Relates to the minimum retirement allowance for certain pensioners who retired prior to July 1, 1980

2 Co-sponsors

• Mark Grisanti
• Patty Ritchie

BILL NUMBER:S4496A

Title of bill

An act to amend the education law, in relation to the minimum retirement allowance for members of the New York state teachers' retirement system who retired prior to July 1, 1980

Purpose of the bill

This bill would extend the minimum retirement allowance provided to long standing retired members of the New York State Teachers' Retirement System who retired prior to July 1, 1980 and increase the minimum retirement allowance for all such retirees to $550 per year of New York State service up to a 35 year maximum of $19,250.

Summary and justification

Public policy has long recognized the need for a minimum benefit for long retired teachers whose benefits have been eroded by the effects of inflation over time. That minimum benefit, contained in subdivision e of Section 532 of the Education Law, has operated to provide a greater increase in the pensions of the longest retired teachers than they otherwise would have been entitled to under other provisions of law. In recognition of their particular need, subdivision e has been updated periodically so as to modestly increase their benefits. The last amendment was made by Chapter 580 of the Laws of 2001.

This bill would amend the minimum supplemental benefit for the longest retired teachers in subdivision e of Section 532 of the Education Law. It would extend the minimum supplemental benefit to all teachers who retired prior to July 1, 1980, as opposed to July 1, 1970, under current law. It would also modestly raise the minimum annual benefit from $500 to $550 per year of New York state service up to a 35 year maximum of $19,250 (versus $17,500 currently). The Retirement Board believes this measure represents appropriate relief for the most deserving segment of the retired membership body. It is anticipated that approximately 1,200 of the longest retired teachers would benefit from this bill.

Effective date of the bill

This act shall take effect June 30, 2014, except that if this act shall have become a law on or after June 30, 2014 this act shall take effect immediately and shall be deemed to have been in full force and effect on and after June 30, 2014.

Other agencies to whom the bill may be of interest

Division of the Budget, Department of Financial Services.

Budgetary implications of the bill

The annual cost to the employers of members of the New York State Teachers' Retirement System for this benefit is estimated to be $1.0 million or .01% of payroll.