S T A T E O F N E W Y O R K
________________________________________________________________________
7945
2013-2014 Regular Sessions
I N A S S E M B L Y
June 11, 2013
___________
Introduced by M. of A. TENNEY -- read once and referred to the Committee
on Governmental Employees
AN ACT to authorize members of the New York state and New York city
teachers' retirement systems and the New York state and local employ-
ees' retirement system to claim retirement credit for certain private
school teaching service
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Notwithstanding any other provision of law, a member of the
New York state teachers' retirement system or the New York city teach-
ers' retirement system, or any member of the New York state and local
employees' retirement system who was employed by a private school shall
be entitled to obtain credit for up to five years of service rendered as
a teacher employed by a private elementary or secondary school within
the state of New York chartered by or registered with the board of
regents, which would constitute service as a teacher, had it been
performed within New York state for an employer subject to the applica-
ble provisions of law governing such retirement system.
S 2. The crediting of service pursuant to this act shall be in accord-
ance with such rules and regulations as shall be adopted by the retire-
ment board of the New York state teachers' retirement system, the
retirement board of the New York city teachers' retirement system or the
state comptroller, as appropriate, provided that such rules and regu-
lations shall be substantially equivalent to the rules and regulations
otherwise applicable for the crediting of service pursuant to applicable
provisions of law governing each such retirement system, and provided
further that if such provisions have not expired such member makes the
applicable payments required pursuant to the provisions of sections 517
and 613, and paragraph 2 of subdivision b of section 609 of the retire-
ment and social security law.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03161-02-3
A. 7945 2
S 3. The service credit granted pursuant to this act shall constitute
service for the purpose of computing the pension payable upon retirement
for service and shall be granted as a service credit to be used in
determining the total length of service for purposes of eligibility for
retirement. Provided, no such credit shall be allowed for any service
for which the person is receiving a benefit or will be entitled to
receive a benefit at any future time from any other public or private
retirement system or plan in this state, any other state or from the
federal government. Provided further, that all costs associated with
obtaining credit for service rendered as a teacher employed by a private
school under section one of this act shall be borne by the individually
impacted member of the New York state teachers' retirement system or the
New York city teachers' retirement system or the New York state and
local employees' retirement system seeking to obtain such credit.
S 4. This act shall take effect June 30, 2013, except that any rule or
regulation necessary for the timely implementation of the provisions of
this act on its effective date are authorized and directed to be promul-
gated on or before such date.
FISCAL NOTE--Pursuant to Legislative Law, Section 50:
This bill would allow members of the New York State Teachers' Retire-
ment System to obtain service credit for up to five years of private
school teaching service within the state of New York. The service credit
granted pursuant to this bill will be used in determining the total
length of service for purposes of eligibility for retirement benefits.
No credit will be granted for any service for which the person is
receiving a benefit or will be entitled to receive a benefit from any
other public or private retirement system or from the federal govern-
ment. All costs associated with the crediting of this service shall be
borne by the member.
The annual cost to employers of members of the NYSTRS is estimated to
be negligible, as the bill requires participating members to pay costs
resulting from any additional service credit granted under this bill.
This cost will be equal to the full actuarial present value of the
increase in the benefit due to the additional service credit granted,
and will depend upon the number of years of service credit, as well as
the member's salary and service history and age at retirement. The cost
to the member will likely be substantial, as the average actuarial pres-
ent value cost per year of service credited is estimated to be approxi-
mately $20,000.
The source of this estimate is Fiscal Note 2013-29 dated May 9, 2013
prepared by the Actuary of the New York State Teachers' Retirement
System and is intended for use only during the 2013 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.