Relates to service credit of certain members of the New York state and local employees' retirement system who obtained credit for service with the Niagara Frontier Transit Metro System, Inc.

1 Co-sponsor

• Timothy M. Kennedy

BILL NUMBER:S3721A

Title of bill

An act in relation to service credit of certain members of the New York state and local employees' retirement system who obtained credit for service with the Niagara Frontier Transit Metro System, Inc.

Purpose

To ensure that the proper pension amount is paid by the New York state and local retirement system to certain members and retirees of the system.

Summary of provisions

Section 1 of the bill adds a provision that clarifies the payment of pension benefits to any member or retiree of the New York state and local employees' retirement system who obtained credit for certain service with the Niagara Frontier Metro System and who also has a non-forfeitable benefit for such service under another pension.

Section 2 of the bill is the effective date.

Justification

At the present time, the pension benefit amount for some members of the New York state and local employees' retirement system (the "State Retirement System") is under review due to a non-forfeitable benefit that these individuals have under another pension. Specifically, some members and retirees of the State Retirement System, who obtained credit for service after March 31, 1974 with the Niagara Frontier Metro System, also have a non-forfeitable benefit for such service under the Amalgamated Transit Union Local 1342 - Niagara Frontier Transit Metro System Pension Fund (the "Amalgamated Transit Union Pension").

The non-forfeitable nature of the Amalgamated Transit Union Pension benefit has complicated the potential eligibility and calculation of the pension benefit that these members and retirees of the State Retirement System rightly deserve. Although the affected individuals completed and filed the appropriate paperwork at the required time (in some cases, many years ago), this complication still persists today. By clarifying that the service provided by these individuals remains eligible for service with the State Retirement System, this legislation will provide the security these individuals need and deserve) to plan their post-retirement lives. Further, this legislation protects the integrity of the State Retirement System by ensuring that members and retirees have been paid, and will continue to be paid, the correct pension benefit amounts.

Legislative history

New legislation.

Fiscal implications

State revenues will increase to the extent that overpayments made by the State Retirement System in prior veers are recouped.

Effective date

This act shall take effect immediately.