Authorizes James Freitag to apply for retroactive membership in the New York state teachers' retirement system

Summary of specific provisions

This bill would grant retroactive Tier II status in the New York State Teachers' Retirement System to James P. Freitag by deeming him to have been a member of such system since June 5, 1975.

Justification

James P. Freitag began his employment with the county of Cattaraugus on June 5, 1975 and remained as a county employee for the next four years. However, Mr. Freitag was not informed of his eligibil- ity to join the retirement system until August of 1978. Several factors contributed to the fact that Mr. Freitag was not given the same opportu- nity to join the retirement system as other county employees were.

Mr. Freitag was employed by the county as a provisional counselor from June 5, 1975 until September 12, 1976 and then was called away to active duty for the U.S. Army on September 11, 1976 until the summer of 1978. He was on leave from the county, but remained as a provisional compet- itive class employee. Therefore, he was away on active duty during the time period when other county employees were informed by the county of the opportunity to join the New York State and Local Employees' Retire- ment System (ERS). Mr. Freitag joined Tier III of ERS at the first opportunity he was presented with, in August 1978.

Mr. Freitag was then employed by a public school in August 1979, at which time he became a member of the New York State Teachers' Retirement System (NYSTRS) transferring his membership from ERS where he remained in Tier III.

The county and state have found for the following reasons that the relief sought by Mr. Freitag is appropriate: First, he did not expressly decline membership, second, he did not participate in any procedure explaining the option to join the system as other county employees did, and third, there is no record that Mr. Freitag was afforded by the coun- ty the opportunity to participate in a procedure that a reasonable person would recognize as an explanation or request requiring a formal decision by him to join the public retirement system until August, 1978. Since Tier II was closed off as of July 1, 1976 Mr. Freitag was not afforded the option to join Tier 11 as other county employees were.

Both the county of Cattaraugus and the New York State Teachers' Retire- ment System acknowledge that James P. Freitag was an eligible employee as of June 5, 1975. This recognition should, in and of itself, be proof that Mr. Freitag deserves to be granted Tier II status.

Prior legislative history

This is a new bill; however, Mr. Freitag made his original request to the Legislature for special legislation in 2004. The county and state have finally come to agreement that without question, Mr. Freitag should rightly be afforded this opportunity to join Tier II.

Fiscal implications

If this legislation is enacted, there will be an immediate past service cost of approximately $57,000 which would be paid by the county of Cattaraugus, New York State.

This estimate, dated February 25, 2009 is intended for use only during the 2009 Legislative Session, as prepared by the Actuary for the NYSTRS.

If Mr. Freitag is not granted the opportunity to join Tier II this year, the estimated cost to the county, should it be enacted next year, will go up significantly.

Effective date

This act shall take effect immediately.