NY State Senate Bill 2021-S9296

Senate Bill S9296

Vetoed By Governor

2021-2022 Legislative Session

Allows retirees of the New York state teachers' retirement system who suspend their retirement the option of a benefit recalculation after two years of service

download bill text pdf

Archive: Last Bill Status - Vetoed by Governor

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Vetoed By Governor
Signed By Governor

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Dec 16, 2022	vetoed memo.138
Dec 12, 2022	delivered to governor
Jun 03, 2022	returned to senate passed assembly ordered to third reading rules cal.688 substituted for a7184a
May 23, 2022	referred to ways and means delivered to assembly passed senate
May 16, 2022	ordered to third reading cal.1405 committee discharged and committed to rules
May 13, 2022	referred to civil service and pensions

Votes

- May 23, 2022 - Floor Vote
  S9296
  
  61
  
  Aye
  
  0
  
  Nay
  
  0
  
  Absent
  
  2
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: May 23, 2022
      
      aye (61)
      
      Addabbo Jr.
      
      Akshar
      
      Bailey
      
      Biaggi
      
      Borrello
      
      Boyle
      
      Breslin
      
      Brisport
      
      Brooks
      
      Cleare
      
      Comrie
      
      Cooney
      
      Felder
      
      Gallivan
      
      Gaughran
      
      Gianaris
      
      Gounardes
      
      Griffo
      
      Harckham
      
      Helming
      
      Hinchey
      
      Hoylman-Sigal
      
      Jackson
      
      Jordan
      
      Kaminsky
      
      Kaplan
      
      Kavanagh
      
      Kennedy
      
      Krueger
      
      Lanza
      
      Liu
      
      Mannion
      
      Martucci
      
      Mattera
      
      May
      
      Mayer
      
      Myrie
      
      O'Mara
      
      Oberacker
      
      Ortt
      
      Palumbo
      
      Parker
      
      Persaud
      
      Ramos
      
      Rath III
      
      Reichlin-Melnick
      
      Ritchie
      
      Rivera
      
      Ryan
      
      Salazar
      
      Savino
      
      Sepúlveda
      
      Serino
      
      Serrano
      
      Skoufis
      
      Stavisky
      
      Stec
      
      Stewart-Cousins
      
      Tedisco
      
      Thomas
      
      Weik
      
      excused (2)
      
      Brouk
      
      Sanders Jr.
  May 16, 2022 - Rules Committee Vote
  S9296
  
  20
  
  Aye
  
  0
  
  Nay
  
  1
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Rules Committee Vote: May 16, 2022
      
      aye (20)
      
      Addabbo Jr.
      
      Bailey
      
      Biaggi
      
      Boyle
      
      Breslin
      
      Comrie
      
      Gallivan
      
      Gianaris
      
      Griffo
      
      Kennedy
      
      Krueger
      
      Lanza
      
      Liu
      
      Mayer
      
      O'Mara
      
      Parker
      
      Ritchie
      
      Savino
      
      Sepúlveda
      
      Stewart-Cousins
      
      aye wr (1)
      
      Ortt

2021-S9296 (ACTIVE) - Details

See Assembly Version of this Bill:: A7184
Law Section:: Education Law
Laws Affected:: Amd §503, Ed L
Versions Introduced in 2023-2024 Legislative Session:: S7462

2021-S9296 (ACTIVE) - Summary

Allows retirees of the New York state teachers' retirement system who suspend their retirement the option of a benefit recalculation after two years of service.

2021-S9296 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S9296

SPONSOR: RYAN
 
TITLE OF BILL:

An act to amend the education law, in relation to allowing retirees of
the New York state teachers' retirement system who suspend their retire-
ment the option of a benefit recalculation after two years of service

 
PURPOSE OF THE BILL:

This bill amends Education Law Section 503(11) to allow retired members
of the New York State Teachers' Retirement System (NYSTRS) to suspend
their retirement, return to work and have the option of a benefit recal-
culation after working at least two years of additional service.

 
SUMMARY AND JUSTIFICATION:

Under NYSTRS current statute, Education Law Section 503(11)(b), retirees
are permitted to suspend their retirement and return to work to have
their benefit recalculated after five years or upon re-retiring with at
least two years of service, they become eligible to receive two separate

retirement benefits. In order to avail the retiree of the recalculation
after five years of additional service, the member is required to pay
back all the pension benefits received under the original retirement
benefit, with interest, or take an actuarial equivalent lifetime
reduction.

The System proposes an amendment to Education Law Section 503(11) to
mirror the provisions of Retirement and Social Security Law Section 101
available to members of the New York State and Local Employees' Retire-
ment System (NYSLRS). Under Retirement and Social Security Law Section
101, NYSLRS members may avail themselves of a recalculation after two
years of member service credit after restoration to active service and
only if such member returns to the retirement system with regular inter-
est the actuarial equivalent of the amount of the retirement allowance
received in the first retirement or repayment through actuarial
reduction.

In addition, the System recognizes that allowing retirees the option of
recalculating their benefit after two years of service, instead of five
years, may assist those who believe they attained a service credit mark-
er, but after verification with the school district employer the service
record is adjusted. For example, in some cases, members retiring believe
they have reached their intended service credit milestone, twenty years,
but once the service has been verified with the employer the service
credit is less than what was anticipated. At that point, it could be
very difficult for the retiree to return to the position they retired
from or even find a similar position. Additionally, it may take time to
find any employment after they have retired. Reducing the benefit recal-
culation requirement to two years, could make it easier for the retiree
to avail themselves of the recalculation already provided in law at five
years and may provide employers an opportunity to hire an experienced
worker to fill in during a transition and assist in succession planning.

The amendments proposed in this bill would amend the provisions govern-
ing NYSTRS retirees (Education law Section 503) to allow retirees to
suspend their retirement, return to work and have the option of either a
benefit recalculation or a separate benefit after two years of service.
 
EFFECTIVE DATE OF THE BILL:

This act shall take effect June 30, 2022 and apply to all members of
NYSTRS, except that if this act shall have become a law on or after June
30, 2022, this act shall take effect immediately, shall be deemed to
have been in full force and effect on and after June 30, 2022.

 
OTHER AGENCIES TO WHOM THE BILL MAY BE OF INTEREST:

Division of the Budget, Department of Financial Services.

 
BUDGETARY IMPLICATIONS OF THE BILL:

If this bill is enacted, the annual cost to the employers of members of
the New York State Teachers' Retirement System is estimated to be negli-
gible.

2021-S9296 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9296
 
                             I N  S E N A T E
 
                               May 13, 2022
                                ___________
 
 Introduced  by  Sen. RYAN -- (at request of the New York State Teachers'
   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 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
   (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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11041-03-2

 S. 9296                             2

 [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
 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.
 S. 9296                             3
 
 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.

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