NY State Senate Bill 2015-S5790

Senate Bill S5790

2015-2016 Legislative Session

Relates to the form of payment of retirement benefits for certain public retirees and beneficiaries

download bill text pdf

Archive: Last Bill Status - In Senate Committee Civil Service And Pensions Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

Please enter your contact information

First Name

Last Name

Email Address

A valid email address is required.

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.

Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2016	referred to civil service and pensions
Jun 03, 2015	referred to civil service and pensions

2015-S5790 (ACTIVE) - Details

See Assembly Version of this Bill:: A5055
Current Committee:: Senate Civil Service And Pensions
Law Section:: Retirement and Social Security Law
Laws Affected:: Amd §§100 & 400, R & SS L
Versions Introduced in 2013-2014 Legislative Session:: A7784

2015-S5790 (ACTIVE) - Summary

Relates to the form of payment of retirement benefits for certain public retirees and beneficiaries; requires the payment of retirement benefits by the New York state and local employees' retirement system and the New York state and local police and fire retirement system by direct deposit or debit card.

2015-S5790 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S5790

TITLE OF BILL:  An act to amend the retirement and social security
law, in relation to the form of payment of retirement benefits for
certain public retirees and beneficiaries

PURPOSE: To require the payment of retirement benefits by the New York
State and Local Retirement System by direct deposit or debit card,
with the transition to the new method of payment being made
incrementally.

SUMMARY OF PROVISIONS: Section 1 of this bill would amend Section 100
of the Retirement and Social Security Law so retirement benefits shall
be paid to retirees and beneficiaries of the New York State and Local
Employees' Retirement System by direct deposit or debit card.  The
comptroller shall determine when the provisions of this bill shall
take effect but it will be no sooner than January 1, 2017 for all
current and future retirees and beneficiaries of the New York State
and Local Employees' Retirement System. Additionally, this section
allows a retiree or beneficiary of the New York State and Local
Employees' Retirement System to submit a request for exemption from
this requirement from such System.

Section 2 of this bill would amend Section 400 of the Retirement and
Social Security Law so retirement benefits shall be paid to retirees
and beneficiaries of the New York State and Local Police and Fire

Retirement System by direct deposit or debit card. The comptroller
shall determine when the provisions of this bill shall take effect but
it will be no sooner than January 1, 2017 for all current and future
retirees and beneficiaries of the New York State and Local Police and
Fire Retirement System. Additionally, this section allows a retiree or
beneficiary of the New York State and Local Police and Fire Retirement
System to submit a request for exemption from this requirement from
such System.

PRIOR LEGISLATIVE HISTORY: S.5608-A and A.7784-A of 2013-2014

JUSTIFICATION: As of May 1, 2011, the United States Department of the
Treasury requires recipients of federal nontax payments, including
social security payments, to receive payment by electronic funds
transfer (EFT). Additionally, many states, including Florida and Ohio,
already require the payment of retirement benefits by EFT. EFT
benefits recipients by eliminating the risks of theft, non-delivery,
or loss of checks. EFT funds are securely transferred with no risk of
delay or loss.

The New York State and Local Retirement System has heard from numerous
retirees and beneficiaries about the hardships they faced when a
retirement check has been lost or misdirected through the mail. The
most recent examples came in the aftermath of Hurricane Sandy, when
many checks were lost. These payment-related problems for check
recipients would have been avoided had such recipients received their
retirement benefits by EFT. Additionally, there are extra costs to the
New York State and Local Retirement System associated with payments to
retirees and beneficiaries by paper check.


For persons who may not have access to a bank account, this
legislation authorizes payment of benefits by means of a debit card.
The benefit recipient would be able to access their funds through an
automatic teller machine or other device that accepts debit cards.

Because of the financial advantages and added convenience, most New
York State and Local Retirement System members already use direct
deposit. In recognition of the fact that there may be certain
situations where a paper check is warranted, this legislation allows a
retiree or beneficiary of the New York State and Local Retirement
System to submit a request to such System for a waiver from the
requirement to be paid by EFT.

The State Comptroller urges the passage of this proposed legislation.

FISCAL IMPLICATIONS FOR STATE This bill would result in a modest
financial savings to the New York State and Local Retirement System.

EFFECTIVE DATE : This act shall take effect on the one hundred
eightieth day after it shall have become a law.

2015-S5790 (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  5790

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                              June 3, 2015
                               ___________

Introduced  by Sen. GALLIVAN -- (at request of the State Comptroller) --
  read twice and ordered printed, and when printed to  be  committed  to
  the Committee on Civil Service and Pensions

AN  ACT  to amend the retirement and social security law, in relation to
  the form of payment of retirement benefits for certain public retirees
  and beneficiaries

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Section  100 of the retirement and social security law is
amended to read as follows:
  S 100. Payment of retirement allowances.    A.  Retirement  allowances
shall  be  payable on the first day of each and every month beginning on
the first day of the month following the effective date  of  retirement.
Upon  the  death  of a retired member, however, the retirement allowance
due for that part of the month prior to his OR HER death shall  be  paid
forthwith.
  B.  1. BEGINNING ON A DATE TO BE DETERMINED BY THE COMPTROLLER, BUT NO
SOONER THAN JANUARY FIRST, TWO THOUSAND SEVENTEEN, ANY RETIREMENT  BENE-
FIT  PAID  IN REGULAR PERIODIC INSTALLMENTS TO A PERSON WHO IS A RETIREE
OR BENEFICIARY OF THE RETIREMENT SYSTEM PRIOR TO, ON OR AFTER THE EFFEC-
TIVE DATE OF THIS SUBDIVISION SHALL BE MADE BY DIRECT DEPOSIT  OR  DEBIT
CARD,  AS ELECTED BY SUCH RETIREE OR BENEFICIARY, AND ADMINISTERED ELEC-
TRONICALLY, IN ACCORDANCE WITH SUCH GUIDELINES AS MAY BE  SET  FORTH  BY
THE  RETIREMENT  SYSTEM.  THE  RETIREMENT SYSTEM SHALL NOTIFY ANY OF ITS
RETIREES AND  BENEFICIARIES  THAT  ARE  CURRENTLY  NOT  RECEIVING  THEIR
RETIREMENT PAYMENT BY DIRECT DEPOSIT OF THE PROVISIONS OF THIS PARAGRAPH
PRIOR TO SUCH PARAGRAPH BEING IMPLEMENTED.
  2.  A  RETIREE  OR BENEFICIARY MAY SUBMIT A REQUEST FOR EXEMPTION FROM
PARAGRAPH ONE OF THIS SUBDIVISION ON A FORM PROVIDED BY  THE  RETIREMENT
SYSTEM. THE RETIREMENT SYSTEM MAY APPROVE SUCH REQUEST PURSUANT TO REGU-
LATIONS PROMULGATED BY THE COMPTROLLER UPON A DEMONSTRATION OF HARDSHIP.
  S  2.  Section 400 of the retirement and social security law, as added
by chapter 1000 of the laws of 1966, is amended to read as follows:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                      [ ] is old law to be omitted.
                                                           LBD04139-02-5

S. 5790                             2

  S 400. Payment of retirement allowances.    A.  Retirement  allowances
shall  be  payable on the first day of each and every month beginning on
the first day of the month following the effective date  of  retirement.
Upon  the  death  of a retired member, however, the retirement allowance
due  for  that part of the month prior to his OR HER death shall be paid
forthwith.
  B. 1. BEGINNING ON A DATE TO BE DETERMINED BY THE COMPTROLLER, BUT  NO
SOONER  THAN JANUARY FIRST, TWO THOUSAND SEVENTEEN, ANY RETIREMENT BENE-
FIT PAID IN REGULAR PERIODIC INSTALLMENTS TO A PERSON WHO IS  A  RETIREE
OR BENEFICIARY OF THE RETIREMENT SYSTEM PRIOR TO, ON OR AFTER THE EFFEC-
TIVE  DATE  OF THIS SUBDIVISION SHALL BE MADE BY DIRECT DEPOSIT OR DEBIT
CARD, AS ELECTED BY SUCH RETIREE OR BENEFICIARY, AND ADMINISTERED  ELEC-
TRONICALLY,  IN  ACCORDANCE  WITH SUCH GUIDELINES AS MAY BE SET FORTH BY
THE RETIREMENT SYSTEM. THE RETIREMENT SYSTEM SHALL  NOTIFY  ANY  OF  ITS
RETIREES  AND  BENEFICIARIES  THAT  ARE  CURRENTLY  NOT  RECEIVING THEIR
RETIREMENT PAYMENT BY DIRECT DEPOSIT OF THE PROVISIONS OF THIS PARAGRAPH
PRIOR TO SUCH PARAGRAPH BEING IMPLEMENTED.
  2. A RETIREE OR BENEFICIARY MAY SUBMIT A REQUEST  FOR  EXEMPTION  FROM
PARAGRAPH  ONE  OF THIS SUBDIVISION ON A FORM PROVIDED BY THE RETIREMENT
SYSTEM. THE RETIREMENT SYSTEM MAY APPROVE SUCH REQUEST PURSUANT TO REGU-
LATIONS PROMULGATED BY THE COMPTROLLER UPON A DEMONSTRATION OF HARDSHIP.
  S 3. This act shall take effect on the one hundred eightieth day after
it shall have become a law. Effective  immediately  the  comptroller  is
authorized  to  promulgate  any rules and regulations and take any other
measures necessary to implement this act on its effective date.
  FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
  This bill would require the payment of retirement benefits by the  New
York State and Local Employees' Retirement System (ERS) and the New York
State  and  Local  Police  and  Fire  Retirement System (PFRS) by direct
deposit or debit card, beginning on a date to be determined by the comp-
troller, but no sooner than January 1, 2017. A retiree or beneficiary of
these Systems prior to, on or after the  effective  date  of  this  bill
shall elect either form of payment. Additionally this bill would allow a
retiree  or  beneficiary  to  submit  a  request for exemption from this
requirement.
  If this bill is enacted, we anticipate that the printing  and  postage
savings will exceed the small initial administrative costs.
  Summary of relevant resources:
  The  membership  data  used  in  measuring  the impact of the proposed
change was the same as that used in the March 31, 2014  actuarial  valu-
ation.    Distributions  and  other  statistics can be found in the 2014
Report of the  Actuary  and  the  2014  Comprehensive  Annual  Financial
Report.
  The  actuarial assumptions and methods used are described in the 2010,
2011, 2012, 2013 and 2014 Annual Report to the Comptroller on  Actuarial
Assumptions,  and  the  Codes  Rules and Regulations of the State of New
York: Audit and Control.
  The Market Assets and GASB Disclosures are found in the March 31, 2014
New York State and Local  Retirement  System  Financial  Statements  and
Supplementary Information.
  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  January  12,  2015,  and intended for use only
during the  2015  Legislative  Session,  is  Fiscal  Note  No.  2015-28,
prepared by the Actuary for the ERS and PFRS.

Comments

Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.

Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. 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.

Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.