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S6843Senate2017-2018 SessionSame asA7466

Restore Teacher's Tier 1 Pension

Official title

“Grants retroactive membership with Tier 1 status in the New York teachers' retirement system to James J. DeMarco”

Sponsor Patrick M. GallivanSD-59Affects Finance
Status
In Senate Committee
Civil Service And Pensions
Impact
2/10
Minimal
Passage
0%

Bill progress

Step 2 of 7

In committee · Civil Service And Pensions

What's happening

This bill grants James J. DeMarco retroactive Tier I membership in the New York State Teachers' Retirement System, increasing his pension benefits.

Why it matters

  1. Sets a precedent for individual pension corrections. By allowing one specific retiree to retroactively gain Tier I status, this bill could open the door for other individuals to seek similar retroactive adjustments based on employment history or administrative errors.

  2. Significantly increases public pension costs. The recalculation of James J. DeMarco’s pension, including retroactive payments, is estimated to cost $486,000, which will be borne by the employers within the New York State Teachers’ Retirement System, potentially impacting budgets and funding for other services.

  3. Highlights the importance of accurate retirement system records. The case underscores the long-term implications of enrollment errors or omissions in public employee retirement systems, emphasizing the need for robust administrative processes to track and enroll eligible employees promptly.

  4. May affect perceptions of fairness in public pension systems. Granting special legislative relief to one individual could raise questions among other retirees about equitable treatment and the criteria for granting such exceptions.

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Who cares

Headline styles

Restore Teacher's Tier 1 Pension

Plain English, a few words. Used as the page title.

Sponsors

Primary sponsor
Patrick M. Gallivan

Senator · Senate District 59

Chair, Crime Victims, Crime And Correction

No co-sponsors yet.

History

  1. Referred to civil service and pensions
  2. Referred to rules

Companion bill

The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.

A7466Assembly

Restore Teacher Pension Status

In Assembly Committee · Governmental Employees · Sponsor David DiPietro

Impact 2 · Minimal0% to pass

Full text

2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗

STATE OF NEW YORK

6843

2017-2018 Regular Sessions

IN SENATE

August 2, 2017

Introduced by Sen. GALLIVAN -- read twice and ordered printed, and when printed to be committed to the Committee on Rules

AN ACT granting retroactive membership with tier I status in the New York teachers' retirement system to James J. DeMarco

The People of the State of New York, represented in Senate and Assembly, do enact as follows:

Section 1. Notwithstanding any other law to the contrary, James J. DeMarco, who was employed as a seasonal employee with the New York power authority with a start date of July 17, 1969, and who is currently a retired member of the New York state teachers' retirement system, who through no fault of his own did not become a member of the New York state and local employees' retirement system on July 17, 1969 when first employed by the New York power authority shall be deemed to have been a member of the New York state and local employees' retirement system on such date he commenced his employment and shall be granted Tier I status, provided that an application is filed with the head of the New York state teachers' retirement system within one year from the effective date of this act.

§ 2. This act shall take effect immediately.

FISCAL NOTE.--

This bill would allow James J. DeMarco, a retired Tier 2 member of the

New York State Teachers' Retirement System, to be reclassified as a Tier

1 member. His date of membership would be changed based upon his employ-

ment as a seasonal employee in 1969 for the New York Power Authority.

Additionally, Mr. DeMarco's pension would be recalculated with retroac-

tive adjustment to payments made since his date of retirement of Decem-

ber 7, 2007. Mr. DeMarco must file a written request with the head of

the New York State Teachers' Retirement System within one year of the

effective date of this bill.

The cost of this benefit is equal to the increase in the present value

of liabilities, which is estimated to be $486,000. This cost is to be

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

LBD05916-02-7

S. 6843 2

borne by the employers of members of the New York State Teachers'

Retirement System.

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 2017-14 dated March 31,

2017 prepared by the Actuary of 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.

Sponsor's memo

Title of bill

An act granting retroactive membership with tier I status in the New York teachers' retirement system to James J. DeMarco

Purpose or general idea of bill

:

This bill gives Tier I status to James J. DeMarco, who through no fault of his own did not become a member of the New York State and local employees' retirement system on July 17th 1969, when he began employment.

Summary of specific provisions

:

Justification

:

James J. DeMarco, who began seasonal employment at the New York Power Authority in 1969, is currently classified as a Tier 2 member of the New York State and local employees' retirement system as a result of not becoming a member when he was first employed.

Legislative history

:

2015-16: S.4246-A/A.6230-A Referred to Civil Service and Pensions/Referred to Governmental Employees 2013-14: S.4352-A/A.6528-A Committed to Rules/Referred to Governmental Employees

Fiscal implications

:

The cost of this benefit is equal to the increase in the present value of liabilities, which is estimated to be $486,000. This cost is to be borne by the employers of members of the New York State Teachers' Retirement System.

Effective date

:

This act shall take effect immediately.

Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.