Senate Bill S5446A

2017-2018 Legislative Session

Provides for members of certain retirement systems to obtain credit for up to 5 years service rendered as a teacher in a private elementary or secondary school or a private college in New York state

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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 03, 2018	referred to civil service and pensions
Jun 15, 2017	print number 5446a
Jun 15, 2017	amend and recommit to civil service and pensions
Mar 29, 2017	referred to civil service and pensions

Bill Amendments

Original

A (Active)

2017-S5446 - Details

Current Committee:: Senate Civil Service And Pensions
Law Section:: Retirement
Versions Introduced in Other Legislative Sessions:: 2015-2016: S4623
2019-2020: S5075
2021-2022: S4768
2023-2024: S5182

2017-S5446 - Summary

Provides that a member of the New York state teachers' retirement system or the New York city teachers' retirement system, and certain members of the New York state and local employees' retirement system who are employed by teaching institutions, shall be entitled to obtain credit for up to 5 years service rendered as a teacher employed by a private elementary or secondary school or by a private college in New York state.

2017-S5446 - Sponsor Memo

                                 BILL NUMBER:  S5446

 TITLE OF BILL :  An act to authorize members of the New York state
and New York city teachers' retirement systems and the New York state
and local employees' retirement system to claim retirement credit for
certain private school teaching service

 PURPOSE :

To allow members of the New York City and New York State Teachers'
Retirement Systems and certain members of the New York State
Employees' Retirement System to claim five years of retirement credit
for certain private school teaching service for the purpose of
determining pension amounts.

 SUMMARY OF PROVISIONS :

This bill permits members of the New York City and New York State
Teachers' Retirement System and certain members of the New York State
Employees' Retirement System to claim up to five (5) years of
retirement credit for non-public school teaching service within New
York State. Such credit would be used only for determining the amount
of pension. Such private school credit would not be used for purposes
of qualifying for retirement or for calculation of final average
salary.

 JUSTIFICATION :

Tier 1 members of the New York State Teachers' Retirement System have
been allowed for many years to claim out-of-state public school
teaching service. Little distinction can be made between teaching in a
public school in another state and teaching in a non-public school in
New York State. It is well recognized that all types of experience,
which a person acquires, are beneficial to teaching effectiveness.
Knowledge gained through teaching in non-public schools provides a
broad background of experience and should be recognized by allowing a
teacher to obtain retirement credit for non-public teaching
experience. In addition, there has recently been a growing shortage of
certified teachers in specific subject areas such as math and science.
In particular, low performing schools have historically had difficulty
attracting qualified teachers.

The enactment of this bill would help to expand the pool of qualified
teachers and eliminate the employment disincentives that exist under
current law by allowing members of the New York State and the New York
City Teachers' Retirement Systems to claim retirement credit for up to
five years of non-public school teaching service rendered within New
York State.

 LEGISLATIVE HISTORY :

2015-16 - S. 4623a - Civil Service and Pensions Committee.

 FISCAL IMPLICATIONS :

See fiscal note.

 EFFECTIVE DATE :
This act shall take effect June 30, 2017, except that any rule or
regulation necessary for the timely implementation of the provisions
of this act on its effective date are authorized and directed to be
promulgated on or before such date.

2017-S5446 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5446
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                              March 29, 2017
                                ___________
 
 Introduced  by  Sen.  GRIFFO -- read twice and ordered printed, and when
   printed to be committed to the Committee on Civil Service and Pensions
 
 AN ACT to authorize members of the New York  state  and  New  York  city
   teachers'  retirement systems and the New York state and local employ-
   ees' retirement system to claim retirement credit for certain  private
   school teaching service
 
   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 or the New York  city  teach-
 ers'  retirement  system,  or any member of the New York state and local
 employees' retirement system who is employed by  a  school  district,  a
 board  of  cooperative  educational services, a vocational education and
 extension board, an institution for the  instruction  of  the  deaf  and
 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,
 or  who is employed by the state of New York as an institutional teacher
 as defined by section 136 of the civil service law, shall be entitled to
 obtain credit for up to five years of  service  rendered  as  a  teacher
 employed by a private elementary or secondary school within the state of
 New  York  chartered by or registered with the board of regents, or in a
 private college within the state of New York authorized by the board  of
 regents  to  grant degrees, which would constitute service as a teacher,
 had it been performed within New York state for an employer  subject  to
 the applicable provisions of law governing such retirement system.
   § 2. The crediting of service pursuant to this act shall be in accord-
 ance  with such rules and regulations as shall be adopted by the retire-
 ment board of the  New  York  state  teachers'  retirement  system,  the
 retirement board of the New York city teachers' retirement system or the
 state  comptroller,  as  appropriate, provided that such rules and regu-
 lations shall be substantially equivalent to the rules  and  regulations
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD05635-02-7

 S. 5446                             2
 
 otherwise applicable for the crediting of service pursuant to applicable
 provisions  of  law  governing each such retirement system, and provided
 further that if such provisions have not expired such member  makes  the
 applicable  payments required pursuant to the provisions of sections 517
 and 613, and paragraph 2 of subdivision b of section 609 of the  retire-
 ment and social security law.
   §  3. The service credit granted pursuant to this act shall constitute
 service for the sole purpose  of  computing  the  pension  payable  upon
 retirement  for  service  and  under  no circumstances shall the service
 credit granted pursuant to this act be used either  in  determining  the
 total length of service credit for purposes of eligibility for a service
 retirement  benefit  or  in  computing  final  average  salary. Provided
 further, no such credit shall be allowed for any service for  which  the
 person  is  receiving a benefit or will be entitled to receive a benefit
 at any future time from any other public or private retirement system or
 plan in this state, any other state or from the federal government.
   § 4. This act shall take effect June 30, 2017, except that any rule or
 regulation necessary for the timely implementation of the provisions  of
 this act on its effective date are authorized and directed to be promul-
 gated on or before such date.
   FISCAL NOTE.-- Pursuant to Legislative Law, Section 50:
   This  bill will allow members of certain public retirement systems who
 are currently employed by a school  district,  a  board  of  cooperative
 educational  service,  a  vocational  education  and extension board, an
 institution for the deaf and blind or as  an  institutional  teacher  to
 receive  up  to  five  years of service credit in such public retirement
 systems for employment as a teacher  in  private  schools  in  New  York
 State.  The  additional  service  credit granted pursuant to this legis-
 lation shall constitute service credit solely for the purpose of comput-
 ing the pension payable upon retirement, and shall not be used to deter-
 mine eligibility for a service benefit. For certain individuals,  member
 contributions  will  be  required  to  be paid to obtain such additional
 service credit. Tier 6 members would be required to make  a  payment  of
 six percent of current compensation per year of additional service cred-
 it granted by this bill. Members of all other tiers would be required to
 make  a  payment  of  three  percent of current compensation per year of
 additional service credit granted by this bill.
   Granting service credit for employment rendered  to  any  organization
 that may potentially be considered a non-governmental or private employ-
 er,  such as certain types of educational institutions described in this
 bill, could jeopardize the Retirement System's governmental plan  status
 and  its exemption from ERISA. This development could result in the loss
 of qualified status, which would mean the loss  of  tax  benefits.  This
 result would substantially impair the System's value to our approximate-
 ly one million participants.
   If  this bill is enacted, insofar as it affects the New York State and
 Local Employees' Retirement System (ERS), it is estimated that the  past
 service  cost  will  average  approximately  15%  (12% for Tier 6) of an
 affected members' compensation for each year of additional service cred-
 it that is purchased.
   The exact number of current members as  well  as  future  members  who
 could be affected by this legislation cannot be readily determined.
   Pursuant  to Section 25 of the Retirement and Social Security Law, the
 past service cost for the ERS will be borne entirely by the State of New
 York and would require an itemized appropriation sufficient to  pay  the
 cost  of the provision. Since a member can apply for this service credit

 S. 5446                             3

 at any time prior to retirement, a  precise  cost  can't  be  determined
 until  each  member,  as well as future members, applies for the service
 credit. Every year a cost will be determined (and billed to  the  state)
 based on those benefiting from this provision.
   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, 2016  actuarial  valu-
 ation.    Distributions  and  other  statistics can be found in the 2016
 Report of the  Actuary  and  the  2016  Comprehensive  Annual  Financial
 Report.
   The  actuarial  assumptions and methods used are described in the 2015
 and 2016 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, 2016
 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 March 20, 2017, and intended for use only during
 the 2017 Legislative Session, is Fiscal Note No.  2017-74,  prepared  by
 the Actuary for the New York State and Local Retirement System.

2017-S5446A (ACTIVE) - Details

Current Committee:: Senate Civil Service And Pensions
Law Section:: Retirement
Versions Introduced in Other Legislative Sessions:: 2015-2016: S4623
2019-2020: S5075
2021-2022: S4768
2023-2024: S5182

2017-S5446A (ACTIVE) - Summary

2017-S5446A (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S5446A

 TITLE OF BILL :

An act to authorize members of the New York state and New York city
teachers' retirement systems and the New York state and local
employees' retirement system to claim retirement credit for certain
private school teaching service

 PURPOSE :

To allow members of the New York City and New York State Teachers'
Retirement Systems and certain members of the New York State
Employees' Retirement System to claim five years of retirement credit
for certain private school teaching service for the purpose of
determining pension amounts and enabling early retirement.

 SUMMARY OF PROVISIONS :

This bill permits members of the New York City and New York State
Teachers' Retirement System to claim up to five (5) years of
retirement credit for non-public school teaching service within New
York State. Such credit would be used for determining the amount of
pension, as well as provide credit for time employed outside of the
aforementioned retirement systems. However, the credit would not be
used for the purpose of calculating the final average salary of an

individual.

 JUSTIFICATION :

Tier 1 members of the New York State Teachers' Retirement System have
been allowed for many years to claim out-of-state public school
teaching service. Little distinction can be made between teaching in a
public school in another state and teaching in a non-public school in
New York State. It is well recognized that all types of experience,
which a person acquires, are beneficial to teaching effectiveness.
Knowledge gained through teaching in non-public schools provides a
broad background of experience and should be recognized by allowing a
teacher to obtain retirement credit for non-public teaching
experience. Additionally, this would allow schools to hire younger
teachers at a lesser cost, which would enable them to fill more
positions.

The enactment of this bill would help to expand the pool of qualified
teachers and eliminate the employment disincentives that exist under
current law by allowing members of the New York State and the New York
City Teachers' Retirement Systems to claim retirement credit for up to
five years of non-public school teaching service rendered within New
York State.

 LEGISLATIVE HISTORY :

2015-16 - S. 4263a - Civil Service and Pensions Committee

 FISCAL IMPLICATIONS :

See fiscal note.

 EFFECTIVE DATE :
This act shall take effect June 30, 2017, except that any rule or
regulation necessary for the timely implementation of the provisions
of this act on its effective date are authorized and directed to be
promulgated on or before such date.

2017-S5446A (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5446--A
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                              March 29, 2017
                                ___________
 
 Introduced  by  Sen.  GRIFFO -- 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  authorize  members  of the New York state and New York city
   teachers' retirement systems and the New York state and local  employ-
   ees'  retirement system to claim retirement credit for certain private
   school teaching service
 
   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 or the New York city teach-
 ers' retirement system, or any member of the New York  state  and  local
 employees'  retirement  system  who  is employed by a school district, a
 board of cooperative educational services, a  vocational  education  and
 extension  board,  an  institution  for  the instruction of the deaf and
 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,
 or who is employed by the state of New York as an institutional  teacher
 as defined by section 136 of the civil service law, shall be entitled to
 obtain  credit  for  up  to  five years of service rendered as a teacher
 employed by a private elementary or secondary school within the state of
 New York chartered by or registered with the board of regents, or  in  a
 private  college within the state of New York authorized by the board of
 regents to grant degrees, which would constitute service as  a  teacher,
 had  it  been performed within New York state for an employer subject to
 the applicable provisions of law governing such retirement system.
   § 2. The crediting of service pursuant to this act shall be in accord-
 ance with such rules and regulations as shall be adopted by the  retire-
 ment  board  of  the  New  York  state  teachers' retirement system, the
 retirement board of the New York city teachers' retirement system or the
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD05635-04-7

 S. 5446--A                          2
 
 state comptroller, as appropriate, provided that such  rules  and  regu-
 lations  shall  be substantially equivalent to the rules and regulations
 otherwise applicable for the crediting of service pursuant to applicable
 provisions  of  law  governing each such retirement system, and provided
 further that if such provisions have not expired such member  makes  the
 applicable  payments required pursuant to the provisions of sections 517
 and 613, and paragraph 2 of subdivision b of section 609 of the  retire-
 ment and social security law.
   §  3. The service credit granted pursuant to this act shall constitute
 service for the purpose of  both  computing  the  pension  payable  upon
 retirement  for  service  and in determining the total length of service
 credited for the purpose of eligibility for a service  retirement  bene-
 fit,  but  shall not be used in computing final average salary. Provided
 further, no such credit shall be allowed for any service for  which  the
 person  is  receiving a benefit or will be entitled to receive a benefit
 at any future time from any other public or private retirement system or
 plan in this state, any other state or from the federal government.
   § 4. This act shall take effect June 30, 2017, except that any rule or
 regulation necessary for the timely implementation of the provisions  of
 this act on its effective date are authorized and directed to be promul-
 gated on or before such date.
   FISCAL NOTE. -- Pursuant to Legislative Law, Section 50:
   This  bill will allow members of certain public retirement systems who
 are currently employed by a school  district,  a  board  of  cooperative
 educational  service,  a  vocational  education  and extension board, an
 institution for the deaf and blind or as  an  institutional  teacher  to
 receive  up  to  five  years of service credit in such public retirement
 systems for employment as a teacher  in  private  schools  in  New  York
 State.  The  additional  service  credit granted pursuant to this legis-
 lation shall constitute service credit for the purpose of computing  the
 pension payable upon retirement and shall be used to determine eligibil-
 ity for a service benefit. For certain individuals, member contributions
 will  be  required  to be paid to obtain such additional service credit.
 Tier 6 members would be required to make a payment  of  six  percent  of
 current  compensation  per  year of additional service credit granted by
 this bill. Members of all other  tiers  would  be  required  to  make  a
 payment  of three percent of current compensation per year of additional
 service credit granted by this bill.
   Granting service credit for employment rendered  to  any  organization
 that may potentially be considered a non-governmental or private employ-
 er,  such as certain types of educational institutions described in this
 bill, could jeopardize the Retirement System's governmental plan  status
 and  its exemption from ERISA. This development could result in the loss
 of qualified status, which would mean the loss  of  tax  benefits.  This
 result would substantially impair the System's value to our approximate-
 ly one million participants.
   If  this bill is enacted, insofar as it affects the New York State and
 Local Employees' Retirement System (ERS), it is estimated that the  past
 service  cost  will  average  approximately  15%  (12% for Tier 6) of an
 affected members' compensation for each year of additional service cred-
 it that is purchased.
   The exact number of current members as  well  as  future  members  who
 could be affected by this legislation cannot be readily determined.
   Pursuant  to Section 25 of the Retirement and Social Security Law, the
 past service cost for the ERS will be borne entirely by the State of New
 York and would require an itemized appropriation sufficient to  pay  the

 S. 5446--A                          3

 cost  of the provision. Since a member can apply for this service credit
 at any time prior to retirement, a  precise  cost  can't  be  determined
 until  each  member,  as well as future members, applies for the service
 credit.  Every  year a cost will be determined (and billed to the state)
 based on those benefiting from this provision.
   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, 2016 actuarial valu-
 ation.  Distributions and other statistics can  be  found  in  the  2016
 Report  of  the  Actuary  and  the  2016  Comprehensive Annual Financial
 Report.
   The actuarial assumptions and methods used are described in  the  2015
 and  2016 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, 2016
 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 14,  2017,  and  intended  for  use  only
 during  the  2017  Legislative  Session,  is  Fiscal  Note No. 2017-119,
 prepared by the Actuary for the New  York  State  and  Local  Retirement
 System.

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Senate Bill S5446A

Sponsored By

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

Actions

Bill Amendments

2017-S5446 - Details

2017-S5446 - Summary

2017-S5446 - Sponsor Memo

2017-S5446 - Bill Text download pdf

2017-S5446A (ACTIVE) - Details

2017-S5446A (ACTIVE) - Summary

2017-S5446A (ACTIVE) - Sponsor Memo

2017-S5446A (ACTIVE) - Bill Text download pdf

Comments

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Sponsored By

Joseph A. Griffo

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

Actions

Bill Amendments

2017-S5446 - Details

2017-S5446 - Summary

2017-S5446 - Sponsor Memo

2017-S5446 - Bill Text download pdf

2017-S5446A (ACTIVE) - Details

2017-S5446A (ACTIVE) - Summary

2017-S5446A (ACTIVE) - Sponsor Memo

2017-S5446A (ACTIVE) - Bill Text download pdf

Comments