What's happening
This bill grants James J. DeMarco retroactive Tier I membership in the New York State Teachers' Retirement System, recalculating his pension.
Why it matters
Sets a precedent for granting retroactive retirement benefits. By allowing retroactive Tier I membership for a single individual, the bill could open the door for others in similar situations to seek similar adjustments, potentially impacting how retirement system errors or omissions are addressed statewide.
Increases pension liabilities for public employers. The recalculation of Mr. DeMarco’s pension to the more generous Tier I status creates an added cost (estimated at $537,000) that will be absorbed by all employers participating in the New York State Teachers' Retirement System, potentially affecting school budgets and municipal finances.
Highlights the importance of accurate retirement enrollment. The bill underscores how administrative oversights or misunderstandings during initial employment can have long-term financial consequences for both employees and the retirement system, emphasizing the need for rigorous onboarding and recordkeeping practices.
Demonstrates legislative willingness to intervene in individual pension cases. The special accommodation for Mr. DeMarco shows that the legislature is willing to enact specific laws to address perceived injustices in pension classification, which could encourage other retired employees to petition for legislative remedies.
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Who cares
Headline styles
Restore Teacher's Tier 1 Status
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to civil service and pensions
- Referred to civil service and pensions
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3694
2019-2020 Regular Sessions
IN SENATE
February 12, 2019
Introduced by Sen. GALLIVAN -- read twice and ordered printed, and when printed to be committed to the Committee on Civil Service and Pensions
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.--Pursuant to Legislative Law, Section 50:
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 $537,000. This cost is to be
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02862-02-9
S. 3694 2
borne by the employers of members of the New York State Teachers'
Retirement System.
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 2019-17 dated February 11,
2019 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.
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 employ- ment.
Summary of specific provisions
Section one establishes that James J. DeMarco shall be granted Tier I status. Section 2. Establishes the effective date.
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
2017-18: S.6843/A.7466 Referred to Civil Service and Pensions/Held for consideration in governmental employees 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
See fiscal note.
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.