Assembly Bill A10963

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10963
 
                           I N  A S S E M B L Y
 
                              April 14, 2026
                                ___________
 
 Introduced by M. of A. HAWLEY -- read once and referred to the Committee
   on Governmental Employees
 
 AN  ACT  in  relation  to authorizing Michael Hall 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,  Michael  Hall,
 who  is  currently  a  member of the New York state teachers' retirement
 system, who retired from Oakfield-Alabama Combined  School  District  on
 January  31, 2004, and who since his date of retirement has been receiv-
 ing a reduced retirement benefit election pursuant  to  designating  his
 wife,  Bonnie  L.  Hall, under a survivor option and electing her as his
 irrevocable beneficiary, and who, for reasons not ascribable to his  own
 negligence,  even  upon notice in 2004 from the retirement system of his
 election of the reduced retirement benefit election designating his wife
 Bonnie L. Hall under a survivor option and electing her  as  his  irrev-
 ocable  beneficiary,  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 elect for  the  maximum  retirement  benefit
 option,  shall  be  authorized to change said reduced retirement benefit
 option designating his wife, Bonnie L. Hall under a survivor option  and
 electing  her  as  his irrevocable beneficiary to the maximum retirement
 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 teach-
 ers'  retirement  system  with  the head of said retirement system. Such
 change of benefit coverage shall be deemed to become effective on  Janu-
 ary 31, 2004.
   §  2.  Any  costs  attributable  to  implementation  of the retirement
 election option change, authorized by section one 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:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD15225-03-6
 A. 10963                            2
 
   Bill Description:
   This  fiscal  note is prepared for legislative bill draft #15225-02-6.
 This bill would authorize Michael Hall, a retired member of the New York
 State Teacher's Retirement System (NYSTRS), who elected the  100%  joint
 and survivor option benefit to change his option election to the maximum
 single  life benefit effective as of his date of retirement, January 31,
 2004. The increase in pension benefit will be paid retroactively to this
 date. Michael Hall must file a written request with the head  of  NYSTRS
 within one year of the effective date of this act.
   Cost and Current Law:
   The cost of this benefit is equal to the increase in the present value
 of  liabilities,  which  is estimated to be $211,000. This cost would be
 borne by the employers of  members  of  the  New  York  State  Teachers'
 Retirement  System.  Allowing  retired  members  to change their benefit
 option after retirement weakens the pooling of longevity  risk  and  the
 pricing of the options and would result in actuarial losses.
   Under  current law, benefit option elections are generally irrevocable
 after  retirement.  Allowing  post-retirement  changes  for   individual
 members may introduce considerations regarding consistent application of
 such provisions across the membership.
   Data:
   Member data as of June 30, 2025, prepared for the most recent actuari-
 al  valuation  was  used  in determining this cost. The most recent data
 distributions and statistics can be found in the System's Annual  Report
 for  the  fiscal year ended June 30, 2025. System assets are as reported
 in the System's financial statements which can be found in the  System's
 Annual Report. This data will also be provided in the System's Actuarial
 Valuation Report as of June 30, 2025.
   Methods and Assumptions:
   A summary of actuarial assumptions and methods will be provided in the
 System's Actuarial Valuation Report as of June 30, 2025. Further details
 can  be  found in the most recent Recommended Actuarial Assumptions 2025
 Report.
   Actuarial Certification:
   We, the undersigned actuaries for the New York State Teachers' Retire-
 ment System, certify the following:
   1. The actuarial assumptions, methods, and data  used  are  reasonable
 for  the  purposes of this fiscal note, internally consistent and are in
 accordance with standards of practice prescribed by the Actuarial Stand-
 ards Board and generally accepted actuarial principles and procedures.
   2. We relied on member data supplied by the participating employers of
 the New York State Teachers' Retirement System and assets as supplied in
 the annual Financial Statements by NYSTRS' Finance Department.
   3. Results were prepared based on our  current  understanding  of  the
 proposal  as  of  the  date  of this fiscal note. If the language or our
 understanding of the proposal changes,  the  results  could  change  and
 require the issuance of a new fiscal note. The next annual update of the
 actuarial valuation could also produce different results. Results should
 not be relied upon for any other purpose.
   4.  This  fiscal  note  was prepared in accordance with New York State
 Retirement and Social Security Law, New York State Education Law, appli-
 cable Internal Revenue Code, and accepted actuarial standards  of  prac-
 tice  as  of  the  date  of  this fiscal note. This fiscal note does not
 constitute  a  legal  opinion  on  the  viability  of  this  legislative
 proposal.
 A. 10963                            3
 
   5. We are members of the American Academy of Actuaries and the Society
 of  Actuaries,  and  we meet the Qualification Standards of the American
 Academy of Actuaries to render the actuarial opinion  contained  herein.
 We  are currently compliant with the Continuing Professional Development
 Requirement of the Society of Actuaries.
   Fiscal Note Identification:
   This  Fiscal  Note,  2026-40, dated April 4, 2026, was prepared by the
 Office of the Actuary of the New York State Teachers' Retirement  System
 and is intended for use only during the 2026 Legislative Session.