S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5676--A
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               May 10, 2019
                                ___________
 
 Introduced  by Sen. MAYER -- (at request of the New York State 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 the minimum retirement
   allowance for members of  the  New  York  state  teachers'  retirement
   system who retired prior to July 1, 1980
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph 1 of subdivision e of section 532 of  the  educa-
 tion  law, as amended by chapter 580 of  the laws of 2001, is amended to
 read as follows:
   1. Each pensioner of the retirement system  who  retired  before  July
 first,  nineteen hundred [seventy] EIGHTY shall be paid, commencing with
 a payment for the month of July two  thousand  [one]  NINETEEN  a  basic
 supplemental pension, the total of which when added to his OR HER yearly
 retirement allowance computed without optional modification, but exclud-
 ing  any  annuity derived from contributions made by members pursuant to
 paragraphs a and b of subdivision three of section five hundred sixteen,
 section five hundred twenty-eight,  section  five  hundred  twenty-nine,
 section  five  hundred  thirty,  section  five  hundred thirty-three and
 section five hundred thirty-five of this article, shall equal the lesser
 of [seventeen thousand five hundred] NINETEEN THOUSAND TWO HUNDRED FIFTY
 dollars or the sum of five  hundred  FIFTY  dollars  multiplied  by  the
 number  of years of full-time New York state service not to exceed thir-
 ty-five years with which he OR SHE was credited at the time  of  his  OR
 HER retirement.
   § 2. This act shall take effect June 30, 2019, except that if this act
 shall  have  become a law on or after June 30, 2019, this act shall take
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09732-03-9
              

 S. 5676--A                          2
 
 effect immediately and shall be deemed to have been in  full  force  and
 effect on and after June 30, 2019.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This  bill  would  extend the minimum retirement benefit provision for
 retirees of the New York State Teachers' Retirement System contained  in
 Section  532(e)  of the Education Law to members who retired before July
 1, 1980. Currently only members who retired  before  July  1,  1970  are
 eligible.  Additionally the minimum annual benefit would be increased to
 $550 for each year of credited full-time New York State service,  up  to
 35  years,  for  a  maximum benefit of $19,250. The benefit is currently
 $500 for each year up to 35, for  a  maximum  benefit  of  $17,500.  The
 increased  benefit  would  commence with a payment for the month of July
 2019.
   The annual cost to the employers of members  of  the  New  York  State
 Teachers' Retirement System for this benefit is estimated to be $355,000
 or .002% 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  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  2019-1  dated  October  5,
 2018  prepared by the Actuary of the New York State Teachers' Retirement
 System and is intended for use only during the 2019 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.