Grants additional service credit for members of public retirement systems who are absent without pay for child care leaves of absence

Title of bill

An act to amend the education law, the retirement and social security law and the administrative code of the city of New York, in relation to allowing members of a public retirement system to obtain retirement service credit for certain periods of child care leave

Purpose or general idea of bill

Grants additional service credit for members of public retirement systems who are absent without pay for child care leaves of absence

Summary of specific provisions

This bill would allow members to obtain credit for up to one year of service for a duly authorized leave of absence for child care leave. Required payments for such credits must be made with the appropriate retirement system.

Effects of present law which this bill would alter

Chapter 594 of 2000 granted this credit to members of the New York City Police Pension Fund and Chapter 581 of 2004 granted this benefit to New York City Correction Officers, this bill extends that benefit to other public retirement systems.

Justification

Parents have long suffered discrimination by being deprived of the right to earn retirement credit for the period of time when they were on maternity or child care leave. Members of Tiers II, III and IV have not only been deprived of retirement credit but also suffer severely reduced Pensions allowances if they retire before age 62 with fewer than 30 years.

Other states (i.e., Michigan) allow their members to buy back retirement credit for child care leave. In addition, Chapter 594 of the Laws of 2000 and Chapter 594 of the Laws of 2004 granted this benefit to allow members of the New York City Police Department Pension Fund and to NYC Correction officers. It is time for the State of New York to similarly end this discriminatory practice by permitting all employees who have interrupted their careers to fulfill such family responsibilities to claim retirement credit for such authorized leaves of absence.

Prior legislative history

2007-08 Session: S.4892/A.7353 - did not pass either house 2005-06 Session: S.4711/A.8247 - referred to Governmental Employees Similar to A.9029 of 2001

Fiscal implications for state and local governments

This bill would amend subdivision 2 of section 509 of the Education Law, and sections 446, 513, and 609 of the Retirement and Social Security Law to permit members to receive service credit for leaves of absence for child care. To claim this credit, members must pay the amount they would have had to contribute during this period with regular interest. Service credit granted shall not exceed one year of credit for each period of authorized child care leave and the total service credit granted shall not exceed two years. It is not possible to determine the total annual cost to the employers of members of the New York State Teachers' Retirement System since the total amount of service credit which would be claimed under this bill cannot be estimated. However, the cost to the employers of members of the New York State Teachers' Retirement System is estimated to be $18,700 per year of service credited if this bill is enacted. It is anticipated this bill would result in a substantial number of members being eligible for up to two years of additional service credit.

Effective date

Immediately and shall be deemed to be in full force and effect on and after June 30, 2009.