Bill S3990A-2011

Authorizes Walter M. Callahan, a retiree of the New York state and local employees' retirement system to transfer his membership to the New York state teachers' retirement system

Authorizes Walter M. Callahan, a retiree of the New York state and local employees' retirement system receiving retirement benefits, to transfer his membership to the New York state teachers' retirement system based upon subsequent employment as a business administrator by a school district.

Details

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

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 retroactively 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.


Text

STATE OF NEW YORK ________________________________________________________________________ 3990--A 2011-2012 Regular Sessions IN 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,
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.

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