Senate Bill S10394

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10394
 
                             I N  S E N A T E
 
                               May 15, 2026
                                ___________
 
 Introduced  by Sen. BORRELLO -- read twice and ordered printed, and when
   printed to be committed to the Committee on Civil Service and Pensions
 
 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
 S. 10394                            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.
 S. 10394                            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.