Provides temporary retirement incentive for certain public employees

1 Co-sponsor

• Suzi Oppenheimer

BILL NUMBER:S6972A

Title of bill

An act to provide temporary retirement incentive for certain public employees

Purpose of the bill

This bill would enact a temporary retirement incentive program for certain public employees above age 55 and with 25 years of service.

Summary of provisions of the bill

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

Section 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 member of the New York State Teach- ers Retirement System (TRS) or the New York State and Local Employees Retirement System (ERS) in a position represented by the recognized collective bargaining units affiliated with New York State United Teach- ers (NYSUT). A "participating employer" is defined as an educational employer, the State University of New York (SUNY) 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 retire 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 Secu-

rity 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.

Statement in support

Language expressing the intent to enact a 55/25 early retirement option for employees in who are members of TRS and ERS and who are in bargain- ing units represented by NYSUT was included as part of Chapter 504 of the laws of 2009. This bill implements that intent.

This temporary retirement option will provide budgetary flexibility to school districts, SUNY and community colleges while averting layoffs at the same time.

Budget implications

The estimated annual cost to employers of TRS members is $13.2 million. For every 100 employees in ERS who participate in this incentive, there would be a cost of $260,000 to the State and $360,000 to participating employers. The fiscal note estimates that less than 1000 ERS members will participate.

Effective date

This bill would be effective immediately upon enactment.