What's happening
This bill allows retired teacher L. Peter Quint to change his retirement benefit option to provide a 100% survivor benefit to his spouse.
Why it matters
Sets a precedent for allowing individual retirees to retroactively change their pension benefit choices. , which could encourage similar requests from other retirees and challenge the usual finality of retirement elections.
Imposes the cost of the benefit change (estimated at $93,000) on all employers participating in the New York State Teachers’ Retirement System (NYSTRS),. potentially impacting school budgets and retirement system funding.
Raises concerns about “anti-selection” and actuarial risk. , as permitting retirees to alter benefit options post-retirement can lead to increased and unanticipated liabilities for the pension system, affecting its long-term stability.
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Who cares
Headline styles
Let Retiree Change Pension
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to governmental employees
- Referred to governmental employees
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
6908
2017-2018 Regular Sessions
IN ASSEMBLY
March 24, 2017
Introduced by M. of A. JAFFEE -- read once and referred to the Committee on Governmental Employees
AN ACT to authorize L. Peter Quint to change his retirement benefits
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Notwithstanding any other provision of law, L. Peter Quint, who is a retiree of the New York state teachers' retirement system, and who, for reasons not ascribable to his own negligence, duly elected to receive the maximum benefit upon his date of retirement of July 1, 1999 rather than the 100% survivor benefit option, shall be permitted to change his retirement benefit to the 100% survivor benefit option and designate his spouse Deanna Quint as beneficiary of such optional form of benefit if on or before December 31, 2017 he shall file a written request to that effect with the head of the New York State teachers' retirement system.
§ 2. All costs incurred in implementing the provisions of this act shall be borne by the employers of members of the New York State teachers' retirement system.
§ 3. This act shall take effect immediately and shall apply to payments made on or after the effective date of this act.
Pursuant to Legislative Law, Section 50:
This bill would allow L. Peter Quint, a retired member of the New York
State Teachers' Retirement System (NYSTRS), who elected the maximum
single life benefit upon his date of retirement of July 1, 1999 to
change his retirement benefit to the 100% joint and survivor option
benefit designating his spouse Deanna Quint as beneficiary of such
optional form of benefit. This bill would only apply to payments due to
Mr. Quint on or after the effective date of this act. Mr. Quint must
file a written request with the head of the NYSTRS on or before December
31, 2017.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09524-02-7
A. 6908 2
The cost of this benefit is equal to the increase in the present value
of liabilities, which is estimated to be $93,000. This cost is to be
borne by the employers of members of the NYSTRS. Allowing retired
members to change the terms of their option after retirement creates the
potential for anti-selection and actuarial losses however.
Employee data is from the System's most recent actuarial valuation
files, consisting of data provided by the employers to the Retirement
System. Data distributions and statistics can be found in the System's
Comprehensive Annual Financial Report (CAFR). System assets are as
reported in the System's financial statements, and can also be found in
the CAFR. Actuarial assumptions and methods are provided in the System's
Actuarial Valuation Report.
The source of this estimate is Fiscal Note 2017-7 dated March 10, 2017
prepared by the Actuary for the New York State Teachers' Retirement
System and is intended for use only during the 2017 Legislative Session.
I, Richard A. Young, am the Actuary for the New York State Teachers'
Retirement System. I am a member of the American Academy of Actuaries
and I meet the Qualification Standards of the American Academy of Actu-
aries to render the actuarial opinion contained herein.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.