Relates to transfer of retirement membership for SUNY employees within the professional, scientific and technical bargaining unit

1 Co-sponsor

• Earlene Hooper

BILL NUMBER:A10068

Title of bill

An act to amend the retirement and social security law, in relation to transfer of retirement membership for employees of SUNY within the professional, scientific and technical bargaining unit

Purpose or general idea of bill: To allow certain employees of SUNY an option to transfer their membership from the optional retirement program to the New York State and Local Employees Retirement system.

Summary of specific provisions: This bill would allow certain employees of SUNY who were hired between January 1, 1994 and December 31, 2000 the option to transfer their membership from the optional retirement program to the New York State and Local Employees Retirement system. The eligi- ble employees are currently employed by SUNY in positions within the professional, scientific, and technical bargaining unit. Employees who transfer their membership to NYSLERS would also have the option to purchase credit for their previous service with SUNY by paying to NYSLERS an amount equal to their current balance in their individual optional retirement plan account.

Justification: Employees of SUNY are eligible for membership in differ- ent pension plans depending on their job title and bargaining unit. Employees who.have faculty positions have an option to choose either the New York State and Local Employees Retirement System or the Teachers Retirement system or the Optional Retirement Program. SUNY employees in non-faculty positions are generally eligible for membership only in New York State and Local Employees Retirement.System and do not have the option to join the Optional Retirement Program.

During the years 1994 through 2000 certain employees in nursing titles were hired by SUNY in temporary job titles and were misinformed regard- ing their retirement options. These employees were told that they had to opt for membership in the Optional Retirement Program. These employees were later placed into permanent nursing job titles in SUNY that are in the professional, scientific, and technical bargaining unit. Positions in the professional, scientific, and technical bargaining unit in SUNY are eligible for membership in NYSLERS but are not eligible for member- ship in the Optional Retirement Program. However, when these employees attempted to enroll as members of NYSLERS they were prevented from doing so because Education Law Section 393 contains a provision that says that once a SUNY employee has elected to join the Optional Retirement Program, that employee cannot become a member of NYSLERS or TRS as long as that person is employed by SUNY. As a result, these employees contin- ue to be members of the Optional Retirement Program despite the fact that they are employed in job titles that make them eligible for member- ship in NYSLERS.

This bill is intended to correct an error that occurred with regard to these employees who were directed to enroll in the Optional Retirement Program when they were hired by SUNY, although they should have been given an option to join NYSLERS. The bill would apply to a limited group

of employees who were hired during a specified time period and who are currently in titles that make them eligible for NYSLERS. it would not create an open-ended opportunity to switch between retirement plans. Employees who become members of NYSLERS who want to purchase credit for prior service would be required to pay an amount equal to the full cost of such service credit. This would prevent any member from getting a duplicate benefit for the same period of service.

Legislative history: New bill.

Fiscal implications: See fiscal note.

Effective date: Immediate.