S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7462--A
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                               May 30, 2023
                                ___________
 
 Introduced  by  Sens.  RYAN,  CHU  --  (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 -- 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  commit-
   tee
 
 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] SUCH RETIRED
 MEMBER shall become a member and [his] SUCH MEMBER'S  retirement  allow-
 ance  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] SUCH
 RETIRED MEMBER last became a member of the retirement system, and
   2. Receive a retirement allowance which shall consist of[:

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11631-02-4
 S. 7462--A                          2
              

   (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 MEMBER was receiving immediately
 prior to [his] SUCH MEMBER'S last restoration to membership as  provided
 in  subdivision  five  of THIS section [five hundred three of this arti-
 cle], plus a pension based upon the [member] service credit  earned  [by
 him]  since  [he]  SUCH MEMBER last became a member. Such latter pension
 shall be computed as if [he] THEY were  a  new  member  when  [he]  SUCH
 MEMBER  rejoined  the system pursuant to the provisions of this subdivi-
 sion.
   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] SUCH MEMBER'S option, again
 be credited to [him] SUCH MEMBER and upon  [his]  subsequent  retirement
 [he]  SUCH MEMBER shall be credited in addition for purposes of computa-
 tion of the  pension  portion  of  the  retirement  allowance  with  all
 [member]  service CREDIT earned by [him] SUCH MEMBER 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 retire-
 ment 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  actuarial  equivalent thereof shall be
 deducted from [his] SUCH MEMBER'S 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]
 SUCH  RETIRED  MEMBER  has  rendered one year of service following [his]
 SUCH MEMBER'S return  to  public  service.  In  such  event  [his]  SUCH
 MEMBER'S  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]  SUCH
 MEMBER'S  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 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 INEL-
 IGIBLE FOR MEMBERSHIP IN THE RETIREMENT SYSTEM,  SUCH  RETIRED  MEMBER'S
 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:
 S. 7462--A                          3
 
   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
 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. Actuari-
 al 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 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.

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7462--B
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                               May 30, 2023
                                ___________
 
 Introduced  by  Sens.  RYAN,  CHU  --  (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 -- 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  commit-
   tee  --  reported  favorably  from said committee and committed to the
   Committee on Finance -- committee discharged,  bill  amended,  ordered
   reprinted as amended and recommitted to said committee
 
 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[:

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11631-03-4
              

 S. 7462--B                          2

   (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
 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
 S. 7462--B                          3
 
 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
 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.