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A6092Assembly2019-2020 SessionSame asS5676

Raise Teachers’ Minimum Pensions

Official title

“Relates to the minimum retirement allowance for members of the New York state teachers' retirement system who retired prior to July 1, 1980”

Sponsor Peter AbbateAD-49+2 co-sponsorsAffects Finance
Status
In Assembly Committee
Governmental Employees
Impact
4/10
Low
Passage
0%

Bill progress

Step 2 of 7

In committee · Governmental Employees

What's happening

This bill increases the minimum retirement benefit for certain New York State Teachers' Retirement System retirees and extends eligibility to those who retired before July 1, 1980.

Why it matters

  1. Addresses inflation and cost-of-living. By increasing the minimum retirement benefit and including retirees from before 1980, the bill helps older retirees whose pensions may have lost value over time due to inflation, offering them greater financial security.

  2. Targets a vulnerable group. Many of the affected retirees are likely to be in their 80s or older, and may have fewer supplemental income sources, making this increase particularly meaningful for their well-being.

  3. Modest fiscal impact. The estimated annual cost to employers is relatively low ($355,000 or 0.002% of payroll), meaning the financial burden on school districts and taxpayers is minimal compared to the potential benefit for retirees.

  4. Promotes equity among retirees. The change reduces disparities between different cohorts of retirees, creating a more consistent minimum benefit regardless of retirement date, and acknowledging long-term service to New York State.

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Who cares

  • NYSTRS members who retired from July 1, 1970, through June 30, 1980

    They would become eligible for the minimum retirement benefit provision previously limited to members who retired before July 1, 1970.

  • NYSTRS members who retired before July 1, 1970

    Their minimum annual benefit would rise from $500 to $550 per credited year of full-time New York State service, capped at 35 years and $19,250.

  • New York State Teachers’ Retirement System

    The system would administer the expanded eligibility and higher supplemental pension payments beginning with the July 2019 payment.

  • Employers of NYSTRS members

    The fiscal note estimates their annual cost for the benefit at $355,000, or 0.002% of payroll.

Headline styles

Raise Teachers’ Minimum Pensions

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

Sponsors

Primary sponsor
Peter Abbate

Assembly Member · Assembly District 49

History

  1. Referred to governmental employees
  2. Reported referred to ways and means
  3. Referred to governmental employees

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.

S5676Senate

Increase Teachers' Minimum Pensions

In Senate Committee · Civil Service And Pensions · Sponsor Shelley Mayer

Impact 4 · Low0% to pass

Full text

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

STATE OF NEW YORK

6092

2019-2020 Regular Sessions

IN ASSEMBLY

February 28, 2019

Introduced by M. of A. ABBATE -- (at request of the New York State Teachers' Retirement System) -- read once and referred to the Committee on Governmental Employees

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

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

Section 1. Paragraph 1 of subdivision e of section 532 of the education law, as amended by chapter 580 of the laws of 2001, is amended to read as follows:

1. Each pensioner of the retirement system who retired before July first, nineteen hundred [seventy] eighty shall be paid, commencing with a payment for the month of July two thousand [one] nineteen a basic supplemental pension, the total of which when added to his or her yearly retirement allowance computed without optional modification, but excluding any annuity derived from contributions made by members pursuant to paragraphs a and b of subdivision three of section five hundred sixteen, section five hundred twenty-eight, section five hundred twenty-nine, section five hundred thirty, section five hundred thirty-three and section five hundred thirty-five of this article, shall equal the lesser of [seventeen thousand five hundred] nineteen thousand two hundred fifty dollars or the sum of five hundred fifty dollars multiplied by the number of years of full-time New York state service not to exceed thirty-five years with which he or she was credited at the time of his or her retirement.

§ 2. This act shall take effect June 30, 2019, except that if this act shall have become a law on or after June 30, 2019, this act shall take effect immediately and shall be deemed to have been in full force and effect on and after June 30, 2019.

FISCAL NOTE.--Pursuant to Legislative Law, Section 50:

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

[ ] is old law to be omitted.

LBD09732-02-9

A. 6092 2

This bill would extend the minimum retirement benefit provision for

retirees of the New York State Teachers' Retirement System contained in

Section 532(e) of the Education Law to members who retired before July

1, 1980. Currently only members who retired before July 1, 1970 are

eligible. Additionally the minimum annual benefit would be increased to

$550 for each year of credited full-time New York State service, up to

years, for a maximum benefit of $19,250. The benefit is currently

$500 for each year up to 35, for a maximum benefit of $17,500. The

increased benefit would commence with a payment for the month of July

2019.

The annual cost to the employers of members of the New York State

Teachers' Retirement System for this benefit is estimated to be $355,000

or .002% of payroll if this bill is enacted.

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 2019-1 dated October 5,

2018 prepared by the Actuary of the New York State Teachers' Retirement

System and is intended for use only during the 2019 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.