What's happening
This bill allows retired teacher Thomas Collins to change his retirement benefit option to provide a survivor benefit for his wife.
Why it matters
Sets a precedent for after-the-fact changes to retirement benefits. Allowing a retiree to retroactively alter their benefit election could open the door for similar requests from others, potentially challenging the integrity of benefit option deadlines and the financial assumptions used by retirement systems.
Requires full financial repayment by the retiree. Thomas Collins must repay approximately $93,000 in overpaid benefits to switch to the joint survivor option, ensuring that the change does not financially disadvantage the retirement system but placing a substantial burden on the individual.
Potential impact on actuarial soundness and risk pooling. The bill's allowance for post-retirement changes undermines the actuarial principles of risk pooling and pricing, possibly resulting in actuarial losses for the system if such exceptions become more common.
Highlights legislative intervention in individual benefit cases. This bill is an example of lawmakers intervening to address a unique personal circumstance, which may encourage other retirees to seek legislative remedies for administrative or procedural errors in retirement elections.
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Who cares
Headline styles
Let Retired Teacher Change Benefits
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 38
No co-sponsors yet.
History
- Referred to civil service and pensions
- 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.
Let Retired Teacher Change Benefits
In Assembly Committee · Governmental Employees · Sponsor Ellen C. Jaffee
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5632
2019-2020 Regular Sessions
IN SENATE
May 9, 2019
Introduced by Sen. CARLUCCI -- read twice and ordered printed, and when printed to be committed to the Committee on Civil Service and Pensions
AN ACT in relation to authorizing Thomas Collins to file a request for change of benefit coverage with 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 any other provision of law, Thomas Collins, who is currently a member of the New York state teachers' retirement system, who retired from Pearl River School District on July 1, 2010, and who since his date of retirement has been receiving the largest possible retirement benefit under the maximum retirement benefit election, and who, for reasons not ascribable to his own negligence, even upon notice in 2010 from the retirement system of his election of the maximum retirement benefit election, failed to change his retirement option election prior to the expiration of the thirty days in accordance with article 11 of the education law and to nominate his wife as the beneficiary of the one hundred percent survivor option, shall be authorized to change said maximum retirement option to the one hundred percent survivor option, if within one year of the effective date of this act, he shall file a written request on a form prescribed by the New York state teachers' retirement system with the head of said retirement system. Such change of benefit coverage shall be deemed to become effective on July 1, 2010.
§ 2. Any costs attributable to implementation of the retirement election option change, authorized by section one of this act, and the recovery for the overpayment received by Thomas Collins since his date of retirement to change his election from the maximum benefit to the one hundred percent joint and survivor option with Sandra Collins as the beneficiary, shall be borne by Thomas Collins. The costs shall be calculated from the date of his retirement, July 1, 2010, to the date his new
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06538-02-9
S. 5632 2
retirement option election, filed in accordance with section one of this act, is deemed effective with the System and upon receipt of his payment for making said election. Any other costs attributable to 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 Thomas Collins, a retired member of the New York
State Teachers' Retirement System, who elected the maximum single life
benefit upon his date of retirement of July 1, 2010 to change his
retirement benefit to the 100% joint and survivor option benefit desig-
nating his spouse Sandra Collins as beneficiary of such optional form of
benefit. The 100% joint and survivor benefit determined as of his date
of retirement would be payable. Mr. Collins would be required to re-pay
to the Retirement System the excess of the maximum single life benefit
over the 100% joint and survivor option benefit that he has received
from his date of retirement through the effective date of the change in
his benefit. Mr. Collins 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 act.
The total cost of this benefit cannot be determined. If this bill is
enacted the Retirement System will be providing a survivor benefit to
Mr. Collins' spouse. The ultimate cost of this benefit will be deter-
mined by how long Mr. Collins and his spouse live. Mr. Collins would be
responsible for re-paying the overpayments he has received, which total
approximately $93,000. Allowing retired members to change their benefit
option after retirement undermines the pooling of longevity risk and the
pricing of the options and would potentially result in actuarial losses.
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 2019-22 dated March 29,
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 in relation to authorizing Thomas Collins to file a request for change of benefit coverage with the New York state teachers' retirement system
Purpose or general idea of bill
To allow Thomas Collins to change his retirement benefits.
Justification
Due to an oversight by the NYS Teachers Retirement System, Thomas Collins was placed into the maximum benefit retirement system instead of the 100 percent survivor benefit option system. As such, legislation will be enacted to allow him to be placed in the desired plan.
Prior legislative history
This is new legislation.
Fiscal implications
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.