S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  6759

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                             April 17, 2013
                               ___________

Introduced by M. of A. ABBATE -- read once and referred to the Committee
  on Governmental Employees

AN ACT to amend the retirement and social security law and the education
  law, in relation to permitting certain retired members of the New York
  State  Teachers'  Retirement  System  or  the  New York City Teachers'
  Retirement System to change their retirement options with the  consent
  of the nominated survivor beneficiary

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Section 514 of the retirement and social  security  law  is
amended by adding a new subdivision e to read as follows:
  E.  NOTWITHSTANDING ANY OTHER PROVISION OF LAW, WHERE A RETIRED MEMBER
OF THE NEW YORK CITY TEACHERS' RETIREMENT SYSTEM HAS  NOMINATED  HIS  OR
HER  SPOUSE  AS  THE  SURVIVOR BENEFICIARY UNDER OPTION ONE, TWO OR FIVE
PROVIDED FOR IN SUBDIVISION A OF THIS SECTION, AND SUCH PERSON SO  NOMI-
NATED  CEASES  BY  CAUSES OTHER THAN DEATH TO BE HIS OR HER SPOUSE OR IS
SEPARATED FROM HIM OR HER, OR IF SUCH OPTION  WAS  SELECTED  IN  CONTEM-
PLATION  OF  MARRIAGE WHICH HAS NOT TAKEN PLACE, THEN THE BOARD OF TRUS-
TEES OF SUCH RETIREMENT SYSTEM SHALL HAVE THE AUTHORITY  TO  PERMIT  THE
CHANGE  OF  SUCH  OPTION  TO  THE  MAXIMUM BENEFIT THAT IS THE ACTUARIAL
EQUIVALENT BY AND WITH THE CONSENT OF ALL PARTIES.
  S 2. Section 610 of the retirement and social security law is  amended
by adding a new subdivision g to read as follows:
  G.  NOTWITHSTANDING ANY OTHER PROVISION OF LAW, WHERE A RETIRED MEMBER
OF THE NEW YORK CITY TEACHERS' RETIREMENT SYSTEM HAS  NOMINATED  HIS  OR
HER  SPOUSE  AS  THE  SURVIVOR BENEFICIARY UNDER OPTION ONE, TWO OR FIVE
PROVIDED FOR IN SUBDIVISION A OF THIS SECTION, AND SUCH PERSON SO  NOMI-
NATED  CEASES  BY  CAUSES OTHER THAN DEATH TO BE HIS OR HER SPOUSE OR IS
SEPARATED FROM HIM OR HER, OR IF SUCH OPTION  WAS  SELECTED  IN  CONTEM-
PLATION  OF  MARRIAGE WHICH HAS NOT TAKEN PLACE, THEN THE BOARD OF TRUS-
TEES OF SUCH RETIREMENT SYSTEM SHALL HAVE THE AUTHORITY  TO  PERMIT  THE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10230-01-3
              

A. 6759                             2

CHANGE  OF  SUCH  OPTION  TO  THE  MAXIMUM BENEFIT THAT IS THE ACTUARIAL
EQUIVALENT BY AND WITH THE CONSENT OF ALL PARTIES.
  S  3.  Section  539  of  the  education law is amended by adding a new
subdivision 8 to read as follows:
  8. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, A  RETIREE  SUBJECT  TO
THIS ARTICLE OR ARTICLE FOURTEEN OR FIFTEEN OF THE RETIREMENT AND SOCIAL
SECURITY  LAW  WHO  AT  RETIREMENT  HAD  DULY SELECTED AN OPTION FORM OF
RETIREMENT PROVIDING FOR THE PAYMENT OF A  LESSER  RETIREMENT  ALLOWANCE
OVER  THE LIFE OF THE RETIREE WITH THE PROVISION THAT UPON THE RETIREE'S
DEATH ALL OR A PORTION OF SUCH ALLOWANCE SHALL BE CONTINUED FOR THE LIFE
OF AND PAID TO A BENEFICIARY DULY NOMINATED BY THE  RETIREE  AT  RETIRE-
MENT, SHALL BE PERMITTED TO RESCIND SUCH SELECTION WITHIN ONE YEAR AFTER
SUCH  BENEFICIARY  HAS  CEASED TO BE THE RETIREE'S SPOUSE BY REASON OF A
FINAL JUDGMENT OR DECREE OF DIVORCE  ISSUED  BY  A  COURT  OF  COMPETENT
JURISDICTION.  IN ORDER TO RESCIND SUCH SELECTION, THE RETIREE AND BENE-
FICIARY MUST EACH FILE A WRITTEN CONSENT TO SUCH CHANGE WITH THE  SYSTEM
ON  A  FORM PRESCRIBED BY THE SYSTEM. UPON SATISFACTORILY RECEIVING SUCH
JUDGMENT OR DECREE OF DIVORCE AND SUCH CONSENTS, ANY AND ALL OBLIGATIONS
OF THE SYSTEM TO THE BENEFICIARY UNDER THE  RETIREE'S  OPTION  SELECTION
SHALL BE TOTALLY DISCHARGED AND THE RETIREE SHALL THEREAFTER BE PAID FOR
THE  REMAINDER  OF  SUCH  RETIREE'S LIFE THE MAXIMUM SINGLE LIFE BENEFIT
WHICH WOULD HAVE BEEN PAYABLE, HAD THE RETIREE MADE NO OPTION  SELECTION
AT  THE  TIME OF RETIREMENT. THE RETIREMENT BOARD IS AUTHORIZED TO ADOPT
SUCH RULES AND REGULATIONS AS MAY BE NECESSARY TO IMPLEMENT THIS  SUBDI-
VISION.
  S  4.  This  act  shall take effect immediately and shall be deemed to
have been in full force and effect on or after June 30, 2012.
  FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
  This proposed legislation would amend Retirement and  Social  Security
Law  ("RSSL") Sections 514 and 610 to allow certain Tier III and Tier IV
retirees of the New York City Teachers' Retirement  System  ("TRS")  the
opportunity to change certain optional forms of benefit after retirement
similar  to  the provisions set forth in Administrative Code of the City
of New York ("ACNY") Section 565(c).
  ACNY Section 565(c) covers only Tier I and Tier II members of TRS.
  In addition, for purposes of this Fiscal Note, the  references  herein
to Tier IV include those TRS members whose dates of membership are on or
after April 1, 2012 (a.k.a., Tier VI members).
  Specifically,  this  proposed  legislation  would permit a Tier III or
Tier IV retiree of TRS who has nominated his or her spouse as the survi-
vor beneficiary to change, under certain optional forms of  benefit  and
with the consent of his or her spouse and the TRS Retirement Board, from
the  optional  form  of benefit originally chosen to the maximum benefit
that is the actuarial equivalent, if such person:
  (1) ceases by causes other than death to be his or her spouse, or
  (2) is separated from him or her, or
  (3) if such option was selected in contemplation of marriage which has
not taken place.
  The Effective Date of the proposed legislation would be  the  date  of
enactment.
  FINANCIAL  IMPACT  -  ACTUARIAL PRESENT VALUE OF BENEFITS AND EMPLOYER
CONTRIBUTIONS: To the extent that the probabilities of survival  of  the
retiree  and the beneficiary designated under the optional form of bene-
fit have not changed significantly since such optional form  of  benefit
was  instituted,  then  the  enactment  of  this proposed legislation is
expected to result in little or no change in the Actuarial Present Value

A. 6759                             3

of Benefits,  Employer  Normal  Cost,  Actuarial  Accrued  Liability  or
employer contributions to TRS.
  OTHER  COSTS:  The enactment of this proposed legislation would result
in some administrative expenses for TRS.
  STATEMENT OF ACTUARIAL OPINION:  I, Robert C. North, Jr., am the Chief
Actuary for the New York City Retirement Systems.  I am a Fellow of  the
Society  of Actuaries and a Member of the American Academy of Actuaries.
I meet the Qualification  Standards  to  render  the  actuarial  opinion
contained herein.
  FISCAL  NOTE  IDENTIFICATION:   This estimate is intended for use only
during the 2013 Legislative Session. It  is  Fiscal  Note  No.  2013-03,
dated  February  28,  2013 prepared by the Chief Actuary of the New York
City Teachers' Retirement System.

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 6759--A

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                             April 17, 2013
                               ___________

Introduced by M. of A. ABBATE -- read once and referred to the Committee
  on  Governmental  Employees  --  committee  discharged,  bill amended,
  ordered reprinted as amended and recommitted to said committee

AN ACT to amend the retirement and social security law and the education
  law, in relation to permitting certain retired members of the New York
  State Teachers' Retirement System  or  the  New  York  City  Teachers'
  Retirement  System to change their retirement options with the consent
  of the nominated survivor beneficiary

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Section  514 of the retirement and social security law is
amended by adding a new subdivision e to read as follows:
  E. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, WHERE A RETIRED  MEMBER
OF  THE  NEW  YORK CITY TEACHERS' RETIREMENT SYSTEM HAS NOMINATED HIS OR
HER SPOUSE AS THE SURVIVOR BENEFICIARY UNDER OPTION  ONE,  TWO  OR  FIVE
PROVIDED  FOR IN SUBDIVISION A OF THIS SECTION, AND SUCH PERSON SO NOMI-
NATED CEASES BY CAUSES OTHER THAN DEATH TO BE HIS OR HER  SPOUSE  OR  IS
SEPARATED  FROM  HIM  OR  HER, OR IF SUCH OPTION WAS SELECTED IN CONTEM-
PLATION OF MARRIAGE WHICH HAS NOT TAKEN PLACE, THEN THE BOARD  OF  TRUS-
TEES  OF  SUCH  RETIREMENT SYSTEM SHALL HAVE THE AUTHORITY TO PERMIT THE
CHANGE OF SUCH OPTION TO THE  MAXIMUM  BENEFIT  THAT  IS  THE  ACTUARIAL
EQUIVALENT BY AND WITH THE CONSENT OF ALL PARTIES.
  S  2. Section 610 of the retirement and social security law is amended
by adding a new subdivision g to read as follows:
  G. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, WHERE A RETIRED  MEMBER
OF  THE  NEW  YORK CITY TEACHERS' RETIREMENT SYSTEM HAS NOMINATED HIS OR
HER SPOUSE AS THE SURVIVOR BENEFICIARY UNDER OPTION  ONE,  TWO  OR  FIVE
PROVIDED  FOR IN SUBDIVISION A OF THIS SECTION, AND SUCH PERSON SO NOMI-
NATED CEASES BY CAUSES OTHER THAN DEATH TO BE HIS OR HER  SPOUSE  OR  IS
SEPARATED  FROM  HIM  OR  HER, OR IF SUCH OPTION WAS SELECTED IN CONTEM-
PLATION OF MARRIAGE WHICH HAS NOT TAKEN PLACE, THEN THE BOARD  OF  TRUS-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10230-04-3
              

A. 6759--A                          2

TEES  OF  SUCH  RETIREMENT SYSTEM SHALL HAVE THE AUTHORITY TO PERMIT THE
CHANGE OF SUCH OPTION TO THE  MAXIMUM  BENEFIT  THAT  IS  THE  ACTUARIAL
EQUIVALENT BY AND WITH THE CONSENT OF ALL PARTIES.
  S  3.  Section  539  of  the  education law is amended by adding a new
subdivision 8 to read as follows:
  8. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, A  RETIREE  SUBJECT  TO
THIS ARTICLE OR ARTICLE FOURTEEN OR FIFTEEN OF THE RETIREMENT AND SOCIAL
SECURITY  LAW  WHO  AT  RETIREMENT  HAD  DULY SELECTED AN OPTION FORM OF
RETIREMENT PROVIDING FOR THE PAYMENT OF A  LESSER  RETIREMENT  ALLOWANCE
OVER  THE LIFE OF THE RETIREE WITH THE PROVISION THAT UPON THE RETIREE'S
DEATH ALL OR A PORTION OF SUCH ALLOWANCE SHALL BE CONTINUED FOR THE LIFE
OF AND PAID TO A BENEFICIARY DULY NOMINATED BY THE  RETIREE  AT  RETIRE-
MENT, SHALL BE PERMITTED TO RESCIND SUCH SELECTION WITHIN ONE YEAR AFTER
SUCH  BENEFICIARY  HAS  CEASED TO BE THE RETIREE'S SPOUSE BY REASON OF A
FINAL JUDGMENT OR DECREE OF DIVORCE  ISSUED  BY  A  COURT  OF  COMPETENT
JURISDICTION.  IN ORDER TO RESCIND SUCH SELECTION, THE RETIREE AND BENE-
FICIARY MUST EACH FILE A WRITTEN CONSENT TO SUCH CHANGE WITH THE  SYSTEM
ON  A  FORM PRESCRIBED BY THE SYSTEM. UPON SATISFACTORILY RECEIVING SUCH
JUDGMENT OR DECREE OF DIVORCE AND SUCH CONSENTS, ANY AND ALL OBLIGATIONS
OF THE SYSTEM TO THE BENEFICIARY UNDER THE  RETIREE'S  OPTION  SELECTION
SHALL BE TOTALLY DISCHARGED AND THE RETIREE SHALL THEREAFTER BE PAID FOR
THE  REMAINDER  OF  SUCH  RETIREE'S LIFE THE MAXIMUM SINGLE LIFE BENEFIT
WHICH WOULD HAVE BEEN PAYABLE, HAD THE RETIREE MADE NO OPTION  SELECTION
AT  THE  TIME OF RETIREMENT. THE RETIREMENT BOARD IS AUTHORIZED TO ADOPT
SUCH RULES AND REGULATIONS AS MAY BE NECESSARY TO IMPLEMENT THIS  SUBDI-
VISION.
  S  4.  This  act  shall take effect immediately and shall be deemed to
have been in full force and effect on or after June 30, 2013.
  FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
  This proposed legislation would amend Retirement and  Social  Security
Law  ("RSSL") Sections 514 and 610 to allow certain Tier III and Tier IV
retirees of the New York City Teachers' Retirement  System  ("TRS")  the
opportunity to change certain optional forms of benefit after retirement
similar  to  the provisions set forth in Administrative Code of the City
of New York ("ACNY") Section 565(c).
  ACNY Section 565(c) covers only Tier I and Tier II members of TRS.
  In addition, for purposes of this Fiscal Note, the  references  herein
to Tier IV include those TRS members whose dates of membership are on or
after April 1, 2013 (a.k.a., Tier VI members).
  Specifically,  this  proposed  legislation  would permit a Tier III or
Tier IV retiree of TRS who has nominated his or her spouse as the survi-
vor beneficiary to change, under certain optional forms of  benefit  and
with the consent of his or her spouse and the TRS Retirement Board, from
the  optional  form  of benefit originally chosen to the maximum benefit
that is the actuarial equivalent, if such person:
  (1) ceases by causes other than death to be his or her spouse, or
  (2) is separated from him or her, or
  (3) if such option was selected in contemplation of marriage which has
not taken place.
  The Effective Date of the proposed legislation would be  the  date  of
enactment.
  FINANCIAL  IMPACT  -  ACTUARIAL PRESENT VALUE OF BENEFITS AND EMPLOYER
CONTRIBUTIONS: To the extent that the probabilities of survival  of  the
retiree  and the beneficiary designated under the optional form of bene-
fit have not changed significantly since such optional form  of  benefit
was  instituted,  then  the  enactment  of  this proposed legislation is

A. 6759--A                          3

expected to result in little or no change in the Actuarial Present Value
of Benefits,  Employer  Normal  Cost,  Actuarial  Accrued  Liability  or
employer contributions to TRS.
  OTHER  COSTS:  The enactment of this proposed legislation would result
in some administrative expenses for TRS.
  STATEMENT OF ACTUARIAL OPINION:  I, Robert C. North, Jr., am the Chief
Actuary for the New York City Retirement Systems.  I am a Fellow of  the
Society  of Actuaries and a Member of the American Academy of Actuaries.
I meet the Qualification  Standards  to  render  the  actuarial  opinion
contained herein.
  FISCAL  NOTE  IDENTIFICATION:   This estimate is intended for use only
during the 2013 Legislative Session. It  is  Fiscal  Note  No.  2013-03,
dated  February  28,  2013 prepared by the Chief Actuary of the New York
City Teachers' Retirement System.

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 6759--C

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                             April 17, 2013
                               ___________

Introduced by M. of A. ABBATE -- read once and referred to the Committee
  on  Governmental  Employees  --  committee  discharged,  bill amended,
  ordered reprinted as amended and  recommitted  to  said  committee  --
  again  reported from said committee with amendments, ordered reprinted
  as amended and recommitted to said committee  --  recommitted  to  the
  Committee  on  Governmental Employees in accordance with Assembly Rule
  3, sec. 2 -- committee discharged, bill amended, ordered reprinted  as
  amended and recommitted to said committee

AN  ACT  to amend the retirement and social security law, in relation to
  permitting certain retired members of  the  New  York  City  Teachers'
  Retirement  System to change their retirement options with the consent
  of the nominated survivor beneficiary  (Part  A);  and  to  amend  the
  education  law,  in  relation to permitting certain retired members of
  the New York State Teachers' Retirement System to change their retire-
  ment options with the consent of the  nominated  survivor  beneficiary
  (Part B)

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. This act enacts into law components of legislation relating
to certain options of the teachers' retirement system and the  New  York
City  teachers'  retirement  system.  Each component is wholly contained
within a Part identified as Parts A and B.  The effective date for  each
particular provision contained within such Part is set forth in the last
section  of  such  Part. Any provision in any section contained within a
Part, including the effective date of the Part, which makes reference to
a section "of this act", when used in connection  with  that  particular
component,  shall  be  deemed  to  mean  and  refer to the corresponding
section of the Part in which it is found. Section three of this act sets
forth the general effective date of this act.

                                 PART A

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10230-08-4
              

A. 6759--C                          2

  Section 1. Section 514 of the retirement and social  security  law  is
amended by adding a new subdivision e to read as follows:
  E.  NOTWITHSTANDING ANY OTHER PROVISION OF LAW, WHERE A RETIRED MEMBER
OF THE NEW YORK CITY TEACHERS' RETIREMENT SYSTEM HAS  NOMINATED  HIS  OR
HER  SPOUSE  AS  THE  SURVIVOR BENEFICIARY UNDER OPTION ONE, TWO OR FIVE
PROVIDED FOR IN SUBDIVISION A OF THIS SECTION, AND SUCH PERSON SO  NOMI-
NATED  CEASES  BY  CAUSES OTHER THAN DEATH TO BE HIS OR HER SPOUSE OR IS
SEPARATED FROM HIM OR HER, OR IF SUCH OPTION  WAS  SELECTED  IN  CONTEM-
PLATION  OF  MARRIAGE WHICH HAS NOT TAKEN PLACE, THEN THE BOARD OF TRUS-
TEES OF SUCH RETIREMENT SYSTEM SHALL HAVE THE AUTHORITY  TO  PERMIT  THE
CHANGE  OF  SUCH  OPTION  TO  THE  MAXIMUM BENEFIT THAT IS THE ACTUARIAL
EQUIVALENT BY AND WITH THE CONSENT OF ALL PARTIES.
  S 2. Section 610 of the retirement and social security law is  amended
by adding a new subdivision g to read as follows:
  G.  NOTWITHSTANDING ANY OTHER PROVISION OF LAW, WHERE A RETIRED MEMBER
OF THE NEW YORK CITY TEACHERS' RETIREMENT SYSTEM HAS  NOMINATED  HIS  OR
HER  SPOUSE  AS  THE  SURVIVOR BENEFICIARY UNDER OPTION ONE, TWO OR FIVE
PROVIDED FOR IN SUBDIVISION A OF THIS SECTION, AND SUCH PERSON SO  NOMI-
NATED  CEASES  BY  CAUSES OTHER THAN DEATH TO BE HIS OR HER SPOUSE OR IS
SEPARATED FROM HIM OR HER, OR IF SUCH OPTION  WAS  SELECTED  IN  CONTEM-
PLATION  OF  MARRIAGE WHICH HAS NOT TAKEN PLACE, THEN THE BOARD OF TRUS-
TEES OF SUCH RETIREMENT SYSTEM SHALL HAVE THE AUTHORITY  TO  PERMIT  THE
CHANGE  OF  SUCH  OPTION  TO  THE  MAXIMUM BENEFIT THAT IS THE ACTUARIAL
EQUIVALENT BY AND WITH THE CONSENT OF ALL PARTIES.
  S 3. This act shall take effect June 30, 2014.
  FISCAL NOTE.--Pursuant to Legislative law, Section 50:
  PROVISIONS OF PROPOSED LEGISLATION: With respect to the New York  City
Retirement  Systems  ("NYCRS"),  this  proposed  legislation would amend
Retirement and Social Security Law ("RSSL")  Sections  514  and  610  to
allow  certain  Tier  III,  Tier IV and Tier VI retirees of the New York
City Teachers' Retirement  System  ("TRS")  the  opportunity  to  change
certain  optional  forms  of  benefit  after  retirement  similar to the
provisions set forth in Administrative Code of  the  City  of  New  York
("ACNY") Section 565(c).
  ACNY Section 565(c) covers only Tier I and Tier II members of TRS.
  Specifically,  Part A of this proposed legislation would permit a Tier
III, Tier IV or Tier VI retiree of TRS who  has  nominated  his  or  her
spouse  as  the  survivor  beneficiary to change, under certain optional
forms of benefit and with the consent of his or her spouse and  the  TRS
Retirement Board, from the optional form of benefit originally chosen to
the maximum benefit that is the actuarial equivalent, if such person:
  (1) ceases by causes other than death to be his or her spouse, or
  (2) is separated from him or her, or
  (3) if such option was selected in contemplation of marriage which has
not taken place.
  The  Effective  Date  of the proposed legislation would be the date of
enactment and shall be deemed to have been in full force and  effect  on
or after June 30, 2014.
  FINANCIAL  IMPACT  -  ACTUARIAL  PRESENT  VALUE  OF BENEFITS, EMPLOYER
NORMAL COST, ACTUARIAL ACCRUED LIABILITY AND EMPLOYER CONTRIBUTIONS:  To
the  extent  that  the  probabilities of survival of the retiree and the
beneficiary designated under the  optional  form  of  benefit  have  not
changed  significantly  since  such  optional form of benefit was insti-
tuted, then the enactment of this proposed legislation  is  expected  to
result  in  little  or no change in the Actuarial Present Value of Bene-

A. 6759--C                          3

fits, Employer Normal Cost,  Actuarial  Accrued  Liability  or  employer
contributions to TRS.
  OTHER COSTS: With respect to the NYCRS, the enactment of this proposed
legislation would result in some administrative expenses for TRS.
  STATEMENT  OF ACTUARIAL OPINION: I, Robert C. North, Jr., am the Chief
Actuary for the New York City Retirement Systems. I am a Fellow  of  the
Society  of Actuaries and a Member of the American Academy of Actuaries.
I meet the Qualification Standards of the American Academy of  Actuaries
to render the actuarial opinion contained herein.
  FISCAL  NOTE  IDENTIFICATION:  This  estimate is intended for use only
during the 2014 Legislative Session. It is Fiscal Note  2014-08R,  dated
March  18,  2014,  prepared  by  the  Chief Actuary of the New York City
Teachers' Retirement System.

                                 PART B

  Section 1. Section 539 of the education law is amended by adding a new
subdivision 8 to read as follows:
  8. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, A  RETIREE  SUBJECT  TO
THIS ARTICLE OR ARTICLE FOURTEEN OR FIFTEEN OF THE RETIREMENT AND SOCIAL
SECURITY  LAW  WHO  AT  RETIREMENT  HAD  DULY SELECTED AN OPTION FORM OF
RETIREMENT PROVIDING FOR THE PAYMENT OF A  LESSER  RETIREMENT  ALLOWANCE
OVER  THE LIFE OF THE RETIREE WITH THE PROVISION THAT UPON THE RETIREE'S
DEATH ALL OR A PORTION OF SUCH ALLOWANCE SHALL BE CONTINUED FOR THE LIFE
OF AND PAID TO A BENEFICIARY DULY NOMINATED BY THE  RETIREE  AT  RETIRE-
MENT, SHALL BE PERMITTED TO RESCIND SUCH SELECTION WITHIN ONE YEAR AFTER
SUCH  BENEFICIARY  HAS  CEASED TO BE THE RETIREE'S SPOUSE BY REASON OF A
FINAL JUDGMENT OR DECREE OF DIVORCE  ISSUED  BY  A  COURT  OF  COMPETENT
JURISDICTION.  IN ORDER TO RESCIND SUCH SELECTION, THE RETIREE AND BENE-
FICIARY MUST EACH FILE A WRITTEN CONSENT TO SUCH CHANGE WITH THE  SYSTEM
ON  A  FORM PRESCRIBED BY THE SYSTEM. UPON SATISFACTORILY RECEIVING SUCH
JUDGMENT OR DECREE OF DIVORCE AND SUCH CONSENTS, ANY AND ALL OBLIGATIONS
OF THE SYSTEM TO THE BENEFICIARY UNDER THE  RETIREE'S  OPTION  SELECTION
SHALL BE TOTALLY DISCHARGED AND THE RETIREE SHALL THEREAFTER BE PAID FOR
THE  REMAINDER  OF  SUCH  RETIREE'S LIFE THE MAXIMUM SINGLE LIFE BENEFIT
WHICH WOULD HAVE BEEN PAYABLE, HAD THE RETIREE MADE NO OPTION  SELECTION
AT  THE  TIME OF RETIREMENT. THE RETIREMENT BOARD IS AUTHORIZED TO ADOPT
SUCH RULES AND REGULATIONS AS MAY BE NECESSARY TO IMPLEMENT THIS  SUBDI-
VISION.
  S 2. This act shall take effect June 30, 2014.
  FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
  This  bill  would  amend  Section  539 of the Education Law to allow a
retired member  of  the  New  York  State  Teachers'  Retirement  System
(NYSTRS)  who  has  selected an optional form of retirement benefit that
provides that upon the retired member's death, all, or a percentage  of,
such  retirement  benefit shall be continued for the life of a benefici-
ary, to rescind the selection of such option within one year after  such
beneficiary  ceases  to  be  the  retired member's spouse by reason of a
final judgment or decree of divorce. In order to rescind  such  optional
form of retirement benefit, the retired member and beneficiary must each
file  a  written  consent  with respect to such change with NYSTRS. Upon
NYSTRS' receipt of the judgment or decree of  divorce  and  the  written
consents,  the  retired  member  would  receive  the maximum single-life
retirement benefit for the remainder of his or her lifetime,  as  if  no
option  had  been  selected  at  retirement.  Any and all obligations of
NYSTRS to the beneficiary under the option selection shall be considered

A. 6759--C                          4

fully discharged. This bill shall apply to retirement  benefits  payable
on or after June 30, 2014.
  The  annual  cost  to  the  employers of members of the New York State
Teachers' Retirement System for this benefit is  estimated  to  be  very
low,  likely  less  than  $200,000 per year. Allowing retired members to
change the terms of their option after retirement creates the  potential
for anti-selection however.
  The  source  of this estimate is Fiscal Note 2014-11 dated January 21,
2014 prepared by the Actuary of the New York State Teachers'  Retirement
System and is intended for use only during the 2014 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.
  S 2. Severability clause. If any clause, sentence, paragraph, subdivi-
sion, section or part of this act shall be  adjudged  by  any  court  of
competent  jurisdiction  to  be invalid, such judgment shall not affect,
impair, or invalidate the remainder thereof, but shall  be  confined  in
its  operation  to the clause, sentence, paragraph, subdivision, section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the legislature that this act would  have  been  enacted  even  if  such
invalid provisions had not been included herein.
  S  3.  This  act shall take effect immediately provided, however, that
the applicable effective date of Parts A and B of this act shall  be  as
specifically set forth in the last section of such Parts.