Bill Text: NY A07289 | 2009-2010 | 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: Bipartisan Bill

Status: (Introduced - Dead) 2010-01-06 - referred to governmental employees [A07289 Detail]

Download: New_York-2009-A07289-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         7289
                              2009-2010 Regular Sessions
                                 I N  A S S E M B L Y
                                    March 27, 2009
                                      ___________
       Introduced by M. of A. ABBATE -- Multi-Sponsored by -- M. of A. SALADINO
         -- read once and referred to the Committee on Governmental Employees
       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, 2009 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 $720,000
       or .005% of payroll if this bill is enacted.
         The  source of this estimate is Fiscal Note 2009-20 dated February 27,
       2009 prepared by the Actuary of the New York State Teachers'  Retirement
       System and is intended for use only during the 2009 Legislative Session.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD10666-01-9