S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6662
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 23, 2021
                                ___________
 
 Introduced  by  M.  of  A.  ABBATE  -- (at request of the New York State
   Teachers' Retirement System) -- read once and referred to the  Commit-
   tee on Governmental Employees
 
 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] TWENTY-ONE 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, 2021, except that if this act
 shall have become a law on or after June 30, 2021, this act  shall  take
 effect  immediately  and  shall be deemed to have been in full force and
 effect on and after June 30, 2021.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD10601-01-1

 A. 6662                             2
 
   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
 2021.
   The  annual  cost  to  the  employers of members of the New York State
 Teachers' Retirement System for this benefit is estimated to be $192,000
 or .001% 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 2021-1 dated October 14,
 2020 prepared by the Actuary of the New York State Teachers'  Retirement
 System and is intended for use only during the 2021 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.