This bill has been amended

Bill S4496-2013

Relates to the minimum retirement allowance for certain pensioners who retired prior to July 1, 1980

Relates to the minimum retirement allowance for certain pensioners who retired prior to July 1, 1980.

Details

Actions

  • Jan 8, 2014: REFERRED TO CIVIL SERVICE AND PENSIONS
  • Apr 3, 2013: REFERRED TO CIVIL SERVICE AND PENSIONS

Memo

BILL NUMBER:S4496

TITLE OF BILL: An act to amend the education law, in relation to the minimum retirement allowance for members of the New York state teachers' retirement system who retired prior to July 1, 1980

Purpose of the Bill

This bill would extend the minimum retirement allowance provided to long standing retired members of the New York State Teachers' Retirement System who retired prior to July 1, 1980 and increase the minimum retirement allowance for all such retirees to $550 per year of New York State service up to a 35 year maximum of $19,250.

Summary and Justification

Public policy has long recognized the need for a minimum benefit for long retired teachers whose benefits have been eroded by the effects of inflation over time. That minimum benefit, contained in subdivision e of Section 532 of the Education Law, has operated to provide a greater increase in the pensions of the longest retired teachers than they otherwise would have been entitled to under other provisions of law. In recognition of their particular need, subdivision e has been updated periodically so as to modestly increase their benefits. The last amendment was made by Chapter 580 of the Laws of 2001.

This bill would amend the minimum supplemental benefit for the longest retired teachers in subdivision e of Section 532 of the Education Law. It would extend the minimum supplemental benefit to all teachers who retired prior to July 1, 1980, as opposed to July 1, 1970, under current law. It would also modestly raise the minimum annual benefit from $500 to $550 per year of New York state service up to a 35 year maximum of $19,250 (versus $17,500 currently). The Retirement Board believes this measure represents appropriate relief for the most deserving segment of the retired membership body. It is anticipated that approximately 1,200 of the longest retired teachers would benefit from this bill.

Effective Date of the Bill

This act shall take effect June 30, 2013, except that if this act shall have become a law on or after June 30, 2013 this act. shall take effect immediately and shall be deemed to have been in full force and effect on and after June 30, 2013.

Other Agencies to Whom the Bill May Be of Interest

Division of the Budget, Department of Financial Services.

Budgetary Implications of the Bill

The annual cost to the employers of members of the New York State Teachers' Retirement System for this benefit is estimated to be $1.0 million or .01% of payroll.


Text

STATE OF NEW YORK ________________________________________________________________________ 4496 2013-2014 Regular Sessions IN SENATE April 3, 2013 ___________
Introduced by Sen. LIBOUS -- (at request of the New York State Teachers' Retirement System) -- read twice and ordered printed, and when printed to be committed to the Committee on Civil Service and Pensions AN ACT to amend the education law, in relation to the minimum retirement allowance for members of the New York state teachers' retirement system who retired prior to July 1, 1980 THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Paragraph 1 of subdivision e of section 532 of the educa- tion law, as amended by chapter 580 of the laws of 2001, is amended to read as follows: 1. Each pensioner of the retirement system who retired before July first, nineteen hundred [seventy] EIGHTY shall be paid, commencing with a payment for the month of July two thousand [one] THIRTEEN a basic supplemental pension, the total of which when added to his OR HER yearly retirement allowance computed without optional modification, but exclud- ing any annuity derived from contributions made by members pursuant to paragraphs a and b of subdivision three of section five hundred sixteen, section five hundred twenty-eight, section five hundred twenty-nine, section five hundred thirty, section five hundred thirty-three and section five hundred thirty-five of this article, shall equal the lesser of [seventeen thousand five hundred] NINETEEN THOUSAND TWO HUNDRED FIFTY dollars or the sum of five hundred FIFTY dollars multiplied by the number of years of full-time New York state service not to exceed thir- ty-five years with which he OR SHE was credited at the time of his OR HER retirement. S 2. This act shall take effect June 30, 2013, except that if this act shall have become law on or after June 30, 2013, this act shall take effect immediately and shall be deemed to have been in full force and effect on and after June 30, 2013. FISCAL NOTE.--Pursuant to Legislative Law, Section 50:

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Discuss!

blog comments powered by Disqus