NY State Senate Bill 2017-S5135A

Senate Bill S5135A

Signed By Governor

2017-2018 Legislative Session

Makes technical corrections to eliminate the restrictions upon transferring for members of the New York state teachers' retirement system

download bill text pdf

Archive: Last Bill Status Via A6604 - Signed by Governor

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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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Sep 12, 2017	signed chap.292
Aug 31, 2017	delivered to governor
Jun 08, 2017	returned to assembly passed senate 3rd reading cal.770 substituted for s5135a
Jun 08, 2017	substituted by a6604
May 10, 2017	advanced to third reading
May 09, 2017	2nd report cal.
May 08, 2017	1st report cal.770
Apr 12, 2017	print number 5135a
Apr 12, 2017	amend and recommit to civil service and pensions
Mar 09, 2017	referred to civil service and pensions

Votes

- Jun 8, 2017 - Floor Vote
  A6604
  
  61
  
  Aye
  
  0
  
  Nay
  
  0
  
  Absent
  
  2
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 8, 2017
      
      aye (61)
      
      Addabbo Jr.
      
      Akshar
      
      Alcantara
      
      Amedore
      
      Avella
      
      Bailey
      
      Benjamin
      
      Bonacic
      
      Boyle
      
      Breslin
      
      Brooks
      
      Carlucci
      
      Comrie
      
      Croci
      
      DeFrancisco
      
      Dilan
      
      Felder
      
      Flanagan
      
      Funke
      
      Gallivan
      
      Gianaris
      
      Golden
      
      Griffo
      
      Hamilton
      
      Hannon
      
      Helming
      
      Hoylman-Sigal
      
      Jacobs
      
      Kaminsky
      
      Kennedy
      
      Klein
      
      Krueger
      
      Lanza
      
      Larkin
      
      Latimer
      
      Little
      
      Marcellino
      
      Marchione
      
      Montgomery
      
      Murphy
      
      O'Mara
      
      Ortt
      
      Parker
      
      Peralta
      
      Persaud
      
      Phillips
      
      Ranzenhofer
      
      Ritchie
      
      Rivera
      
      Robach
      
      Sanders Jr.
      
      Savino
      
      Serino
      
      Serrano
      
      Seward
      
      Squadron
      
      Stavisky
      
      Stewart-Cousins
      
      Tedisco
      
      Valesky
      
      Young
      
      excused (2)
      
      Diaz
      
      LaValle
  May 8, 2017 - Civil Service And Pensions Committee Vote
  S5135A
  
  11
  
  Aye
  
  0
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Civil Service And Pensions Committee Vote: May 8, 2017
      
      aye (11)
      
      Addabbo Jr.
      
      Croci
      
      Golden
      
      Lanza
      
      Ortt
      
      Persaud
      
      Phillips
      
      Ritchie
      
      Sanders Jr.
      
      Savino
      
      Serrano

Bill Amendments

Original

A (Active)

2017-S5135 - Details

See Assembly Version of this Bill:: A6604
Law Section:: Education Law
Laws Affected:: Amd §522, Ed L

2017-S5135 - Summary

Makes technical corrections to eliminate the restrictions upon transferring for members of the New York state teachers' retirement system.

2017-S5135 - Sponsor Memo

                                 BILL NUMBER:  S5135

 TITLE OF BILL :  An act to amend the education law, in relation to
making technical corrections to eliminate the restrictions upon
transferring for members of the New York state teachers' retirement
system

 PURPOSE OF THE BILL :

This bill proposes to make technical corrections to Education Law
Section 522, Subdivision 2, consistent with Chapter 438 of the Laws of
2016 amending the Retirement and Social Security Law Section 43.
Uniform with Chapter 438, this bill eliminates the requirement for
members to provide one year's notice, prior to withdrawing
contributions, of their intent to transfer. It further removes the
requirement for members to acquire three years of service in the
second system in order to receive the benefit based on their combined
salary and service of both retirement systems.

 SUMMARY AND JUSTIFICATION :

Chapter 438 was proposed with the intent to simplify the
administration of transfers between the pension systems in New York.
This proposed legislation maintains consistency with the similar
provisions of applicable law and captures the changes made by Chapter
438 by making parallel amendments to language in the Education Law.

Additionally, and for background purposes, the one year requirement
for members to notify of their intent to transfer and the three year
requirement for members to provide service in the second system to
receive a combined benefit were set in place in accordance with the
transfer of reserves between retirement systems. Pursuant to Chapter
647 of the Laws of 2004 the transfer of reserves between retirement
systems was eliminated. Without the transfer of reserves between
retirement systems these requirements are no longer necessary.

This proposed amendment will make the technical changes necessary for
consistent application of the transfer provisions among retirement
systems and, as other provisions have been subsequently amended, its
implementation will not alter the intent of the law. In an effort to
remove any disparity amongst the tiers and maintain consistency with
the statutes, and for the other reasons stated, the Retirement Board
respectfully submits this bill to the Legislature for their
consideration.

 EFFECTIVE DATE OF THE BILL :

This act shall take effect immediately and shall be deemed to have
been in full force and effect on and after November 14, 2016.

 BUDGETARY IMPLICATIONS OF THE BILL :

The annual cost to the employers of members of the New York State
Teachers' Retirement System for this benefit is estimated to be
negligible if this bill is enacted.

2017-S5135 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5135
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                               March 9, 2017
                                ___________
 
 Introduced by Sen. SAVINO -- (at request of the NYS Teachers' Retirement
   System)  --  read  twice  and  ordered printed, and when printed to be
   committed to the Committee on Civil Service and Pensions
 
 AN ACT to amend the education  law,  in  relation  to  making  technical
   corrections  to  eliminate  the  restrictions  upon  transferring  for
   members of the New York state teachers' retirement system
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subdivision  2  of  section  522 of the education law, as
 amended by chapter 219 of the laws  of  1976,  is  amended  to  read  as
 follows:
   2.  Any  contributor entering the retirement system after having with-
 drawn from another retirement system and having given notice at the time
 of withdrawal to the retirement board of  such  system  of  his  OR  HER
 intention  of  becoming  [within  one  year]  a member of the retirement
 system, may deposit in the annuity savings fund the amount of his OR HER
 accumulated contributions withdrawn from such other retirement system or
 if the member had no accumulated contributions credited to  his  OR  HER
 individual account in such other retirement system, such member shall in
 lieu  of depositing moneys in the annuity savings fund, file a notice of
 intent to transfer pursuant to rules  and  regulations  adopted  by  the
 retirement  board.  [Within one year of such deposit or] UPON the filing
 of a notice of intent to transfer as provided by this  subdivision,  the
 pension reserve to his OR HER credit in such other retirement system, if
 such  other  retirement system is operated upon an actuarial basis under
 the laws of this state, shall be transferred, and if such  other  system
 is operated upon an actuarial basis under the laws of another state, may
 be   transferred  to  the  pension  accumulation  fund.  Notwithstanding
 anything to the contrary in this  article,  such  contributor  shall  be
 classified  in  this  retirement system as a present teacher or as a new
 entrant accordingly as he OR SHE would  have  been  classified  had  the
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD10435-01-7

 S. 5135                             2
 
 service  rendered  in  the other retirement system been rendered while a
 member of this retirement  system.  A  person  so  transferred  to  this
 retirement  system  or who has heretofore transferred to this retirement
 system  shall  be deemed to have been a member of this retirement system
 during the entire period of membership service credited to him OR HER in
 the system from which he OR SHE has transferred. Such transferee, howev-
 er, shall not receive more than three [per cent] PERCENT interest on his
 OR HER contributions and accumulated contributions unless he OR SHE  has
 continuously been a member in either the system from which he OR SHE has
 transferred or in this retirement system since a date prior to the first
 day  of  July, nineteen hundred forty-eight. This shall not be construed
 to prevent a change in the interest rate to such member if the  interest
 rate  payable  to other members of this retirement system is changed. In
 case he OR SHE comes from a retirement system not under the laws of this
 state, he OR SHE shall be given a prior service  certificate  showing  a
 period  of  service  such  that the liability incurred by the retirement
 system on his OR HER account by reason of prior service shall  be  equal
 in  amount to the amount of the reserve so transferred, provided that in
 no case shall such a contributor who is classified as a new  entrant  be
 given less credit in his OR HER prior service certificate than he OR SHE
 would  have  received  had  no  reserve  been  transferred on his OR HER
 account. In case a  contributor  transfers  between  retirement  systems
 under  the laws of this state, he OR SHE shall be credited in the system
 to which he OR SHE is transferring with all service allowed  to  him  OR
 HER  in  the  first  system. Such contributor, notwithstanding any other
 provision of law, shall on retirement [after three years of  service  in
 the second retirement system] be entitled to a pension based on [a final
 average]  salary  earned  during  [any five consecutive years of] MEMBER
 service [in either retirement system  or]  in  both  retirement  systems
 together,  [whichever average amount may be the greater, with the condi-
 tion that no such contributor shall be  entitled  on  retirement  within
 three  years  of  the date of his transfer to a greater pension for such
 service rendered before his transfer than he would have received had  he
 remained  under  the  pension provisions of the first retirement system]
 PURSUANT TO THE STATUTORY REQUIREMENTS OF THE SECOND RETIREMENT SYSTEM.
   § 2. This act shall take effect immediately and  shall  be  deemed  to
 have been in full force and effect on and after November 14, 2016.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This  bill  would  amend subdivision 2 of section 522 of the education
 law to remove the one year time limit for  members  to  give  notice  of
 their  intent  to  transfer  between retirement systems. This bill would
 also remove the restriction on a member who transfers  that  he/she  may
 not  retire  within  three  years  and receive a greater benefit for the
 service rendered before transfer than he/she would have  received  under
 the prior retirement system.
   The  annual  cost  to  the  employers of members of the New York State
 Teachers' Retirement System is estimated to be negligible 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.

 S. 5135                             3
 
   The source of this estimate is Fiscal Note  2017-3  dated  October  7,
 2016  prepared  by  the  Actuary  of New York State Teachers' Retirement
 System and is intended for use only during the 2017 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.

2017-S5135A (ACTIVE) - Details

See Assembly Version of this Bill:: A6604
Law Section:: Education Law
Laws Affected:: Amd §522, Ed L

2017-S5135A (ACTIVE) - Summary

Makes technical corrections to eliminate the restrictions upon transferring for members of the New York state teachers' retirement system.

2017-S5135A (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S5135A

 TITLE OF BILL :  An act to amend the education law, in relation to
making technical corrections to eliminate the restrictions upon
transferring for members of the New York state teachers' retirement
system

 PURPOSE OF THE BILL :

This bill proposes to make technical corrections to Education Law
Section 522, Subdivision 2, consistent with Chapter 438 of the Laws of
2016 amending the Retirement and Social Security Law Section 43.
Uniform with Chapter 438, this bill eliminates the requirement for
members to provide one year's notice, prior to withdrawing
contributions, of their intent to transfer. It further removes the
requirement for members to acquire three years of service in the
second system in order to receive the benefit based on their combined
salary and service of both retirement systems.

 SUMMARY AND JUSTIFICATION :

Chapter 438 was proposed with the intent to simplify the
administration of transfers between the pension systems in New York.
This proposed legislation maintains consistency with the similar
provisions of applicable law and captures the changes made by Chapter
438 by making parallel amendments to language in the Education Law.

Additionally, and for background purposes, the one year requirement
for members to notify of their intent to transfer and the three year
requirement for members to provide service in the second system to
receive a combined benefit were set in place in accordance with the
transfer of reserves between retirement systems. Pursuant to Chapter
647 of the Laws of 2004 the transfer of reserves between retirement
systems was eliminated. Without the transfer of reserves between
retirement systems these requirements are no longer necessary.

This proposed amendment will make the technical changes necessary for
consistent application of the transfer provisions among retirement
systems and, as other provisions have been subsequently amended, its
implementation will not alter the intent of the law. In an effort to
remove any disparity amongst the tiers and maintain consistency with
the statutes, and for the other reasons stated, the Retirement Board
respectfully submits this bill to the Legislature for their
consideration.

 EFFECTIVE DATE OF THE BILL :

This act shall take effect immediately and shall be deemed to have
been in full force and effect on and after November 14, 2016.

 BUDGETARY IMPLICATIONS OF THE BILL :

The annual cost to the employers of members of the New York State
Teachers' Retirement System for this benefit is estimated to be
negligible if this bill is enacted.

2017-S5135A (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5135--A
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                               March 9, 2017
                                ___________
 
 Introduced by Sen. SAVINO -- (at request of the NYS Teachers' Retirement
   System)  --  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  amend  the  education  law, in relation to making technical
   corrections  to  eliminate  the  restrictions  upon  transferring  for
   members of the New York state teachers' retirement system
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision 2 of section  522  of  the  education  law,  as
 amended  by  chapter  219  of  the  laws  of 1976, is amended to read as
 follows:
   2. Any contributor entering the retirement system after  having  with-
 drawn from another retirement system and having given notice at the time
 of  withdrawal  to  the  retirement  board  of such system of his OR HER
 intention of becoming [within one  year]  a  member  of  the  retirement
 system, may deposit in the annuity savings fund the amount of his OR HER
 accumulated contributions withdrawn from such other retirement system or
 if  the  member  had no accumulated contributions credited to his OR HER
 individual account in such other retirement system, such member shall in
 lieu of depositing moneys in the annuity savings fund, file a notice  of
 intent  to  transfer  pursuant  to  rules and regulations adopted by the
 retirement board.  [Within one year of such deposit or] UPON the  filing
 of  a  notice of intent to transfer as provided by this subdivision, the
 pension reserve to his OR HER credit in such other retirement system, if
 such other retirement system is operated upon an actuarial  basis  under
 the  laws  of this state, shall be transferred, and if such other system
 is operated upon an actuarial basis under the laws of another state, may
 be  transferred  to  the  pension  accumulation  fund.   Notwithstanding
 anything  to  the  contrary  in  this article, such contributor shall be
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD10435-02-7

 S. 5135--A                          2
 
 classified in this retirement system as a present teacher or  as  a  new
 entrant  accordingly  as  he  OR  SHE would have been classified had the
 service rendered in the other retirement system been  rendered  while  a
 member  of  this  retirement  system.  A  person  so transferred to this
 retirement system or who has heretofore transferred to  this  retirement
 system  shall  be deemed to have been a member of this retirement system
 during the entire period of membership service credited to him OR HER in
 the system from which he OR SHE has transferred. Such transferee, howev-
 er, shall not receive more than three per cent interest on  his  OR  HER
 contributions and accumulated contributions unless he OR SHE has contin-
 uously  been  a  member  in  either  the system from which he OR SHE has
 transferred or in this retirement system since a date prior to the first
 day of July, nineteen hundred forty-eight. This shall not  be  construed
 to  prevent a change in the interest rate to such member if the interest
 rate payable to other members of this retirement system is  changed.  In
 case he OR SHE comes from a retirement system not under the laws of this
 state,  he  OR  SHE shall be given a prior service certificate showing a
 period of service such that the liability  incurred  by  the  retirement
 system  on  his OR HER account by reason of prior service shall be equal
 in amount to the amount of the reserve so transferred, provided that  in
 no  case  shall such a contributor who is classified as a new entrant be
 given less credit in his OR HER prior service certificate than he OR SHE
 would have received had no  reserve  been  transferred  on  his  OR  HER
 account.  In  case  a  contributor  transfers between retirement systems
 under the laws of this state, he OR SHE shall be credited in the  system
 to  which  he  OR SHE is transferring with all service allowed to him OR
 HER in the first system. Such  contributor,  notwithstanding  any  other
 provision  of  law, shall on retirement [after three years of service in
 the second retirement system] be entitled to a pension based on [a final
 average] salary earned during [any five  consecutive  years  of]  MEMBER
 service  [in  either  retirement  system  or] in both retirement systems
 together, [whichever average amount may be the greater, with the  condi-
 tion  that  no  such  contributor shall be entitled on retirement within
 three years of the date of his transfer to a greater  pension  for  such
 service  rendered before his transfer than he would have received had he
 remained under the pension provisions of the  first  retirement  system]
 PURSUANT TO THE STATUTORY REQUIREMENTS OF THE SECOND RETIREMENT SYSTEM.
   §  2.  This  act  shall take effect immediately and shall be deemed to
 have been in full force and effect on and after November 14, 2016.
   FISCAL NOTE.-- Pursuant to Legislative Law, Section 50:
   This bill would amend subdivision 2 of Section 522  of  the  Education
 Law  to  remove  the  one  year time limit for members to give notice of
 their intent to transfer between retirement  systems.  This  bill  would
 also  remove  the  restriction on a member who transfers that he/she may
 not retire within three years and receive  a  greater  benefit  for  the
 service  rendered  before transfer than he/she would have received under
 the prior retirement system.
   The annual cost to the employers of members  of  the  New  York  State
 Teachers'  Retirement  System is estimated to be negligible 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

 S. 5135--A                          3
 
 the CAFR. Actuarial assumptions and methods are provided in the System's
 Actuarial Valuation Report.
   The  source  of  this  estimate is Fiscal Note 2017-3 dated October 7,
 2016 prepared by the Actuary of the New York State Teachers'  Retirement
 System and is intended for use only during the 2017 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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