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S7067Senate2019-2020 SessionSame asA9601

Refund for Retired Teacher

Official title

“Authorizes Clifford Swezey to receive a refund from the New York state teachers' retirement system”

Sponsor Todd KaminskySD-9Affects Finance
Status
In Senate Committee
Civil Service And Pensions
Impact
2/10
Minimal
Passage
0%

Bill progress

Step 2 of 7

In committee · Civil Service And Pensions

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

  1. Addresses a Unique Situation. This bill is tailored to a single individual, Clifford Swezey, to correct a specific issue where he paid retirement contributions during a period when his transfer between retirement systems was not yet processed—highlighting complexities and occasional gaps in public pension administration.

  2. Sets a Precedent for Similar Cases. By granting a refund with interest, the bill could set an example or precedent for how the state handles future cases involving errors or delays in retirement system transfers, potentially encouraging others in similar situations to seek redress.

  3. Financial Impact on Employers. The cost of the refund (about $28,000 plus interest) isn’t absorbed by the retirement system itself but instead distributed among all participating school district employers, subtly impacting their budgets and highlighting how individualized pension corrections can have collective fiscal implications.

  4. Limited Time to Claim Benefit. The bill imposes a one-year window for Mr. Swezey to apply for the refund, emphasizing the importance of timely action in pension matters and potentially limiting the state’s exposure to indefinite retroactive claims.

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Who cares

Headline styles

Refund for Retired Teacher

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

Sponsors

Primary sponsor
Todd Kaminsky

Senator · Senate District 9

Chair, Environmental Conservation

No co-sponsors yet.

History

  1. 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.

A9601Assembly

Refund for Teacher’s Retirement

In Assembly Committee · Governmental Employees · Sponsor Michaelle C. Solages

Impact 2 · Minimal0% to pass

Full text

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

STATE OF NEW YORK

7067

IN SENATE (Prefiled)

January 8, 2020

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.

LBD03466-03-9

S. 7067 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 2020-06 dated December 19,

2019 prepared by the Actuary of the New York State Teachers' Retirement

System and is intended for use only during the 2020 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 or general idea of bill

To allow Clifford Swezey to receive a refund of excess contributions made to the New York State Teachers' Retirement System from November 20, 2006 through October 25, 2011.

Summary of specific provisions

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 accu- mulated 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.

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.

Prior legislative history

2018: Pass the Senate

Fiscal implications

The actuary estimates a one-time cost of $28,000.

Effective date

Immediately.

Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.