Bill Text: NY S05162 | 2013-2014 | General Assembly | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Allows a change in retirement options for certain retired members of the New York state teachers' retirement system or the New York city teachers' retirement system with the consent of the nominated survivor beneficiary.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2014-06-02 - referred to governmental employees [S05162 Detail]
Download: New_York-2013-S05162-Amended.html
Bill Title: Allows a change in retirement options for certain retired members of the New York state teachers' retirement system or the New York city teachers' retirement system with the consent of the nominated survivor beneficiary.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2014-06-02 - referred to governmental employees [S05162 Detail]
Download: New_York-2013-S05162-Amended.html
S T A T E O F N E W Y O R K
________________________________________________________________________
5162--A
2013-2014 Regular Sessions
I N S E N A T E
May 13, 2013
___________
Introduced by Sen. SAVINO -- read twice and ordered printed, and when
printed to be committed to the Committee on Civil Service and Pensions
-- committee discharged, bill amended, ordered reprinted as amended
and recommitted to said committee
AN ACT to amend the retirement and social security law and the education
law, in relation to permitting certain retired members of the New York
State Teachers' Retirement System or the New York City Teachers'
Retirement System to change their retirement options with the consent
of the nominated survivor beneficiary
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Section 514 of the retirement and social security law is
2 amended by adding a new subdivision e to read as follows:
3 E. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, WHERE A RETIRED MEMBER
4 OF THE NEW YORK CITY TEACHERS' RETIREMENT SYSTEM HAS NOMINATED HIS OR
5 HER SPOUSE AS THE SURVIVOR BENEFICIARY UNDER OPTION ONE, TWO OR FIVE
6 PROVIDED FOR IN SUBDIVISION A OF THIS SECTION, AND SUCH PERSON SO NOMI-
7 NATED CEASES BY CAUSES OTHER THAN DEATH TO BE HIS OR HER SPOUSE OR IS
8 SEPARATED FROM HIM OR HER, OR IF SUCH OPTION WAS SELECTED IN CONTEM-
9 PLATION OF MARRIAGE WHICH HAS NOT TAKEN PLACE, THEN THE BOARD OF TRUS-
10 TEES OF SUCH RETIREMENT SYSTEM SHALL HAVE THE AUTHORITY TO PERMIT THE
11 CHANGE OF SUCH OPTION TO THE MAXIMUM BENEFIT THAT IS THE ACTUARIAL
12 EQUIVALENT BY AND WITH THE CONSENT OF ALL PARTIES.
13 S 2. Section 610 of the retirement and social security law is amended
14 by adding a new subdivision g to read as follows:
15 G. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, WHERE A RETIRED MEMBER
16 OF THE NEW YORK CITY TEACHERS' RETIREMENT SYSTEM HAS NOMINATED HIS OR
17 HER SPOUSE AS THE SURVIVOR BENEFICIARY UNDER OPTION ONE, TWO OR FIVE
18 PROVIDED FOR IN SUBDIVISION A OF THIS SECTION, AND SUCH PERSON SO NOMI-
19 NATED CEASES BY CAUSES OTHER THAN DEATH TO BE HIS OR HER SPOUSE OR IS
20 SEPARATED FROM HIM OR HER, OR IF SUCH OPTION WAS SELECTED IN CONTEM-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10230-05-3
S. 5162--A 2
1 PLATION OF MARRIAGE WHICH HAS NOT TAKEN PLACE, THEN THE BOARD OF TRUS-
2 TEES OF SUCH RETIREMENT SYSTEM SHALL HAVE THE AUTHORITY TO PERMIT THE
3 CHANGE OF SUCH OPTION TO THE MAXIMUM BENEFIT THAT IS THE ACTUARIAL
4 EQUIVALENT BY AND WITH THE CONSENT OF ALL PARTIES.
5 S 3. Section 539 of the education law is amended by adding a new
6 subdivision 8 to read as follows:
7 8. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, A RETIREE SUBJECT TO
8 THIS ARTICLE OR ARTICLE FOURTEEN OR FIFTEEN OF THE RETIREMENT AND SOCIAL
9 SECURITY LAW WHO AT RETIREMENT HAD DULY SELECTED AN OPTION FORM OF
10 RETIREMENT PROVIDING FOR THE PAYMENT OF A LESSER RETIREMENT ALLOWANCE
11 OVER THE LIFE OF THE RETIREE WITH THE PROVISION THAT UPON THE RETIREE'S
12 DEATH ALL OR A PORTION OF SUCH ALLOWANCE SHALL BE CONTINUED FOR THE LIFE
13 OF AND PAID TO A BENEFICIARY DULY NOMINATED BY THE RETIREE AT RETIRE-
14 MENT, SHALL BE PERMITTED TO RESCIND SUCH SELECTION WITHIN ONE YEAR AFTER
15 SUCH BENEFICIARY HAS CEASED TO BE THE RETIREE'S SPOUSE BY REASON OF A
16 FINAL JUDGMENT OR DECREE OF DIVORCE ISSUED BY A COURT OF COMPETENT
17 JURISDICTION. IN ORDER TO RESCIND SUCH SELECTION, THE RETIREE AND BENE-
18 FICIARY MUST EACH FILE A WRITTEN CONSENT TO SUCH CHANGE WITH THE SYSTEM
19 ON A FORM PRESCRIBED BY THE SYSTEM. UPON SATISFACTORILY RECEIVING SUCH
20 JUDGMENT OR DECREE OF DIVORCE AND SUCH CONSENTS, ANY AND ALL OBLIGATIONS
21 OF THE SYSTEM TO THE BENEFICIARY UNDER THE RETIREE'S OPTION SELECTION
22 SHALL BE TOTALLY DISCHARGED AND THE RETIREE SHALL THEREAFTER BE PAID FOR
23 THE REMAINDER OF SUCH RETIREE'S LIFE THE MAXIMUM SINGLE LIFE BENEFIT
24 WHICH WOULD HAVE BEEN PAYABLE, HAD THE RETIREE MADE NO OPTION SELECTION
25 AT THE TIME OF RETIREMENT. THE RETIREMENT BOARD IS AUTHORIZED TO ADOPT
26 SUCH RULES AND REGULATIONS AS MAY BE NECESSARY TO IMPLEMENT THIS SUBDI-
27 VISION.
28 S 4. This act shall take effect immediately and shall be deemed to
29 have been in full force and effect on or after June 30, 2013.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
This proposed legislation would amend Retirement and Social Security
Law ("RSSL") Sections 514 and 610 to allow certain Tier III and Tier IV
retirees of the New York City Teachers' Retirement System ("TRS") the
opportunity to change certain optional forms of benefit after retirement
similar to the provisions set forth in Administrative Code of the City
of New York ("ACNY") Section 565(c).
ACNY Section 565(c) covers only Tier I and Tier II members of TRS.
In addition, for purposes of this Fiscal Note, the references herein
to Tier IV include those TRS members whose dates of membership are on or
after April 1, 2013 (a.k.a., Tier VI members).
Specifically, this proposed legislation would permit a Tier III or
Tier IV retiree of TRS who has nominated his or her spouse as the survi-
vor beneficiary to change, under certain optional forms of benefit and
with the consent of his or her spouse and the TRS Retirement Board, from
the optional form of benefit originally chosen to the maximum benefit
that is the actuarial equivalent, if such person:
(1) ceases by causes other than death to be his or her spouse, or
(2) is separated from him or her, or
(3) if such option was selected in contemplation of marriage which has
not taken place.
The Effective Date of the proposed legislation would be the date of
enactment.
FINANCIAL IMPACT - ACTUARIAL PRESENT VALUE OF BENEFITS AND EMPLOYER
CONTRIBUTIONS: To the extent that the probabilities of survival of the
retiree and the beneficiary designated under the optional form of bene-
fit have not changed significantly since such optional form of benefit
S. 5162--A 3
was instituted, then the enactment of this proposed legislation is
expected to result in little or no change in the Actuarial Present Value
of Benefits, Employer Normal Cost, Actuarial Accrued Liability or
employer contributions to TRS.
OTHER COSTS: The enactment of this proposed legislation would result
in some administrative expenses for TRS.
STATEMENT OF ACTUARIAL OPINION: I, Robert C. North, Jr., am the Chief
Actuary for the New York City Retirement Systems. I am a Fellow of the
Society of Actuaries and a Member of the American Academy of Actuaries.
I meet the Qualification Standards to render the actuarial opinion
contained herein.
FISCAL NOTE IDENTIFICATION: This estimate is intended for use only
during the 2013 Legislative Session. It is Fiscal Note No. 2013-03,
dated February 28, 2013 prepared by the Chief Actuary of the New York
City Teachers' Retirement System.
