S3990A-2011 Actions

• May 9, 2012: PRINT NUMBER 3990A
• May 9, 2012: AMEND AND RECOMMIT TO CIVIL SERVICE AND PENSIONS
• Jan 4, 2012: REFERRED TO CIVIL SERVICE AND PENSIONS
• Mar 11, 2011: REFERRED TO CIVIL SERVICE AND PENSIONS

S3990A-2011 Memo

BILL NUMBER:S3990A

TITLE OF BILL:
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

PURPOSE:
This bill, requested by Mr. Walter M. Callahan, permits such retiree,
who has been receiving enhanced retirement benefits pursuant to Chapter
86 of the Laws of 2000, to be entitled to elect to be deemed retroac-
tively to have transferred his membership in the NY State and Local
Employees' Retirement System to the NYS Teachers' Retirement System
pursuant to the Retirement and Social Security Law section 43 as of
November 3, 2000.

SUMMARY OF PROVISIONS:
Section 1: Enacts a free standing unconsolidated law that effectuates
the provisions stated above in the purposes section of this memo.

JUSTIFICATION:
This was requested by Mr. Walter M. Callahan.

LEGISLATIVE HISTORY:
S.4735 of 2009/2010

FISCAL IMPLICATIONS:
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, approximately $151,000, in
accordance with this bill.

EFFECTIVE DATE:
This act shall take effect immediately.

S3990A-2011 Text

 S T A T E   O F   N E W   Y O R K
 
 3990--A
 2011-2012 Regular Sessions
 I N  SENATE
 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:

 

Section  1.  Notwithstanding  any  provision  of  law to the contrary,
 Walter M. Callahan, a retired member of the New  York  state  and  local
 employees'  retirement system who has been receiving enhanced retirement
 benefits pursuant to the retirement incentive enacted pursuant to  chap
 ter 86 of the laws of 2000 since his retirement on November 4, 2000, who
 on August 30, 2006 was appointed as a business administrator employed by
 a  school  district,  and  who upon assuming such business administrator
 position became a member of the  New  York  state  teachers'  retirement
 system,  shall  be  entitled to elect to be deemed retroactively to have
 transferred his membership in the New York state  and  local  employees'
 retirement  system  to  the  New  York state teachers' retirement system
 pursuant to section 43 of the retirement and social security law  as  of
 November  3, 2000, provided that upon retirement from the New York state
 teachers' retirement system,  his  retirement  allowance  shall  be  (a)
 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, and (b) reduced by the
 actuarial equivalent of the retirement benefits received  by  Walter  M.
 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
 provided, that Walter M. Callahan shall not  be  required  to  make  any
 employee  contribution to the New York state teachers' retirement system
 and upon retirement from the New York state teachers' retirement system,
 his  retirement allowance shall be increased by the actuarial equivalent
 of the employee contributions he has made to the New York  state  teach
 ers' retirement system between August 30, 2006 and his election pursuant
 to  this  section. In order to effect such retroactive transfer pursuant
 to this section, Walter M. Callahan shall provide, on or before December
 31, 2012, notice to the comptroller and the governing body  of  the  New
 York  state  teachers' retirement system of his election to transfer his
 membership in the New York state and local employees' retirement  system
 pursuant to this section.
 

S  2. Upon the election by Walter M. Callahan to take advantage of the
 provisions of this act, the New York state and local employees'  retire
 ment  system shall transfer the amount of his pension reserve to the New
 York state teachers' retirement system.
 

S 3. All costs incurred in implementing the provisions  of  this  act,
 unless  otherwise stated, shall be borne by the New York state teachers'
 retirement system.
 

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.

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