S T A T E   O F   N E W   Y O R K
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                                  7184--A
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              April 28, 2021
                                ___________
 
 Introduced by M. of A. BURKE -- (at request of the New York State Teach-
   ers'  Retirement System) -- read once and referred to the Committee on
   Governmental Employees -- recommitted to the Committee on Governmental
   Employees in accordance with Assembly Rule  3,  sec.  2  --  committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee
 
 AN  ACT  to amend the education law, in relation to allowing retirees of
   the New York state  teachers'  retirement  system  who  suspend  their
   retirement  the  option  of a benefit recalculation after two years of
   service
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subdivision  11  of  section 503 of the education law, as
 added by chapter 507 of the laws of 1972 and as  renumbered  by  chapter
 512 of the laws of 1976, is amended to read as follows:
   11. a. If a retired member, receiving a retirement allowance for other
 than  disability,  returns to active public service, except as otherwise
 provided in [sections] SECTION  two  hundred  eleven  or  two  [hyndred]
 HUNDRED  twelve of the retirement and social security law, and is eligi-
 ble for membership in the retirement system, he [thereupon] OR SHE shall
 become a member and his OR HER retirement allowance shall  be  suspended
 in the same manner as provided in subdivision five of THIS section [five
 hundred three of this article. In such event, he shall contribute to the
 retirement  system  as  if  he were a new member]. Upon [his] subsequent
 retirement [after at least two years of service he] THEY shall:
   1. Be credited with all member service earned [by him] since he OR SHE
 last became a member of the retirement system, and
   2. Receive a retirement allowance which shall consist of[:
   (a) An annuity as provided in subdivision five of section five hundred
 three of this article plus an annuity which is the actuarial  equivalent
 of any contributions made by him since he last became a member, and

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11041-02-2
              

 A. 7184--A                          2

   (b)  The]  THE pension which he OR SHE was receiving immediately prior
 to his OR HER last restoration to membership as provided in  subdivision
 five  of  THIS  section  [five  hundred  three  of this article], plus a
 pension based upon the [member] service credit earned [by him] since  he
 OR SHE last became a member. Such latter pension shall be computed as if
 [he]  THEY were a new member when he OR SHE rejoined the system pursuant
 to the provisions of this subdivision.
   b. Where such member shall have earned at least [five]  TWO  years  of
 [member]  service  credit after restoration to active service, the total
 service credit to which he OR SHE was entitled at the time of [his]  THE
 earlier  retirement  may, at his OR HER option, again be credited to him
 OR HER and upon [his] subsequent retirement he OR SHE shall be  credited
 in  addition  for  purposes of computation of the pension portion of the
 retirement allowance with all [member] service CREDIT earned by  him  OR
 HER  subsequent to [his] THE last restoration to membership.  Such total
 service credit to which he OR SHE was entitled at the time of [his]  THE
 earlier  retirement  shall  be  so  credited only in the event that such
 member returns to the retirement system with regular interest the  actu-
 arial  equivalent  of the amount of the pension [he] received, or in the
 event that such amount is not so repaid the actuarial equivalent thereof
 shall be deducted from his OR HER subsequent retirement allowance.
   c. Notwithstanding the foregoing provisions  of  this  subdivision,  a
 retired  member  who  is receiving a retirement allowance for other than
 physical disability, and who returns to active public service, may elect
 not to be restored to membership in the retirement system  until  he  OR
 SHE  has  rendered  one  year  of service following his return to public
 service. In  such  event  his  OR  HER  retirement  allowance  shall  be
 suspended  during such year of service in the same manner as provided in
 subdivision five of THIS section [five hundred three of  this  article].
 Upon  restoration  to  membership  following  completion of such year of
 service, his OR HER service in such year shall be deemed to  be  service
 while  a  member  for  purposes of subdivision b of section five hundred
 twelve of this article. He OR SHE may purchase [member]  service  credit
 for  such year, which shall be deemed earned [member] service credit. IF
 A RETIRED MEMBER RECEIVING A RETIREMENT BENEFIT ALLOWANCE FOR OTHER THAN
 PHYSICAL DISABILITY, RETURNS TO ACTIVE PUBLIC SERVICE, AND IS THEN INEL-
 IGIBLE FOR MEMBERSHIP IN THE RETIREMENT SYSTEM, HIS  OR  HER  RETIREMENT
 ALLOWANCE  SHALL  BE  SUSPENDED  IN  THE SAME MANNER AS PROVIDED IN THIS
 SECTION.
   d. Notwithstanding any other provision  of  this  article,  a  retired
 member who rejoins the system under the provisions of [paragraphs a or c
 of] this subdivision shall only be entitled to a death benefit according
 to  the  provisions  of  paragraph  two of subdivision b of section five
 hundred twelve of this article and of no other subdivision  thereof  and
 for  the purposes of said paragraph two of subdivision b of section five
 hundred twelve the credited service as a teacher shall be service  as  a
 teacher credited since last joining the system.
   §  2.  This  act  shall take effect on the sixtieth day after it shall
 have become a law.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This bill would amend subdivision 11 of Section 503 of  the  Education
 Law  to  allow  a  retired  member of the New State Teachers' Retirement
 System, who returns to active service and suspends their  pension  bene-
 fit,  to  elect  to  combine  their service credit earned prior to their
 retirement with the service credit earned  after  their  restoration  to
 active  service, provided they have earned at least two years of service
 A. 7184--A                          3

 credit since restoration to active service. The law  currently  requires
 five  years  of  service  credit  since restoration to active service to
 combine all service credit. In either case the member  must  return  the
 amount of pension previously received, or have their benefit reduced for
 life  based upon the actuarial equivalent of the prior pension received.
 This bill would take effect on the sixtieth day after it shall become  a
 law.
   The annual cost to the employers of members of the New      York State
 Teachers'  Retirement  System is estimated to be negligible 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
 Annual  Report.  System assets are as reported in the System's financial
 statements and can also be found in the System's Annual Report. Actuari-
 al assumptions and methods are provided in the System's Actuarial  Valu-
 ation Report.
   The  source  of  this estimate is Fiscal Note 2022-1 dated October 18,
 2021 prepared by the Actuary of the New York State Teachers'  Retirement
 System and is intended for use only during the 2022 Legislative Session.
 I,  Richard A. Young, am the Chief Actuary for the New York State Teach-
 ers' Retirement System. I am a member of the American Academy of Actuar-
 ies and I meet the Qualification Standards of the  American  Academy  of
 Actuaries to render the actuarial opinion contained herein.