S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9296
 
                             I N  S E N A T E
 
                               May 13, 2022
                                ___________
 
 Introduced  by  Sen. RYAN -- (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
 
 AN ACT to amend the education law, in relation to allowing  retirees  of
   the  New  York  state  teachers'  retirement  system who suspend their
   retirement the option of a benefit recalculation after  two  years  of
   service
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision 11 of section 503  of  the  education  law,  as
 added  by  chapter  507 of the laws of 1972 and as renumbered by chapter
 512 of the laws of 1976, is amended to read as follows:
   11. a. If a retired member, receiving a retirement allowance for other
 than disability, returns to active public service, except  as  otherwise
 provided  in  [sections]  SECTION  two  hundred  eleven or two [hyndred]
 HUNDRED twelve of the retirement and social security law, and is  eligi-
 ble for membership in the retirement system, he [thereupon] OR SHE shall
 become  a  member and his OR HER retirement allowance shall be suspended
 in the same manner as provided in subdivision five of THIS section [five
 hundred three of this article. In such event, he shall contribute to the
 retirement system as if he were a new  member].  Upon  [his]  subsequent
 retirement [after at least two years of service he] THEY shall:
   1. Be credited with all member service earned [by him] since he OR SHE
 last became a member of the retirement system, and
   2. Receive a retirement allowance which shall consist of[:
   (a) An annuity as provided in subdivision five of section five hundred
 three  of this article plus an annuity which is the actuarial equivalent
 of any contributions made by him since he last became a member, and
   (b) The] THE pension which he OR SHE was receiving  immediately  prior
 to  his OR HER last restoration to membership as provided in subdivision
 five of THIS section [five  hundred  three  of  this  article],  plus  a
 pension  based upon the [member] service credit earned [by him] since he
 OR SHE last became a member. Such latter pension shall be computed as if
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11041-03-2
              

 S. 9296                             2

 [he] THEY were a new member when he OR SHE rejoined the system  pursuant
 to the provisions of this subdivision.
   b.  Where  such  member shall have earned at least [five] TWO years of
 [member] service credit after restoration to active service,  the  total
 service  credit to which he OR SHE was entitled at the time of [his] THE
 earlier retirement may, at his OR HER option, again be credited  to  him
 OR  HER and upon [his] subsequent retirement he OR SHE shall be credited
 in addition for purposes of computation of the pension  portion  of  the
 retirement  allowance  with all [member] service CREDIT earned by him OR
 HER subsequent to [his] THE last restoration to membership.  Such  total
 service  credit to which he OR SHE was entitled at the time of [his] THE
 earlier retirement shall be so credited only  in  the  event  that  such
 member  returns to the retirement system with regular interest the actu-
 arial equivalent of the amount of the pension [he] received, or  in  the
 event that such amount is not so repaid the actuarial equivalent thereof
 shall be deducted from his OR HER subsequent retirement allowance.
   c.  Notwithstanding  the  foregoing  provisions of this subdivision, a
 retired member who is receiving a retirement allowance  for  other  than
 physical disability, and who returns to active public service, may elect
 not  to  be  restored to membership in the retirement system until he OR
 SHE has rendered one year of service  following  his  return  to  public
 service.  In  such  event  his  OR  HER  retirement  allowance  shall be
 suspended during such year of service in the same manner as provided  in
 subdivision  five  of THIS section [five hundred three of this article].
 Upon restoration to membership following  completion  of  such  year  of
 service,  his  OR HER service in such year shall be deemed to be service
 while a member for purposes of subdivision b  of  section  five  hundred
 twelve  of  this article. He OR SHE may purchase [member] service credit
 for such year, which shall be deemed earned [member] service credit.  IF
 A RETIRED MEMBER RECEIVING A RETIREMENT BENEFIT ALLOWANCE FOR OTHER THAN
 PHYSICAL DISABILITY, RETURNS TO ACTIVE PUBLIC SERVICE, AND IS THEN INEL-
 IGIBLE  FOR  MEMBERSHIP  IN THE RETIREMENT SYSTEM, HIS OR HER RETIREMENT
 ALLOWANCE SHALL BE SUSPENDED IN THE SAME  MANNER  AS  PROVIDED  IN  THIS
 SECTION.
   d.  Notwithstanding  any  other  provision  of this article, a retired
 member who rejoins the system under the provisions of [paragraphs a or c
 of] this subdivision shall only be entitled to a death benefit according
 to the provisions of paragraph two of  subdivision  b  of  section  five
 hundred  twelve  of this article and of no other subdivision thereof and
 for the purposes of said paragraph two of subdivision b of section  five
 hundred  twelve  the credited service as a teacher shall be service as a
 teacher credited since last joining the system.
   § 2. This act shall take effect on the sixtieth  day  after  it  shall
 have become a law.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This  bill  would amend subdivision 11 of Section 503 of the Education
 Law to allow a retired member of  the  New  State  Teachers'  Retirement
 System,  who  returns to active service and suspends their pension bene-
 fit, to elect to combine their service  credit  earned  prior  to  their
 retirement  with  the  service  credit earned after their restoration to
 active service, provided they have earned at least two years of  service
 credit  since  restoration to active service. The law currently requires
 five years of service credit since  restoration  to  active  service  to
 combine  all  service  credit. In either case the member must return the
 amount of pension previously received, or have their benefit reduced for
 life based upon the actuarial equivalent of the prior pension  received.
 S. 9296                             3
 
 This  bill would take effect on the sixtieth day after it shall become a
 law.
   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
 Annual  Report.  System assets are as reported in the System's financial
 statements and can also be found in the System's Annual Report. Actuari-
 al assumptions and methods are provided in the System's Actuarial  Valu-
 ation Report.
   The  source  of  this estimate is Fiscal Note 2022-1 dated October 18,
 2021 prepared by the Actuary of the New York State Teachers'  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 Teach-
 ers' Retirement System. I am a member of the American Academy of Actuar-
 ies and I meet the Qualification Standards of the  American  Academy  of
 Actuaries to render the actuarial opinion contained herein.