Bill Text: NY A06826 | 2011-2012 | General Assembly | Introduced

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Bill Title: Provides for payment of interest on payments due and owing, beginning with the 31st day after a NYS teachers' retirement system member's effective date of retirement; provides the rate of interest paid will be 5% and shall be paid at the time such outstanding benefits due and owing are made.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2012-05-08 - print number 6826a [A06826 Detail]

Download: New_York-2011-A06826-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         6826
                              2011-2012 Regular Sessions
                                 I N  A S S E M B L Y
                                     April 4, 2011
                                      ___________
       Introduced by M. of A. ABBATE -- read once and referred to the Committee
         on Governmental Operations
       AN ACT to amend the education law, in relation to payment of interest on
         delayed  benefits  for members of 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:
    1    Section 1. The education law is amended by adding a new section 540 to
    2  read as follows:
    3    S  540.  PAYMENT  OF INTEREST ON DELAYED BENEFITS. NOTWITHSTANDING ANY
    4  OTHER PROVISION OF LAW, INTEREST, AT A RATE OF FIVE PERCENT  PER  ANNUM,
    5  SHALL  ACCRUE  ON  THE  OUTSTANDING  AMOUNT  OF  BENEFITS  DUE AND OWING
    6  COMMENCING WITH THE THIRTY-FIRST DAY AFTER SUCH MEMBER'S EFFECTIVE  DATE
    7  OF  RETIREMENT  IN  ACCORDANCE WITH RULES AND REGULATIONS ADOPTED BY THE
    8  RETIREMENT BOARD. PAYMENT OF SUCH INTEREST SHALL BE  MADE  AT  THE  SAME
    9  TIME  THAT  THE  PAYMENT  OF  SUCH OUTSTANDING BENEFITS DUE AND OWING IS
   10  MADE.
   11    S 2. This act shall take effect immediately and shall be deemed to  be
   12  in  full  force and effect on and after June 30, 2011 and shall apply to
   13  any member of the New York state teachers' retirement system who retires
   14  on or after such date.
         FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
         This bill amends the Education Law by adding  a  new  section  540  to
       provide for the payment of interest on benefits due and owing, beginning
       with the thirty-first day after a member's effective date of retirement.
       The  rate of interest paid will be 5% and shall be paid at the time such
       outstanding benefits due and owing are made.
         The annual cost to the employers of members  of  the  New  York  State
       Teachers' Retirement System for this benefit is estimated to be $660,000
       or .004% of payroll if this bill is enacted.
         The source of this estimate is Fiscal Note 2011-16 dated March 9, 2011
       prepared  by  the  Actuary  of  the  New York State Teachers' Retirement
       System and is intended for use only during the 2011 Legislative Session.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD10575-01-1