Relates to the minimum retirement allowance

2 Co-sponsors

• Patty Ritchie
• Catharine Young

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

This bill, which is introduced at the request of the NYS Teachers' Retirement Board, would extend the minimum retirement allowance provided to 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 of provisions

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. This 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 only those who retired before July 1, 1970. 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 700 of the longest retired teachers would benefit from this bill.

Effective date

This act shall take effect June 30, 2016, except that if this act shall have become a law on or after June 30, 2016, this act shall take effect immediately and shall be deemed to have been in full force and effect on and after June 20, 2016. FISCAL IMPACT : The annual cost to the employers of members of the New York State Teachers' Retirement System for this benefit is estimated to be $580,000 or .004% of payroll.