Bill S5162B-2013

Allows a change in retirement options for certain retired members with the consent of the nominated survivor beneficiary

Allows a change in retirement options for certain retired members of the New York state teachers' retirement system or the New York city teachers' retirement system with the consent of the nominated survivor beneficiary.

Details

Actions

  • Jan 8, 2014: REFERRED TO CIVIL SERVICE AND PENSIONS
  • Jan 8, 2014: returned to senate
  • Jan 8, 2014: died in assembly
  • Jun 18, 2013: referred to governmental employees
  • Jun 18, 2013: DELIVERED TO ASSEMBLY
  • Jun 18, 2013: PASSED SENATE
  • Jun 18, 2013: ORDERED TO THIRD READING CAL.1450
  • Jun 18, 2013: COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • Jun 6, 2013: PRINT NUMBER 5162B
  • Jun 6, 2013: AMEND AND RECOMMIT TO CIVIL SERVICE AND PENSIONS
  • May 30, 2013: PRINT NUMBER 5162A
  • May 30, 2013: AMEND AND RECOMMIT TO CIVIL SERVICE AND PENSIONS
  • May 13, 2013: REFERRED TO CIVIL SERVICE AND PENSIONS

Votes

Memo

BILL NUMBER:S5162B

TITLE OF BILL: 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

PURPOSE: Allows a change in the retirement options for retired members of the New York State Teachers' Retirement System (NYSTRS) or the New York City Teachers' Retirement System (NYCTRS) with the consent of the nominated survivor beneficiary.

SUMMARY OF PROVISIONS:

§ 1 - amends § 514 of the Retirement and Social Security Law by adding a new subdivision e to provide for the option of post-retirement beneficiary changes with nominated survivors consent for members of NYCTRS.

§ 2 amends § 610 of the Retirement and Social Security Law by adding a new subdivision g to provide for the option of post-retirement beneficiary changes with nominated survivors consent for members of NYCTRS.

§ 3 - amends § 539 of the Education Law by adding a new subdivision 8 to provide for the option of post-retirement beneficiary changes with nominated survivors consent for members of NYSTRS.

§ 4 - This legislation shall take effect on June 30, 2013, except that if this act shall take effect after this date it shall be deemed to have been in full force and effect on or after June 30, 2013.

EXISTING LAW: Under NYC Administrative Code 13-565 (c) - Tier I and Tier II retired members of NYCTRS are provided this option with consent of the nominated beneficiary. This bill would expand this option to retirees in all tiers of NYCTRS and NYSTRS with the same nominated beneficiary consent.

JUSTIFICATION: Since divorce has become fairly commonplace with nearly 50 percent of all marriages ending in divorce -the concept of an unchangeable option of providing a lifelong benefit to the spouse of a member of a retirement system is no longer suitable.

Current law is punitive in nature for any retiree whose marriages dissolve after retirement options have been chosen. Requiring that a divorced spouse continue to pay toward the maintenance of a spouse that may agree to give up this compensation is an unnecessary drain on resources of the member of the retirement system.

Much the same way both parties are allowed to agree to legally end their marriage, these same adults should be given the option to reverse this retirement decision as their marital situation changes.

For the aforementioned reasons and in light of the fact that this option already being permitted to certain members of the NYCTRS this option should be expanded to all members of NYCTRS and NYSTRS.

LEGISLATIVE HISTORY: New Legislation for the 2012 Session - S.7610 referred to Civil Service and Pensions with no further action.

FISCAL IMPLICATIONS: NYCTRS -To the extent that the probabilities of survival of the retiree and the beneficiary designated under the optional form of benefit have not changes 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 of Benefits or in employer costs. It will result in some administrative expenses for NYCTRS.

NYSTRS - The annual cost to the employers of members of the NYSTRS for this benefit is estimated to be very low, likely less than $200,000 per year.

EFFECTIVE DATE: This legislation shall take effect on June 30, 2013, except that if this act shall take effect after this date it shall be deemed to have been in full force and effect on or after June 30, 2013.


Text

STATE OF NEW YORK ________________________________________________________________________ 5162--B 2013-2014 Regular Sessions IN SENATE May 13, 2013 ___________
Introduced by Sen. SAVINO -- read twice and ordered printed, and when printed to be committed to the Committee on Civil Service and Pensions -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said commit- tee 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 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

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