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History
- Referred to civil service and pensions
- Referred to civil service and pensions
Companion bill
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Provides for payment of interest on payments due and owing, beginning with the 31st day after a member's effective date of retirement
In Assembly Committee · Governmental Employees · Sponsor Peter Abbate
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
An act to amend the education law, in relation to payment of interest on delayed benefits for members of the New York state teachers' retirement system
Purpose or general idea of bill
This bill intends to compensate retirees when retirement benefits are not paid in a timely manner.
Summary of specific provisions
This bill would provide for the payment of interest on benefits due and owing, beginning with the thirty-first day after a member's effective date of retirement. Interest payments at the rate of 5% per year shall be made at the time such outstanding benefits due and owing are made.
Justification
Applications for retirement are filed with the retirement system at least 30 days and not more than 90 days prior to the effective date of retirement. Until the actual retirement allowance is determined, a retiree receives an estimated retirement allowance rather than a full allowance. Once the actual amount of the allowance is determined the retiree receives retroactive payment of the difference. Currently, when the process of verification and reporting of yearly teacher salaries by school districts extends over a period of several months, no interest on monies available for retroactive payment is paid to retirees.
Thirty days is more than ample time for a school district to verify yearly salaries and report them to the retirement system. In light of the fact that such a reasonable time period is provided it is only reasonable that retirees receive interest on retirement income which has been earned but has not been paid. If such monies were held in a bank or other financial institute, retirees would accrue interest daily. Enactment of this legislation would rectify this inequity by providing that payment of interest on delayed retirement benefits owed the retiree be made at the same time that retroactive payments of retirement allowances are made.
Legislative history
2007-08: A8136 - referred to Governmental Employees 2006: A11085 - referred to Governmental Employees 2004: A.6803 - passed Assembly 2002: A.10205 (Abbate) 2001: A.5388 (Vitaliano) 1999-2000: A.5210 - Passed Assembly
Fiscal implications
The additional annual cost to employers of members of New York State Teachers' Retirement System for this benefit is estimated to be $720,000 or .005% of payroll.
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.