S T A T E   O F   N E W   Y O R K
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                                 7639--A

                            I N  S E N A T E

                              May 11, 2016
                               ___________

Introduced  by  Sen.  CROCI  -- 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  provide  temporary  retirement incentive for certain public
  employees

  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 that
would establish an age 55/25 temporary retirement incentive for  certain
public employees.
  S 2. Legislative findings. The legislature finds and declares that the
retirement benefit for certain public employees who are above age 55 and
with 25 years of service provided for in this act is intended only to be
temporary in nature for employees who are eligible to receive and quali-
fy  for the applicable benefit during the applicable time periods speci-
fied in this act. Further, nothing in this act  shall  be  construed  to
create  an  expectation of a future or continuing retirement benefit for
any public employee who is not eligible to receive and qualify  for  the
retirement benefits herein during the applicable time periods.
  S  3.  Definitions.  As  used  in this act, unless the context clearly
requires otherwise:
  (a) "Retirement system" means the New York state teachers'  retirement
system.
  (b)  "Teachers'  retirement system" means the New York state teachers'
retirement system.
  (c) "Educational employer" means a participating employer which  is  a
school  district,  a  board of cooperative educational services, a voca-
tional education and extension board, an institution for the instruction
of the deaf and of the blind as enumerated in section 4201 of the educa-
tion law, or a school district as enumerated in section 1 of chapter 566
of the laws of 1967, as amended.
  (d) "Eligible employee" means a person who is a member of  the  teach-
ers'  retirement  system, who is an employee of an educational employer,
who holds a position represented by the recognized collective bargaining
units affiliated with the New York state united teachers employee organ-
ization as certified by his or her employer, and who  has  attained  the
              

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11309-08-6

S. 7639--A                          2

age  of  fifty-five  and  has  at  least twenty-five years of creditable
service in the retirement system.
  (e)  "Active  service"  means service while being paid on the payroll,
provided that (i) a leave of absence with pay  shall  be  deemed  active
service;  (ii)  other  approved  leave  without pay not to exceed twelve
weeks from March 1, 2016 and the commencement  of  the  designated  open
period;  and (iii) the period of time subsequent to the June 2016 school
term and on or before August 31, 2016 for a teacher (or  other  employee
as  defined  in this act, employed on a school-year basis) who is other-
wise in active service on the effective date of this act shall be deemed
active service.
  (f) "Open period" means the period  beginning  with  the  commencement
date  as defined in subdivision (g) of this section and shall be 60 days
in length. For educational employers who make election  after  June  30,
2016,  the  open period shall begin immediately after such election, and
shall not extend beyond August 31, 2016. For the purposes of  retirement
pursuant  to  this  act,  a service retirement application must be filed
with the appropriate retirement system not less than 14  days  prior  to
the  effective  date of retirement to become effective, unless a shorter
time period is permitted under law.
  (g) "Commencement date" means the first  day  the  retirement  benefit
mandated by this act shall be made available, which shall mean a date or
dates on or after the effective date of this act to be determined by the
educational  employer  which  elects  to participate pursuant to section
four of this act, but no sooner than June 30, 2016.
  S 4. On or after June 30, 2016 an educational employer  may  elect  to
provide its employees the retirement incentive authorized by this act by
the  adoption  of  a  resolution  of  its governing body. A copy of such
resolution shall be filed with the appropriate  retirement  system.  The
resolution  shall  be  accompanied  by the affidavit of the school board
president or trustee or other comparable official certifying the validi-
ty of such resolution.
  S 5. Notwithstanding any other provision of law, any eligible employee
serving in an eligible title who (a) has been continuously in the active
service of an educational employer who has elected to participate in the
retirement incentive provided in section six of this  act,  pursuant  to
section  four  of  this  act, from March 1, 2016 to the date immediately
prior to the commencement date of the applicable open period, (b)  files
an  application for service retirement that is effective during the open
period, and (c) is otherwise eligible for a service retirement as of the
effective date of the application for retirement shall  be  entitled  to
the retirement benefit provided in section six of this act.
  S 6. Notwithstanding any other provision of law, any eligible employee
who  is:  (a) a member of the teachers' retirement system, and (b) enti-
tled to retirement benefits pursuant to section five  of  this  act  may
retire  during  the  open  period  without  the  reduction of his or her
retirement benefit that would otherwise be imposed by article 11  or  15
of  the retirement and social security law if he or she has attained the
age of 55 and has completed at least 25  or  more  years  of  creditable
service.  An eligible employee who is covered by the provisions of arti-
cle 11 or 15 of the retirement and  social  security  law  shall  retire
under  the  provisions  of article 11 or 15 of the retirement and social
security law.
  S 7. The pension benefit costs of section six of  this  act  shall  be
paid  by  employers  as  provided  by  applicable law for the retirement

S. 7639--A                          3

system covered by this act over  a  period  not  to  exceed  five  years
commencing in the state fiscal year ending March 31, 2018.
  S  8.  Notwithstanding any other provision of law, this act shall have
no impact on retirement incentives, options or  inducements  offered  as
part  of  a  contractual  agreement  between an eligible employee and an
educational employer which were negotiated prior to the  effective  date
of this act.
  S  9. Severability clause.  If any clause, sentence, paragraph, subdi-
vision, 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 10. This act shall take effect immediately.
  FISCAL NOTE -- Pursuant to Legislative Law, Section 50:
  This bill would provide a temporary retirement incentive to members of
the  New    York  State  Teachers'  Retirement System during fiscal year
2016-2017. This incentive would permit eligible members to retire  with-
out  an  early  retirement  reduction upon attainment of at least age 55
with 25 years of service. Currently 30 years of service are required  in
order  to  retire without reduction. In order to receive this benefit, a
member of an employer who has elected to participate must retire  during
the  designated  60-day open period, beginning on or after June 30, 2016
which shall not extend beyond August 31, 2016. In order to be  eligible,
a member must be an employee of an educational employer and hold a posi-
tion  represented  by  one of the recognized collective bargaining units
affiliated with the New York State United Teachers (NYSUT) as  certified
by  his  or  her  employer.  In  order to participate in this retirement
incentive, the educational employer must be a school district,  a  board
of  cooperative  educational services, a vocational education and exten-
sion board, an institution for the instruction of the deaf  and  of  the
blind  as  enumerated  in  Section 4201 of the Education Law or a school
district as enumerated in Section 1 of Chapter 566 of the Laws of  1967.
Employers  who elect to participate would pay the cost of the retirement
incentive over a period not to exceed five years, beginning in the state
fiscal year ending March 31, 2018.
  The annual cost to the employers of members  of  the  New  York  State
Teachers'  Retirement  System  for this benefit is estimated to be $30.0
million or .19% 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 2016-25 dated May 12, 2016
prepared by the Actuary of  the  New  York  State  Teachers'  Retirement
System and is intended for use only during the 2016 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.