Bill S5767-2013

Relates to authorizing former employees of the state university of New York NY Network to retain membership in the optional retirement program

Relates to authorizing former employees of the state university of New York NY Network to retain membership in the optional retirement program.

Details

Actions

  • Jun 20, 2013: SUBSTITUTED BY A7586
  • Jun 20, 2013: ORDERED TO THIRD READING CAL.1567
  • Jun 20, 2013: COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • Jun 13, 2013: REFERRED TO CIVIL SERVICE AND PENSIONS

Votes

Memo

BILL NUMBER:S5767

TITLE OF BILL: An act in relation to authorizing former employees of the State University of New York NY Network to retain membership in the optional retirement program

PURPOSE: This legislation will allow former employees of the soon to be defunct SUNY NYNetwork an opportunity to elect to be reinstated as members of the SUNY Optional Retirement Plan (ORP). The provisions of this legislation will impact less than 15 employees.

SUMMARY OF PROVISIONS: This legislation amends the retirement and social security law by adding a new section 120, and the education law, section 393 by adding a new subdivision 6 law to allow for the effected members to elect to be reinstated as members of the SUNY Optional. Retirement Plan (ORP).

JUSTIFICATION: The SUNY NY Network will cease final operations as of June 7, 2013. Some of the employees of the SUNY NY Network (less than 15) will be or have been moved into positions in the Office of General Services and therefore are required to become members of the New York State & Local Employees' Retirement System (NYSLERS) and end their membership in the Optional Retirement Program (ORP).

The majority of these employees have over ten years of credited service In the ORP and will see a dramatic loss in retirement security going forward through no fault of their own if they are not allowed to rejoin such program. The enactment of this legislation is needed to rectify this unfair and problematic situation.

LEGISLATIVE HISTORY: New bill.

FISCAL IMPLICATIONS: Minimal given that proposed changes will impact less than fifteen members of NYSLERS.

EFFECTIVE DATE: Thirty days after enactment.


Text

STATE OF NEW YORK ________________________________________________________________________ 5767 2013-2014 Regular Sessions IN SENATE June 13, 2013 ___________
Introduced by Sen. GOLDEN -- read twice and ordered printed, and when printed to be committed to the Committee on Civil Service and Pensions AN ACT in relation to authorizing former employees of the State Univer- sity of New York NY Network to retain membership in the optional retirement program THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Legislative intent. It is the intent of the legislature to allow former employees of the State University of New York NY Network who were transferred to positions within the New York state office of general services to elect to be reinstated as members of the State University of New York optional retirement program. S 2. Short title. An act authorizing former employees of the State University of New York NY Network to retain membership in the optional retirement program. S 3. Definitions. (a) "Employee" shall mean a former employee of the State University of New York NY Network; (b) "optional retirement program" shall mean the State University of New York optional retirement program. S 4. General provisions. Notwithstanding any other provision of law, employees who were members of the optional retirement program during their employment at the NY Network and who are now in the employ of the state of New York office of general services and became members of the New York state employees' retirement system may elect to be reinstated to the optional retirement program and terminate their membership in the New York state employees' retirement system. S 5. Notice of election. Such reinstatement to the optional retirement program from the New York state employees' retirement system must be notarized and submitted in writing to the office of general services within ninety days after the enactment of this special act, such rein- statement shall be irrevocable and will terminate the electors' member-
ship in the New York state employees' retirement system. The office of general services shall provide written notice of this election to the New York state employees' retirement system no less than thirty days after the notice was received. S 6. Payment of employer contribution rate. The state of New York shall make the required employer contributions for such employees who elect to reinstate their membership in the optional retirement program pursuant to this special act and the state university of New York shall administer such employee's membership in the optional retirement program. The New York state employees' retirement system shall be authorized to reimburse the state of New York for any employer contrib- ution made on behalf of any employee electing to be reinstated into the optional retirement plan. S 7. This act shall take effect thirty days after it shall become law. FISCAL NOTE: Pursuant to Legislative law, Section 50: This bill will allow former employees of the NY Network of the state university of New York to who are currently employees of the Office of General Services to elect to leave their current membership in the New York State and Local Employees Retirement System (ERS) and be reinstated as members in the Optional Retirement Program (ORP). The ERS shall be authorized to reimburse the State of New York for any employer contrib- ution made on behalf of any employee electing to be reinstated into the optional retirement plan. If this bill is enacted, there would not be a cost to ERS. Summary of relevant resources: Data: March 31, 2012 Actuarial Year End File with distributions of membership and other statistics displayed in the 2012 Report of the Actuary and 2012 Comprehensive Annual Financial Report. Assumptions and Methods: 2010, 2011 and 2012 Annual Report to the Comptroller on Actuarial Assumptions, Codes Rules and Regulations of the State of New York: Audit and Control. Market Assets and GASB Disclosures: March 31, 2012 New York State and Local Retirement System Financial Statements and Supplementary Informa- tion. Valuations of Benefit Liabilities and Actuarial Assets: summarized in the 2012 Actuarial Valuations report. I am a member of the American Academy of Actuaries and meet the Quali- fication Standards to render the actuarial opinion contained herein. This estimate, dated May 16, 2013, and intended for use only during the 2013 Legislative Session, is Fiscal Note No. 2013-153, prepared by the Actuary for the New York State and Local Employees' Retirement System.

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