S T A T E   O F   N E W   Y O R K
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                                   10529
 
                           I N  A S S E M B L Y
 
                               June 2, 2024
                                ___________
 
 Introduced  by  COMMITTEE  ON RULES -- (at request of M. of A. Burke) --
   (at request of the New York State Teachers' Retirement System) -- read
   once and referred to the Committee on Governmental Employees
 
 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 two hundred eleven or two [hyndred] HUNDRED twelve
 of the retirement and social security law, and is eligible  for  member-
 ship in the retirement system, [he thereupon] SUCH EMPLOYEE shall become
 a  member and [his] THEIR 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] SUCH EMPLOYEE shall:
   1. Be credited with all member service earned [by him] since [he] THEY
 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] SUCH EMPLOYEE was receiving immediate-
 ly  prior  to  [his]  THE  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] SUCH EMPLOYEE last became a member. Such latter pension shall
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
 A                                                          LBD15831-01-4
              

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 be computed as if [he] THEY were a new member when  [he]  THEY  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] SUCH MEMBER was entitled at the time of
 [his] THE earlier retirement may, at [his] THEIR option, again be  cred-
 ited to [him] THEM and upon [his] subsequent retirement [he] SUCH MEMBER
 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] subsequent to [his] THE last restoration to  membership.
 Such  total service credit to which [he] SUCH MEMBER 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 actuarial equivalent of the  amount  of  the  pension  [he]
 received, or in the event that such amount is not so repaid the actuari-
 al  equivalent thereof shall be deducted from [his] SUCH MEMBER'S subse-
 quent 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]
 SUCH  RETIRED  MEMBER  has  rendered one year of service following [his]
 THEIR return to public service.  In  such  event  [his]  THE  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] 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] SUCH  RETIRED  MEMBER
 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 INELIGIBLE FOR MEMBERSHIP IN THE
 RETIREMENT SYSTEM, THE 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]  SUCH  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 York State Teachers' Retirement
 System (NYSTRS), who  returns  to  active  service  and  suspends  their
 pension  benefit,  to elect to combine their service credit earned prior
 to their retirement with the service credit earned after their  restora-
 tion  to active service, provided they have earned at least two years of
 service credit since restoration and they pay back their  prior  pension
 received or have the new benefit reduced for life based upon the actuar-
 ial  equivalent of the prior pension received. Current law requires five
 years of service credit since restoration to combine all service  credit
 A. 10529                            3
 
 into  one  pension benefit. State employees and other members of the New
 York State and Local Retirement System (NYS&LRS) are eligible to combine
 their service credit after earning two years  of  service  credit  after
 restoration. This bill would make this eligibility the same for teachers
 as  it is for state employees. This bill would take effect on the sixti-
 eth day after it shall become a law.
   The annual cost to the employers of members  of  the  New  York  State
 Teachers' Retirement System would 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.  Actuar-
 ial assumptions and methods are provided in the System's Actuarial Valu-
 ation Report.
   The  source  of  this estimate is Fiscal Note 2024-2 dated October 16,
 2023 prepared by the Actuary of the New York State Teachers'  Retirement
 System and is intended for use only during the 2024 Legislation Session.
 I,  Richard A. Young, am the Chief Actuary for the New York State Teach-
 er's Retirement System. I am a member of the American Academy of Actuar-
 ies and I met the Qualification Standards of  the  American  Academy  of
 Actuaries to render the actuarial opinion contained herein.