Bill S4496A-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

  • Feb 24, 2014: PRINT NUMBER 4496A
  • Feb 24, 2014: AMEND AND RECOMMIT TO CIVIL SERVICE AND PENSIONS
  • Jan 8, 2014: REFERRED TO CIVIL SERVICE AND PENSIONS
  • Apr 3, 2013: REFERRED TO CIVIL SERVICE AND PENSIONS

Memo

BILL NUMBER:S4496A

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, 2014, except that if this act shall have become a law on or after June 30, 2014 this act shall take effect immediately and shall be deemed to have been in full force and effect on and after June 30, 2014.

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--A 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 -- recommitted to the Committee on Civil Service and Pensions in accord- ance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee 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] FOURTEEN 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, 2014, except that if this act shall have become law on or after June 30, 2014, this act shall take
effect immediately and shall be deemed to have been in full force and effect on and after June 30, 2014. FISCAL NOTE.--Pursuant to Legislative Law, Section 50: This bill would extend the minimum retirement benefit provision for retirees of the New York State Teachers' Retirement System contained in Section 532(e) of the Education Law to members who retired before July 1, 1980. Currently only members who retired before July 1, 1970 are eligible. Additionally the minimum annual benefit would be increased to $550 for each year of credited full-time New York State service, up to 35 years, for a maximum benefit of $19,250. The benefit is currently $500 for each year up to 35, for a maximum benefit of $17,500. The increased benefit would commence with a payment for the month of July 2014. The annual cost to the employers of members of the New York State Teachers' Retirement System for this benefit is estimated to be $830,000 or .01% of payroll. The source of this estimate is Fiscal Note 2014-1 dated September 25, 2013 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.

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