S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7449--A
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                May 3, 2019
                                ___________
 
 Introduced  by M. of A. RAMOS -- read once and referred to the Committee
   on Governmental Employees -- recommitted to the Committee  on  Govern-
   mental Employees in accordance with Assembly Rule 3, sec. 2 -- commit-
   tee  discharged, bill amended, ordered reprinted as amended and recom-
   mitted to said committee

 AN ACT to provide a temporary retirement incentive for  certain  members
   of the New York state teachers' retirement system
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. This act enacts into law  components  of  legislation  that
 would  establish an age 55/25 temporary retirement incentive for certain
 public employees.
   § 2. Legislative findings. The legislature finds and declares that the
 retirement benefit for certain public employees who are above age 55 and
 with 25 years of service provided for in this act is intended only to be
 temporary in nature for employees who are eligible to receive and quali-
 fy for the applicable benefit during the applicable time periods  speci-
 fied  in  this  act.  Further, nothing in this act shall be construed to
 create an expectation of a future or continuing retirement  benefit  for
 any  public  employee who is not eligible to receive and qualify for the
 retirement benefits herein during the applicable time periods.
   § 3. Definitions. As used in this  act,  unless  the  context  clearly
 requires otherwise:
   (a)  "Retirement system" means the New York state teachers' retirement
 system.
   (b) "Teachers' retirement system" means the New York  state  teachers'
 retirement system.
   (c)  "Educational  employer" means a participating employer which is a
 school district, a board of cooperative educational  services,  a  voca-
 tional education and extension board, an institution for the instruction
 of the deaf and of the blind as enumerated in section 4201 of the educa-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD07621-06-0

 A. 7449--A                          2
 
 tion law, or a school district as enumerated in section 1 of chapter 566
 of the laws of 1967, as amended.
   (d)  "Eligible  employee" means a person who is a member of the teach-
 ers' retirement system, who is an employee of an  educational  employer,
 who holds a position represented by the recognized collective bargaining
 units affiliated with the New York state united teachers employee organ-
 ization  as  certified  by his or her employer, and who has attained the
 age of 55 and has at least 25 years of creditable service in the retire-
 ment system.  For the purposes of this act, the term "eligible employee"
 shall be deemed to include building level administrators, including, but
 not limited to, principals and assistant principals.
   (e) "Active service" means service while being paid  on  the  payroll,
 provided  that  (i)  a  leave of absence with pay shall be deemed active
 service; (ii) other approved leave without  pay  not  to  exceed  twelve
 weeks  from  March  1,  2020 and the commencement of the designated open
 period; and (iii) the period of time subsequent to the June 2020  school
 term  and  on or before August 31, 2020 for a teacher (or other employee
 as defined in this act, employed on a school-year basis) who  is  other-
 wise in active service on the effective date of this act shall be deemed
 active service.
   (f)  "Open  period"  means  the period beginning with the commencement
 date as defined in subdivision (g) of this section and shall be 60  days
 in  length.  For  educational employers who make election after June 30,
 2020, the open period shall begin immediately after such  election,  and
 shall  not extend beyond August 31, 2020. For the purposes of retirement
 pursuant to this act, a service retirement  application  must  be  filed
 with  the  appropriate  retirement system not less than 14 days prior to
 the effective date of retirement to become effective, unless  a  shorter
 time period is permitted under law.
   (g)  "Commencement  date"  means  the first day the retirement benefit
 mandated by this act shall be made available, which shall mean a date or
 dates on or after the effective date of this act to be determined by the
 educational employer which elects to  participate  pursuant  to  section
 four of this act, but no sooner than June 30, 2020.
   §  4.  On  or after June 30, 2020 an educational employer may elect to
 provide its employees the retirement incentive authorized by this act by
 the adoption of a resolution of its  governing  body.  A  copy  of  such
 resolution  shall  be  filed with the appropriate retirement system. The
 resolution shall be accompanied by the affidavit  of  the  school  board
 president or trustee or other comparable official certifying the validi-
 ty of such resolution.
   § 5. Notwithstanding any other provision of law, any eligible employee
 serving in an eligible title who (a) has been continuously in the active
 service of an educational employer who has elected to participate in the
 retirement  incentive  provided  in section six of this act, pursuant to
 section four of this act, from March 1, 2020  to  the  date  immediately
 prior  to the commencement date of the applicable open period, (b) files
 an application for service retirement that is effective during the  open
 period, and (c) is otherwise eligible for a service retirement as of the
 effective  date  of  the application for retirement shall be entitled to
 the retirement benefit provided in section six of this act.
   § 6. Notwithstanding any other provision of law, any eligible employee
 who is: (a) a member of the teachers' retirement system, and  (b)  enti-
 tled  to  retirement  benefits  pursuant to section five of this act may
 retire during the open period  without  the  reduction  of  his  or  her
 retirement  benefit  that would otherwise be imposed by article 11 or 15

 A. 7449--A                          3
 
 of the retirement and social security law if he or she has attained  the
 age  of  55  and  has  completed at least 25 or more years of creditable
 service. An eligible employee who is covered by the provisions of  arti-
 cle  11  or  15  of  the retirement and social security law shall retire
 under the provisions of article 11 or 15 of the  retirement  and  social
 security law.
   §  7.  The  pension  benefit costs of section six of this act shall be
 paid by employers as provided  by  applicable  law  for  the  retirement
 system  covered  by  this  act  over  a  period not to exceed five years
 commencing in the state fiscal year ending March 31, 2022.
   § 8. Notwithstanding any other provision of law, this act  shall  have
 no  impact  on  retirement incentives, options or inducements offered as
 part of a contractual agreement between  an  eligible  employee  and  an
 educational  employer  which were negotiated prior to the effective date
 of this act.
   § 9. Severability clause.  If any clause, sentence, paragraph,  subdi-
 vision,  section  or  part of this act shall be adjudged by any court of
 competent jurisdiction to be invalid, such judgment  shall  not  affect,
 impair,  or  invalidate  the remainder thereof, but shall be confined in
 its operation to the clause, sentence, paragraph,  subdivision,  section
 or part thereof directly involved in the controversy in which such judg-
 ment shall have been rendered. It is hereby declared to be the intent of
 the  legislature  that  this  act  would  have been enacted even if such
 invalid provisions had not been included herein.
   § 10. This act shall take effect immediately.
 FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This bill would provide a temporary retirement incentive to members of
 the New York State Teachers' Retirement System during fiscal year  2020-
 2021.  This incentive would permit eligible members to retire without an
 early  retirement  reduction  upon attainment of at least age 55 with 25
 years of service.  Currently 30 years of service are required  in  order
 to  retire  without reduction for Tiers 2, 3, 4 and 5 members. Currently
 Tier 6 members are required to attain age 63 in order to retire  without
 reduction  regardless  of  the number of years of service they have.  In
 order to receive this benefit, a member of an employer who  has  elected
 to  participate  must  retire  during the designated 60-day open period,
 beginning on or after June 30, 2020 and not  extend  beyond  August  31,
 2020. In order to be eligible, a member must be an employee of an educa-
 tional employer and hold a position represented by one of the recognized
 collective  bargaining  units  affiliated with the New York State United
 Teachers (NYSUT) as certified by  his  or  her  employer.  In  order  to
 participate  in this retirement incentive, the educational employer must
 be a school district, a board of  cooperative  educational  services,  a
 vocational  education  and  extension  board,  an  institution  for  the
 instruction of the deaf and of the blind as enumerated in  Section  4201
 of  the Education Law or a school district as enumerated in Section 1 of
 Chapter 566 of the Laws of 1967.   Employers who  elect  to  participate
 would  pay  the  cost  of  the retirement incentive over a period not to
 exceed five years, beginning in the state fiscal year ending  March  31,
 2022.
   The  estimated  increase  in the present value of benefits due to this
 temporary retirement incentive is approximately $220 million. The annual
 cost, over a five-year period, to the participating employers of members
 of the New York State Teachers' Retirement System for  this  benefit  is
 estimated  to  be  $58.8  million  or  .34%  of  payroll if this bill is
 enacted.

 A. 7449--A                          4
 
   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 2020-25 dated May 19,  2020
 prepared  by  the  Actuary  of  the  New York State Teachers' Retirement
 System and is intended for use only during the 2020 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.