NY State Senate Bill 2023-S5182A

Senate Bill S5182A

2023-2024 Legislative Session

Provides for members of certain retirement systems to obtain credit for up to 5 years service rendered as a teacher in a private elementary or secondary school or a private college in New York state

download bill text pdf

Current Bill Status - In Senate Committee Civil Service And Pensions Committee

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

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Apr 24, 2024	print number 5182a
Apr 24, 2024	amend and recommit to civil service and pensions
Jan 03, 2024	referred to civil service and pensions
Feb 24, 2023	referred to civil service and pensions

Bill Amendments

Original

A (Active)

co-Sponsors

2023-S5182 - Details

See Assembly Version of this Bill:: A10127
Current Committee:: Senate Civil Service And Pensions
Law Section:: Retirement
Versions Introduced in Other Legislative Sessions:: 2015-2016: S4623
2017-2018: S5446
2019-2020: S5075
2021-2022: S4768

2023-S5182 - Summary

Provides that a member of the New York state teachers' retirement system or the New York city teachers' retirement system, and certain members of the New York state and local employees' retirement system who are employed by teaching institutions, shall be entitled to obtain credit for up to 5 years of service rendered as a teacher employed by a private elementary or secondary school or by a private college in New York state.

2023-S5182 - Sponsor Memo

                                 
BILL NUMBER: S5182

SPONSOR: GRIFFO
 
TITLE OF BILL:

An act to authorize members of the New York state and New York city
teachers' retirement systems and the New York state and local employees'
retirement system to claim retirement credit for certain private school
teaching service

 
PURPOSE:

To allow members of the New York City and New York State Teachers'
Retirement Systems and certain members of the New York State Employees'
Retirement System to claim five years of retirement credit for certain
private school teaching service for the purpose of determining pension
amounts and enabling early retirement.

 
SUMMARY OF PROVISIONS:

This bill permits members of the New York City and New York State Teach-
ers' Retirement System to claim up to five (5) years of retirement cred-

it for non-public school teaching service within New York State. Such
credit would be used for determining the amount of pension, as well as
provide credit for time employed outside of the aforementioned retire-
ment systems. However, the credit would not be used for the purpose of
calculating the final average salary of an individual.

 
JUSTIFICATION:

Tier 1 members of the New York State Teachers' Retirement System have
been allowed for many years to claim out-of-state public school teaching
service. Little distinction can be made between teaching in a public
school in another state and teaching in a non-public school in New York
State. It is well recognized that all types of experience, which a
person acquires, are beneficial to teaching effectiveness. Knowledge
gained through teaching in non-public schools provides a broad back-
ground of experience and should be recognized by allowing a teacher to
obtain retirement credit for non-public teaching experience. Addi-
tionally, this would allow schools to hire younger teachers at a lesser
cost, which would enable them to fill more positions.

The enactment of this bill would help to expand the pool of qualified
teachers and eliminate the employment disincentives that exist under
current law by allowing members of the New York State and the New York
City Teachers' Retirement Systems to claim retirement credit for up to
five years of non-public school teaching service rendered within New
York State.

 
LEGISLATIVE HISTORY:

2021-22 - S. 4768a - Civil Service and Pensions Committee

2019-20 - S. 5075 - Civil Service and Pensions Committee

2017-18 - S. 5446a - Civil Service and Pensions Committee

2015-16 - S. 4263a - Civil Service and Pensions Committee

 
FISCAL IMPLICATIONS:

See fiscal note.

 
EFFECTIVE DATE:
This act shall take effect June 30, 2023, except that any rule or regu-
lation necessary for the timely implementation of the provisions of this
act on its effective date are authorized and directed to be promulgated
on or before such date.

2023-S5182 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5182
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             February 24, 2023
                                ___________
 
 Introduced  by  Sens. GRIFFO, HELMING -- read twice and ordered printed,
   and when printed to be committed to the Committee on Civil Service and
   Pensions
 
 AN ACT to authorize members of the New York  state  and  New  York  city
   teachers'  retirement systems and the New York state and local employ-
   ees' retirement system to claim retirement credit for certain  private
   school teaching service
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Notwithstanding any other provision of law, a member of the
 New York state teachers' retirement system or the New York  city  teach-
 ers'  retirement  system,  or any member of the New York state and local
 employees' retirement system who is employed by  a  school  district,  a
 board  of  cooperative  educational services, a vocational education and
 extension board, an institution for the  instruction  of  the  deaf  and
 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,
 or  who is employed by the state of New York as an institutional teacher
 as defined by section 136 of the civil service law, shall be entitled to
 obtain credit for up to five years of  service  rendered  as  a  teacher
 employed by a private elementary or secondary school within the state of
 New  York  chartered by or registered with the board of regents, or in a
 private college within the state of New York authorized by the board  of
 regents  to  grant degrees, which would constitute service as a teacher,
 had it been performed within New York state for an employer  subject  to
 the applicable provisions of law governing such retirement system.
   § 2. The crediting of service pursuant to this act shall be in accord-
 ance  with such rules and regulations as shall be adopted by the retire-
 ment board of the  New  York  state  teachers'  retirement  system,  the
 retirement board of the New York city teachers' retirement system or the
 state  comptroller,  as  appropriate, provided that such rules and regu-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05522-02-3

 S. 5182                             2
 
 lations shall be substantially equivalent to the rules  and  regulations
 otherwise applicable for the crediting of service pursuant to applicable
 provisions  of  law  governing each such retirement system, and provided
 further  that  if such provisions have not expired such member makes the
 applicable payments required pursuant to the provisions of sections  517
 and  613, and paragraph 2 of subdivision b of section 609 of the retire-
 ment and social security law.
   § 3. The service credit granted pursuant to this act shall  constitute
 service  for  the  purpose  of  both  computing the pension payable upon
 retirement for service and in determining the total  length  of  service
 credited  for  the purpose of eligibility for a service retirement bene-
 fit, but shall not be used in computing final average  salary.  Provided
 further,  no  such credit shall be allowed for any service for which the
 person is receiving a benefit or will be entitled to receive  a  benefit
 at any future time from any other public or private retirement system or
 plan in this state, any other state or from the federal government.
   §  4. This act shall take effect June 30, 2023. Effective immediately,
 the addition, amendment and/or repeal of any rule or  regulation  neces-
 sary  for  the  implementation  of  this  act  on its effective date are
 authorized to be made and completed on or before such effective date.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This bill would allow members of the New York State and Local  Employ-
 ees'  Retirement System (NYSLERS) who are currently employed by a school
 district, a board of  cooperative  educational  services,  a  vocational
 education  and extension board, an institution for the deaf and blind or
 as an institutional teacher to receive up to five years of service cred-
 it in the NYSLERS for employment as a teacher in private schools in  New
 York  State.  However,  credit  will not be provided for any service for
 which the member is receiving a benefit or will be entitled to receive a
 benefit at any future time from any other public or  private  retirement
 system  or  plan  in New York State, any other state or from the federal
 government.
   The additional service credit granted  pursuant  to  this  bill  shall
 constitute service credit for the purpose of computing the pension paya-
 ble  upon  retirement  and  shall be used to determine eligibility for a
 service benefit. For certain members, contributions will be required  to
 obtain such additional service credit. Each such member will be required
 to make a payment of 3% (6% for Tier 6) of current compensation per year
 of additional service credit granted pursuant to this bill.
   Insofar  as  this  bill affects the NYSLERS, pursuant to Section 25 of
 the Retirement and Social Security Law, the  increased  costs  would  be
 borne  entirely  by  the State of New York and would require an itemized
 appropriation sufficient to pay the cost of the provision. If this  bill
 were  enacted  during the 2023 legislative session, it is estimated that
 the past service cost will average approximately 18% (15% for Tier 6) of
 an affected member's compensation for each year  of  additional  service
 credit that is purchased.
   The  exact  number  of  current  members as well as future members who
 could be affected by this legislation cannot be readily determined.
   Internal Revenue Service (IRS)  plan  qualification  issues:  granting
 service  credit  for  employment  rendered  to any organization that may
 potentially be considered a non-governmental or private  employer,  such
 as  certain  types  of  educational institutions described in this bill,
 could jeopardize the Retirement System's governmental  plan  status  and
 its  exemption  from ERISA. This development could result in the loss of
 qualified status, which would mean the loss of tax benefits. This result
 S. 5182                             3
 
 would substantially impair the Retirement System's  value  to  our  more
 than one million participants.
   Prior to the enactment of this legislation, we recommend that a favor-
 able ruling be obtained from the IRS stating that these provisions would
 not  harm the qualification status of the Retirement System. It is esti-
 mated that the costs to obtain such a ruling would be  $38,000  for  the
 services of the IRS, and $1,000 per hour for legal consultants.
   Summary of relevant resources:
   Membership  data as of March 31, 2022 was used in measuring the impact
 of the proposed change, the same data used in the April 1, 2022 actuari-
 al valuation. Distributions and other statistics can  be  found  in  the
 2022  Report  of the Actuary and the 2022 Annual Comprehensive Financial
 Report.
   The actuarial assumptions and methods used are described in the  2020,
 2021,  and  2022  Annual  Report to the Comptroller on Actuarial Assump-
 tions, and the Codes, Rules and Regulations of the State  of  New  York:
 Audit and Control.
   The Market Assets and GASB Disclosures are found in the March 31, 2022
 New  York  State  and  Local  Retirement System Financial Statements and
 Supplementary Information.
   I am a member of the American Academy of Actuaries and meet the Quali-
 fication Standards to render the actuarial opinion contained herein.
   This fiscal note does not constitute a legal opinion on the  viability
 of  the  proposed change nor is it intended to serve as a substitute for
 the professional judgment of an attorney.
   This estimate, dated February 17, 2023,  and  intended  for  use  only
 during  the  2023  Legislative  Session,  is  Fiscal  Note  No. 2023-71,
 prepared by the Actuary for the New  York  State  and  Local  Retirement
 System.

co-Sponsors

2023-S5182A (ACTIVE) - Details

See Assembly Version of this Bill:: A10127
Current Committee:: Senate Civil Service And Pensions
Law Section:: Retirement
Versions Introduced in Other Legislative Sessions:: 2015-2016: S4623
2017-2018: S5446
2019-2020: S5075
2021-2022: S4768

2023-S5182A (ACTIVE) - Summary

2023-S5182A (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S5182A

SPONSOR: GRIFFO
 
TITLE OF BILL:

An act to authorize members of the New York state and New York city
teachers' retirement systems and the New York state and local employees'
retirement system to claim retirement credit for certain private school
teaching service

 
SUMMARY OF PROVISIONS:

This bill permits members of the New York City and New York State Teach-
ers' Retirement System to claim up to five (5) years of retirement cred-
it for non-public school teaching service within New York State. Such
credit would be used for determining the amount of pension, as well as
provide credit for time employed outside of the aforementioned retire-
ment systems. However, the credit would not be used for the purpose of
calculating the final average salary of an individual.

 
JUSTIFICATION:

Tier 1 members of the New York State Teachers' Retirement System have
been allowed for many years to claim out-of-state public school teaching
service. Little distinction can be made between teaching in a public
school in another state and teachingin a non-public school in New York
State. It is well recognized that all types of experience, which a
person acquires, are beneficial to teaching effectiveness. Knowledge
gained through teaching in non-public schools provides a broad back-
ground of experience and should be recognized by allowing a teacher to
obtain retirement credit for non-public teaching experience. Addi-
tionally, this would allow schools to hire younger teachers at a lesser
cost, which would enable them to fill more positions.

The enactment of this bill would help to expand the pool of qualified
teachers and eliminate the employment disincentives that exist under
current law by allowing members of the New York State and the New York
City Teachers' Retirement Systems to claim retirement credit for up to
five years of non-public school teaching service rendered within New
York State.

 
LEGISLATIVE HISTORY:

2021-22 - S. 4768a - Civil Service and Pensions Committee

2019-20 - S. 5075 - Civil Service and Pensions Committee

2017-18 - S. 5446a - Civil Service and Pensions Committee

2015-16 - S. 4263a - Civil Service and Pensions Committee

 
FISCAL IMPLICATIONS:

See fiscal note.

 
EFFECTIVE DATE:
This act shall take effect June 30, 2024, except that any rule or regu-
lation necessary for the timely implementation of the provisions of this
act on its effective date are authorized and directed to be promulgated
on or before such date.

2023-S5182A (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5182--A
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             February 24, 2023
                                ___________
 
 Introduced  by  Sens.  GRIFFO,  HELMING, WEBER -- read twice and ordered
   printed, and when printed to be committed to the  Committee  on  Civil
   Service  and Pensions -- recommitted to the Committee on Civil Service
   and Pensions in accordance with Senate Rule 6,  sec.  8  --  committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee
 
 AN  ACT  to  authorize  members  of the New York state and New York city
   teachers' retirement systems and the New York state and local  employ-
   ees'  retirement system to claim retirement credit for certain private
   school teaching service
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Notwithstanding any other provision of law, a member of the
 New  York  state teachers' retirement system or the New York city teach-
 ers' retirement system, or any member of the New York  state  and  local
 employees'  retirement  system  who  is employed by a school district, a
 board of cooperative educational services, a  vocational  education  and
 extension  board,  an  institution  for  the instruction of the deaf and
 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,
 or who is employed by the state of New York as an institutional  teacher
 as defined by section 136 of the civil service law, shall be entitled to
 obtain  credit  for  up  to  five years of service rendered as a teacher
 employed by a private elementary or secondary school within the state of
 New York chartered by or registered with the board of regents, or  in  a
 private  college within the state of New York authorized by the board of
 regents to grant degrees, which would constitute service as  a  teacher,
 had  it  been performed within New York state for an employer subject to
 the applicable provisions of law governing such retirement system.
   § 2. The crediting of service pursuant to this act shall be in accord-
 ance with such rules and regulations as shall be adopted by the  retire-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05522-03-4

 S. 5182--A                          2
 
 ment  board  of  the  New  York  state  teachers' retirement system, the
 retirement board of the New York city teachers' retirement system or the
 state comptroller, as appropriate, provided that such  rules  and  regu-
 lations  shall  be substantially equivalent to the rules and regulations
 otherwise applicable for the crediting of service pursuant to applicable
 provisions of law governing each such retirement  system,  and  provided
 further  that  if such provisions have not expired such member makes the
 applicable payments required pursuant to the provisions of sections  517
 and  613, and paragraph 2 of subdivision b of section 609 of the retire-
 ment and social security law.
   § 3. The service credit granted pursuant to this act shall  constitute
 service  for  the  purpose  of  both  computing the pension payable upon
 retirement for service and in determining the total  length  of  service
 credited  for  the purpose of eligibility for a service retirement bene-
 fit, but shall not be used in computing final average  salary.  Provided
 further,  no  such credit shall be allowed for any service for which the
 person is receiving a benefit or will be entitled to receive  a  benefit
 at any future time from any other public or private retirement system or
 plan in this state, any other state or from the federal government.
   §  4. This act shall take effect June 30, 2024. Effective immediately,
 the addition, amendment and/or repeal of any rule or  regulation  neces-
 sary  for  the  implementation  of  this  act  on its effective date are
 authorized to be made and completed on or before such effective date.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This bill would allow members of the New York State and Local  Employ-
 ees'   Retirement  System  (NYSLERS)  currently  employed  by  a  school
 district, a board of  cooperative  educational  services,  a  vocational
 education  and extension board, or an institution for the deaf and blind
 or as an institutional teacher to receive up to five  years  of  service
 credit  in the NYSLERS for employment as a teacher in private schools in
 New York State. No credit shall be provided for any service for which  a
 member  is receiving, or will be entitled to receive at any future time,
 a benefit from any other public or private retirement system or plan  in
 New York State, any other state or from the federal government.
   The  additional  service  credit  granted  pursuant to this bill shall
 constitute service credit for the purpose of computing the pension paya-
 ble upon retirement and shall be used to  determine  eligibility  for  a
 service  benefit. For certain members, contributions will be required to
 receive such  additional  service  credit.  Each  such  member  will  be
 required  to  make  a  payment  of 3% (6% for Tier 6 members) of current
 compensation per year of additional service credit granted  pursuant  to
 this bill.
   Insofar  as  this  bill affects the NYSLERS, pursuant to Section 25 of
 the Retirement and Social Security Law, the  increased  costs  would  be
 borne  entirely  by  the State of New York and would require an itemized
 appropriation sufficient to pay the cost of the provision. If this  bill
 were  enacted  during the 2024 Legislative Session, it is estimated that
 the past service cost will average approximately 18%  (15%  for  Tier  6
 members)  of an affected member's current compensation per year of addi-
 tional service credit granted.
   Further, we anticipate some  administrative  costs  to  implement  the
 provisions of this legislation.
   The  exact  number  of  current  members as well as future members who
 could be affected by this legislation cannot be readily determined.
   Internal Revenue Service (IRS)  plan  qualification  issues:  granting
 service  credit  for  employment  rendered  to any organization that may
 S. 5182--A                          3

 potentially be considered a non-governmental or private  employer  could
 jeopardize  the  governmental plan status of the Retirement System ("the
 System") and its exemption from the Employees Retirement Income Security
 Act.  This  development  could  result  in the loss of qualified status,
 which would mean the loss of tax benefits. This  result  would  substan-
 tially  impair  the  System's value to our more than one million partic-
 ipants.
   Prior to the enactment of this legislation, we recommend that a favor-
 able ruling be obtained from the IRS stating that these provisions would
 not harm the qualification status of the System. It  is  estimated  that
 the  costs  to obtain such a ruling would be $38,000 for the services of
 the IRS, and $1,000 per hour for legal consultants.
   Summary of relevant resources:
   Membership data as of March 31, 2023 was used in measuring the  impact
 of the proposed change, the same data used in the April 1, 2023 actuari-
 al  valuation.  Distributions  and  other statistics can be found in the
 2023 Report of the Actuary and the 2023 Annual  Comprehensive  Financial
 Report.
   The  actuarial  assumptions and methods used are described in the 2023
 Annual Report to the  Comptroller  on  Actuarial  Assumptions,  and  the
 Codes,  Rules  and  Regulations  of  the  State  of  New York: Audit and
 Control.
   The Market Assets and GASB Disclosures are found in the March 31, 2023
 New York State and Local  Retirement  System  Financial  Statements  and
 Supplementary Information.
   I am a member of the American Academy of Actuaries and meet the Quali-
 fication Standards to render the actuarial opinion contained herein.
   This  fiscal note does not constitute a legal opinion on the viability
 of the proposed change nor is it intended to serve as a  substitute  for
 the professional judgment of an attorney.
   This  estimate,  dated March 4, 2024, and intended for use only during
 the 2024 Legislative Session, is Fiscal Note No. 2024-135,  prepared  by
 the Actuary for the New York State and Local Retirement System.

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Senate Bill S5182A

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Sponsored By

Joseph A. Griffo

Current Bill Status - In Senate Committee Civil Service And Pensions Committee

Bill Amendments

co-Sponsors

Pamela Helming

Bill Weber

2023-S5182 - Details

2023-S5182 - Summary

2023-S5182 - Sponsor Memo

2023-S5182 - Bill Text download pdf

co-Sponsors

Jacob Ashby

Pamela Helming

Bill Weber

2023-S5182A (ACTIVE) - Details

2023-S5182A (ACTIVE) - Summary

2023-S5182A (ACTIVE) - Sponsor Memo

2023-S5182A (ACTIVE) - Bill Text download pdf

Comments