S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7182
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              April 27, 2021
                                ___________
 
 Introduced  by M. of A. BUTTENSCHON -- (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 retirement and social security law, in relation to
   the death benefit provided in the third year following retirement  for
   certain 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.  The closing paragraph of paragraph 2 of subdivision  a  of
 section  448  of  the  retirement and social security law, as amended by
 chapter 513 of the laws of 2010, is amended to read as follows:
   In the case of a member of the New  York  state  teachers'  retirement
 system,  commencing upon attainment of age sixty-one, the benefit other-
 wise provided pursuant to this paragraph  shall  be  reduced  while  the
 member  is  in service to ninety-six per centum of the benefit otherwise
 payable and each year thereafter the benefit payable shall be reduced by
 an amount equal to four per centum per  year  of  the  original  benefit
 otherwise  payable, but not below sixty per centum of the original bene-
 fit otherwise payable. In the case of a member  of  the  New  York  city
 employees'  retirement  system,  the  New  York  city board of education
 retirement system or the New  York  city  teachers'  retirement  system,
 commencing  upon  attainment  of  age  sixty-one,  the benefit otherwise
 provided pursuant to this paragraph shall be reduced while the member is
 in service to ninety-five per centum of the  benefit  otherwise  payable
 and  each  year  thereafter  the  benefit payable shall be reduced by an
 amount equal to five per centum per year of the original benefit  other-
 wise  payable,  but  not  below fifty per centum of the original benefit
 otherwise payable. In the case of any member of the New York  state  and
 local  employees'  retirement  system who is permitted to retire without
 regard to age or a member of the New York state  and  local  police  and
 fire retirement system, commencing upon attainment of age sixty-one, the
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD11039-01-1

 A. 7182                             2
 
 benefit  otherwise  provided pursuant to this paragraph shall be reduced
 while the member is in service to ninety-seven per centum of the benefit
 otherwise payable, and each year thereafter the benefit payable shall be
 reduced  by an amount equal to three per centum per year of the original
 benefit otherwise payable, but not  below  seventy  per  centum  of  the
 original  benefit  otherwise payable. In the case of any other member of
 the New York state and local employees'  retirement  system,  commencing
 upon  attainment of age sixty-one, the benefit otherwise provided pursu-
 ant to this paragraph shall be reduced while the member is in service to
 ninety-six per centum of the benefit otherwise payable,  and  each  year
 thereafter  the  benefit  payable shall be reduced by an amount equal to
 four per centum per year of the original benefit otherwise payable,  but
 not  below  sixty  per centum of the original benefit otherwise payable.
 Upon retirement from any retirement system, the benefit in  force  shall
 be  reduced  by  fifty  per centum; upon completion of the first year of
 retirement, the benefit in force at the  time  of  retirement  shall  be
 reduced  by  an additional twenty-five per centum, and upon commencement
 of the third year of retirement, the benefit shall be ten per centum  of
 the  benefit in force at age sixty, if any, or at the time of retirement
 if retirement preceded such  age;  provided,  however,  the  benefit  in
 retirement  shall  not be reduced below ten per centum of the benefit in
 force at age sixty, if any, or at the time of retirement  if  retirement
 preceded such age. Notwithstanding any other provision of this paragraph
 to  the  contrary, the benefit for a retiree from the New York state and
 local employees' retirement system AND  THE  NEW  YORK  STATE  TEACHERS'
 RETIREMENT SYSTEM shall not be reduced below ten per centum of the bene-
 fit in force at the time of retirement.
   §  2. The closing paragraph of paragraph 2 of subdivision a of section
 508 of the retirement and social security law, as amended by chapter 513
 of the laws of 2010, is amended to read as follows:
   Notwithstanding any other provision of this paragraph, in the case  of
 a  member  of the New York state teachers' retirement system, commencing
 upon attainment of age sixty-one, the benefit otherwise provided  pursu-
 ant to this paragraph shall be reduced while the member is in service to
 ninety-six  per  centum  of the benefit otherwise payable, and each year
 thereafter the benefit payable shall be reduced by an  amount  equal  to
 four  per centum per year of the original benefit otherwise payable, but
 not below sixty per centum of the original benefit otherwise payable. In
 the case of a member of the New York city employees' retirement  system,
 the  New  York city board of education retirement system or the New York
 city teachers' retirement system,  commencing  upon  attainment  of  age
 sixty-one,  the  benefit  otherwise  provided pursuant to this paragraph
 shall be reduced while the member  is  in  service  to  ninety-five  per
 centum  of  the  benefit  otherwise payable and each year thereafter the
 benefit payable shall be reduced by an amount equal to five  per  centum
 per  year of the original benefit otherwise payable, but not below fifty
 per centum of the original benefit otherwise payable. In the case of any
 member of the New York state and local employees' retirement system  who
 is permitted to retire without regard to age, commencing upon attainment
 of  age sixty-one, the benefit otherwise provided pursuant to this para-
 graph shall be reduced while the member is in  service  to  ninety-seven
 per  centum  of  the benefit otherwise payable, and each year thereafter
 the benefit payable shall be reduced by an amount  equal  to  three  per
 centum per year of the original benefit otherwise payable, but not below
 seventy  per  centum  of  the original benefit otherwise payable. In the
 case of any other member of the New  York  state  and  local  employees'

 A. 7182                             3
 
 retirement  system,  commencing  upon  attainment  of age sixty-one, the
 benefit otherwise provided pursuant to this paragraph shall  be  reduced
 while  the  member is in service to ninety-six per centum of the benefit
 otherwise payable, and each year thereafter the benefit payable shall be
 reduced  by  an amount equal to four per centum per year of the original
 benefit otherwise payable,  but  not  below  sixty  per  centum  of  the
 original  benefit otherwise payable. Upon retirement from any retirement
 system, the benefit in force shall be reduced by fifty per centum;  upon
 completion  of the first year of retirement, the benefit in force at the
 time of retirement shall be reduced by  an  additional  twenty-five  per
 centum, and upon commencement of the third year of retirement, the bene-
 fit  shall  be  ten  per centum of the benefit in force at age sixty, if
 any, or at the time of  retirement  if  retirement  preceded  such  age;
 provided,  however, the benefit in retirement shall not be reduced below
 ten per centum of the benefit in force at age sixty, if any, or  at  the
 time  of retirement if retirement preceded such age. Notwithstanding any
 other provision of this paragraph to the contrary,  the  benefit  for  a
 retiree  from  the New York state and local employees' retirement system
 AND THE NEW YORK STATE TEACHERS' RETIREMENT SYSTEM shall not be  reduced
 below ten per centum of the benefit in force at the time of retirement.
   §  3. The closing paragraph of paragraph 2 of subdivision a of section
 606 of the retirement and social security law, as amended by chapter 513
 of the laws of 2010, is amended to read as follows:
   In the case of a member of the New  York  state  teachers'  retirement
 system,  commencing upon attainment of age sixty-one, the benefit other-
 wise provided pursuant to this paragraph  shall  be  reduced  while  the
 member  is  in service to ninety-six per centum of the benefit otherwise
 payable, and each year thereafter the benefit payable shall  be  reduced
 by  an  amount equal to four per centum per year of the original benefit
 otherwise payable, but not below sixty per centum of the original  bene-
 fit  otherwise  payable.  In  the  case of a member of the New York city
 employees' retirement system, the  New  York  city  board  of  education
 retirement  system  or  the  New  York city teachers' retirement system,
 commencing upon attainment  of  age  sixty-one,  the  benefit  otherwise
 provided pursuant to this paragraph shall be reduced while the member is
 in  service  to  ninety-five per centum of the benefit otherwise payable
 and each year thereafter the benefit payable  shall  be  reduced  by  an
 amount  equal to five per centum per year of the original benefit other-
 wise payable, but not below fifty per centum  of  the  original  benefit
 otherwise  payable.  In the case of any member of the New York state and
 local employees' retirement system who is permitted  to  retire  without
 regard  to age, commencing upon attainment of age sixty-one, the benefit
 otherwise provided pursuant to this paragraph shall be reduced while the
 member is in service to ninety-seven per centum of the benefit otherwise
 payable, and each year thereafter the benefit payable shall  be  reduced
 by  an amount equal to three per centum per year of the original benefit
 otherwise payable, but not below seventy  per  centum  of  the  original
 benefit  otherwise  payable.  In the case of any other member of the New
 York state and  local  employees'  retirement  system,  commencing  upon
 attainment  of age sixty-one, the benefit otherwise provided pursuant to
 this paragraph shall be reduced while the member is in service to  nine-
 ty-six per centum of the benefit otherwise payable, and each year there-
 after  the  benefit  payable shall be reduced by an amount equal to four
 per centum per year of the original benefit otherwise payable,  but  not
 below  sixty  per centum of the original benefit otherwise payable. Upon
 retirement, from any retirement system, the benefit in  force  shall  be

 A. 7182                             4

 reduced  by  fifty  per  centum;  upon  completion  of the first year of
 retirement, the benefit in force at the  time  of  retirement  shall  be
 reduced  by  an additional twenty-five per centum, and upon commencement
 of  the third year of retirement, the benefit shall be ten per centum of
 the benefit in force at age sixty, if any, or at the time of  retirement
 if  retirement  preceded  such  age;  provided,  however, the benefit in
 retirement shall not be reduced below ten per centum of the  benefit  in
 force  at  age sixty, if any, or at the time of retirement if retirement
 preceded such age. Notwithstanding any other provision of this paragraph
 to the contrary, the benefit for a retiree from the New York  state  and
 local  employees'  retirement  system  AND  THE NEW YORK STATE TEACHERS'
 RETIREMENT SYSTEM shall not be reduced below ten per centum of the bene-
 fit in force at the time of retirement.
   § 4. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This bill would amend Sections 448, 508, and 606 of the Retirement and
 Social Security Law to extend the paragraph 2 post-retired death benefit
 coverage to the third and  ensuing  years  of  retirement  for  eligible
 members  of  the  New York State Teachers' Retirement System whose death
 benefit would otherwise be zero by virtue  of  being  hired  at  an  age
 greater  than  59. Currently, only eligible members who were hired on or
 before age 59 are entitled to this death benefit coverage in  the  third
 and ensuing years of retirement. This bill would take effect immediately
 and be applicable to deaths on or after the effective date of the act.
   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.
   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 2021-5  dated  October  19,
 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.