senate Bill S5162B

2013-2014 Legislative Session

Allows a change in retirement options for certain retired members with the consent of the nominated survivor beneficiary

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Sponsored By

Archive: Last Bill Status - Passed Senate


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

view actions (21)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jun 02, 2014 referred to governmental employees
delivered to assembly
passed senate
May 21, 2014 advanced to third reading
May 20, 2014 2nd report cal.
May 19, 2014 1st report cal.789
May 05, 2014 print number 5162c
amend (t) and recommit to civil service and pensions
Jan 08, 2014 referred to civil service and pensions
returned to senate
died in assembly
Jun 18, 2013 referred to governmental employees
delivered to assembly
passed senate
ordered to third reading cal.1450
committee discharged and committed to rules
Jun 06, 2013 print number 5162b
amend and recommit to civil service and pensions
May 30, 2013 print number 5162a
amend and recommit to civil service and pensions
May 13, 2013 referred to civil service and pensions

Votes

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May 19, 2014 - Civil Service and Pensions committee Vote

S5162C
9
0
committee
9
Aye
0
Nay
2
Aye with Reservations
0
Absent
0
Excused
0
Abstained
show committee vote details

Committee Vote: May 19, 2014

aye wr (2)

Jun 18, 2013 - Rules committee Vote

S5162B
25
0
committee
25
Aye
0
Nay
0
Aye with Reservations
0
Absent
0
Excused
0
Abstained
show Rules committee vote details

Bill Amendments

Original
A
B
C (Active)
Original
A
B
C (Active)

S5162 - Bill Details

Current Committee:
Law Section:
Retirement and Social Security Law
Laws Affected:
Amd §§514 & 610, R & SS L; amd §539, Ed L

S5162 - Bill Texts

view summary

Allows a change in retirement options for certain retired members of the New York state teachers' retirement system or the New York city teachers' retirement system with the consent of the nominated survivor beneficiary.

view sponsor memo
BILL NUMBER:S5162

TITLE OF BILL: An act to amend the retirement and social security law
and the education law, in relation to permitting certain retired
members of the New York State Teachers' Retirement System or the New
York City Teachers' Retirement System to change their retirement
options with the consent of the nominated survivor beneficiary

PURPOSE: Allows a change in the retirement options for retired members
of the New York State Teachers' Retirement System (NYSTRS) or the New
York City Teachers' Retirement System (NYCTRS) with the consent of the
nominated survivor beneficiary.

SUMMARY OF PROVISIONS:

§ 1- amends § 514 of the Retirement and Social Security Law by adding
a new subdivision e to provide for the option of post-retirement
beneficiary changes with nominated survivors consent for members of
NYCTRS.

§ 2 amends § 610 of the Retirement and Social Security Law by adding a
new subdivision g to provide for the option of post-retirement
beneficiary changes with nominated survivors consent for members of
NYCTRS.

§ 3 - amends § 539 of the Education Law by adding a new subdivision 8
to provide for the option of post-retirement beneficiary changes with
nominated survivors consent for members of NYSTRS.

§ 4 -This legislation shall take effect on June 30, 2013, except that
if this act shall take effect after this date it shall be deemed to
have been in full force and effect on or after June 30, 2013.

EXISTING LAW: Under NYC Administrative Code 13-565 (c) - Tier 1 and
Tier II retired members of NYCTRS are provided this option with
consent of the nominated beneficiary. This bill would expand this
option to retirees in all tiers of NYCTRS and NYSTRS with the same
nominated beneficiary consent.

JUSTIFICATION: Since divorce has become fairly commonplace - with
nearly 50 percent of all marriages ending in divorce - the concept of
an unchangeable option of providing a lifelong benefit to the spouse
of a member of a retirement system is no longer suitable. Current law
is punitive in nature for any retiree whose marriages dissolve after
retirement options have been chosen. Requiring that a divorced spouse
continue to pay toward the maintenance of a spouse that may agree to
give up this compensation is an unnecessary drain on resources of the
member of the retirement system.

Much the same way both parties are allowed to agree to legally end
their marriage, these same adults should be given the option to
reverse this retirement decision as their marital situation changes.
For the aforementioned reasons and in light of the fact that this
option already being permitted to certain members of the NYCTRS this
option should be expanded to all members of NYCTRS and NYSTRS.


LEGISLATIVE HISTORY: New Legislation for the 2012 Session - S.7610 -
referred to Civil Service and Pensions with no further action.

FISCAL IMPLICATIONS: NYCTRS - To the extent that the probabilities of
survival of the retiree and the beneficiary designated under the
optional form of benefit have not changes significantly since such
optional form of benefit was instituted, then the enactment of this
proposed legislation is expected to result in little or no change in
the Actuarial Present Value of Benefits or in employer costs. It will
result in some administrative expenses for NYCTRS.

NYSTRS - The annual cost to the employers of members of the NYSTRS for
this benefit is estimated to be very low, likely less than $200,000
per year.

EFFECTIVE DATE: This legislation shall take effect on June 30, 2013,
except that if this act shall take effect after this date it shall be
deemed to have been in full force and effect on or after June 30,
2013.

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

                                  5162

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              May 13, 2013
                               ___________

Introduced  by  Sen.  SAVINO -- 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 and the education
  law, in relation to permitting certain retired members of the New York
  State Teachers' Retirement System  or  the  New  York  City  Teachers'
  Retirement  System to change their retirement options with the consent
  of the nominated survivor beneficiary

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

  Section  1.  Section  514 of the retirement and social security law is
amended by adding a new subdivision e to read as follows:
  E. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, WHERE A RETIRED  MEMBER
OF  THE  NEW  YORK CITY TEACHERS' RETIREMENT SYSTEM HAS NOMINATED HIS OR
HER SPOUSE AS THE SURVIVOR BENEFICIARY UNDER OPTION  ONE,  TWO  OR  FIVE
PROVIDED  FOR IN SUBDIVISION A OF THIS SECTION, AND SUCH PERSON SO NOMI-
NATED CEASES BY CAUSES OTHER THAN DEATH TO BE HIS OR HER  SPOUSE  OR  IS
SEPARATED  FROM  HIM  OR  HER, OR IF SUCH OPTION WAS SELECTED IN CONTEM-
PLATION OF MARRIAGE WHICH HAS NOT TAKEN PLACE, THEN THE BOARD  OF  TRUS-
TEES  OF  SUCH  RETIREMENT SYSTEM SHALL HAVE THE AUTHORITY TO PERMIT THE
CHANGE OF SUCH OPTION TO THE  MAXIMUM  BENEFIT  THAT  IS  THE  ACTUARIAL
EQUIVALENT BY AND WITH THE CONSENT OF ALL PARTIES.
  S  2. Section 610 of the retirement and social security law is amended
by adding a new subdivision g to read as follows:
  G. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, WHERE A RETIRED  MEMBER
OF  THE  NEW  YORK CITY TEACHERS' RETIREMENT SYSTEM HAS NOMINATED HIS OR
HER SPOUSE AS THE SURVIVOR BENEFICIARY UNDER OPTION  ONE,  TWO  OR  FIVE
PROVIDED  FOR IN SUBDIVISION A OF THIS SECTION, AND SUCH PERSON SO NOMI-
NATED CEASES BY CAUSES OTHER THAN DEATH TO BE HIS OR HER  SPOUSE  OR  IS
SEPARATED  FROM  HIM  OR  HER, OR IF SUCH OPTION WAS SELECTED IN CONTEM-
PLATION OF MARRIAGE WHICH HAS NOT TAKEN PLACE, THEN THE BOARD  OF  TRUS-
TEES  OF  SUCH  RETIREMENT SYSTEM SHALL HAVE THE AUTHORITY TO PERMIT THE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10230-03-3

S. 5162                             2

CHANGE OF SUCH OPTION TO THE  MAXIMUM  BENEFIT  THAT  IS  THE  ACTUARIAL
EQUIVALENT BY AND WITH THE CONSENT OF ALL PARTIES.
  S  3.  Section  539  of  the  education law is amended by adding a new
subdivision 8 to read as follows:
  8. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, A  RETIREE  SUBJECT  TO
THIS ARTICLE OR ARTICLE FOURTEEN OR FIFTEEN OF THE RETIREMENT AND SOCIAL
SECURITY  LAW  WHO  AT  RETIREMENT  HAD  DULY SELECTED AN OPTION FORM OF
RETIREMENT PROVIDING FOR THE PAYMENT OF A  LESSER  RETIREMENT  ALLOWANCE
OVER  THE LIFE OF THE RETIREE WITH THE PROVISION THAT UPON THE RETIREE'S
DEATH ALL OR A PORTION OF SUCH ALLOWANCE SHALL BE CONTINUED FOR THE LIFE
OF AND PAID TO A BENEFICIARY DULY NOMINATED BY THE  RETIREE  AT  RETIRE-
MENT, SHALL BE PERMITTED TO RESCIND SUCH SELECTION WITHIN ONE YEAR AFTER
SUCH  BENEFICIARY  HAS  CEASED TO BE THE RETIREE'S SPOUSE BY REASON OF A
FINAL JUDGMENT OR DECREE OF DIVORCE  ISSUED  BY  A  COURT  OF  COMPETENT
JURISDICTION.  IN ORDER TO RESCIND SUCH SELECTION, THE RETIREE AND BENE-
FICIARY MUST EACH FILE A WRITTEN CONSENT TO SUCH CHANGE WITH THE  SYSTEM
ON  A  FORM PRESCRIBED BY THE SYSTEM. UPON SATISFACTORILY RECEIVING SUCH
JUDGMENT OR DECREE OF DIVORCE AND SUCH CONSENTS, ANY AND ALL OBLIGATIONS
OF THE SYSTEM TO THE BENEFICIARY UNDER THE  RETIREE'S  OPTION  SELECTION
SHALL BE TOTALLY DISCHARGED AND THE RETIREE SHALL THEREAFTER BE PAID FOR
THE  REMAINDER  OF  SUCH  RETIREE'S LIFE THE MAXIMUM SINGLE LIFE BENEFIT
WHICH WOULD HAVE BEEN PAYABLE, HAD THE RETIREE MADE NO OPTION  SELECTION
AT  THE  TIME OF RETIREMENT. THE RETIREMENT BOARD IS AUTHORIZED TO ADOPT
SUCH RULES AND REGULATIONS AS MAY BE NECESSARY TO IMPLEMENT THIS  SUBDI-
VISION.
  S  4.  This  act  shall take effect immediately and shall be deemed to
have been in full force and effect on or after June 30, 2013.
  FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
  This proposed legislation would amend Retirement and  Social  Security
Law  ("RSSL") Sections 514 and 610 to allow certain Tier III and Tier IV
retirees of the New York City Teachers' Retirement  System  ("TRS")  the
opportunity to change certain optional forms of benefit after retirement
similar  to  the provisions set forth in Administrative Code of the City
of New York ("ACNY") Section 565(c).
  ACNY Section 565(c) covers only Tier I and Tier II members of TRS.
  In addition, for purposes of this Fiscal Note, the  references  herein
to Tier IV include those TRS members whose dates of membership are on or
after April 1, 2012 (a.k.a., Tier VI members).
  Specifically,  this  proposed  legislation  would permit a Tier III or
Tier IV retiree of TRS who has nominated his or her spouse as the survi-
vor beneficiary to change, under certain optional forms of  benefit  and
with the consent of his or her spouse and the TRS Retirement Board, from
the  optional  form  of benefit originally chosen to the maximum benefit
that is the actuarial equivalent, if such person:
  (1) ceases by causes other than death to be his or her spouse, or
  (2) is separated from him or her, or
  (3) if such option was selected in contemplation of marriage which has
not taken place.
  The Effective Date of the proposed legislation would be  the  date  of
enactment.
  FINANCIAL  IMPACT  -  ACTUARIAL PRESENT VALUE OF BENEFITS AND EMPLOYER
CONTRIBUTIONS: To the extent that the probabilities of survival  of  the
retiree  and the beneficiary designated under the optional form of bene-
fit have not changed significantly since such optional form  of  benefit
was  instituted,  then  the  enactment  of  this proposed legislation is
expected to result in little or no change in the Actuarial Present Value

S. 5162                             3

of Benefits,  Employer  Normal  Cost,  Actuarial  Accrued  Liability  or
employer contributions to TRS.
  OTHER  COSTS:  The enactment of this proposed legislation would result
in some administrative expenses for TRS.
  STATEMENT OF ACTUARIAL OPINION:  I, Robert C. North, Jr., am the Chief
Actuary for the New York City Retirement Systems.  I am a Fellow of  the
Society  of Actuaries and a Member of the American Academy of Actuaries.
I meet the Qualification  Standards  to  render  the  actuarial  opinion
contained herein.
  FISCAL  NOTE  IDENTIFICATION:   This estimate is intended for use only
during the 2013 Legislative Session. It  is  Fiscal  Note  No.  2013-03,
dated  February  28,  2013 prepared by the Chief Actuary of the New York
City Teachers' Retirement System.
  FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
  This bill would amend Section 539 of the  Education  Law  to  allow  a
retired  member  of  the  New  York  State  Teachers'  Retirement System
(NYSTRS) who has selected an optional form of  retirement  benefit  that
provides  that upon the retired member's death, all, or a percentage of,
such retirement benefit shall be continued for the life of  a  benefici-
ary,  to rescind the selection of such option within one year after such
beneficiary ceases to be the retired member's  spouse  by  reason  of  a
final  judgment  or decree of divorce. In order to rescind such optional
form of retirement benefit, the retired member and beneficiary must each
file a written consent with respect to such  change  with  NYSTRS.  Upon
NYSTRS'  receipt  of  the  judgment or decree of divorce and the written
consents, the retired  member  would  receive  the  maximum  single-life
retirement  benefit  for  the remainder of his or her lifetime, as if no
option had been selected at  retirement.  Any  and  all  obligations  of
NYSTRS to the beneficiary under the option selection shall be considered
fully  discharged.  This bill shall apply to retirement benefits payable
on or after June 30, 2013.
  The annual cost to the employers of members  of  the  New  York  State
Teachers'  Retirement  System  for  this benefit is estimated to be very
low, likely less than $200,000 per year.  Allowing  retired  members  to
change  the terms of their option after retirement creates the potential
for anti-selection however.
  The source of this estimate is Fiscal Note  2013-18  dated  April  23,
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.

S5162A - Bill Details

Current Committee:
Law Section:
Retirement and Social Security Law
Laws Affected:
Amd §§514 & 610, R & SS L; amd §539, Ed L

S5162A - Bill Texts

view summary

Allows a change in retirement options for certain retired members of the New York state teachers' retirement system or the New York city teachers' retirement system with the consent of the nominated survivor beneficiary.

view sponsor memo
BILL NUMBER:S5162A

TITLE OF BILL: An act to amend the retirement and social security law
and the education law, in relation to permitting certain retired
members of the New York State Teachers' Retirement System or the New
York City Teachers' Retirement System to change their retirement
options with the consent of the nominated survivor beneficiary

PURPOSE:

Allows a change in the retirement options for retired members of the
New York State Teachers' Retirement System (NYSTRS) or the New York
City Teachers' Retirement System (NYCTRS) with the consent of the
nominated survivor beneficiary.

SUMMARY OF PROVISIONS:

§ 1 - amends § 514 of the Retirement and Social Security Law by adding
a new subdivision e to provide for the option of post-retirement
beneficiary changes with nominated survivors consent for members of
NYCTRS.

§ 2 amends § 610 of the Retirement and Social Security Law by adding a
new subdivision g to provide for the option of post-retirement
beneficiary changes with nominated survivors consent for members of
NYCTRS.

§ 3 - amends § 539 of the Education Law by adding a new subdivision 8
to provide for the option of post-retirement beneficiary changes with
nominated survivors consent for members of NYSTRS.

§ 4 - This legislation shall take effect on June 30, 2013, except that
if this act shall take effect after this date it shall be deemed to
have been in full force and effect on or after June 30, 2013.

EXISTING LAW:

Under NYC Administrative Code 13-565 (c) - Tier 1 and Tier II retired
members of NYCTRS are provided this option with consent of the
nominated beneficiary. This bill would expand this option to retirees
in all tiers of NYCTRS and NYSTRS with the same nominated beneficiary
consent.

JUSTIFICATION:

Since divorce has become fairly commonplace - with nearly 50 percent
of all marriages ending in divorce - the concept of an unchangeable
option of providing a lifelong benefit to the spouse of a member of a
retirement system is no longer suitable.

Current law is punitive in nature for any retiree whose marriages
dissolve after retirement options have been chosen. Requiring that a
divorced spouse continue to pay toward the maintenance of a spouse
that may agree to give up this compensation is an unnecessary drain on
resources of the member of the retirement system.


Much the same way both parties are allowed to agree to legally end
their marriage, these same adults should be given the option to
reverse this retirement decision as their marital situation changes.
For the aforementioned reasons and in light of the fact that this
option already being permitted to certain members of the NYCTRS this
option should be expanded to all members of NYCTRS and NYSTRS.

LEGISLATIVE HISTORY:

New Legislation for the 2012 Session - S.7610 - referred to Civil
Service and Pensions with no further action.

FISCAL IMPLICATIONS:

NYCTRS - To the extent that the probabilities of survival of the
retiree and the beneficiary designated under the optional form of
benefit have not changes significantly since such optional form of
benefit was instituted, then the enactment of this proposed
legislation is expected to result in little or no change in the
Actuarial Present Value of Benefits or in employer costs. It will
result in some administrative expenses for NYCTRS. NYSTRS - The
annual cost to the employers of members of the NYSTRS for this benefit
is estimated to be very low, likely less than $200,000 per year.

EFFECTIVE DATE:

This legislation shall take effect on June 30, 2013, except that if
this act shall take effect after this date it shall be deemed to have
been in full force and effect on or after June 30, 2013

view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 5162--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              May 13, 2013
                               ___________

Introduced  by  Sen.  SAVINO -- 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 and the education
  law, in relation to permitting certain retired members of the New York
  State  Teachers'  Retirement  System  or  the  New York City Teachers'
  Retirement System to change their retirement options with the  consent
  of the nominated survivor beneficiary

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

  Section 1. Section 514 of the retirement and social  security  law  is
amended by adding a new subdivision e to read as follows:
  E.  NOTWITHSTANDING ANY OTHER PROVISION OF LAW, WHERE A RETIRED MEMBER
OF THE NEW YORK CITY TEACHERS' RETIREMENT SYSTEM HAS  NOMINATED  HIS  OR
HER  SPOUSE  AS  THE  SURVIVOR BENEFICIARY UNDER OPTION ONE, TWO OR FIVE
PROVIDED FOR IN SUBDIVISION A OF THIS SECTION, AND SUCH PERSON SO  NOMI-
NATED  CEASES  BY  CAUSES OTHER THAN DEATH TO BE HIS OR HER SPOUSE OR IS
SEPARATED FROM HIM OR HER, OR IF SUCH OPTION  WAS  SELECTED  IN  CONTEM-
PLATION  OF  MARRIAGE WHICH HAS NOT TAKEN PLACE, THEN THE BOARD OF TRUS-
TEES OF SUCH RETIREMENT SYSTEM SHALL HAVE THE AUTHORITY  TO  PERMIT  THE
CHANGE  OF  SUCH  OPTION  TO  THE  MAXIMUM BENEFIT THAT IS THE ACTUARIAL
EQUIVALENT BY AND WITH THE CONSENT OF ALL PARTIES.
  S 2. Section 610 of the retirement and social security law is  amended
by adding a new subdivision g to read as follows:
  G.  NOTWITHSTANDING ANY OTHER PROVISION OF LAW, WHERE A RETIRED MEMBER
OF THE NEW YORK CITY TEACHERS' RETIREMENT SYSTEM HAS  NOMINATED  HIS  OR
HER  SPOUSE  AS  THE  SURVIVOR BENEFICIARY UNDER OPTION ONE, TWO OR FIVE
PROVIDED FOR IN SUBDIVISION A OF THIS SECTION, AND SUCH PERSON SO  NOMI-
NATED  CEASES  BY  CAUSES OTHER THAN DEATH TO BE HIS OR HER SPOUSE OR IS
SEPARATED FROM HIM OR HER, OR IF SUCH OPTION  WAS  SELECTED  IN  CONTEM-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10230-05-3

S. 5162--A                          2

PLATION  OF  MARRIAGE WHICH HAS NOT TAKEN PLACE, THEN THE BOARD OF TRUS-
TEES OF SUCH RETIREMENT SYSTEM SHALL HAVE THE AUTHORITY  TO  PERMIT  THE
CHANGE  OF  SUCH  OPTION  TO  THE  MAXIMUM BENEFIT THAT IS THE ACTUARIAL
EQUIVALENT BY AND WITH THE CONSENT OF ALL PARTIES.
  S  3.  Section  539  of  the  education law is amended by adding a new
subdivision 8 to read as follows:
  8. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, A  RETIREE  SUBJECT  TO
THIS ARTICLE OR ARTICLE FOURTEEN OR FIFTEEN OF THE RETIREMENT AND SOCIAL
SECURITY  LAW  WHO  AT  RETIREMENT  HAD  DULY SELECTED AN OPTION FORM OF
RETIREMENT PROVIDING FOR THE PAYMENT OF A  LESSER  RETIREMENT  ALLOWANCE
OVER  THE LIFE OF THE RETIREE WITH THE PROVISION THAT UPON THE RETIREE'S
DEATH ALL OR A PORTION OF SUCH ALLOWANCE SHALL BE CONTINUED FOR THE LIFE
OF AND PAID TO A BENEFICIARY DULY NOMINATED BY THE  RETIREE  AT  RETIRE-
MENT, SHALL BE PERMITTED TO RESCIND SUCH SELECTION WITHIN ONE YEAR AFTER
SUCH  BENEFICIARY  HAS  CEASED TO BE THE RETIREE'S SPOUSE BY REASON OF A
FINAL JUDGMENT OR DECREE OF DIVORCE  ISSUED  BY  A  COURT  OF  COMPETENT
JURISDICTION.  IN ORDER TO RESCIND SUCH SELECTION, THE RETIREE AND BENE-
FICIARY MUST EACH FILE A WRITTEN CONSENT TO SUCH CHANGE WITH THE  SYSTEM
ON  A  FORM PRESCRIBED BY THE SYSTEM. UPON SATISFACTORILY RECEIVING SUCH
JUDGMENT OR DECREE OF DIVORCE AND SUCH CONSENTS, ANY AND ALL OBLIGATIONS
OF THE SYSTEM TO THE BENEFICIARY UNDER THE  RETIREE'S  OPTION  SELECTION
SHALL BE TOTALLY DISCHARGED AND THE RETIREE SHALL THEREAFTER BE PAID FOR
THE  REMAINDER  OF  SUCH  RETIREE'S LIFE THE MAXIMUM SINGLE LIFE BENEFIT
WHICH WOULD HAVE BEEN PAYABLE, HAD THE RETIREE MADE NO OPTION  SELECTION
AT  THE  TIME OF RETIREMENT. THE RETIREMENT BOARD IS AUTHORIZED TO ADOPT
SUCH RULES AND REGULATIONS AS MAY BE NECESSARY TO IMPLEMENT THIS  SUBDI-
VISION.
  S  4.  This  act  shall take effect immediately and shall be deemed to
have been in full force and effect on or after June 30, 2013.
  FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
  This proposed legislation would amend Retirement and  Social  Security
Law  ("RSSL") Sections 514 and 610 to allow certain Tier III and Tier IV
retirees of the New York City Teachers' Retirement  System  ("TRS")  the
opportunity to change certain optional forms of benefit after retirement
similar  to  the provisions set forth in Administrative Code of the City
of New York ("ACNY") Section 565(c).
  ACNY Section 565(c) covers only Tier I and Tier II members of TRS.
  In addition, for purposes of this Fiscal Note, the  references  herein
to Tier IV include those TRS members whose dates of membership are on or
after April 1, 2013 (a.k.a., Tier VI members).
  Specifically,  this  proposed  legislation  would permit a Tier III or
Tier IV retiree of TRS who has nominated his or her spouse as the survi-
vor beneficiary to change, under certain optional forms of  benefit  and
with the consent of his or her spouse and the TRS Retirement Board, from
the  optional  form  of benefit originally chosen to the maximum benefit
that is the actuarial equivalent, if such person:
  (1) ceases by causes other than death to be his or her spouse, or
  (2) is separated from him or her, or
  (3) if such option was selected in contemplation of marriage which has
not taken place.
  The Effective Date of the proposed legislation would be  the  date  of
enactment.
  FINANCIAL  IMPACT  -  ACTUARIAL PRESENT VALUE OF BENEFITS AND EMPLOYER
CONTRIBUTIONS: To the extent that the probabilities of survival  of  the
retiree  and the beneficiary designated under the optional form of bene-
fit have not changed significantly since such optional form  of  benefit

S. 5162--A                          3

was  instituted,  then  the  enactment  of  this proposed legislation is
expected to result in little or no change in the Actuarial Present Value
of Benefits,  Employer  Normal  Cost,  Actuarial  Accrued  Liability  or
employer contributions to TRS.
  OTHER  COSTS:  The enactment of this proposed legislation would result
in some administrative expenses for TRS.
  STATEMENT OF ACTUARIAL OPINION:  I, Robert C. North, Jr., am the Chief
Actuary for the New York City Retirement Systems.  I am a Fellow of  the
Society  of Actuaries and a Member of the American Academy of Actuaries.
I meet the Qualification  Standards  to  render  the  actuarial  opinion
contained herein.
  FISCAL  NOTE  IDENTIFICATION:   This estimate is intended for use only
during the 2013 Legislative Session. It  is  Fiscal  Note  No.  2013-03,
dated  February  28,  2013 prepared by the Chief Actuary of the New York
City Teachers' Retirement System.

S5162B - Bill Details

Current Committee:
Law Section:
Retirement and Social Security Law
Laws Affected:
Amd §§514 & 610, R & SS L; amd §539, Ed L

S5162B - Bill Texts

view summary

Allows a change in retirement options for certain retired members of the New York state teachers' retirement system or the New York city teachers' retirement system with the consent of the nominated survivor beneficiary.

view sponsor memo
BILL NUMBER:S5162B

TITLE OF BILL: An act to amend the retirement and social security law
and the education law, in relation to permitting certain retired
members of the New York State Teachers' Retirement System or the New
York City Teachers' Retirement System to change their retirement
options with the consent of the nominated survivor beneficiary

PURPOSE: Allows a change in the retirement options for retired members
of the New York State Teachers' Retirement System (NYSTRS) or the New
York City Teachers' Retirement System (NYCTRS) with the consent of the
nominated survivor beneficiary.

SUMMARY OF PROVISIONS:

§ 1 - amends § 514 of the Retirement and Social Security Law by adding
a new subdivision e to provide for the option of post-retirement
beneficiary changes with nominated survivors consent for members of
NYCTRS.

§ 2 amends § 610 of the Retirement and Social Security Law by adding a
new subdivision g to provide for the option of post-retirement
beneficiary changes with nominated survivors consent for members of
NYCTRS.

§ 3 - amends § 539 of the Education Law by adding a new subdivision 8
to provide for the option of post-retirement beneficiary changes with
nominated survivors consent for members of NYSTRS.

§ 4 - This legislation shall take effect on June 30, 2013, except that
if this act shall take effect after this date it shall be deemed to
have been in full force and effect on or after June 30, 2013.

EXISTING LAW: Under NYC Administrative Code 13-565 (c) - Tier I and
Tier II retired members of NYCTRS are provided this option with
consent of the nominated beneficiary. This bill would expand this
option to retirees in all tiers of NYCTRS and NYSTRS with the same
nominated beneficiary consent.

JUSTIFICATION: Since divorce has become fairly commonplace with
nearly 50 percent of all marriages ending in divorce -the concept of
an unchangeable option of providing a lifelong benefit to the spouse
of a member of a retirement system is no longer suitable.

Current law is punitive in nature for any retiree whose marriages
dissolve after retirement options have been chosen. Requiring that a
divorced spouse continue to pay toward the maintenance of a spouse
that may agree to give up this compensation is an unnecessary drain on
resources of the member of the retirement system.

Much the same way both parties are allowed to agree to legally end
their marriage, these same adults should be given the option to
reverse this retirement decision as their marital situation changes.

For the aforementioned reasons and in light of the fact that this
option already being permitted to certain members of the NYCTRS this
option should be expanded to all members of NYCTRS and NYSTRS.


LEGISLATIVE HISTORY: New Legislation for the 2012 Session - S.7610 -
referred to Civil Service and Pensions with no further action.

FISCAL IMPLICATIONS: NYCTRS -To the extent that the probabilities of
survival of the retiree and the beneficiary designated under the
optional form of benefit have not changes significantly since such
optional form of benefit was instituted, then the enactment of this
proposed legislation is expected to result in little or no change in
the Actuarial Present Value of Benefits or in employer costs. It will
result in some administrative expenses for NYCTRS.

NYSTRS - The annual cost to the employers of members of the NYSTRS for
this benefit is estimated to be very low, likely less than $200,000
per year.

EFFECTIVE DATE: This legislation shall take effect on June 30, 2013,
except that if this act shall take effect after this date it shall be
deemed to have been in full force and effect on or after June 30,
2013.

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

                                 5162--B

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              May 13, 2013
                               ___________

Introduced  by  Sen.  SAVINO -- 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  --  committee  discharged, bill
  amended, ordered reprinted as amended and recommitted to said  commit-
  tee

AN ACT to amend the retirement and social security law and the education
  law, in relation to permitting certain retired members of the New York
  State  Teachers'  Retirement  System  or  the  New York City Teachers'
  Retirement System to change their retirement options with the  consent
  of the nominated survivor beneficiary

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

  Section 1. Section 514 of the retirement and social  security  law  is
amended by adding a new subdivision e to read as follows:
  E.  NOTWITHSTANDING ANY OTHER PROVISION OF LAW, WHERE A RETIRED MEMBER
OF THE NEW YORK CITY TEACHERS' RETIREMENT SYSTEM HAS  NOMINATED  HIS  OR
HER  SPOUSE  AS  THE  SURVIVOR BENEFICIARY UNDER OPTION ONE, TWO OR FIVE
PROVIDED FOR IN SUBDIVISION A OF THIS SECTION, AND SUCH PERSON SO  NOMI-
NATED  CEASES  BY  CAUSES OTHER THAN DEATH TO BE HIS OR HER SPOUSE OR IS
SEPARATED FROM HIM OR HER, OR IF SUCH OPTION  WAS  SELECTED  IN  CONTEM-
PLATION  OF  MARRIAGE WHICH HAS NOT TAKEN PLACE, THEN THE BOARD OF TRUS-
TEES OF SUCH RETIREMENT SYSTEM SHALL HAVE THE AUTHORITY  TO  PERMIT  THE
CHANGE  OF  SUCH  OPTION  TO  THE  MAXIMUM BENEFIT THAT IS THE ACTUARIAL
EQUIVALENT BY AND WITH THE CONSENT OF ALL PARTIES.
  S 2. Section 610 of the retirement and social security law is  amended
by adding a new subdivision g to read as follows:
  G.  NOTWITHSTANDING ANY OTHER PROVISION OF LAW, WHERE A RETIRED MEMBER
OF THE NEW YORK CITY TEACHERS' RETIREMENT SYSTEM HAS  NOMINATED  HIS  OR
HER  SPOUSE  AS  THE  SURVIVOR BENEFICIARY UNDER OPTION ONE, TWO OR FIVE
PROVIDED FOR IN SUBDIVISION A OF THIS SECTION, AND SUCH PERSON SO  NOMI-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10230-07-3

S. 5162--B                          2

NATED  CEASES  BY  CAUSES OTHER THAN DEATH TO BE HIS OR HER SPOUSE OR IS
SEPARATED FROM HIM OR HER, OR IF SUCH OPTION  WAS  SELECTED  IN  CONTEM-
PLATION  OF  MARRIAGE WHICH HAS NOT TAKEN PLACE, THEN THE BOARD OF TRUS-
TEES  OF  SUCH  RETIREMENT SYSTEM SHALL HAVE THE AUTHORITY TO PERMIT THE
CHANGE OF SUCH OPTION TO THE  MAXIMUM  BENEFIT  THAT  IS  THE  ACTUARIAL
EQUIVALENT BY AND WITH THE CONSENT OF ALL PARTIES.
  S  3.  Section  539  of  the  education law is amended by adding a new
subdivision 8 to read as follows:
  8. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, A  RETIREE  SUBJECT  TO
THIS ARTICLE OR ARTICLE FOURTEEN OR FIFTEEN OF THE RETIREMENT AND SOCIAL
SECURITY  LAW  WHO  AT  RETIREMENT  HAD  DULY SELECTED AN OPTION FORM OF
RETIREMENT PROVIDING FOR THE PAYMENT OF A  LESSER  RETIREMENT  ALLOWANCE
OVER  THE LIFE OF THE RETIREE WITH THE PROVISION THAT UPON THE RETIREE'S
DEATH ALL OR A PORTION OF SUCH ALLOWANCE SHALL BE CONTINUED FOR THE LIFE
OF AND PAID TO A BENEFICIARY DULY NOMINATED BY THE  RETIREE  AT  RETIRE-
MENT, SHALL BE PERMITTED TO RESCIND SUCH SELECTION WITHIN ONE YEAR AFTER
SUCH  BENEFICIARY  HAS  CEASED TO BE THE RETIREE'S SPOUSE BY REASON OF A
FINAL JUDGMENT OR DECREE OF DIVORCE  ISSUED  BY  A  COURT  OF  COMPETENT
JURISDICTION.  IN ORDER TO RESCIND SUCH SELECTION, THE RETIREE AND BENE-
FICIARY MUST EACH FILE A WRITTEN CONSENT TO SUCH CHANGE WITH THE  SYSTEM
ON  A  FORM PRESCRIBED BY THE SYSTEM. UPON SATISFACTORILY RECEIVING SUCH
JUDGMENT OR DECREE OF DIVORCE AND SUCH CONSENTS, ANY AND ALL OBLIGATIONS
OF THE SYSTEM TO THE BENEFICIARY UNDER THE  RETIREE'S  OPTION  SELECTION
SHALL BE TOTALLY DISCHARGED AND THE RETIREE SHALL THEREAFTER BE PAID FOR
THE  REMAINDER  OF  SUCH  RETIREE'S LIFE THE MAXIMUM SINGLE LIFE BENEFIT
WHICH WOULD HAVE BEEN PAYABLE, HAD THE RETIREE MADE NO OPTION  SELECTION
AT  THE  TIME OF RETIREMENT. THE RETIREMENT BOARD IS AUTHORIZED TO ADOPT
SUCH RULES AND REGULATIONS AS MAY BE NECESSARY TO IMPLEMENT THIS  SUBDI-
VISION.
  S  4.  This  act  shall take effect immediately and shall be deemed to
have been in full force and effect on or after June 30, 2013.
  FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
  This proposed legislation would amend Retirement and  Social  Security
Law  ("RSSL") Sections 514 and 610 to allow certain Tier III and Tier IV
retirees of the New York City Teachers' Retirement  System  ("TRS")  the
opportunity to change certain optional forms of benefit after retirement
similar  to  the provisions set forth in Administrative Code of the City
of New York ("ACNY") Section 565(c).
  ACNY Section 565(c) covers only Tier I and Tier II members of TRS.
  In addition, for purposes of this Fiscal Note, the  references  herein
to Tier IV include those TRS members whose dates of membership are on or
after April 1, 2013 (a.k.a., Tier VI members).
  Specifically,  this  proposed  legislation  would permit a Tier III or
Tier IV retiree of TRS who has nominated his or her spouse as the survi-
vor beneficiary to change, under certain optional forms of  benefit  and
with the consent of his or her spouse and the TRS Retirement Board, from
the  optional  form  of benefit originally chosen to the maximum benefit
that is the actuarial equivalent, if such person:
  (1) ceases by causes other than death to be his or her spouse, or
  (2) is separated from him or her, or
  (3) if such option was selected in contemplation of marriage which has
not taken place.
  The Effective Date of the proposed legislation would be  the  date  of
enactment.
  FINANCIAL  IMPACT  -  ACTUARIAL PRESENT VALUE OF BENEFITS AND EMPLOYER
CONTRIBUTIONS: To the extent that the probabilities of survival  of  the

S. 5162--B                          3

retiree  and the beneficiary designated under the optional form of bene-
fit have not changed significantly since such optional form  of  benefit
was  instituted,  then  the  enactment  of  this proposed legislation is
expected to result in little or no change in the Actuarial Present Value
of  Benefits,  Employer  Normal  Cost,  Actuarial  Accrued  Liability or
employer contributions to TRS.
  OTHER COSTS: The enactment of this proposed legislation  would  result
in some administrative expenses for TRS.
  STATEMENT OF ACTUARIAL OPINION:  I, Robert C. North, Jr., am the Chief
Actuary  for the New York City Retirement Systems.  I am a Fellow of the
Society of Actuaries and a Member of the American Academy of  Actuaries.
I  meet  the  Qualification  Standards  to  render the actuarial opinion
contained herein.
  FISCAL NOTE IDENTIFICATION:  This estimate is intended  for  use  only
during  the  2013  Legislative  Session.  It is Fiscal Note No. 2013-03,
dated February 28, 2013 prepared by the Chief Actuary of  the  New  York
City Teachers' Retirement System.
  FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
  This  bill  would  amend  Section  539 of the Education Law to allow a
retired member  of  the  New  York  State  Teachers'  Retirement  System
(NYSTRS)  who  has  selected an optional form of retirement benefit that
provides that upon the retired member's death, all, or a percentage  of,
such  retirement  benefit shall be continued for the life of a benefici-
ary, to rescind the selection of such option within one year after  such
beneficiary  ceases  to  be  the  retired member's spouse by reason of a
final judgment or decree of divorce. In order to rescind  such  optional
form of retirement benefit, the retired member and beneficiary must each
file  a  written  consent  with respect to such change with NYSTRS. Upon
NYSTRS' receipt of the judgment or decree of  divorce  and  the  written
consents,  the  retired  member  would  receive  the maximum single-life
retirement benefit for the remainder of his or her lifetime,  as  if  no
option  had  been  selected  at  retirement.  Any and all obligations of
NYSTRS to the beneficiary under the option selection shall be considered
fully discharged. This bill shall apply to retirement  benefits  payable
on or after June 30, 2013.
  The  annual  cost  to  the  employers of members of the New York State
Teachers' Retirement System for this benefit is  estimated  to  be  very
low,  likely  less  than  $200,000 per year. Allowing retired members to
change the terms of their option after retirement creates the  potential
for anti-selection however.
  The  source  of  this  estimate is Fiscal Note 2013-18 dated April 23,
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.

S5162C (ACTIVE) - Bill Details

Current Committee:
Law Section:
Retirement and Social Security Law
Laws Affected:
Amd §§514 & 610, R & SS L; amd §539, Ed L

S5162C (ACTIVE) - Bill Texts

view summary

Allows a change in retirement options for certain retired members of the New York state teachers' retirement system or the New York city teachers' retirement system with the consent of the nominated survivor beneficiary.

view sponsor memo
BILL NUMBER:S5162C

PURPOSE: Allows a change in the retirement options for retired members
of the New York State Teachers' Retirement System (NYSTRS) or the New
York City Teachers' Retirement System (NYCTRS) with the consent of the
nominated survivor beneficiary.

SUMMARY OF PROVISIONS: Part A - affecting members of NYCTRS

§ 1 - amends § 514 of the Retirement and Social Security Law by adding
a new subdivision e to provide for the option of post-retirement
beneficiary changes with nominated survivors consent for members of
NYCTRS.

§ 2 amends § 610 of the Retirement and Social Security Law by adding a
new subdivision g to provide for the option of post-retirement
beneficiary changes with nominated survivors consent for members of
NYCTRS.

Part B - affecting members of NYSTRS

§ 1 - amends § 539 of the Education Law by adding a new subdivision 8
to provide for the option of post-retirement beneficiary changes with
nominated survivors consent for members of NYSTRS.

EXISTING LAW: Under NYC Administrative Code 13-565 (c) - Tier 1 and
Tier II retired members of NYCTRS are provided this option with
consent of the nominated beneficiary. This bill would expand this
option to retirees in all tiers of NYCTRS and NYSTRS with the same
nominated beneficiary consent.

JUSTIFICATION: Since divorce has become fairly commonplace - with
nearly 50 percent of all marriages ending in divorce - the concept of
an unchangeable option of providing a lifelong benefit to the spouse
of a member of a retirement system is no longer suitable.

Current law is punitive in nature for any retiree whose marriages
dissolve after retirement options have been chosen. Requiring that a
divorced spouse continue to pay toward the maintenance of a spouse
that may agree to give up this compensation is an unnecessary drain on
resources of the member of the retirement system.

Much the same way both parties are allowed to agree to legally end
their marriage, these same adults should be given the option to
reverse this retirement decision as their marital situation changes.

For the aforementioned reasons and in light of the fact that this
option already being permitted to certain members of the NYCTRS this
option should be expanded to all members of NYCTRS and NYSTRS.

LEGISLATIVE HISTORY: New Legislation for the 2012 Session - S.7610 -
referred to Civil Service and Pensions with no further action.

FISCAL IMPLICATIONS: Part A - NYCTRS - To the extent that the
probabilities of survival of the retiree and the beneficiary
designated under the optional form of benefit have not changes
significantly since such optional form of benefit was instituted, then


the enactment of this proposed legislation is expected to result in
little or no change in the Actuarial Present Value of Benefits or in
employer costs. It will result in some administrative expenses for
NYCTRS.

Part B - NYSTRS - The annual cost to the employers of members of the
NYSTRS for this benefit is estimated to be very low, likely less than
$200,000 per year.

EFFECTIVE DATE: This legislation shall take effect on June 30, 2014.

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

                                 5162--C

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              May 13, 2013
                               ___________

Introduced  by  Sen.  SAVINO -- 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  --  committee  discharged, bill
  amended, ordered reprinted as amended and recommitted to said  commit-
  tee  --  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 amend the retirement and social security law, in  relation  to
  permitting  certain  retired  members  of  the New York City Teachers'
  Retirement System to change their retirement options with the  consent
  of  the  nominated  survivor  beneficiary  (Part  A); and to amend the
  education law, in relation to permitting certain  retired  members  of
  the New York State Teachers' Retirement System to change their retire-
  ment  options  with  the consent of the nominated survivor beneficiary
  (Part B)

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

  Section 1. This act enacts into law components of legislation relating
to  certain  options of the teachers' retirement system and the New York
City teachers' retirement system. Each  component  is  wholly  contained
within  a Part identified as Parts A and B.  The effective date for each
particular provision contained within such Part is set forth in the last
section of such Part. Any provision in any section  contained  within  a
Part, including the effective date of the Part, which makes reference to
a  section  "of  this act", when used in connection with that particular
component, shall be deemed  to  mean  and  refer  to  the  corresponding
section of the Part in which it is found. Section three of this act sets
forth the general effective date of this act.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10230-09-4

S. 5162--C                          2

                                 PART A

  Section  1.  Section  514 of the retirement and social security law is
amended by adding a new subdivision e to read as follows:
  E. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, WHERE A RETIRED  MEMBER
OF  THE  NEW  YORK CITY TEACHERS' RETIREMENT SYSTEM HAS NOMINATED HIS OR
HER SPOUSE AS THE SURVIVOR BENEFICIARY UNDER OPTION  ONE,  TWO  OR  FIVE
PROVIDED  FOR IN SUBDIVISION A OF THIS SECTION, AND SUCH PERSON SO NOMI-
NATED CEASES BY CAUSES OTHER THAN DEATH TO BE HIS OR HER  SPOUSE  OR  IS
SEPARATED  FROM  HIM  OR  HER, OR IF SUCH OPTION WAS SELECTED IN CONTEM-
PLATION OF MARRIAGE WHICH HAS NOT TAKEN PLACE, THEN THE BOARD  OF  TRUS-
TEES  OF  SUCH  RETIREMENT SYSTEM SHALL HAVE THE AUTHORITY TO PERMIT THE
CHANGE OF SUCH OPTION TO THE  MAXIMUM  BENEFIT  THAT  IS  THE  ACTUARIAL
EQUIVALENT BY AND WITH THE CONSENT OF ALL PARTIES.
  S  2. Section 610 of the retirement and social security law is amended
by adding a new subdivision g to read as follows:
  G. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, WHERE A RETIRED  MEMBER
OF  THE  NEW  YORK CITY TEACHERS' RETIREMENT SYSTEM HAS NOMINATED HIS OR
HER SPOUSE AS THE SURVIVOR BENEFICIARY UNDER OPTION  ONE,  TWO  OR  FIVE
PROVIDED  FOR IN SUBDIVISION A OF THIS SECTION, AND SUCH PERSON SO NOMI-
NATED CEASES BY CAUSES OTHER THAN DEATH TO BE HIS OR HER  SPOUSE  OR  IS
SEPARATED  FROM  HIM  OR  HER, OR IF SUCH OPTION WAS SELECTED IN CONTEM-
PLATION OF MARRIAGE WHICH HAS NOT TAKEN PLACE, THEN THE BOARD  OF  TRUS-
TEES  OF  SUCH  RETIREMENT SYSTEM SHALL HAVE THE AUTHORITY TO PERMIT THE
CHANGE OF SUCH OPTION TO THE  MAXIMUM  BENEFIT  THAT  IS  THE  ACTUARIAL
EQUIVALENT BY AND WITH THE CONSENT OF ALL PARTIES.
  S 3. This act shall take effect June 30, 2014.
  FISCAL NOTE.--Pursuant to Legislative law, Section 50:
  PROVISIONS  OF PROPOSED LEGISLATION: With respect to the New York City
Retirement Systems ("NYCRS"),  this  proposed  legislation  would  amend
Retirement  and  Social  Security  Law  ("RSSL") Sections 514 and 610 to
allow certain Tier III, Tier IV and Tier VI retirees  of  the  New  York
City  Teachers'  Retirement  System  ("TRS")  the  opportunity to change
certain optional forms  of  benefit  after  retirement  similar  to  the
provisions  set  forth  in  Administrative  Code of the City of New York
("ACNY") Section 565(c).
  ACNY Section 565(c) covers only Tier I and Tier II members of TRS.
  Specifically, Part A of this proposed legislation would permit a  Tier
III,  Tier  IV  or  Tier  VI retiree of TRS who has nominated his or her
spouse as the survivor beneficiary to  change,  under  certain  optional
forms  of  benefit and with the consent of his or her spouse and the TRS
Retirement Board, from the optional form of benefit originally chosen to
the maximum benefit that is the actuarial equivalent, if such person:
  (1) ceases by causes other than death to be his or her spouse, or
  (2) is separated from him or her, or
  (3) if such option was selected in contemplation of marriage which has
not taken place.
  The Effective Date of the proposed legislation would be  the  date  of
enactment  and  shall be deemed to have been in full force and effect on
or after June 30, 2014.
  FINANCIAL IMPACT -  ACTUARIAL  PRESENT  VALUE  OF  BENEFITS,  EMPLOYER
NORMAL  COST, ACTUARIAL ACCRUED LIABILITY AND EMPLOYER CONTRIBUTIONS: To
the extent that the probabilities of survival of  the  retiree  and  the
beneficiary  designated  under  the  optional  form  of benefit have not
changed significantly since such optional form  of  benefit  was  insti-
tuted,  then  the  enactment of this proposed legislation is expected to

S. 5162--C                          3

result in little or no change in the Actuarial Present  Value  of  Bene-
fits,  Employer  Normal  Cost,  Actuarial  Accrued Liability or employer
contributions to TRS.
  OTHER COSTS: With respect to the NYCRS, the enactment of this proposed
legislation would result in some administrative expenses for TRS.
  STATEMENT  OF ACTUARIAL OPINION: I, Robert C. North, Jr., am the Chief
Actuary for the New York City Retirement Systems. I am a Fellow  of  the
Society  of Actuaries and a Member of the American Academy of Actuaries.
I meet the Qualification Standards of the American Academy of  Actuaries
to render the actuarial opinion contained herein.
  FISCAL  NOTE  IDENTIFICATION:  This  estimate is intended for use only
during the 2014 Legislative Session. It is Fiscal Note  2014-08R,  dated
March  18,  2014,  prepared  by  the  Chief Actuary of the New York City
Teachers' Retirement System.

                                 PART B

  Section 1. Section 539 of the education law is amended by adding a new
subdivision 8 to read as follows:
  8. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, A  RETIREE  SUBJECT  TO
THIS ARTICLE OR ARTICLE FOURTEEN OR FIFTEEN OF THE RETIREMENT AND SOCIAL
SECURITY  LAW  WHO  AT  RETIREMENT  HAD  DULY SELECTED AN OPTION FORM OF
RETIREMENT PROVIDING FOR THE PAYMENT OF A  LESSER  RETIREMENT  ALLOWANCE
OVER  THE LIFE OF THE RETIREE WITH THE PROVISION THAT UPON THE RETIREE'S
DEATH ALL OR A PORTION OF SUCH ALLOWANCE SHALL BE CONTINUED FOR THE LIFE
OF AND PAID TO A BENEFICIARY DULY NOMINATED BY THE  RETIREE  AT  RETIRE-
MENT, SHALL BE PERMITTED TO RESCIND SUCH SELECTION WITHIN ONE YEAR AFTER
SUCH  BENEFICIARY  HAS  CEASED TO BE THE RETIREE'S SPOUSE BY REASON OF A
FINAL JUDGMENT OR DECREE OF DIVORCE  ISSUED  BY  A  COURT  OF  COMPETENT
JURISDICTION.  IN ORDER TO RESCIND SUCH SELECTION, THE RETIREE AND BENE-
FICIARY MUST EACH FILE A WRITTEN CONSENT TO SUCH CHANGE WITH THE  SYSTEM
ON  A  FORM PRESCRIBED BY THE SYSTEM. UPON SATISFACTORILY RECEIVING SUCH
JUDGMENT OR DECREE OF DIVORCE AND SUCH CONSENTS, ANY AND ALL OBLIGATIONS
OF THE SYSTEM TO THE BENEFICIARY UNDER THE  RETIREE'S  OPTION  SELECTION
SHALL BE TOTALLY DISCHARGED AND THE RETIREE SHALL THEREAFTER BE PAID FOR
THE  REMAINDER  OF  SUCH  RETIREE'S LIFE THE MAXIMUM SINGLE LIFE BENEFIT
WHICH WOULD HAVE BEEN PAYABLE, HAD THE RETIREE MADE NO OPTION  SELECTION
AT  THE  TIME OF RETIREMENT. THE RETIREMENT BOARD IS AUTHORIZED TO ADOPT
SUCH RULES AND REGULATIONS AS MAY BE NECESSARY TO IMPLEMENT THIS  SUBDI-
VISION.
  S 2. This act shall take effect June 30, 2014.
  FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
  This  bill  would  amend  Section  539 of the Education Law to allow a
retired member  of  the  New  York  State  Teachers'  Retirement  System
(NYSTRS)  who  has  selected an optional form of retirement benefit that
provides that upon the retired member's death, all, or a percentage  of,
such  retirement  benefit shall be continued for the life of a benefici-
ary, to rescind the selection of such option within one year after  such
beneficiary  ceases  to  be  the  retired member's spouse by reason of a
final judgment or decree of divorce. In order to rescind  such  optional
form of retirement benefit, the retired member and beneficiary must each
file  a  written  consent  with respect to such change with NYSTRS. Upon
NYSTRS' receipt of the judgment or decree of  divorce  and  the  written
consents,  the  retired  member  would  receive  the maximum single-life
retirement benefit for the remainder of his or her lifetime,  as  if  no
option  had  been  selected  at  retirement.  Any and all obligations of

S. 5162--C                          4

NYSTRS to the beneficiary under the option selection shall be considered
fully discharged. This bill shall apply to retirement  benefits  payable
on or after June 30, 2014.
  The  annual  cost  to  the  employers of members of the New York State
Teachers' Retirement System for this benefit is  estimated  to  be  very
low,  likely  less  than  $200,000 per year. Allowing retired members to
change the terms of their option after retirement creates the  potential
for anti-selection however.
  The  source  of this estimate is Fiscal Note 2014-11 dated January 21,
2014 prepared by the Actuary of the New York State Teachers'  Retirement
System and is intended for use only during the 2014 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.
  S 2. Severability clause. If any clause, sentence, paragraph, subdivi-
sion, section or part of this act shall be  adjudged  by  any  court  of
competent  jurisdiction  to  be invalid, such judgment shall not affect,
impair, or invalidate the remainder thereof, but shall  be  confined  in
its  operation  to the clause, sentence, paragraph, subdivision, section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the legislature that this act would  have  been  enacted  even  if  such
invalid provisions had not been included herein.
  S  3.  This  act shall take effect immediately provided, however, that
the applicable effective date of Parts A and B of this act shall  be  as
specifically set forth in the last section of such Parts.

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