S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6092
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 28, 2019
                                ___________
 
 Introduced  by  M.  of  A.  ABBATE  -- (at request of the New York State
   Teachers' Retirement System) -- read once and referred to the  Commit-
   tee on Governmental Employees
 
 AN ACT to amend the education law, in relation to the minimum retirement
   allowance  for  members  of  the  New  York state teachers' retirement
   system who retired prior to July 1, 1980
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Paragraph 1 of subdivision e of section 532 of the educa-
 tion law, as amended by chapter 580 of  the laws of 2001, is amended  to
 read as follows:
   1.  Each  pensioner  of  the retirement system who retired before July
 first, nineteen hundred [seventy] EIGHTY shall be paid, commencing  with
 a  payment  for  the  month  of July two thousand [one] NINETEEN a basic
 supplemental pension, the total of which when added to his OR HER yearly
 retirement allowance computed without optional modification, but exclud-
 ing any annuity derived from contributions made by members  pursuant  to
 paragraphs a and b of subdivision three of section five hundred sixteen,
 section  five  hundred  twenty-eight,  section five hundred twenty-nine,
 section five hundred  thirty,  section  five  hundred  thirty-three  and
 section five hundred thirty-five of this article, shall equal the lesser
 of [seventeen thousand five hundred] NINETEEN THOUSAND TWO HUNDRED FIFTY
 dollars  or  the  sum  of  five  hundred FIFTY dollars multiplied by the
 number of years of full-time New York state service not to exceed  thir-
 ty-five  years  with  which he OR SHE was credited at the time of his OR
 HER retirement.
   § 2. This act shall take effect June 30, 2019, except that if this act
 shall have become a law on or after June 30, 2019, this act  shall  take
 effect  immediately  and  shall be deemed to have been in full force and
 effect on and after June 30, 2019.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD09732-02-9

 A. 6092                             2
 
   This bill would extend the minimum retirement  benefit  provision  for
 retirees  of the New York State Teachers' Retirement System contained in
 Section 532(e) of the Education Law to members who retired  before  July
 1,  1980.  Currently  only  members  who retired before July 1, 1970 are
 eligible.  Additionally the minimum annual benefit would be increased to
 $550 for each year of credited full-time New York State service,  up  to
 35  years,  for  a  maximum benefit of $19,250. The benefit is currently
 $500 for each year up to 35, for  a  maximum  benefit  of  $17,500.  The
 increased  benefit  would  commence with a payment for the month of July
 2019.
   The annual cost to the employers of members  of  the  New  York  State
 Teachers' Retirement System for this benefit is estimated to be $355,000
 or .002% of payroll if this bill is enacted.
   Member  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
 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  2019-1  dated  October  5,
 2018  prepared by the Actuary of the New York State Teachers' Retirement
 System and is intended for use only during the 2019 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.