S T A T E O F N E W Y O R K
________________________________________________________________________
7007
2015-2016 Regular Sessions
I N A S S E M B L Y
April 17, 2015
___________
Introduced by M. of A. ABBATE -- Multi-Sponsored by -- M. of A. GOLDFED-
ER -- read once and referred to the Committee on Governmental Employ-
ees
AN ACT to amend the education law, the retirement and social security
law and the administrative code of the city of New York, in relation
to permitting members of the New York state and New York city teach-
ers' retirement systems to claim retirement credit for certain federal
teaching service
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivision 2 of section 509 of the education law is
amended by adding a new paragraph d to read as follows:
D. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, A MEMBER SHALL BE ENTI-
TLED TO OBTAIN CREDIT FOR UP TO TEN YEARS OF SERVICE OTHER THAN MILITARY
SERVICE RENDERED IN THE EMPLOY OF THE FEDERAL GOVERNMENT, INCLUDING
SERVICE IN THE PEACE CORPS, VISTA, OR HEAD START, WHICH WOULD CONSTITUTE
SERVICE AS A TEACHER, HAD IT BEEN PERFORMED WITHIN NEW YORK STATE FOR AN
EMPLOYER SUBJECT TO THE PROVISIONS OF THIS ARTICLE. THE CREDITING OF
SERVICE PURSUANT TO THIS PARAGRAPH SHALL BE IN ACCORDANCE WITH RULES AND
REGULATIONS AS SHALL BE ADOPTED BY THE RETIREMENT BOARD, PROVIDED THAT
SUCH RULES AND REGULATIONS SHALL BE SUBSTANTIALLY EQUIVALENT TO THE
RULES AND REGULATIONS OTHERWISE APPLICABLE FOR THE CREDITING OF SERVICE
PURSUANT TO THIS SECTION. PROVIDED, HOWEVER, NO SUCH CREDIT SHALL BE
ALLOWED FOR ANY SERVICE FOR WHICH THE PERSON IS RECEIVING A BENEFIT OR
WILL BE ENTITLED TO RECEIVE A BENEFIT AT ANY FUTURE TIME FROM SOME OTHER
PUBLIC OR PRIVATE RETIREMENT SYSTEM OR PLAN IN THIS STATE, IN ANY OTHER
STATE OR FROM THE FEDERAL GOVERNMENT.
S 2. Section 446 of the retirement and social security law is amended
by adding a new subdivision k to read as follows:
K. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, A MEMBER OF A TEACHERS'
RETIREMENT SYSTEM SUBJECT TO THE PROVISIONS OF THIS ARTICLE SHALL BE
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10512-01-5
A. 7007 2
ENTITLED TO OBTAIN CREDIT FOR UP TO TEN YEARS OF SERVICE OTHER THAN
MILITARY SERVICE RENDERED IN THE EMPLOY OF THE FEDERAL GOVERNMENT,
INCLUDING SERVICE IN THE PEACE CORPS, VISTA, OR HEAD START, WHICH WOULD
CONSTITUTE SERVICE AS A TEACHER, HAD IT BEEN PERFORMED WITHIN NEW YORK
STATE FOR AN EMPLOYER SUBJECT TO THE PROVISIONS OF THIS ARTICLE. THE
CREDITING OF SERVICE PURSUANT TO THIS SUBDIVISION SHALL BE IN ACCORDANCE
WITH RULES AND REGULATIONS AS SHALL BE ADOPTED BY THE RETIREMENT BOARD
OF SUCH RETIREMENT SYSTEM, PROVIDED THAT SUCH RULES AND REGULATIONS
SHALL BE SUBSTANTIALLY EQUIVALENT TO THE RULES AND REGULATIONS OTHERWISE
APPLICABLE FOR THE CREDITING OF SERVICE PURSUANT TO THIS SECTION.
PROVIDED, HOWEVER, NO SUCH CREDIT SHALL BE ALLOWED FOR ANY SERVICE FOR
WHICH THE PERSON IS RECEIVING A BENEFIT OR WILL BE ENTITLED TO RECEIVE A
BENEFIT AT ANY FUTURE TIME FROM SOME OTHER PUBLIC OR PRIVATE RETIREMENT
SYSTEM OR PLAN IN THIS STATE, IN ANY OTHER STATE OR FROM THE FEDERAL
GOVERNMENT.
S 3. Section 513 of the retirement and social security law is amended
by adding a new subdivision i to read as follows:
I. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, A MEMBER OF A TEACHERS'
RETIREMENT SYSTEM SUBJECT TO THE PROVISIONS OF THIS ARTICLE SHALL BE
ENTITLED TO OBTAIN CREDIT FOR UP TO TEN YEARS OF SERVICE OTHER THAN
MILITARY SERVICE RENDERED IN THE EMPLOY OF THE FEDERAL GOVERNMENT,
INCLUDING SERVICE IN THE PEACE CORPS, VISTA, OR HEAD START, WHICH WOULD
CONSTITUTE SERVICE AS A TEACHER, HAD IT BEEN PERFORMED WITHIN NEW YORK
STATE FOR AN EMPLOYER SUBJECT TO THE PROVISIONS OF THIS ARTICLE,
PROVIDED SUCH MEMBER MAKES THE PAYMENTS REQUIRED PURSUANT TO THE
PROVISIONS OF SECTION FIVE HUNDRED SEVENTEEN OF THIS ARTICLE. THE CRED-
ITING OF SERVICE PURSUANT TO THIS SUBDIVISION SHALL BE IN ACCORDANCE
WITH RULES AND REGULATIONS AS SHALL BE ADOPTED BY THE RETIREMENT BOARD
OF SUCH RETIREMENT SYSTEM, PROVIDED THAT SUCH RULES AND REGULATIONS
SHALL BE SUBSTANTIALLY EQUIVALENT TO THE RULES AND REGULATIONS OTHERWISE
APPLICABLE FOR THE CREDITING OF SERVICE PURSUANT TO THIS SECTION.
PROVIDED, HOWEVER, NO SUCH CREDIT SHALL BE ALLOWED FOR ANY SERVICE FOR
WHICH THE PERSON IS RECEIVING A BENEFIT OR WILL BE ENTITLED TO RECEIVE A
BENEFIT AT ANY FUTURE TIME FROM SOME OTHER PUBLIC OR PRIVATE RETIREMENT
SYSTEM OR PLAN IN THIS STATE, IN ANY OTHER STATE OR FROM THE FEDERAL
GOVERNMENT.
S 4. Section 609 of the retirement and social security law is amended
by adding a new subdivision i to read as follows:
I. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, A MEMBER OF A TEACHERS'
RETIREMENT SYSTEM SUBJECT TO THE PROVISIONS OF THIS ARTICLE SHALL BE
ENTITLED TO OBTAIN CREDIT FOR UP TO TEN YEARS OF SERVICE OTHER THAN
MILITARY SERVICE RENDERED IN THE EMPLOY OF THE FEDERAL GOVERNMENT,
INCLUDING SERVICE IN THE PEACE CORPS, VISTA, OR HEAD START, WHICH WOULD
CONSTITUTE SERVICE AS A TEACHER, HAD IT BEEN PERFORMED WITHIN NEW YORK
STATE FOR AN EMPLOYER SUBJECT TO THE PROVISIONS OF THIS ARTICLE,
PROVIDED SUCH MEMBER MAKES THE PAYMENTS REQUIRED PURSUANT TO THE
PROVISIONS OF SECTION SIX HUNDRED THIRTEEN OF THIS ARTICLE AND PARAGRAPH
TWO OF SUBDIVISION B OF THIS SECTION. THE CREDITING OF SERVICE PURSUANT
TO THIS SUBDIVISION SHALL BE IN ACCORDANCE WITH RULES AND REGULATIONS AS
SHALL BE ADOPTED BY THE RETIREMENT BOARD OF SUCH RETIREMENT SYSTEM,
PROVIDED THAT SUCH RULES AND REGULATIONS SHALL BE SUBSTANTIALLY EQUIV-
ALENT TO THE RULES AND REGULATIONS OTHERWISE APPLICABLE FOR THE CREDIT-
ING OF SERVICE PURSUANT TO THIS SECTION. PROVIDED, HOWEVER, NO SUCH
CREDIT SHALL BE ALLOWED FOR ANY SERVICE FOR WHICH THE PERSON IS RECEIV-
ING A BENEFIT OR WILL BE ENTITLED TO RECEIVE A BENEFIT AT ANY FUTURE
A. 7007 3
TIME FROM SOME OTHER PUBLIC OR PRIVATE RETIREMENT SYSTEM OR PLAN IN THIS
STATE, IN ANY OTHER STATE OR FROM THE FEDERAL GOVERNMENT.
S 5. Subparagraph (d) of paragraph 3 of subdivision a of section
13-505 of the administrative code of the city of New York is amended to
read as follows:
(d) Credit for such prior service up to a maximum of fifteen years
shall be given only if application and payment therefor is made by the
contributor within the first four years subsequent to membership in the
New York city teachers' retirement system or before December thirty-
first, [nineteen hundred sixty-nine] TWO THOUSAND SIXTEEN, whichever is
later.
S 6. Subdivision a of section 13-505 of the administrative code of the
city of New York is amended by adding a new paragraph 10 to read as
follows:
10. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, A MEMBER SHALL BE
ENTITLED TO OBTAIN CREDIT FOR UP TO TEN YEARS OF SERVICE OTHER THAN
MILITARY SERVICE RENDERED IN THE EMPLOY OF THE FEDERAL GOVERNMENT,
INCLUDING SERVICE IN THE PEACE CORPS, VISTA, OR HEAD START, WHICH WOULD
CONSTITUTE SERVICE AS A TEACHER, HAD IT BEEN PERFORMED WITHIN NEW YORK
STATE FOR AN EMPLOYER SUBJECT TO THE PROVISIONS OF THIS CHAPTER. THE
CREDITING OF SERVICE PURSUANT TO THIS PARAGRAPH SHALL BE IN ACCORDANCE
WITH RULES AND REGULATIONS AS SHALL BE ADOPTED BY THE RETIREMENT BOARD,
PROVIDED THAT SUCH RULES AND REGULATIONS SHALL BE SUBSTANTIALLY EQUIV-
ALENT TO THE RULES AND REGULATIONS OTHERWISE APPLICABLE FOR THE CREDIT-
ING OF SERVICE PURSUANT TO THIS SECTION. PROVIDED, HOWEVER, NO SUCH
CREDIT SHALL BE ALLOWED FOR ANY SERVICE FOR WHICH THE PERSON IS RECEIV-
ING A BENEFIT OR WILL BE ENTITLED TO RECEIVE A BENEFIT AT ANY FUTURE
TIME FROM SOME OTHER PUBLIC OR PRIVATE RETIREMENT SYSTEM OR PLAN IN THIS
STATE, IN ANY OTHER STATE OR FROM THE FEDERAL GOVERNMENT.
S 7. This act shall take effect June 30, 2016.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
This bill would amend section 509 of the Education Law and sections
446, 513, and 609 of the Retirement and Social Security Law to permit
members of the New York State Teachers' Retirement System to claim
service credit for up to ten years of federal teaching service (includ-
ing Vista, Head Start, and the Peace Corps). Payments for such credit
must be made by those members subject to Article 14 of the Retirement
and Social Security Law in accordance with section 517 of such law and
by those members subject to Article 15 of the Retirement and Social
Security Law in accordance with section 613 and paragraph 2 of subdivi-
sion b of section 609 of such law.
It is not possible to determine the total annual cost to the employers
of members of the New York State Teachers' Retirement System since the
total amount of service credit which would be claimed under this bill
cannot be estimated. However, the cost to the employers of members of
the New York State Teachers' Retirement System is estimated to be
$21,700 per year of service credited for Tier 1 and 2 members, $21,000
per year of service credited for Tier 3 and 4 members, $20,900 per year
of service credited for Tier 5 members and $15,800 per year of service
for Tier 6 members if this bill is enacted. These costs would be offset
by member payments required in accordance with section 517 and section
613 and paragraph two of subdivision b of section 609 of the Retirement
and Social Security Law.
Employee data is from the System's most recent actuarial valuation
files, consisting of data provided by the employers to the Retirement
System. Data distributions and statistics can be found in the System's
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Comprehensive Annual Financial Report (CAFR). System assets are as
reported in the System's financial statements, and can also be found in
the CAFR. Actuarial assumptions and methods are provided in the System's
Actuarial Valuation Report.
The source of this estimate is Fiscal Note 2015-20 March 25, 2015
prepared by the Actuary of the New York State Teachers' Retirement
System and is intended for use only during the 2015 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.