S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7048
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               April 4, 2019
                                ___________
 
 Introduced by M. of A. JAFFEE -- read once and referred to the Committee
   on Governmental Employees
 
 AN  ACT  in relation to authorizing Thomas Collins to file a request for
   change of benefit coverage with the New York state  teachers'  retire-
   ment system
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Notwithstanding any other provision of law, Thomas Collins,
 who is currently a member of the New  York  state  teachers'  retirement
 system,  who  retired  from Pearl River School District on July 1, 2010,
 and who since his date of retirement  has  been  receiving  the  largest
 possible   retirement  benefit  under  the  maximum  retirement  benefit
 election, and who, for reasons not ascribable  to  his  own  negligence,
 even  upon  notice in 2010 from the retirement system of his election of
 the maximum retirement benefit election, failed to change his retirement
 option election prior to the expiration of the thirty days in accordance
 with article 11 of the education law and to nominate  his  wife  as  the
 beneficiary of the one hundred percent survivor option, shall be author-
 ized to change said maximum retirement option to the one hundred percent
 survivor  option,  if within one year of the effective date of this act,
 he shall file a written request on a form prescribed  by  the  New  York
 state  teachers'  retirement  system  with  the  head of said retirement
 system. Such change of benefit coverage shall be deemed to become effec-
 tive on July 1, 2010.
   § 2. Any  costs  attributable  to  implementation  of  the  retirement
 election  option  change, authorized by section one of this act, and the
 recovery for the overpayment received by Thomas Collins since  his  date
 of retirement to change his election from the maximum benefit to the one
 hundred  percent  joint  and  survivor option with Sandra Collins as the
 beneficiary, shall be borne by Thomas Collins. The costs shall be calcu-
 lated from the date of his retirement, July 1, 2010, to the date his new
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD06538-02-9

 A. 7048                             2
 
 retirement option election, filed in accordance with section one of this
 act, is deemed effective with the System and upon receipt of his payment
 for making said election. Any other costs attributable to the  implemen-
 tation of this act shall be borne by the employers of members of the New
 York state teachers' retirement system.
   § 3. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This bill would allow Thomas Collins, a retired member of the New York
 State  Teachers'  Retirement System, who elected the maximum single life
 benefit upon his date of retirement  of  July  1,  2010  to  change  his
 retirement  benefit to the 100% joint and survivor option benefit desig-
 nating his spouse Sandra Collins as beneficiary of such optional form of
 benefit. The 100% joint and survivor benefit determined as of  his  date
 of  retirement would be payable. Mr. Collins would be required to re-pay
 to the Retirement System the excess of the maximum single  life  benefit
 over  the  100%  joint  and survivor option benefit that he has received
 from his date of retirement through the effective date of the change  in
 his  benefit.  Mr.  Collins must file a written request with the head of
 the New York State Teachers' Retirement System within one  year  of  the
 effective date of this act.
   The  total  cost of this benefit cannot be determined. If this bill is
 enacted the Retirement System will be providing a  survivor  benefit  to
 Mr.  Collins'  spouse.  The ultimate cost of this benefit will be deter-
 mined by how long Mr. Collins and his spouse live. Mr. Collins would  be
 responsible  for re-paying the overpayments he has received, which total
 approximately $93,000. Allowing retired members to change their  benefit
 option after retirement undermines the pooling of longevity risk and the
 pricing of the options and would potentially result in actuarial losses.
   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  2019-22  dated  March  29,
 2019  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.