S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7120
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                               May 18, 2023
                                ___________
 
 Introduced  by  Sen.  WEBER  -- read twice and ordered printed, and when
   printed to be committed to the Committee on Civil Service and Pensions
 
 AN ACT in relation to authorizing Thomas Collins to file a  request  for
   change  of  benefit coverage with the New York state teachers' retire-
   ment system

   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, Thomas Collins,
 who  is  currently  a  member of the New York state teachers' retirement
 system, who retired from Pearl River School District on  July  1,  2010,
 and  who  since  his  date  of retirement has been receiving the largest
 possible  retirement  benefit  under  the  maximum  retirement   benefit
 election,  and  who,  for  reasons not ascribable to his own negligence,
 even upon notice in 2010 from the retirement system of his  election  of
 the maximum retirement benefit election, failed to change his retirement
 option election prior to the expiration of the thirty days in accordance
 with  article  11  of  the education law and to nominate his wife as the
 beneficiary of the one hundred percent survivor option, shall be author-
 ized to change said maximum retirement option to the one hundred percent
 survivor option, if within one year of the effective date of  this  act,
 he  shall  file  a  written request on a form prescribed by the New York
 state teachers' retirement system  with  the  head  of  said  retirement
 system. Such change of benefit coverage shall be deemed to become effec-
 tive on July 1, 2010.
   §  2.  Any  costs  attributable  to  implementation  of the retirement
 election option change, authorized by section one of this act,  and  the
 recovery  for  the overpayment received by Thomas Collins since his date
 of retirement to change his election from the maximum benefit to the one
 hundred percent joint and survivor option with  Sandra  Collins  as  the
 beneficiary, shall be borne by Thomas Collins. The costs shall be calcu-
 lated from the date of his retirement, July 1, 2010, to the date his new
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10601-02-3
              

 S. 7120                             2
 
 retirement option election, filed in accordance with section one of this
 act, is deemed effective with the System and upon receipt of his payment
 for  making said election. Any other costs attributable to the implemen-
 tation of this act shall be borne by the employers of members of the New
 York state teachers' retirement system.
   § 3. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This bill would allow Thomas Collins, a retired member of the New York
 State  Teachers'  Retirement System, who elected the maximum single life
 benefit upon his date of retirement  of  July  1,  2010  to  change  his
 retirement  benefit to the 100% joint and survivor option benefit desig-
 nating his spouse Sandra Collins as beneficiary of such optional form of
 benefit. The 100% joint and survivor benefit would be  effective  as  of
 his  date  of retirement. Mr. Collins would be required to re-pay to the
 Retirement System the excess of the maximum single life benefit over the
 100% joint and survivor option benefit that he  has  received  from  his
 date of retirement through the effective date of the change in his bene-
 fit.  Mr.   Collins must file a written request with the head of the New
 York State Teachers' Retirement System within one year of the  effective
 date of this act.
   The  total  cost of this benefit cannot be determined. If this bill is
 enacted the Retirement System will be providing a  survivor  benefit  to
 Mr.    Collins' spouse. The ultimate cost of this benefit will be deter-
 mined by how long Mr. Collins and his spouse live. Mr. Collins would  be
 responsible  for  repaying the overpayments he has received, which total
 approximately $121,000. Allowing retired members to change their benefit
 option after retirement weakens the pooling of longevity  risk  and  the
 pricing of the options and would potentially result in actuarial losses.
   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 2023-30 dated April 18,
 2023 prepared by the Office of the Actuary of the New York State  Teach-
 ers'  Retirement  System  and  is  intended for use only during the 2023
 Legislative Session. I, Richard A. Young, am the Chief Actuary  for  the
 New  York State Teachers' Retirement System. I am a member of the Ameri-
 can Academy of Actuaries and I meet the Qualification Standards  of  the
 American  Academy of Actuaries to render the actuarial opinion contained
 herein.