senate Bill S5608A

2013-2014 Legislative Session

Relates to the form of payment of retirement benefits for certain public retirees and beneficiaries

download bill text pdf

Sponsored By

Archive: Last Bill Status - In Committee


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

do you support this bill?

Actions

view actions (7)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 21, 2014 print number 5608a
amend and recommit to civil service and pensions
Jan 08, 2014 referred to civil service and pensions
Jun 21, 2013 recommitted to rules
Jun 17, 2013 ordered to third reading cal.1400
committee discharged and committed to rules
May 24, 2013 referred to civil service and pensions

Bill Amendments

Original
A (Active)
Original
A (Active)

S5608 - Bill Details

See Assembly Version of this Bill:
A7784A
Current Committee:
Law Section:
Retirement and Social Security Law
Laws Affected:
Amd §§100 & 400, R & SS L

S5608 - Bill Texts

view summary

Relates to the form of payment of retirement benefits for certain public retirees and beneficiaries; requires the payment of retirement benefits by the New York state and local employees' retirement system and the New York state and local police and fire retirement system by direct deposit or debit card.

view sponsor memo
BILL NUMBER:S5608

TITLE OF BILL:
An act
to amend the retirement and social security law, in relation to the form
of payment of retirement benefits for certain public retirees and
beneficiaries

PURPOSE: To require the payment of retirement
benefits by the New York
State and Local Retirement System by direct deposit or debit card,
with the transition to the new method of payment being made
incrementally.

SUMMARY OF PROVISIONS: Section 1 of this bill would
amend Section 100
of the Retirement and Social Security Law so retirement benefits
shall be paid to retirees and beneficiaries of the New York State and
Local Employees' Retirement System by direct deposit or debit card.
The comptroller shall determine when the provisions of this bill
shall take effect but it will be no sooner than January 1, 2016 for
all current and future retirees and beneficiaries of the New York
State and Local Employees' Retirement System. Additionally, this
section allows a retiree or beneficiary of the New York State and
Local Employees' Retirement System to submit a request for exemption
from this requirement from such System.

Section 2 of this bill would amend Section 400 of the Retirement and
Social Security Law so retirement benefits shall be paid to retirees
and beneficiaries of the New York State and Local Police and Fire
Retirement System by direct deposit or debit card. The comptroller
shall determine when the provisions of this bill shall take effect
but it will be no sooner than January 1, 2016 for all current and
future retirees and beneficiaries of the New York State and Local
Police and Fire Retirement System. Additionally, this section allows
a retiree or beneficiary of the New York State and Local Police and
Fire Retirement System to submit a request for exemption from this
requirement from such System.

PRIOR LEGISLATIVE HISTORY: New bill.

JUSTIFICATION: As of May 1, 2011, the United States
Department of the
Treasury requires recipients of federal nontax payments, including
social security payments, to receive payment by electronic funds
transfer (EFT). Additionally, many states, including Florida and
Ohio, already require the payment of retirement benefits by EFT.
EFT benefits recipients by eliminating the risks of theft,
non-delivery, or loss of checks. EFT funds are securely transferred
with no risk of delay or loss.

The New York State and Local Retirement System has heard from numerous
retirees and beneficiaries about the hardships they faced when a
retirement check has been lost or misdirected through the mail. The
most recent examples came in the aftermath of Hurricane Sandy, when
many checks were lost. These payment-related problems for check
recipients would have been avoided had such recipients received their


retirement benefits by EFT. Additionally, there are extra costs to
the New York State and Local Retirement System associated with
payments to retirees and beneficiaries by paper check.

For persons who may not have access to a bank account, this
legislation authorizes payment of benefits by means of a debit card.
The benefit recipient would be able to access their funds through an
automatic teller machine or other device that accepts debit cards.

Because of the financial advantages and added convenience, most New
York State and Local Retirement System members already use direct
deposit. In recognition of the fact that there may be certain
situations where a paper check is warranted, this legislation allows
a retiree or beneficiary of the New York State and Local Retirement
System to submit a request to such System for a waiver from the
requirement to be paid by EFT.

The State Comptroller urges the passage of this proposed legislation.

FISCAL IMPLICATIONS FOR STATE: This bill would result
in a modest
financial savings to the New York State and Local Retirement System.

EFFECTIVE DATE: This act shall take effect on the one
hundred
eightieth day after it shall have become a law.

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

                                  5608

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              May 24, 2013
                               ___________

Introduced  by Sen. GALLIVAN -- (at request of the State Comptroller) --
  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, in relation to
  the form of payment of retirement benefits for certain public retirees
  and beneficiaries

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

  Section  1.  Section  100 of the retirement and social security law is
amended to read as follows:
  S 100. Payment of retirement allowances.    A.  Retirement  allowances
shall  be  payable on the first day of each and every month beginning on
the first day of the month following the effective date  of  retirement.
Upon  the  death  of a retired member, however, the retirement allowance
due for that part of the month prior to his OR HER death shall  be  paid
forthwith.
  B.  1. BEGINNING ON A DATE TO BE DETERMINED BY THE COMPTROLLER, BUT NO
SOONER THAN JANUARY FIRST, TWO THOUSAND SIXTEEN, ANY RETIREMENT  BENEFIT
PAID  IN  REGULAR  PERIODIC INSTALLMENTS TO A PERSON WHO IS A RETIREE OR
BENEFICIARY OF THE RETIREMENT SYSTEM PRIOR TO, ON OR AFTER THE EFFECTIVE
DATE OF THIS SUBDIVISION SHALL BE MADE BY DIRECT DEPOSIT OR DEBIT  CARD,
AS  ELECTED  BY  SUCH RETIREE OR BENEFICIARY, AND ADMINISTERED ELECTRON-
ICALLY, IN ACCORDANCE WITH SUCH GUIDELINES AS MAY BE SET  FORTH  BY  THE
RETIREMENT  SYSTEM.  THE RETIREMENT SYSTEM SHALL NOTIFY ANY OF ITS RETI-
REES AND BENEFICIARIES THAT ARE CURRENTLY NOT RECEIVING THEIR RETIREMENT
PAYMENT BY DIRECT DEPOSIT OF THE PROVISIONS OF THIS PARAGRAPH  PRIOR  TO
SUCH PARAGRAPH BEING IMPLEMENTED.
  2.  A  RETIREE  OR BENEFICIARY MAY SUBMIT A REQUEST FOR EXEMPTION FROM
PARAGRAPH ONE OF THIS SUBDIVISION ON A FORM PROVIDED BY  THE  RETIREMENT
SYSTEM. THE RETIREMENT SYSTEM MAY APPROVE SUCH REQUEST PURSUANT TO REGU-
LATIONS PROMULGATED BY THE COMPTROLLER UPON A DEMONSTRATION OF HARDSHIP.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09754-06-3

S. 5608                             2

  S  2.  Section 400 of the retirement and social security law, as added
by chapter 1000 of the laws of 1966, is amended to read as follows:
  S  400.  Payment  of retirement allowances.   A. Retirement allowances
shall be payable on the first day of each and every month  beginning  on
the  first  day of the month following the effective date of retirement.
Upon the death of a retired member, however,  the  retirement  allowance
due  for  that part of the month prior to his OR HER death shall be paid
forthwith.
  B. 1. BEGINNING ON A DATE TO BE DETERMINED BY THE COMPTROLLER, BUT  NO
SOONER  THAN JANUARY FIRST, TWO THOUSAND SIXTEEN, ANY RETIREMENT BENEFIT
PAID IN REGULAR PERIODIC INSTALLMENTS TO A PERSON WHO IS  A  RETIREE  OR
BENEFICIARY OF THE RETIREMENT SYSTEM PRIOR TO, ON OR AFTER THE EFFECTIVE
DATE  OF THIS SUBDIVISION SHALL BE MADE BY DIRECT DEPOSIT OR DEBIT CARD,
AS ELECTED BY SUCH RETIREE OR BENEFICIARY,  AND  ADMINISTERED  ELECTRON-
ICALLY,  IN  ACCORDANCE  WITH SUCH GUIDELINES AS MAY BE SET FORTH BY THE
RETIREMENT SYSTEM. THE RETIREMENT SYSTEM SHALL NOTIFY ANY OF  ITS  RETI-
REES AND BENEFICIARIES THAT ARE CURRENTLY NOT RECEIVING THEIR RETIREMENT
PAYMENT  BY  DIRECT DEPOSIT OF THE PROVISIONS OF THIS PARAGRAPH PRIOR TO
SUCH PARAGRAPH BEING IMPLEMENTED.
  2. A RETIREE OR BENEFICIARY MAY SUBMIT A REQUEST  FOR  EXEMPTION  FROM
PARAGRAPH  ONE  OF THIS SUBDIVISION ON A FORM PROVIDED BY THE RETIREMENT
SYSTEM. THE RETIREMENT SYSTEM MAY APPROVE SUCH REQUEST PURSUANT TO REGU-
LATIONS PROMULGATED BY THE COMPTROLLER UPON A DEMONSTRATION OF HARDSHIP.
  S 3. This act shall take effect on the one hundred eightieth day after
it shall have become a law. Effective  immediately  the  comptroller  is
authorized  to  promulgate  any rules and regulations and take any other
measures necessary to implement this act on its effective date.
  FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
  This bill would require the payment of retirement benefits by the  New
York State and Local Employees' Retirement System (ERS) and the New York
State  and  Local  Police  and  Fire  Retirement System (PFRS) by direct
deposit or debit card, beginning on a date to be determined by the comp-
troller, but no sooner than January 1, 2016. A retiree or beneficiary of
these Systems prior to, on or after the  effective  date  of  this  bill
shall elect either form of payment. Additionally this bill would allow a
retiree  or  beneficiary  to  submit  a  request for exemption from this
requirement.
  If this bill is enacted, we anticipate that the printing  and  postage
savings will exceed the small initial administrative costs.
  Summary of relevant resources:
  Data:  March  31,  2012  Actuarial Year End File with distributions of
membership and other statistics displayed in  the  2012  Report  of  the
Actuary and 2012 Comprehensive Annual Financial Report.
  Assumptions  and  Methods:  2010,  2011  and 2012 Annual Report to the
Comptroller on Actuarial Assumptions, Codes Rules and Regulations of the
State of New York: Audit and Control.
  Market Assets and GASB Disclosures: March 31, 2012 New York State  and
Local  Retirement System Financial Statements and Supplementary Informa-
tion.
  Valuations of Benefit Liabilities and Actuarial Assets: summarized  in
the 2012 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 April 26, 2013, and intended for use only during
the 2013 Legislative Session, is Fiscal Note No. 2013-131,  prepared  by
the Actuary for the ERS and PFRS.

S5608A (ACTIVE) - Bill Details

See Assembly Version of this Bill:
A7784A
Current Committee:
Law Section:
Retirement and Social Security Law
Laws Affected:
Amd §§100 & 400, R & SS L

S5608A (ACTIVE) - Bill Texts

view summary

Relates to the form of payment of retirement benefits for certain public retirees and beneficiaries; requires the payment of retirement benefits by the New York state and local employees' retirement system and the New York state and local police and fire retirement system by direct deposit or debit card.

view sponsor memo
BILL NUMBER:S5608A

TITLE OF BILL: An act to amend the retirement and social security
law, in relation to the form of payment of retirement benefits for
certain public retirees and beneficiaries

PURPOSE:

To require the payment of retirement benefits by the New York State
and Local Retirement System by direct deposit or debit card, with the
transition to the new method of payment being made incrementally.

SUMMARY OF PROVISIONS:

Section 1 of this bill would amend Section 100 of the Retirement and
Social Security Law so retirement benefits shall be paid to retirees
and beneficiaries of the New York State and Local Employees'
Retirement System by direct deposit or debit card. The comptroller
shall determine when the provisions of this bill shall take effect but
it will be no sooner than January 1, 2016 for all current and future
retirees and beneficiaries of the New York State and Local Employees'
Retirement System. Additionally, this section allows a retiree or
beneficiary of the New York State and Local Employees' Retirement
System to submit a request for exemption from this requirement from
such System.

Section 2 of this bill would amend Section 400 of the Retirement and
Social Security Law so retirement benefits shall be paid to retirees
and beneficiaries of the New York State and Local Police and Fire
Retirement System by direct deposit or debit card. The comptroller
shall determine when the provisions of this bill shall take effect but
it will be no sooner than January 1, 2016 for all current and future
retirees and beneficiaries of the New York State and Local Police and
Fire Retirement System. Additionally, this section allows a retiree or
beneficiary of the New York State and Local Police and Fire Retirement
System to submit a request for exemption from this requirement from
such System.

PRIOR LEGISLATIVE HISTORY:

New bill.

JUSTIFICATION:

As of May 1, 2011, the United States Department of the Treasury
requires recipients of federal nontax payments, including social
security payments, to receive payment by electronic funds transfer
(EFT). Additionally, many states, including Florida and Ohio, already
require the payment of retirement benefits by EFT. EFT benefits
recipients by eliminating the risks of theft, non-delivery, or loss of
checks. EFT funds are securely transferred with no risk of delay or
loss.

The New York State and Local Retirement System has heard from numerous
retirees and beneficiaries about the hardships they faced when a
retirement check has been lost or misdirected through the mail. The
most recent examples came in the aftermath of Hurricane Sandy, when


many checks were lost. These payment-related problems for check
recipients would have been avoided had such recipients received their
retirement benefits by EFT. Additionally, there are extra costs to the
New York State and Local Retirement System associated with payments to
retirees and beneficiaries by paper check.

For persons who may not have access to a bank account, this
legislation authorizes payment of benefits by means of a debit card.
The benefit recipient would be able to access their funds through an
automatic teller machine or other device that accepts debit cards.

Because of the financial advantages and added convenience, most New
York State and Local Retirement System members already use direct
deposit. In recognition of the fact that there may be certain
situations where a paper check is warranted, this legislation allows a
retiree or beneficiary of the New York State and Local Retirement
System to submit a request to such System for a waiver from the
requirement to be paid by EFT.

The State Comptroller urges the passage of this proposed legislation.

FISCAL IMPLICATIONS FOR STATE:

This bill would result in a modest financial savings to the New York
State and Local Retirement System.

EFFECTIVE DATE:

This act shall take effect on the one hundred eightieth day after it
shall, have become a law.

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

                                 5608--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              May 24, 2013
                               ___________

Introduced  by Sen. GALLIVAN -- (at request of the State Comptroller) --
  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 committee

AN  ACT  to amend the retirement and social security law, in relation to
  the form of payment of retirement benefits for certain public retirees
  and beneficiaries

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

  Section  1.  Section  100 of the retirement and social security law is
amended to read as follows:
  S 100. Payment of retirement allowances.    A.  Retirement  allowances
shall  be  payable on the first day of each and every month beginning on
the first day of the month following the effective date  of  retirement.
Upon  the  death  of a retired member, however, the retirement allowance
due for that part of the month prior to his OR HER death shall  be  paid
forthwith.
  B.  1. BEGINNING ON A DATE TO BE DETERMINED BY THE COMPTROLLER, BUT NO
SOONER THAN JANUARY FIRST, TWO THOUSAND SIXTEEN, ANY RETIREMENT  BENEFIT
PAID  IN  REGULAR  PERIODIC INSTALLMENTS TO A PERSON WHO IS A RETIREE OR
BENEFICIARY OF THE RETIREMENT SYSTEM PRIOR TO, ON OR AFTER THE EFFECTIVE
DATE OF THIS SUBDIVISION SHALL BE MADE BY DIRECT DEPOSIT OR DEBIT  CARD,
AS  ELECTED  BY  SUCH RETIREE OR BENEFICIARY, AND ADMINISTERED ELECTRON-
ICALLY, IN ACCORDANCE WITH SUCH GUIDELINES AS MAY BE SET  FORTH  BY  THE
RETIREMENT  SYSTEM.  THE RETIREMENT SYSTEM SHALL NOTIFY ANY OF ITS RETI-
REES AND BENEFICIARIES THAT ARE CURRENTLY NOT RECEIVING THEIR RETIREMENT
PAYMENT BY DIRECT DEPOSIT OF THE PROVISIONS OF THIS PARAGRAPH  PRIOR  TO
SUCH PARAGRAPH BEING IMPLEMENTED.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09754-07-3

S. 5608--A                          2

  2.  A  RETIREE  OR BENEFICIARY MAY SUBMIT A REQUEST FOR EXEMPTION FROM
PARAGRAPH ONE OF THIS SUBDIVISION ON A FORM PROVIDED BY  THE  RETIREMENT
SYSTEM. THE RETIREMENT SYSTEM MAY APPROVE SUCH REQUEST PURSUANT TO REGU-
LATIONS PROMULGATED BY THE COMPTROLLER UPON A DEMONSTRATION OF HARDSHIP.
  S  2.  Section 400 of the retirement and social security law, as added
by chapter 1000 of the laws of 1966, is amended to read as follows:
  S 400. Payment of retirement allowances.    A.  Retirement  allowances
shall  be  payable on the first day of each and every month beginning on
the first day of the month following the effective date  of  retirement.
Upon  the  death  of a retired member, however, the retirement allowance
due for that part of the month prior to his OR HER death shall  be  paid
forthwith.
  B.  1. BEGINNING ON A DATE TO BE DETERMINED BY THE COMPTROLLER, BUT NO
SOONER THAN JANUARY FIRST, TWO THOUSAND SIXTEEN, ANY RETIREMENT  BENEFIT
PAID  IN  REGULAR  PERIODIC INSTALLMENTS TO A PERSON WHO IS A RETIREE OR
BENEFICIARY OF THE RETIREMENT SYSTEM PRIOR TO, ON OR AFTER THE EFFECTIVE
DATE OF THIS SUBDIVISION SHALL BE MADE BY DIRECT DEPOSIT OR DEBIT  CARD,
AS  ELECTED  BY  SUCH RETIREE OR BENEFICIARY, AND ADMINISTERED ELECTRON-
ICALLY, IN ACCORDANCE WITH SUCH GUIDELINES AS MAY BE SET  FORTH  BY  THE
RETIREMENT  SYSTEM.  THE RETIREMENT SYSTEM SHALL NOTIFY ANY OF ITS RETI-
REES AND BENEFICIARIES THAT ARE CURRENTLY NOT RECEIVING THEIR RETIREMENT
PAYMENT BY DIRECT DEPOSIT OF THE PROVISIONS OF THIS PARAGRAPH  PRIOR  TO
SUCH PARAGRAPH BEING IMPLEMENTED.
  2.  A  RETIREE  OR BENEFICIARY MAY SUBMIT A REQUEST FOR EXEMPTION FROM
PARAGRAPH ONE OF THIS SUBDIVISION ON A FORM PROVIDED BY  THE  RETIREMENT
SYSTEM. THE RETIREMENT SYSTEM MAY APPROVE SUCH REQUEST PURSUANT TO REGU-
LATIONS PROMULGATED BY THE COMPTROLLER UPON A DEMONSTRATION OF HARDSHIP.
  S 3. This act shall take effect on the one hundred eightieth day after
it  shall  have  become  a law. Effective immediately the comptroller is
authorized to promulgate any rules and regulations and  take  any  other
measures necessary to implement this act on its effective date.
  FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
  This  bill would require the payment of retirement benefits by the New
York State and Local Employees' Retirement System (ERS) and the New York
State and Local Police and  Fire  Retirement  System  (PFRS)  by  direct
deposit or debit card, beginning on a date to be determined by the comp-
troller, but no sooner than January 1, 2016. A retiree or beneficiary of
these  Systems  prior  to,  on  or after the effective date of this bill
shall elect either form of payment. Additionally this bill would allow a
retiree or beneficiary to submit  a  request  for  exemption  from  this
requirement.
  If  this  bill is enacted, we anticipate that the printing and postage
savings will exceed the small initial administrative costs.
  Summary of relevant resources:
  The membership data used in  measuring  the  impact  of  the  proposed
change  was  the same as that used in the March 31, 2013 actuarial valu-
ation.  Distributions and other statistics can  be  found  in  the  2013
Report  of  the  Actuary  and  the  2013  Comprehensive Annual Financial
Report.
  The actuarial assumptions and methods used are described in the  2010,
2011,  2012  and  2013  Annual  Report  to  the Comptroller on Actuarial
Assumptions, and the Codes Rules and Regulations of  the  State  of  New
York: Audit and Control.
  The Market Assets and GASB Disclosures are found in the March 31, 2013
New  York  State  and  Local  Retirement System Financial Statements and
Supplementary Information.

S. 5608--A                          3

  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  December  23,  2013, and intended for use only
during the  2014  Legislative  Session,  is  Fiscal  Note  No.  2014-49,
prepared by the Actuary for the ERS and PFRS.

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.