Senate Bill S3990A

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

                                 3990--A

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                             March 11, 2011
                               ___________

Introduced  by  Sen.  LARKIN -- read twice and ordered printed, and when
  printed to be committed to the Committee on Civil Service and Pensions
  -- recommitted to the Committee  on  Civil  Service  and  Pensions  in
  accordance  with  Senate  Rule 6, sec. 8 -- committee discharged, bill
  amended, ordered reprinted as amended and recommitted to said  commit-
  tee

AN  ACT  to  authorize  Walter M. Callahan, a retiree receiving benefits
  from the New York state and local  employees'  retirement  system,  to
  retroactively  terminate his retirement and transfer his membership in
  such retirement to 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.  Notwithstanding  any  provision  of  law to the contrary,
Walter M. Callahan, a retired member of the New  York  state  and  local
employees'  retirement system who has been receiving enhanced retirement
benefits pursuant to the retirement incentive enacted pursuant to  chap-
ter 86 of the laws of 2000 since his retirement on November 4, 2000, who
on August 30, 2006 was appointed as a business administrator employed by
a  school  district,  and  who upon assuming such business administrator
position became a member of the  New  York  state  teachers'  retirement
system,  shall  be  entitled to elect to be deemed retroactively to have
transferred his membership in the New York state  and  local  employees'
retirement  system  to  the  New  York state teachers' retirement system
pursuant to section 43 of the retirement and social security law  as  of
November  3, 2000, provided that upon retirement from the New York state
teachers' retirement system,  his  retirement  allowance  shall  be  (a)
recalculated  taking into account the forfeiture of his enhanced retire-
ment benefits by reason of his return  to  public  service  pursuant  to
section  11  of  chapter  41 of the laws of 1997, and (b) reduced by the
actuarial equivalent of the retirement benefits received  by  Walter  M.
Callahan  prior  to  his election pursuant to this section; and further,

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02901-07-2
              

S. 3990--A                          2

provided, that Walter M. Callahan shall not  be  required  to  make  any
employee  contribution to the New York state teachers' retirement system
and upon retirement from the New York state teachers' retirement system,
his  retirement allowance shall be increased by the actuarial equivalent
of the employee contributions he has made to the New York  state  teach-
ers' retirement system between August 30, 2006 and his election pursuant
to  this  section. In order to effect such retroactive transfer pursuant
to this section, Walter M. Callahan shall provide, on or before December
31, 2012, notice to the comptroller and the governing body  of  the  New
York  state  teachers' retirement system of his election to transfer his
membership in the New York state and local employees' retirement  system
pursuant to this section.
  S  2. Upon the election by Walter M. Callahan to take advantage of the
provisions of this act, the New York state and local employees'  retire-
ment  system shall transfer the amount of his pension reserve to the New
York state teachers' retirement system.
  S 3. All costs incurred in implementing the provisions  of  this  act,
unless  otherwise stated, shall be borne by the New York state teachers'
retirement system.
  S 4. This act shall take effect immediately.
  FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
  This bill would allow Walter M. Callahan, a retired member of the  New
York State and Local Employees' Retirement System (NYSLERS) and current-
ly  an  active  member of the New York State Teachers' Retirement system
(NYSTRS), to retroactively  transfer  his  membership  from  NYSLERS  to
NYSTRS pursuant to Section 43 of the Retirement and Social Security Law.
Upon  his  retirement  from  NYSTRS,  his  retirement allowance shall be
recalculated taking into account the forfeiture of his enhanced  retire-
ment  benefits  by  reason  of  his return to public service pursuant to
Section 11 of Chapter 41 of the Laws of 1997. Additionally, his  retire-
ment benefit shall be reduced by the actuarial equivalent of the retire-
ment  benefits  received  from  NYSLERS  from  November  4, 2000 through
September 30, 2006. Mr. Callahan shall  not  be  required  to  make  any
further  employee contributions to NYSTRS, and upon retirement his bene-
fit shall be increased by the actuarial equivalent of employee  contrib-
utions  made  to  NTSTRS after August 30, 2006. Mr. Callahan must file a
written request with the head of the New York State Teachers' Retirement
system on or before December 31, 2012.
  The cost of this benefit is equal to the increase in the present value
of liabilities, which is estimated to be $307,000.  This  cost  will  be
partially  offset  by  the pension reserve transferred from the New York
State and Local Employees' Retirement  System  in  accordance  with  the
bill.
  The  source  of this estimate is Fiscal Note 2012-28 dated May 1, 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 legislation will allow Walter M. Callahan, a retiree from the New
York State and Local  Employees'  Retirement  System,  to  retroactively
transfer  his  membership  to  the  New  York State Teachers' Retirement
System.

S. 3990--A                          3

  Insofar as this bill will affect the New York State and Local  Employ-
ees' Retirement System, if it is enacted, Mr. Callahan will retroactive-
ly  transfer to the New York State Teachers' Retirement System and there
will be a transfer of reserves from the New York State and Local Employ-
ees' Retirement System to the New York State Teachers' Retirement System
which  will  equal  our liability due to Mr. Callahan's current pension.
Therefore, this legislation will generate no cost to the New York  State
and  Local  Employees' Retirement System. This legislation, however, may
generate a cost to the New York State Teachers' Retirement System.
  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 January 27, 2012 and intended for use only during
the  2012  Legislative  Session, is Fiscal Note No. 2012-74, prepared by
the Actuary for the New  York  State  and  Local  Employees'  Retirement
System.