Extends the minimum retirement benefit provision for retirees of the New York state teachers' retirement system who retired prior to June 1, 1980

BILL NUMBER:A2823A

Title of bill

An act to amend the education law, in relation to the minimum retirement allowance for members of the New York state teachers' retirement system who retired prior to July 1, 1980

Purpose

This bill would extend the minimum retirement allowance to retirees of the New York State Teachers' Retirement System who retired prior to July 1, 1980 and increase the minimum retirement allowance for such retirees to $550 per year of New York State service up to a 35 year maximum of $19, 250,

Summary of provisions

This bill would amend the minimum supplemental benefit for the longest retired teachers in subdivision e of Education Law §532. It would extend the minimum supplemental benefit to all teach- ers who retired prior to July 1, 1980, as opposed to July 1, 1970 under current law. It would also modestly raise the minimum annual benefit from $500 to $550 per year of New York state service up to a 35 year maximum of $19, 250 (versus $17,500 currently). The Retirement Board believes this measure represents appropriate relief for the most deserv- ing segment of the retired membership body. It is anticipated that approximately 2,500 of the longest retired teachers would benefit from this bill.

Justification

Public policy has long recognized the need for a minimum benefit for long retired teachers whose benefits have been eroded by the effects of inflation over time. That minimum benefit, contained in subdivision e of section 532 of the Education Law, has operated to provide a greater increase in the pensions of the longest retired teach- ers than they otherwise would have been entitled to under other provisions of law. In recognition of their particular need, subdivision e has been updated periodically so as to modestly increase their bene- fits. The most recent amendment was made by Chapter 580 of the Laws of 2001.

Prior legislative history

None.

Fiscal implications

The Actuary of the New York State Teachers' Retire- ment System has estimated that the additional annual cost to employers of members of the New York State Teachers' Retirement System would be $1.9 million or .01% of payroll if this bill is enacted

Effective date

This bill would take effect June 30, 2010, except that if this act shall have become a law on or after June 30, 2010 this act shall take effect immediately and shall be deemed to have been in full force and effect on and after June 30, 2010.