Relates to creating access to the wage reporting system.
TITLE OF BILL: An act to amend the tax law, in relation to access to the wage reporting system
PURPOSE: To provide the New York State and Local Retirement System with access to the wage reporting system administered by the department of taxation and finance.
SUMMARY OF PROVISIONS: Section 1 of this bill amends Section 171-a of the Tax Law to provide the New York State and Local Retirement System with access to the wage reporting system administered by the department of taxation and finance.
Section 2 of this bill provides for an immediate effective date.
PRIOR LEGISLATIVE HISTORY: New Bill.
JUSTIFICATION: Sections 102, 211, 212 and 402 of the Retirement and Social Security Law place limits on the amount that may be earned by a retiree upon a return to public employment. The Comptroller and the New York State and Local Retirement System have a fiduciary obligation to suspend the payment of retirement benefits to retirees who re-enter the public workforce and whose salaries exceed the earnings limitations. At present, the New York State and Local Retirement System compares information with the Division of Payroll within the Office of the State Comptroller in an effort to identify retirees who have obtained employment with the state. However, no mechanism exists to carry out a similar search for retirees employed with the thousands of local public employers in the state. Access to the wage reporting system would provide such a mechanism. The Comptroller urges passage of this legislation.
BUDGET IMPLICATIONS: This bill has no significant fiscal impact.
EFFECTIVE DATE: This bill would be effective immediately after it was signed into law.
STATE OF NEW YORK ________________________________________________________________________ 5460 2011-2012 Regular Sessions IN SENATE May 24, 2011 ___________Introduced by Sen. GRIFFO -- (at request of the State Comptroller) -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations AN ACT to amend the tax law, in relation to access to the wage reporting system THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 171-a of the tax law, as added by chapter 545 of the laws of 1978, is amended by adding a new subdivision 6-b to read as follows: (6-B) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE COMMISSIONER SHALL ENTER INTO A COOPERATIVE AGREEMENT WITH THE STATE COMPTROLLER, WHICH AGREEMENT SHALL PROVIDE FOR THE UTILIZATION OF INFOR- MATION OBTAINED PURSUANT TO SUBDIVISION ONE OF THIS SECTION, FOR PURPOSES OF DETERMINING THE AMOUNT A RETIRED MEMBER OF A RETIREMENT SYSTEM OR PENSION PLAN ADMINISTERED BY THE STATE OR ANY OF ITS POLITICAL SUBDIVISIONS WHO RETURNS TO GAINFUL EMPLOYMENT HAS EARNED FOR THE PURPOSES OF SECTIONS ONE HUNDRED TWO, TWO HUNDRED ELEVEN, TWO HUNDRED TWELVE AND THREE HUNDRED TWO OF THE RETIREMENT AND SOCIAL SECURITY LAW. S 2. This act shall take effect immediately. FISCAL NOTE.--Pursuant to Legislative Law, Section 50: This bill would give the state Comptroller access to the wage report- ing system administered by the department of taxation and finance. This would enable the New York State and Local Employees' Retirement System and the New York State and Local Police and Fire Retirement System to verify that retirees who return to work for any public employer are earning less than the limits under Sections 102, 211, 212 and 302 of the Retirement and Social Security Law. If this bill is enacted, there would be no additional costs. However, utilization of this information could result in the partial recovery of the pensions of any retirees who earn in excess of these limits.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD11516-01-1 S. 5460 2 This estimate, dated December 17, 2010, and intended for use only during the 2011 Legislative Session, is Fiscal Note Number 2011-68 prepared by the Actuary for the New York State and Local Employees' Retirement System and the New York State and Local Police and Fire Retirement System.