S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9770
 
                             I N  S E N A T E
 
                               May 29, 2024
                                ___________
 
 Introduced  by  Sen.  PARKER -- read twice and ordered printed, and when
   printed to be committed to the Committee on Civil Service and Pensions
 
 AN ACT to provide a temporary retirement incentive for  certain  members
   of the New York state teachers' retirement system
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. This act enacts into law  components  of  legislation  that
 would  establish an age 55/25 temporary retirement incentive for certain
 public employees.
   § 2. Legislative findings. The legislature finds and declares that the
 retirement benefit for certain public employees who are above age 55 and
 with 25 years of service provided for in this act is intended only to be
 temporary in nature for employees who are eligible to receive and quali-
 fy for the applicable benefit during the applicable time periods  speci-
 fied  in  this  act.  Further, nothing in this act shall be construed to
 create an expectation of a future or continuing retirement  benefit  for
 any  public  employee who is not eligible to receive and qualify for the
 retirement benefits herein during the applicable time periods.
   § 3. Definitions. As used in this  act,  unless  the  context  clearly
 requires otherwise:
   (a)  "Retirement system" means the New York state teachers' retirement
 system.
   (b) "Teachers' retirement system" means the New York  state  teachers'
 retirement system.
   (c)  "Educational  employer" means a participating employer which is a
 school district, a board of cooperative educational  services,  a  voca-
 tional education and extension board, an institution for the instruction
 of the deaf and of the blind as enumerated in section 4201 of the educa-
 tion law, or a school district as enumerated in section 1 of chapter 566
 of the laws of 1967, as amended.
   (d)  "Eligible  employee" means a person who is a member of the teach-
 ers' retirement system, who is an employee of an  educational  employer,
 who holds a position represented by the recognized collective bargaining
 units affiliated with the New York state united teachers employee organ-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD08290-05-4
 S. 9770                             2
 
 ization  as certified by their employer, and who has attained the age of
 55 and has at least 25 years of creditable  service  in  the  retirement
 system.    For  the  purposes  of this act, the term "eligible employee"
 shall be deemed to include building level administrators, including, but
 not limited to, principals and assistant principals.
   (e)  "Active  service"  means service while being paid on the payroll,
 provided that (i) a leave of absence with pay  shall  be  deemed  active
 service;  (ii)  other  approved  leave  without pay not to exceed twelve
 weeks from March 1, 2024 and the commencement  of  the  designated  open
 period;  and (iii) the period of time subsequent to the June 2024 school
 term and on or before August 31, 2024 for a teacher (or  other  employee
 as  defined  in this act, employed on a school-year basis) who is other-
 wise in active service on the effective date of this act shall be deemed
 active service.
   (f) "Open period" means the period  beginning  with  the  commencement
 date  as defined in subdivision (g) of this section and shall be 60 days
 in length. For educational employers who make election  after  June  30,
 2024,  the  open period shall begin immediately after such election, and
 shall not extend beyond August 31, 2024.  For the purposes of retirement
 pursuant to this act, a service retirement  application  must  be  filed
 with  the  appropriate  retirement system not less than 14 days prior to
 the effective date of retirement to become effective, unless  a  shorter
 time period is permitted under law.
   (g)  "Commencement  date"  means  the first day the retirement benefit
 mandated by this act shall be made available, which shall mean a date or
 dates on or after the effective date of this act to be determined by the
 educational employer which elects to  participate  pursuant  to  section
 four of this act, but no sooner than June 30, 2024.
   §  4.  On  or after June 30, 2024 an educational employer may elect to
 provide its employees the retirement incentive authorized by this act by
 the adoption of a resolution of its  governing  body.  A  copy  of  such
 resolution  shall  be  filed with the appropriate retirement system. The
 resolution shall be accompanied by the affidavit  of  the  school  board
 president or trustee or other comparable official certifying the validi-
 ty of such resolution.
   § 5. Notwithstanding any other provision of law, any eligible employee
 serving in an eligible title who (a) has been continuously in the active
 service of an educational employer who has elected to participate in the
 retirement  incentive  provided  in section six of this act, pursuant to
 section four of this act, from March 1, 2024  to  the  date  immediately
 prior  to the commencement date of the applicable open period, (b) files
 an application for service retirement that is effective during the  open
 period, and (c) is otherwise eligible for a service retirement as of the
 effective  date  of  the application for retirement shall be entitled to
 the retirement benefit provided in section six of this act.
   § 6. Notwithstanding any other provision of law, any eligible employee
 who is: (a) a member of the teachers' retirement system, and  (b)  enti-
 tled  to  retirement  benefits  pursuant to section five of this act may
 retire during the open period without the reduction of their  retirement
 benefit  that  would  otherwise  be  imposed  by article 11 or 15 of the
 retirement and  social  security  law  if  such  eligible  employee  has
 attained  the  age  of 55 and has completed at least 25 or more years of
 creditable  service.  An  eligible  employee  who  is  covered  by   the
 provisions of article 11 or 15 of the retirement and social security law
 shall  retire under the provisions of article 11 or 15 of the retirement
 and social security law.
 S. 9770                             3
 
   § 7. The pension benefit costs of section six of  this  act  shall  be
 paid  by  employers  as  provided  by  applicable law for the retirement
 system covered by this act over  a  period  not  to  exceed  five  years
 commencing in the state fiscal year ending March 31, 2026.
   §  8.  Notwithstanding any other provision of law, this act shall have
 no impact on retirement incentives, options or  inducements  offered  as
 part  of  a  contractual  agreement  between an eligible employee and an
 educational employer which were negotiated prior to the  effective  date
 of this act.
   §  9. Severability clause.  If any clause, sentence, paragraph, subdi-
 vision, section or part of this act shall be adjudged by  any  court  of
 competent  jurisdiction  to  be invalid, such judgment shall not affect,
 impair, or invalidate the remainder thereof, but shall  be  confined  in
 its  operation  to the clause, sentence, paragraph, subdivision, section
 or part thereof directly involved in the controversy in which such judg-
 ment shall have been rendered. It is hereby declared to be the intent of
 the legislature that this act would  have  been  enacted  even  if  such
 invalid provisions had not been included herein.
   § 10. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This  bill  would provide a temporary retirement incentive to eligible
 members of the New York State Teachers' Retirement System during  fiscal
 year  2024-2025.  This  incentive  would  permit  eligible members of an
 employer who has elected to  participate  to  retire  without  an  early
 retirement reduction upon attainment of at least age 55 with 25 years of
 service.  Currently  attainment  of  at  least  age  55 with 30 years of
 service, or at least age 62 with five years of service, are required  to
 retire  without  reduction  for Tiers 2, 3 and 4 members. Tier 5 members
 currently must be at least age 57 with 30 years of service, or at  least
 age 62 with five years of service, to retire without reduction. Finally,
 Tier  6  members are currently required to attain age 63 with five years
 of service to retire without  reduction.  To  receive  this  benefit,  a
 member  of an employer who has elected to participate must retire during
 the designated 60-day open period, beginning on or after June  30,  2024
 and  not extending beyond August 31, 2024. To be eligible, a member must
 be an employee of an educational employer and hold  a  position  repres-
 ented  by  one  of the recognized collective bargaining units affiliated
 with the New York State United Teachers (NYSUT) as certified by  his  or
 her  employer.  To  participate in this retirement incentive, the educa-
 tional employer must be a school district, a board of cooperative educa-
 tional services, a vocational education and extension board, an institu-
 tion for the instruction of the deaf and of the 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.   Employers who  elect  to
 participate would pay the cost of the retirement incentive over a period
 not  to  exceed  five  years,  beginning in the state fiscal year ending
 March 31, 2026.
   The annual cost, over a five-year period, to the participating employ-
 ers of members of the New York State  Teachers'  Retirement  System  for
 this  benefit  is  estimated  to be $64.8 million or 0.33% of payroll if
 this bill is enacted. Employers who do not elect  to  participate  would
 not incur a cost.
   Member data is from the System's most recent actuarial valuation files
 as of June 30, 2023, consisting of data provided by the employers to the
 Retirement System. The most recent data distributions and statistics can
 be  found  in  the System's Annual Report for fiscal year ended June 30,
 S. 9770                             4
 
 2023. System assets are as reported in the System's financial statements
 and can also be found in the System's Annual Report.  Actuarial  assump-
 tions  and  methods  are  provided  in  the System's Actuarial Valuation
 Report  as  of June 30, 2023, except rates of retirement which have been
 modified to reflect anticipated participation in the incentives.
   The source of this estimate is Fiscal Note 2024-34 dated May 23,  2024
 prepared  by  the  Office of the Actuary of the New York State Teachers'
 Retirement System and is intended for use only during the 2024  Legisla-
 tive Session. I, Richard A. Young, am the Chief Actuary for the New York
 State Teachers' Retirement System. I am a member of the American Academy
 of  Actuaries  and  I  meet  the Qualification Standards of the American
 Academy of Actuaries to render the actuarial opinion contained herein.