORCE AT THE TIME OF RETIREMENT BY
REASON OF THE MEMBER HAVING ATTAINED AN AGE GREATER THAN SIXTY).
S 5. This act shall take effect June 30, 2011, except that if this act
shall have become a law after June 30, 2011, this act shall take effect
immediately and shall be deemed to have been in full force and effect on
and after June 30, 2011.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
This bill would add a new subdivision g to section five hundred twelve
of the Education Law in order to provide a post-retirement death benefit
for Tier 1 members in their first year of retirement. This benefit would
equal three times the retired member's regular compensation earned
during the last twelve months of service. Additionally, this bill would
add a new subdivision h to section four hundred forty-eight and a new
subdivision g to section five hundred eight and a new subdivision f to
section six hundred six of the Retirement and Social Security Law in
order to modify the current post-retirement death benefit for Tiers 2,
3, 4 and 5 members. The post-retirement death benefit would equal 100%
of the benefit in force at retirement if death occurs in the first year
of retirement, 50% of the benefit in force at retirement if death occurs
in the second year of retirement, 25% of the benefit in force at retire-
ment if death occurs in the third year of retirement, and 10% of the
A. 5514 3
benefit in force at retirement, without regard to reductions for ages
greater than 60, if death occurs in the fourth or later year of retire-
ment. This benefit is also effective for currently retired members who
die on or after June 30, 2011.
The annual cost to the employers of members of the New York State
Teachers' Retirement System for this benefit is estimated to be $19.4
million or .12% of payroll if this bill is enacted.
The source of this estimate is Fiscal Note 2011-12 dated September 24,
2010 prepared by the Actuary of the New York State Teachers' Retirement
System and is intended for use only during the 2011 Legislative Session.