NY State Senate Bill 2015-S4644

Archive: Last Bill Status - In Senate Committee Civil Service And Pensions Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2016	referred to civil service and pensions
Apr 01, 2015	referred to civil service and pensions

co-Sponsors

2015-S4644 (ACTIVE) - Details

See Assembly Version of this Bill:: A5596
Current Committee:: Senate Civil Service And Pensions
Law Section:: Retirement and Social Security Law
Laws Affected:: Amd §645, R & SS L
Versions Introduced in Other Legislative Sessions:: 2009-2010: A7219
2011-2012: S7135, A7703
2013-2014: S5165, A7490

2015-S4644 (ACTIVE) - Summary

Relates to certain members who re-enter public service; extends tier reinstatement provisions to a retiree of a public retirement system who was an active member of a public retirement system on or after January 1, 1989.

2015-S4644 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S4644

TITLE OF BILL:

An act to amend the retirement and social security law, in relation to
certain members who re-enter public service

PURPOSE:

This bill seeks to reinstate the remaining public employees who lost
their tier membership due to family care giving responsibilities. By
moving the effective date of Chapter 640 to January 1, 1989, this bill
will reinstate the remainder of the retirement system members who were
deprived of their membership in superior pension plans due to the
break in the service rules.

SUMMARY OF PROVISIONS:

This bill amends subdivisions 2 and 4 of section 645 of the Retirement
and Social Security law.

JUSTIFICATION:

This bill gives New York State the opportunity to correct a
long-standing inequity at a moderate cost. In 1998, the Governor
signed a law reinstating New York State and City active teachers to

their original pension system tier membership. In 1999, the Governor
signed a law expanding the reinstatement to all active public
employees. In the Governor's press release, he affirmed the importance
of righting the inequity done to thousands of public employees who
were forced out of their jobs and pension plans due to pregnancy and
family care giving responsibilities. Each member who was reinstated
forfeited any claim to a return of the contributions they had made to
the retirement systems while they were members of lower tiers.
However, reinstated members were refunded the amounts that they had
paid to the retirement systems for prior service credit purchases.

This bill pertains to a very limited and definable number of
retirement system members. Public employees before 1973 were assured
by pension system representatives that they could leave and return to
work without affecting their benefits. For example, a New York State
teacher who left teaching, generally for reasons related to the female
work pattern (i.e. childbirth and attending to small children), who
stayed out beyond the "break in service" period would find herself in
a higher pension tier upon returning to work. Had they been properly
informed, they could have taught for as few as twenty days in any one
year within the five year period and remained in Tier 1 upon returning
to teaching full-time. The average teacher lost between $9,000 and
$11,000 per year in pension benefits and the right to retire at age 55
instead of 52 without penalty. It is unlikely that any members of the
police and fire pension systems will be eligible because so few women
were members in the 1960s and early 70s. As to the New York City
Teachers pension plan, the vast majority of teachers that left for
care giving responsibilities were protected by generous New York City
maternity rules.

LEGISLATIVE HISTORY:


2013-2014: A7490 Died Gov't Employees, S5165 Died Civil Service &
Pensions
2011-2012: A7703 Died Gov't Employees, S7135 Died Civil Service &
Pensions
2009-2010: A7219 Died Gov't Employees, 53634 Died Civil Service &
Pensions
2007-2008: A9524 Died Gov't Employees, S4447 Passed Senate
2005-2006: A5131 Died Gov't Employees, S3518 Passed Senate
2003-2004: A5392 Died Gov't Employees, S3039 Died Rules
2001-2002: A2903 Died Gov't Employees, S2172 Died Civil Service &
Pensions 1999-2000: A10911 Died Gov't Employees, S6127 Died Civil
Service & Pensions

FISCAL IMPLICATIONS:

FISCAL NOTE - PURSUANT TO LEGISLATIVE LAW, SECTION 50:

"This bill would allow certain living retirees of New York public
retirement systems who retired prior to December 16, 1999 and who
previously were members of a New York public retirement system to be
deemed to have become members of the systems from which they retired
as of the original date of such previous ceased membership. Tier 3 and
4 retirees of the New York State and Local Employees' Retirement
System or the New York State Teachers' Retirement System who become
Tier 1 or 2 retirees and who have already purchased their previous
service would receive a refund of these contributions. No benefits
will be deemed to have accrued prior to the effective date of this
act.

In addition, this bill would also affect retirees who had a previous
ceased membership with a public employee retirement system other than
the NYS&LERS or the NYS&LPFRS.

If this bill is enacted, insofar as this bill affects the New York
State and Local Employees' Retirement System (ERS), approximately
1,320 retirees of the ERS will be affected. The estimated past service
cost would be approximately $13.9 million.

Pursuant to section 25 of the Retirement and Social Security Law, this
ERS past service cost would be borne by the State of New York and
would require an itemized appropriation by the State of New York
sufficient to pay the cost of the provision. The State may amortize
this past service cost over a period of 5 years. The first year cost,
including interest would be approximately $3.2 million.

Insofar as this bill would affect employers in the New York State and
Local Police and Fire Retirement System (PFRS), the estimated
additional costs would be negligible. These costs would be shared by
the State of New York and the participating employers in the PERS.

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, 2014 actuarial valuation. Distributions and other statistics
can be found in the 2014 Report of the Actuary and the 2014
Comprehensive Annual Financial Report.


The actuarial assumptions and methods used are described in the 2010,
2011, 2012, 2013 and 2014 Annual Report to the Comptroller on
Actuarial Assumptions, and the Codes and Rules and Regulations of the
State of New York: Audit and Control. The Market Assets and GASB
Disclosures are found in the March 31, 2014 New York State and Local
Retirement System Financial Statements and Supplementary Information.

I am a member of the American Academy of Actuaries and meet the
Qualification Standards to render the actuarial opinion contained
herein. This estimate, dated January 20, 2015 and intended for use
only during the 2015 Legislative Session, is Fiscal Note No. 2015-31,
prepared by the actuary for the New York State and Local Employees
Retirement System and the New York State and Local Police and Fire
Retirement System.

FISCAL NOTE - PURSUANT TO LEGISLATIVE LAW, SECTION 50:

"This bill would amend subdivisions 2 and 4 of Section 645 of the
Retirement and Social Security Law to extend the tier reinstatement
provisions to any retiree of a public retirement system. The retiree
must be alive as of the effective date of the bill in order to be
eligible. This bill only applies to payments made on or after the
effective date of this act.

The annual cost to the employers of members of the New York State
Teachers' Retirement System for this benefit is estimated to be $5.9
million or .04% of payroll if this bill is enacted.

Employee data is from the System's most recent actuarial valuation
files, consisting of data provided by the employers to the Retirement
System. Data distributions and statistics can be found in the System's
Comprehensive Annual Financial Report (CAFR). System assets are as
reported in the System's financial statements, and can also be found
in the CAFR. Actuarial assumptions and methods are provided in the
System's Actuarial Report.

The source of this estimate is Fiscal Note 2015-8 dated February 24,
2015 prepared by the actuary of the New York State Teachers'
Retirement System and is intended for use only during the 2015
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 Actuaries to render the actuarial opinion
contained herein."

EFFECTIVE DATE:

This act shall take effect immediately but shall only apply to persons
alive as of the effective date of this act and shall apply to payments
made on or after the effective date of this act; and provided further,
that any retirees qualifying under this act shall have their
retirement allowance recalculated from January 1, 2015 or the date of
reinstatement, whichever is later.

2015-S4644 (ACTIVE) - Bill Text download pdf

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

                                  4644

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                              April 1, 2015
                               ___________

Introduced  by  Sen.  SEWARD -- 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
  certain members who re-enter public service

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

  Section 1. Subdivisions 2 and 4 of section 645 of the  retirement  and
social security law, subdivision 2 as amended by chapter 322 of the laws
of  2002  and  subdivision 4 as added by chapter 640 of the laws of 1998
and as renumbered by chapter 646 of the laws of  1999,  are  amended  to
read as follows:
  2.  Notwithstanding any other provision of law, any person [other than
a retiree of a public retirement system,] who previously was a member of
a public retirement system and whose membership in such  public  retire-
ment  system  ceased  by reason of (i) insufficient service credit, (ii)
withdrawal of accumulated contributions, or (iii) withdrawal of  member-
ship,  upon  rejoining  such  public retirement system or another public
retirement system, shall be deemed to have been a member of his  or  her
current  retirement  system  during the entire period of time commencing
with and subsequent to the original date of such previous ceased member-
ship, provided that such person (a) makes application  therefor  to  the
administrative  head of his or her current public retirement system, and
(b) repays the amount refunded,  if  any,  at  the  time  such  previous
membership  ceased,  together  with interest at the rate of five percent
per annum compounded annually from the date of such refund  through  the
date  of  repayment. Upon such reinstatement of date of membership, such
member shall be entitled to all the rights, benefits and  privileges  to
which  he or she would have been entitled had his or her current member-
ship begun on such original date of membership except that,  solely  for
the  purposes  of  granting  retirement  credit  to  members of a public
retirement system other than the  New  York  city  teachers'  retirement

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02015-02-5

S. 4644                             2

system for service credited during such previous ceased membership where
such  was  in a public retirement system other than the member's current
retirement system, such previously credited service shall be  deemed  to
be  prior service, not subsequent service.  Furthermore, any such member
whose original date of membership was  prior  to  July  first,  nineteen
hundred  seventy-three shall be entitled to all the rights, benefits and
privileges to which he or she would have been entitled  had  he  or  she
been  in  active  service  on  June thirtieth, nineteen hundred seventy-
three. Any contribution made to the public retirement system pursuant to
article fourteen or fifteen of this chapter by a member who rejoined his
or her current system on or after July twenty-seventh, nineteen  hundred
seventy-six shall not be refunded.
  4.  The provisions of this article shall be applicable to a person who
[is, on the date this article becomes effective]  WAS  A  MEMBER  ON  OR
BEFORE JANUARY FIRST, NINETEEN HUNDRED EIGHTY-NINE, or who subsequent to
such date becomes, a member of a public retirement system.
  S  2.  This  act shall take effect immediately and shall only apply to
all persons who are alive as of the effective date of this act and shall
apply to payments made on or after the effective date of this  act;  and
provided further, that any retirees qualifying under this act shall have
their retirement allowance recalculated from January 1, 2015 or the date
of reinstatement, whichever is later.
  FISCAL  NOTE.--This  bill  would  allow certain living retirees of New
York public retirement systems who retired prior to  December  16,  1999
and  who  previously were members of a New York public retirement system
to be deemed to have become members  of  the  systems  from  which  they
retired as of the original date of such previous ceased membership. Tier
3  and  4 retirees of the New York State and Local Employees' Retirement
System or the New York State Teachers' Retirement System who become Tier
1 or 2 retirees and who have already purchased  their  previous  service
would  receive  a  refund  of  these  contributions. No benefits will be
deemed to have accrued prior to the effective date of this act.
  In addition, this bill would also affect retirees who had  a  previous
ceased  membership  with  a public employee retirement system other than
the NYS&LERS or the NYS&LPFRS.
  If this bill is enacted, insofar as this bill  affects  the  New  York
State  and Local Employees' Retirement System (ERS), approximately 1,320
retirees of the ERS will be affected. The estimated  past  service  cost
would be approximately $13.9 million.
  Pursuant to section 25 of the Retirement and Social Security Law, this
ERS  past service cost would be borne by the State of New York and would
require an itemized appropriation by the State of New York sufficient to
pay the cost of the provision. The State may amortize this past  service
cost  over  a period of 5 years. The first year cost, including interest
would be approximately $3.2 million.
  Insofar as this bill would affect employers in the New York State  and
Local Police and Fire Retirement System (PFRS), the estimated additional
costs  would  be negligible. These costs would be shared by the State of
New York and the participating employers in the PFRS.
  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, 2014 actuarial valu-
ation.  Distributions and other statistics can  be  found  in  the  2014
Report  of  the  Actuary  and  the  2014  Comprehensive Annual Financial
Report.

S. 4644                             3

  The actuarial assumptions and methods used are described in the  2010,
2011,  2012, 2013 and 2014 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, 2014
New  York  State  and  Local  Retirement System Financial Statements and
Supplementary Information.
  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 20, 2015 and intended for use only during
the 2015 Legislative Session, is Fiscal Note No.  2015-31,  prepared  by
the  Actuary  for  the  New  York  State and Local Employees' Retirement
System and the New York State  and  Local  Police  and  Fire  Retirement
System.
  FISCAL  NOTE.--This  bill  would amend subdivisions 2 and 4 of Section
645 of the Retirement and Social Security Law to extend the  tier  rein-
statement  provisions  to any retiree of a public retirement system. The
retiree must be alive as of the effective date of the bill in  order  to
be  eligible.  This  bill  only applies to payments made on or after the
effective date of this act.
  The annual cost to the employers of members  of  the  New  York  State
Teachers'  Retirement  System  for  this benefit is estimated to be $5.9
million or .04% of payroll if this bill is enacted.
  Employee data is from the System's  most  recent  actuarial  valuation
files,  consisting  of  data provided by the employers to the Retirement
System. Data distributions and statistics can be found in  the  System's
Comprehensive  Annual  Financial  Report  (CAFR).  System  assets are as
reported in the System's financial statements, and can also be found  in
the CAFR. Actuarial assumptions and methods are provided in the System's
Actuarial Valuation Report.
  The  source  of this estimate is Fiscal Note 2015-8 dated February 24,
2015 prepared by the Actuary of the New York State Teachers'  Retirement
System and is intended for use only during the 2015 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.

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Senate Bill S4644

Sponsored By

Archive: Last Bill Status - In Senate Committee Civil Service And Pensions Committee

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co-Sponsors

2015-S4644 (ACTIVE) - Details

2015-S4644 (ACTIVE) - Summary

2015-S4644 (ACTIVE) - Sponsor Memo

2015-S4644 (ACTIVE) - Bill Text download pdf

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Sponsored By

James L. Seward

Archive: Last Bill Status - In Senate Committee Civil Service And Pensions Committee

Actions

co-Sponsors

Joseph A. Griffo

Patty Ritchie

2015-S4644 (ACTIVE) - Details

2015-S4644 (ACTIVE) - Summary

2015-S4644 (ACTIVE) - Sponsor Memo

2015-S4644 (ACTIVE) - Bill Text download pdf

Comments