S T A T E   O F   N E W   Y O R K
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                                  7227--A
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              April 29, 2021
                                ___________
 
 Introduced  by  M.  of  A.  LAWLER, DeSTEFANO, ANGELINO -- read once and
   referred to the Committee on Governmental Employees -- recommitted  to
   the  Committee  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  in relation to authorizing Thomas Collins to file a request for
   change of benefit coverage with the New York state  teachers'  retire-
   ment system
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Notwithstanding any other provision of law, Thomas Collins,
 who is currently a member of the New  York  state  teachers'  retirement
 system,  who  retired  from Pearl River School District on July 1, 2010,
 and who since his date of retirement  has  been  receiving  the  largest
 possible   retirement  benefit  under  the  maximum  retirement  benefit
 election, and who, for reasons not ascribable  to  his  own  negligence,
 even  upon  notice in 2010 from the retirement system of his election of
 the maximum retirement benefit election, failed to change his retirement
 option election prior to the expiration of the thirty days in accordance
 with article 11 of the education law and to nominate  his  wife  as  the
 beneficiary of the one hundred percent survivor option, shall be author-
 ized to change said maximum retirement option to the one hundred percent
 survivor  option,  if within one year of the effective date of this act,
 he shall file a written request on a form prescribed  by  the  New  York
 state  teachers'  retirement  system  with  the  head of said retirement
 system. Such change of benefit coverage shall be deemed to become effec-
 tive on July 1, 2010.
   § 2. Any  costs  attributable  to  implementation  of  the  retirement
 election  option  change, authorized by section one of this act, and the
 recovery for the overpayment received by Thomas Collins since  his  date
 of retirement to change his election from the maximum benefit to the one
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08311-04-2
              

 A. 7227--A                          2
 
 hundred  percent  joint  and  survivor option with Sandra Collins as the
 beneficiary, shall be borne by Thomas Collins. The costs shall be calcu-
 lated from the date of his retirement, July 1, 2010, to the date his new
 retirement option election, filed in accordance with section one of this
 act, is deemed effective with the System and upon receipt of his payment
 for  making said election. Any other costs attributable to the implemen-
 tation of this act shall be borne by the employers of members of the New
 York state teachers' retirement system.
   § 3. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This bill would allow Thomas Collins, a retired member of the New York
 State Teachers' Retirement System, who elected the maximum  single  life
 benefit  upon  his  date  of  retirement  of  July 1, 2010 to change his
 retirement benefit to the 100% joint and survivor option benefit  desig-
 nating his spouse Sandra Collins as beneficiary of such optional form of
 benefit.    The 100% joint and survivor benefit would be effective as of
 his date of retirement. Mr. Collins would be required to re-pay  to  the
 Retirement System the excess of the maximum single life benefit over the
 100%  joint  and  survivor  option benefit that he has received from his
 date of retirement through the effective date of the change in his bene-
 fit. Mr. Collins must file a written request with the head  of  the  New
 York  State Teachers' Retirement System within one year of the effective
 date of this act.
   The total cost of this benefit cannot be determined. If this  bill  is
 enacted  the  Retirement  System will be providing a survivor benefit to
 Mr.  Collins' spouse. The ultimate cost of this benefit will  be  deter-
 mined  by how long Mr. Collins and his spouse live. Mr. Collins would be
 responsible for re-paying the overpayments he has received, which  total
 approximately $111,000. Allowing retired members to change their benefit
 option  after  retirement  weakens the pooling of longevity risk and the
 pricing of the options and would potentially result in actuarial losses.
   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
 Annual  Report.  System assets are as reported in the System's financial
 statements and can also be found in the System's Annual Report.  Actuar-
 ial assumptions and methods are provided in the System's Actuarial Valu-
 ation Report and the 2021 Actuarial Assumptions Report.
   The source of this estimate is Fiscal Note  2022-23  dated  April  13,
 2022  prepared by the Office of the Actuary of the New York State Teach-
 ers' Retirement System and is intended for  use  only  during  the  2022
 Legislative  Session.  I, Richard A. Young, am the Chief Actuary for the
 New York State Teachers' Retirement System. I am a member of the  Ameri-
 can  Academy  of Actuaries and I meet the Qualification Standards of the
 American Academy of Actuaries to render the actuarial opinion  contained
 herein.