S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8179
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                May 5, 2025
                                ___________
 
 Introduced  by  M.  of  A.  DeSTEFANO  --  read once and referred to the
   Committee on Governmental Employees
 
 AN ACT relating to recalibrating the  final  average  salary  retirement
   calculations  in  the  New  York state teachers' retirement system for
   Joanne Halverson

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Notwithstanding  any  other  law  to the contrary, Joanne
 Halverson, who was employed as  a  teacher  with  South  Country  school
 district with a start date in September of 1999, and who is currently an
 active  member  of the New York state teachers' retirement system and is
 set to retire in June of 2025. During the Covid-19 pandemic, through  no
 fault of her own, her salaries and benefits were significantly decreased
 as  a  result of extracurricular events and summer schools being closed.
 Her salary was substantially reduced in the 2020-2021 year, and thereby,
 negatively impacted her final  average  salary  (FAS),  which  generally
 would be the highest average of wages earned during any continuous peri-
 od  of  employment  for which a teacher was credited with the last three
 years of service. Based on the current Tiers III  FAS  calculation,  the
 earnings  in  2020-2021  did  not exceed the average of the previous two
 years by more than ten percent, thus the amount shall be included in her
 FAS calculation.
   § 2. No contributions made to the New York state teachers'  retirement
 system  shall  be  returned  or refunded to Joanne Halverson pursuant to
 this act.
   § 3. All past service costs associated with the implementation of this
 act shall be borne by all participating employers in the New York  state
 teachers' retirement system.
   § 4. 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.
                                                            LBD10969-02-5
 A. 8179                             2
              

 
   This  bill would remove the exclusion of salary increases greater than
 10% of the average of the prior two  years'  in  calculating  the  final
 average  salary  of  Joanne  Halverson when she retires in June of 2025.
 This exclusion is required as part of the definition  of  final  average
 salary  in  accordance  with  Retirement and Social Security Law Section
 608. Ms.  Halverson's salary dipped in the 2020-21 fiscal  year  due  to
 the cancellation of extracurricular activities during Covid.
   The  annual  cost  to  the  employers of members of the New York State
 Teachers' Retirement System is estimated to be approximately  $6,000  if
 this  bill  is enacted. However, if the removal of the salary limitation
 is extended to all members this would change  the  definition  of  final
 average salary and would generate non-negligible costs.
   Member data is from the System's most recent actuarial valuation files
 as of June 30, 2024, consisting of data provided by the employers to the
 Retirement System. The most recent data distributions and statistics can
 be  found  in  the System's Annual Report for fiscal year ended June 30,
 2024. System assets are as reported in the System's financial statements
 and can also be found in the System's Annual Report.  Actuarial  assump-
 tions  and  methods will be provided in the System's Actuarial Valuation
 Report as of June 30, 2024.
   The source of this estimate is Fiscal Note 2025-17 dated April 7, 2025
 prepared by the Office of the Actuary of the New  York  State  Teachers'
 Retirement  System and is intended for use only during the 2025 Legisla-
 tive Session. I, Richard A. Young, am the Chief 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 Actuaries to render the actuarial opinion contained herein.