What's happening
This bill increases the minimum retirement allowance for New York State Teachers’ Retirement System members who retired before July 1, 1980.
Why it matters
Addresses pension adequacy for older retirees. By raising the minimum retirement allowance for those who retired before July 1, 1980, the bill helps ensure that long-term retirees—who may be especially vulnerable to inflation and rising living costs—receive a higher baseline income.
Targets a specific, aging population. The bill is aimed at a cohort of retired teachers who may have smaller pensions due to lower historical salaries and less generous past benefit formulas, potentially reducing economic hardship among some of the oldest retired educators.
Sets a new, higher minimum benefit formula. The minimum benefit is increased from $500 to $550 per year of service (up to 35 years), raising the maximum annual benefit from $17,500 to $19,250. This change could meaningfully impact the financial security of qualifying retirees.
Minimal fiscal impact relative to payroll. The projected annual cost to school districts and other employers is relatively low ($355,000 or 0.002% of payroll), suggesting the benefit enhancement can be achieved without significant financial strain on the retirement system or taxpayers.
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Who cares
Teachers who retired from NYSTRS before July 1, 1970
The bill would raise their minimum annual benefit formula from $500 to $550 per year of credited full-time New York State service, capped at 35 years, increasing the maximum from $17,500 to $19,250.
Teachers who retired from NYSTRS from July 1, 1970, through June 30, 1980
They would become eligible for the minimum retirement benefit provision, with supplemental payments beginning for July 2019.
New York State Teachers’ Retirement System
The system would administer the expanded eligibility and higher supplemental pension payments.
Employers of NYSTRS members
The bill’s fiscal note estimates their annual cost for the benefit at $355,000, or 0.002% of payroll.
Headline styles
Increase Teachers' Minimum Pensions
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Referred to civil service and pensions
- Returned to senate
- Died in assembly
- Referred to ways and means
- Delivered to assembly
- Passed senateVote 62–0
- Ordered to third reading cal.1163
- Committee discharged and committed to rules
- Reported and committed to finance
- Print number 5676a
- Amend and recommit 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.
Raise Teachers’ Minimum Pensions
In Assembly Committee · Governmental Employees · Sponsor Peter Abbate
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5676--A
2019-2020 Regular Sessions
IN SENATE
May 10, 2019
Introduced by Sen. MAYER -- (at request of the New York State Teachers' Retirement System) -- read twice and ordered printed, and when printed to be committed to the Committee on Civil Service and Pensions -committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
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
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09732-03-9
S. 5676--A 2
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:
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.
Sponsor's memo
Title of bill
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
Purpose of the bill
This bill would extend the minimum retirement allowance provided to long standing retired members of the New York State Teachers' Retirement System who retired prior to July 1, 1980 and increase the minimum retirement allowance for all such retirees to $550 per year of New York state service up to a 35 year maximum of $19,250.
Summary and justification
Public policy has long recognized the need for a minimum benefit for long retired teachers whose benefits have been eroded by the effects of inflation over time. That minimum benefit, contained in subdivision e of Section 532 of the Education Law, has operated to provide a greater increase in the pensions of the longest retired teachers than they otherwise would have been entitled to under other provisions of law. In recognition of their particular need, subdivision e had been updated periodically so as to modestly increase their benefits. The last amend- ment was made by Chapter 580 of the Laws of 2001.
This bill would amend the minimum supplemental benefit for the longest retired teachers in subdivision e of Section 532 of the Education Law. It would extend the minimum supplemental benefit to all teachers who retired prior to July 1, 1980, as opposed to July 1, 1970, under current law. It would also modestly raise the minimum annual benefit from $500 to $550 per year of New York state service up to a 35 year maximum of $19,250 (versus $17,500 currently). The Retirement Board believes this measure represents appropriate relief for the most deserving segment of the retired membership body. It is anticipated that approximately 370 of the longest retired teachers would benefit from this bill.
Effective date of the bill
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.
Other agencies to whom the bill may be of interest
Division of the Budget, Department of Financial Services.
Budgetary implications of the bill
The annual cost to the employers of members of the New York State Teach- ers' Retirement System for this benefit is estimated to be $355,000.00.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.