S T A T E O F N E W Y O R K
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3990--A
2011-2012 Regular Sessions
I N S E N A T E
March 11, 2011
___________
Introduced by Sen. LARKIN -- read twice and ordered printed, and when
printed to be committed to the Committee on Civil Service and Pensions
-- recommitted to the Committee on Civil Service and Pensions in
accordance with Senate Rule 6, sec. 8 -- committee discharged, bill
amended, ordered reprinted as amended and recommitted to said commit-
tee
AN ACT to authorize Walter M. Callahan, a retiree receiving benefits
from the New York state and local employees' retirement system, to
retroactively terminate his retirement and transfer his membership in
such retirement to the New York state teachers' retirement system
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Notwithstanding any provision of law to the contrary,
2 Walter M. Callahan, a retired member of the New York state and local
3 employees' retirement system who has been receiving enhanced retirement
4 benefits pursuant to the retirement incentive enacted pursuant to chap-
5 ter 86 of the laws of 2000 since his retirement on November 4, 2000, who
6 on August 30, 2006 was appointed as a business administrator employed by
7 a school district, and who upon assuming such business administrator
8 position became a member of the New York state teachers' retirement
9 system, shall be entitled to elect to be deemed retroactively to have
10 transferred his membership in the New York state and local employees'
11 retirement system to the New York state teachers' retirement system
12 pursuant to section 43 of the retirement and social security law as of
13 November 3, 2000, provided that upon retirement from the New York state
14 teachers' retirement system, his retirement allowance shall be (a)
15 recalculated taking into account the forfeiture of his enhanced retire-
16 ment benefits by reason of his return to public service pursuant to
17 section 11 of chapter 41 of the laws of 1997, and (b) reduced by the
18 actuarial equivalent of the retirement benefits received by Walter M.
19 Callahan prior to his election pursuant to this section; and further,
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02901-07-2
S. 3990--A 2
1 provided, that Walter M. Callahan shall not be required to make any
2 employee contribution to the New York state teachers' retirement system
3 and upon retirement from the New York state teachers' retirement system,
4 his retirement allowance shall be increased by the actuarial equivalent
5 of the employee contributions he has made to the New York state teach-
6 ers' retirement system between August 30, 2006 and his election pursuant
7 to this section. In order to effect such retroactive transfer pursuant
8 to this section, Walter M. Callahan shall provide, on or before December
9 31, 2012, notice to the comptroller and the governing body of the New
10 York state teachers' retirement system of his election to transfer his
11 membership in the New York state and local employees' retirement system
12 pursuant to this section.
13 S 2. Upon the election by Walter M. Callahan to take advantage of the
14 provisions of this act, the New York state and local employees' retire-
15 ment system shall transfer the amount of his pension reserve to the New
16 York state teachers' retirement system.
17 S 3. All costs incurred in implementing the provisions of this act,
18 unless otherwise stated, shall be borne by the New York state teachers'
19 retirement system.
20 S 4. This act shall take effect immediately.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
This bill would allow Walter M. Callahan, a retired member of the New
York State and Local Employees' Retirement System (NYSLERS) and current-
ly an active member of the New York State Teachers' Retirement system
(NYSTRS), to retroactively transfer his membership from NYSLERS to
NYSTRS pursuant to Section 43 of the Retirement and Social Security Law.
Upon his retirement from NYSTRS, his retirement allowance shall be
recalculated taking into account the forfeiture of his enhanced retire-
ment benefits by reason of his return to public service pursuant to
Section 11 of Chapter 41 of the Laws of 1997. Additionally, his retire-
ment benefit shall be reduced by the actuarial equivalent of the retire-
ment benefits received from NYSLERS from November 4, 2000 through
September 30, 2006. Mr. Callahan shall not be required to make any
further employee contributions to NYSTRS, and upon retirement his bene-
fit shall be increased by the actuarial equivalent of employee contrib-
utions made to NTSTRS after August 30, 2006. Mr. Callahan must file a
written request with the head of the New York State Teachers' Retirement
system on or before December 31, 2012.
The cost of this benefit is equal to the increase in the present value
of liabilities, which is estimated to be $307,000. This cost will be
partially offset by the pension reserve transferred from the New York
State and Local Employees' Retirement System in accordance with the
bill.
The source of this estimate is Fiscal Note 2012-28 dated May 1, 2012
prepared by the Actuary of the New York State Teachers' Retirement
System and is intended for use only during the 2012 Legislative Session.
I, Richard A. Young, am the 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 Actu-
aries to render the actuarial opinion contained herein.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
This legislation will allow Walter M. Callahan, a retiree from the New
York State and Local Employees' Retirement System, to retroactively
transfer his membership to the New York State Teachers' Retirement
System.
S. 3990--A 3
Insofar as this bill will affect the New York State and Local Employ-
ees' Retirement System, if it is enacted, Mr. Callahan will retroactive-
ly transfer to the New York State Teachers' Retirement System and there
will be a transfer of reserves from the New York State and Local Employ-
ees' Retirement System to the New York State Teachers' Retirement System
which will equal our liability due to Mr. Callahan's current pension.
Therefore, this legislation will generate no cost to the New York State
and Local Employees' Retirement System. This legislation, however, may
generate a cost to the New York State Teachers' Retirement System.
Summary of relevant resources:
Data: March 31, 2011 Actuarial Year End File with distributions of
membership and other statistics displayed in the 2011 Report of the
Actuary and 2011 Comprehensive Annual Financial Report.
Assumptions and Methods: 2010 and 2011 Annual Report to the Comp-
troller on Actuarial Assumptions, Codes Rules and Regulations of the
State of New York: Audit and Control.
Market Assets and GASB Disclosures: March 31, 2011 New York State and
Local Retirement System Financial Statements and Supplementary Informa-
tion.
Valuations of Benefit Liabilities and Actuarial Assets: summarized in
the 2011 Actuarial Valuations report.
I am a member of the American Academy of Actuaries and meet the Quali-
fication Standards to render the actuarial opinion contained herein.
This estimate, dated January 27, 2012 and intended for use only during
the 2012 Legislative Session, is Fiscal Note No. 2012-74, prepared by
the Actuary for the New York State and Local Employees' Retirement
System.