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

                                  7855

                            I N  S E N A T E

                              May 17, 2016
                               ___________

Introduced  by  Sen. VALESKY -- read twice and ordered printed, and when
  printed to be committed to the Committee on Civil Service and Pensions

AN ACT in relation to authorizing a retired employee of the  Chittenango
  central school district to rescind such employee's retirement option

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

  Section 1. Notwithstanding any other provision of law, a member of the
New York state teachers' retirement system, who retired from Chittenango
central school district on July 1, 2003, and who at retirement had  duly
elected  a  benefit payment option 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 retirement, shall be permitted to rescind  such  election
due to the conviction of said beneficiary on August 26, 2015 of burglary
in  the  first  degree,  criminal  use of a firearm in the first degree,
burglary in the second degree, sexual abuse in the first degree,  stalk-
ing  in  the  third  degree,  unlawful imprisonment in the first degree,
menacing in the second degree and harassment in the  second  degree  and
the aforementioned crimes were committed against such retiree.
  In  order  to  rescind  such election, the retiree must file a written
consent to make such change on a form prescribed by  the  system  within
one year of the effective date of this act.  Upon satisfactorily receiv-
ing  such form and any documentation requested by the retirement system,
any and all obligations of the  system  to  the  beneficiary  under  the
retiree's  option  election  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 reti-
ree  made  no such retirement option election at the time of retirement,
retroactive to August 27, 2015.
  S 2. This act shall take effect immediately.
  FISCAL NOTE. -- Pursuant to Legislative Law, Section 50:
  This bill would allow a retired member of the New York State Teachers'
Retirement System (NYSTRS), who retired from Chittenango Central  School

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

                                                           LBD15029-02-6

S. 7855                             2

District on July 1,2003 and who elected a benefit payment option provid-
ing  for  the  payment of a lesser retirement allowance over the life of
the retiree with the provision that upon the retiree's death  a  portion
of  such retirement allowance would be paid to a beneficiary, to rescind
such election due to the conviction of said beneficiary  on  August  26,
2015  of crimes committed against such retiree. In order to rescind such
election, the retiree must file a written consent to make such change on
a form prescribed by NYSTRS within one year of  the  effective  date  of
this  act. Upon satisfactorily receiving such form and any documentation
requested by NYSTRS, any and all obligations of NYSTRS to the  benefici-
ary  under  the  retiree's  benefit  payment  option  shall  be  totally
discharged and the retiree shall thereafter receive the  maximum  single
life  benefit  for  the remainder of such retiree's life, retroactive to
August 27, 2015.
  It is estimated there would be no  additional  annual  cost  for  this
benefit.  Allowing  retired  members to change the terms of their option
after retirement creates the potential for anti-selection however.
  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 2016-26 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.