Provides temporary retirement incentive for certain public employees

1 Co-sponsor

• Nancy Calhoun

BILL NUMBER:A10920

Title of bill

An act to provide temporary retirement incentive for certain public employees

Purpose of the bill

To extend the recently enacted "55/25" early retirement granted to teachers -to school administration.

Summary of provisions of the bill

Section 1 of the bill describes the purpose of the bill.

Sections 2 of the bill would set forth legislative findings.

Section 3 of the bill would define relevant terms. In particular, an "eligible employee" is defined as a principal, vice-principal, supervi- sor, supervisory principal, director, superintendent or an administra- tive officer with similar duties and responsibilities enrolled with New York State United Teachers (NYSUT). A "participating employer" is defined as an educational employer, the State University of New York (SONY) or a community college.

Section 4 of the bill would provide that an eligible employee in an eligible title who has been in continuous service from February 1, 2010 to the date prior to the commencement date of the open period provided for by this bill would be eligible for a service retirement in accord- ance with section 5 of the bill.

Section 5 of the bill would provide that an eligible employee who meets the terms of the section can retire during the open period if he or she is 55 years of age or older, and has at least 25 years or more of cred- itable service.

Section 6 of the bill would provide that it would not impact other retirement incentives provided for by collective bargaining agreements negotiated. before the effective date.

Section 7 of the bill sets forth a severability clause.

Section 8 of the bill provides that it would take effect immediately.

Existing law

Under current law, affected employees retirement depends upon various factors, including age and years of service. The majority of teachers are presently governed by Article 15 of the Retirement and Social Security Law, under which they may retire without penalty upon reaching age 55 with 30 years of service or age 62 with at least 5 years of service.

Justification

Chapter 45 of 2010 granted to most teachers an early retirement incentive designed to help avoid layoffs and ease the prepa- rations for upcoming school budgets for fiscally strapped school districts. This legislation would further that process and equalize the treatment of school administrators.

Prior legislative history

None

Fiscal implications for state and local governments

Per-member cost would be approximately 11096 of a member's final average salary, to be borne by the State of New York and participating employers in the Employee Retirement System.

Effective date

This bill would be effective immediately upon enact- ment.