S T A T E O F N E W Y O R K
________________________________________________________________________
6618
2021-2022 Regular Sessions
I N S E N A T E
May 10, 2021
___________
Introduced by Sen. GOUNARDES -- (at request of the New York State Teach-
ers' Retirement System) -- read twice and ordered printed, and when
printed to be committed to the Committee on Civil Service and Pensions
AN ACT to amend the retirement and social security law, in relation to
the death benefit provided in the third year following retirement 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. The closing paragraph of paragraph 2 of subdivision a of
section 448 of the retirement and social security law, as amended by
chapter 513 of the laws of 2010, is amended to read as follows:
In the case of a member of the New York state teachers' retirement
system, commencing upon attainment of age sixty-one, the benefit other-
wise provided pursuant to this paragraph shall be reduced while the
member is in service to ninety-six per centum of the benefit otherwise
payable and each year thereafter the benefit payable shall be reduced by
an amount equal to four per centum per year of the original benefit
otherwise payable, but not below sixty per centum of the original bene-
fit otherwise payable. In the case of a member of the New York city
employees' retirement system, the New York city board of education
retirement system or the New York city teachers' retirement system,
commencing upon attainment of age sixty-one, the benefit otherwise
provided pursuant to this paragraph shall be reduced while the member is
in service to ninety-five per centum of the benefit otherwise payable
and each year thereafter the benefit payable shall be reduced by an
amount equal to five per centum per year of the original benefit other-
wise payable, but not below fifty per centum of the original benefit
otherwise payable. In the case of any member of the New York state and
local employees' retirement system who is permitted to retire without
regard to age or a member of the New York state and local police and
fire retirement system, commencing upon attainment of age sixty-one, the
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11039-01-1
S. 6618 2
benefit otherwise provided pursuant to this paragraph shall be reduced
while the member is in service to ninety-seven per centum of the benefit
otherwise payable, and each year thereafter the benefit payable shall be
reduced by an amount equal to three per centum per year of the original
benefit otherwise payable, but not below seventy per centum of the
original benefit otherwise payable. In the case of any other member of
the New York state and local employees' retirement system, commencing
upon attainment of age sixty-one, the benefit otherwise provided pursu-
ant to this paragraph shall be reduced while the member is in service to
ninety-six per centum of the benefit otherwise payable, and each year
thereafter the benefit payable shall be reduced by an amount equal to
four per centum per year of the original benefit otherwise payable, but
not below sixty per centum of the original benefit otherwise payable.
Upon retirement from any retirement system, the benefit in force shall
be reduced by fifty per centum; upon completion of the first year of
retirement, the benefit in force at the time of retirement shall be
reduced by an additional twenty-five per centum, and upon commencement
of the third year of retirement, the benefit shall be ten per centum of
the benefit in force at age sixty, if any, or at the time of retirement
if retirement preceded such age; provided, however, the benefit in
retirement shall not be reduced below ten per centum of the benefit in
force at age sixty, if any, or at the time of retirement if retirement
preceded such age. Notwithstanding any other provision of this paragraph
to the contrary, the benefit for a retiree from the New York state and
local employees' retirement system AND THE NEW YORK STATE TEACHERS'
RETIREMENT SYSTEM shall not be reduced below ten per centum of the bene-
fit in force at the time of retirement.
§ 2. The closing paragraph of paragraph 2 of subdivision a of section
508 of the retirement and social security law, as amended by chapter 513
of the laws of 2010, is amended to read as follows:
Notwithstanding any other provision of this paragraph, in the case of
a member of the New York state teachers' retirement system, commencing
upon attainment of age sixty-one, the benefit otherwise provided pursu-
ant to this paragraph shall be reduced while the member is in service to
ninety-six per centum of the benefit otherwise payable, and each year
thereafter the benefit payable shall be reduced by an amount equal to
four per centum per year of the original benefit otherwise payable, but
not below sixty per centum of the original benefit otherwise payable. In
the case of a member of the New York city employees' retirement system,
the New York city board of education retirement system or the New York
city teachers' retirement system, commencing upon attainment of age
sixty-one, the benefit otherwise provided pursuant to this paragraph
shall be reduced while the member is in service to ninety-five per
centum of the benefit otherwise payable and each year thereafter the
benefit payable shall be reduced by an amount equal to five per centum
per year of the original benefit otherwise payable, but not below fifty
per centum of the original benefit otherwise payable. In the case of any
member of the New York state and local employees' retirement system who
is permitted to retire without regard to age, commencing upon attainment
of age sixty-one, the benefit otherwise provided pursuant to this para-
graph shall be reduced while the member is in service to ninety-seven
per centum of the benefit otherwise payable, and each year thereafter
the benefit payable shall be reduced by an amount equal to three per
centum per year of the original benefit otherwise payable, but not below
seventy per centum of the original benefit otherwise payable. In the
case of any other member of the New York state and local employees'
S. 6618 3
retirement system, commencing upon attainment of age sixty-one, the
benefit otherwise provided pursuant to this paragraph shall be reduced
while the member is in service to ninety-six per centum of the benefit
otherwise payable, and each year thereafter the benefit payable shall be
reduced by an amount equal to four per centum per year of the original
benefit otherwise payable, but not below sixty per centum of the
original benefit otherwise payable. Upon retirement from any retirement
system, the benefit in force shall be reduced by fifty per centum; upon
completion of the first year of retirement, the benefit in force at the
time of retirement shall be reduced by an additional twenty-five per
centum, and upon commencement of the third year of retirement, the bene-
fit shall be ten per centum of the benefit in force at age sixty, if
any, or at the time of retirement if retirement preceded such age;
provided, however, the benefit in retirement shall not be reduced below
ten per centum of the benefit in force at age sixty, if any, or at the
time of retirement if retirement preceded such age. Notwithstanding any
other provision of this paragraph to the contrary, the benefit for a
retiree from the New York state and local employees' retirement system
AND THE NEW YORK STATE TEACHERS' RETIREMENT SYSTEM shall not be reduced
below ten per centum of the benefit in force at the time of retirement.
§ 3. The closing paragraph of paragraph 2 of subdivision a of section
606 of the retirement and social security law, as amended by chapter 513
of the laws of 2010, is amended to read as follows:
In the case of a member of the New York state teachers' retirement
system, commencing upon attainment of age sixty-one, the benefit other-
wise provided pursuant to this paragraph shall be reduced while the
member is in service to ninety-six per centum of the benefit otherwise
payable, and each year thereafter the benefit payable shall be reduced
by an amount equal to four per centum per year of the original benefit
otherwise payable, but not below sixty per centum of the original bene-
fit otherwise payable. In the case of a member of the New York city
employees' retirement system, the New York city board of education
retirement system or the New York city teachers' retirement system,
commencing upon attainment of age sixty-one, the benefit otherwise
provided pursuant to this paragraph shall be reduced while the member is
in service to ninety-five per centum of the benefit otherwise payable
and each year thereafter the benefit payable shall be reduced by an
amount equal to five per centum per year of the original benefit other-
wise payable, but not below fifty per centum of the original benefit
otherwise payable. In the case of any member of the New York state and
local employees' retirement system who is permitted to retire without
regard to age, commencing upon attainment of age sixty-one, the benefit
otherwise provided pursuant to this paragraph shall be reduced while the
member is in service to ninety-seven per centum of the benefit otherwise
payable, and each year thereafter the benefit payable shall be reduced
by an amount equal to three per centum per year of the original benefit
otherwise payable, but not below seventy per centum of the original
benefit otherwise payable. In the case of any other member of the New
York state and local employees' retirement system, commencing upon
attainment of age sixty-one, the benefit otherwise provided pursuant to
this paragraph shall be reduced while the member is in service to nine-
ty-six per centum of the benefit otherwise payable, and each year there-
after the benefit payable shall be reduced by an amount equal to four
per centum per year of the original benefit otherwise payable, but not
below sixty per centum of the original benefit otherwise payable. Upon
retirement, from any retirement system, the benefit in force shall be
S. 6618 4
reduced by fifty per centum; upon completion of the first year of
retirement, the benefit in force at the time of retirement shall be
reduced by an additional twenty-five per centum, and upon commencement
of the third year of retirement, the benefit shall be ten per centum of
the benefit in force at age sixty, if any, or at the time of retirement
if retirement preceded such age; provided, however, the benefit in
retirement shall not be reduced below ten per centum of the benefit in
force at age sixty, if any, or at the time of retirement if retirement
preceded such age. Notwithstanding any other provision of this paragraph
to the contrary, the benefit for a retiree from the New York state and
local employees' retirement system AND THE NEW YORK STATE TEACHERS'
RETIREMENT SYSTEM shall not be reduced below ten per centum of the bene-
fit in force at the time of retirement.
§ 4. This act shall take effect immediately.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
This bill would amend Sections 448, 508, and 606 of the Retirement and
Social Security Law to extend the paragraph 2 post-retired death benefit
coverage to the third and ensuing years of retirement for eligible
members of the New York State Teachers' Retirement System whose death
benefit would otherwise be zero by virtue of being hired at an age
greater than 59. Currently, only eligible members who were hired on or
before age 59 are entitled to this death benefit coverage in the third
and ensuing years of retirement. This bill would take effect immediately
and be applicable to deaths on or after the effective date of the act.
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
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 2021-5 dated October 19,
2020 prepared by the Actuary of the New York State Teachers' Retirement
System and is intended for use only during the 2021 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.