What's happening
This bill allows Clifford Swezey to receive a refund, with interest, of certain retirement contributions from the New York State Teachers' Retirement System.
Why it matters
Addresses a specific administrative gap. The bill corrects an unusual situation where Clifford Swezey was required to pay retirement contributions during a period when his transfer between retirement systems had not yet been initiated or finalized, potentially setting a precedent for handling similar administrative oversights.
Offers financial restitution with interest. By mandating a refund of the contributions plus 5% annual compounded interest, the bill recognizes the time value of money and attempts to fully compensate the individual for funds that were held by the retirement system unnecessarily.
Costs are socialized among employers. The financial responsibility for the refund (estimated at $28,000) will be distributed among all employers participating in the New York State Teachers' Retirement System, rather than being absorbed by the system’s general fund or a single employer, subtly impacting school district budgets across the state.
Limited scope but potential precedent. While the bill applies only to Clifford Swezey, enacting it could prompt other individuals who experience similar administrative delays or errors to seek legislative or administrative remedies, potentially influencing future retirement system policies.
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Who cares
Headline styles
Refund for Retired Teacher
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to governmental employees
- Delivered to assembly
- Passed senateVote 62–0
- Ordered to third reading cal.1946
- Committee discharged and committed to rules
- Referred to civil service and pensions
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.
Refund for Retired Teacher
In Assembly Committee · Governmental Employees · Sponsor Michaelle C. Solages
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
7047
IN SENATE (Prefiled)
January 3, 2018
Introduced by Sen. KAMINSKY -- read twice and ordered printed, and when printed to be committed to the Committee on Civil Service and Pensions
AN ACT to authorize Clifford Swezey to receive a refund from the New York state teachers' retirement system
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Notwithstanding the provisions of subdivision b of section 902 of the retirement and social security law, Clifford Swezey, a retired Tier 4 member of the New York state teachers' retirement system who was formerly a member of the New York city teachers' retirement system, with more than ten years of service credit, who then paid contributions as an employee of the Harrison central school district from November 20, 2006 through June 30, 2011 to the New York state teachers' retirement system and on July 18, 2011 initiated a transfer from the New York city teachers' retirement system to the New York state teachers' retirement system, shall be entitled to a refund of the accumulated three percent contributions paid to said retirement system for the period in which the transfer was not initiated and cessation date was not established if an application is filed within one year of the effective date of this act. Such refund of the accumulated three percent contributions shall include interest payable at the rate of five per centum per annum compounded annually and such interest shall be paid through Mr. Swezey's date of retirement of June 30, 2017.
§ 2. All costs associated with the implementation 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.
FISCAL NOTE. -- Pursuant to Legislative Law, Section 50:
This bill would allow Clifford Swezey, a retired Tier 4 member of the
New York State Teachers' Retirement System (NYSTRS), who was formerly a
member of the New York City Teachers' Retirement System (NYCTRS) and who
initiated a transfer from NYCTRS to NYSTRS on July 18, 2011 to receive a
refund of the 3% member contributions paid to NYSTRS for the period in
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD13615-02-7
S. 7047 2
which the transfer was not initiated and the cessation date was not
established. Mr. Swezey's refund of member contributions would include
interest at the rate of 5% per year through his date of retirement of
June 30, 2017. Mr. Swezey 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 refund of the accumulated
member contributions paid by Mr. Swezey to NYSTRS, which is estimated to
be $28,000. This cost is to be borne by the employers of members of the
NYSTRS.
Member 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 2018-4 dated November 29,
2017 prepared by the Actuary of the New York State Teachers' Retirement
System and is intended for use only during the 2018 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 to authorize Clifford Swezey to receive a refund from the New York state teachers' retirement system
Purpose
To allow Clifford Swezey to receive a refund of excess contributions made to the New York State Teaches' Retirement System from November 20, 2006 through October 25, 2011.
Justification
Clifford Swezey is a Tier 4 member of the New York State Teachers' Retirement System. He was employed as a teacher and supervisor in New York City for 21 years, beginning in 1985 until 2006, at which time he began employment at the Harrison Central School District. While teaching in New York City, Mr. Swezey paid appropriate and sufficient retirement contributions into the system. When Mr. Swezey's employment began at Harrison School District, his attempt to notify the Teachers' Retirement System of his previous membership in the New York City Teachers' Retire- ment System was not processed. As a result, Mr. Swezey began again paying 3% pension contributions until his full transfer application was finally processed in 2011.
Therefore, Mr. Swezey has overpaid the New York State Teachers' Retire- ment System in retirement contributions, as he has paid the balance of his owed 3% contributions after his years of service as a New York City teacher. This bill allows a one year period for Mr. Swezey to apply for and receive a refund of that overpayment from the system.
Legislative history
New bill.
Fiscal implications
The actuary estimates a one-time cost of $28,000.
Effective date
Immediate.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.