The New York State Senate

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

                                 7354--A

                       2017-2018 Regular Sessions

                          I N  A S S E M B L Y

                             April 24, 2017
                               ___________

Introduced  by  M. of A. RAMOS, KOLB, GALEF -- read once and referred to
  the Committee on Governmental Employees -- recommitted to the  Commit-
  tee on Governmental Employees in accordance with Assembly Rule 3, sec.
  2  -- 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.
  § 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.
  § 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-

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

                                                           LBD02162-06-8

A. 7354--A                          2

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
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, 2018 and the commencement  of  the  designated  open
period;  and (iii) the period of time subsequent to the June 2018 school
term and on or before August 31, 2018 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,
2018,  the  open period shall begin immediately after such election, and
shall not extend beyond August 31, 2018. 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, 2018.
  § 4. On or after June 30, 2018 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.
  § 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, 2018 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.
  § 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

A. 7354--A                          3

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.
  §  7.  The  pension  benefit costs of section six of this act shall be
paid by employers as provided  by  applicable  law  for  the  retirement
system  covered  by  this  act  over  a  period not to exceed five years
commencing in the state fiscal year ending March 31, 2020.
  § 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.
  § 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.
  § 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  2018-
2019.  This incentive would permit eligible members to retire without 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 desig-
nated 60-day open period, beginning on or  after  June  30,  2018  which
shall  not  extend  beyond  August  31, 2018. 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, 2020.
  The estimated increase in the present value of benefits  due  to  this
temporary retirement incentive is approximately $210 million. The annual
cost, over a five-year period, to the participating employers of members
of  the  New  York State Teachers' Retirement System for this benefit is
estimated to be $56.2 million  or  .34%  of  payroll  if  this  bill  is
enacted.
  Member  data  is  from  the  System's  most recent actuarial valuation
files, consisting of data provided by the employers  to  the  Retirement
System.   Data contributions 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

A. 7354--A                          4

the CAFR. Actuarial assumptions and methods are provided in the System's
Actuarial Valuation Report.
  The  source  of  this  estimate is Fiscal Note 2018-16 dated March 26,
2018 prepared by the Actuary of the New York State Teachers'  Retirement
System and is intended for use only during the 2018 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.