Bill Text: NY A07048 | 2019-2020 | General Assembly | Introduced

Bill Title: Authorizes Thomas Collins to file a request for change of benefit coverage with the New York state teachers' retirement system.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced) 2019-04-04 - referred to governmental employees [A07048 Detail]

Download: New_York-2019-A07048-Introduced.html

                STATE OF NEW YORK
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                      April 4, 2019
        Introduced by M. of A. JAFFEE -- read once and referred to the Committee
          on Governmental Employees
        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:
     1    Section 1. Notwithstanding any other provision of law, Thomas Collins,
     2  who is currently a member of the New  York  state  teachers'  retirement
     3  system,  who  retired  from Pearl River School District on July 1, 2010,
     4  and who since his date of retirement  has  been  receiving  the  largest
     5  possible   retirement  benefit  under  the  maximum  retirement  benefit
     6  election, and who, for reasons not ascribable  to  his  own  negligence,
     7  even  upon  notice in 2010 from the retirement system of his election of
     8  the maximum retirement benefit election, failed to change his retirement
     9  option election prior to the expiration of the thirty days in accordance
    10  with article 11 of the education law and to nominate  his  wife  as  the
    11  beneficiary of the one hundred percent survivor option, shall be author-
    12  ized to change said maximum retirement option to the one hundred percent
    13  survivor  option,  if within one year of the effective date of this act,
    14  he shall file a written request on a form prescribed  by  the  New  York
    15  state  teachers'  retirement  system  with  the  head of said retirement
    16  system. Such change of benefit coverage shall be deemed to become effec-
    17  tive on July 1, 2010.
    18    § 2. Any  costs  attributable  to  implementation  of  the  retirement
    19  election  option  change, authorized by section one of this act, and the
    20  recovery for the overpayment received by Thomas Collins since  his  date
    21  of retirement to change his election from the maximum benefit to the one
    22  hundred  percent  joint  and  survivor option with Sandra Collins as the
    23  beneficiary, shall be borne by Thomas Collins. The costs shall be calcu-
    24  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.

        A. 7048                             2
     1  retirement option election, filed in accordance with section one of this
     2  act, is deemed effective with the System and upon receipt of his payment
     3  for making said election. Any other costs attributable to the  implemen-
     4  tation of this act shall be borne by the employers of members of the New
     5  York state teachers' retirement system.
     6    § 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 determined as of  his  date
        of  retirement would be payable. 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  benefit.  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 re-paying the overpayments he has received, which total
        approximately $93,000. Allowing retired members to change their  benefit
        option after retirement undermines 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
        Comprehensive Annual Financial  Report  (CAFR).  System  assets  are  as
        reported  in the System's financial statements, and can also be found in
        the CAFR. Actuarial assumptions and methods are provided in the System's
        Actuarial Valuation Report.
          The source of this estimate is Fiscal Note  2019-22  dated  March  29,
        2019  prepared by the Actuary of the New York State Teachers' Retirement
        System and is intended for use only during the 2019 Legislative Session.
        I, Richard A. Young, am the 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  Actu-
        aries to render the actuarial opinion contained herein.