Allow Teacher to Change Benefits

Section 1. Notwithstanding any other provision of law, Michael Hall, who is currently a member of the New York state teachers' retirement system, who retired from Oakfield-Alabama Combined School District on January 31, 2004, and who since his date of retirement has been receiving a reduced retirement benefit election pursuant to designating his wife, Bonnie L. Hall, under a survivor option and electing her as his irrevocable beneficiary, and who, for reasons not ascribable to his own negligence, even upon notice in 2004 from the retirement system of his election of the reduced retirement benefit election designating his wife Bonnie L. Hall under a survivor option and electing her as his irrevocable beneficiary, 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 elect for the maximum retirement benefit option, shall be authorized to change said reduced retirement benefit option designating his wife, Bonnie L. Hall under a survivor option and electing her as his irrevocable beneficiary to the maximum retirement 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 January 31, 2004.

§ 2. Any costs attributable to implementation of the retirement election option change, authorized by section one 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:

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

[ ] is old law to be omitted.

LBD15225-03-6

Bill Description:

This fiscal note is prepared for legislative bill draft #15225-02-6.

This bill would authorize Michael Hall, a retired member of the New York

State Teacher's Retirement System (NYSTRS), who elected the 100% joint

and survivor option benefit to change his option election to the maximum

single life benefit effective as of his date of retirement, January 31,

2004. The increase in pension benefit will be paid retroactively to this

date. Michael Hall must file a written request with the head of NYSTRS

within one year of the effective date of this act.

Cost and Current Law:

The cost of this benefit is equal to the increase in the present value

of liabilities, which is estimated to be $211,000. This cost would be

borne by the employers of members of the New York State Teachers'

Retirement System. Allowing retired members to change their benefit

option after retirement weakens the pooling of longevity risk and the

pricing of the options and would result in actuarial losses.

Under current law, benefit option elections are generally irrevocable

after retirement. Allowing post-retirement changes for individual

members may introduce considerations regarding consistent application of

such provisions across the membership.

Data:

Member data as of June 30, 2025, prepared for the most recent actuari-

al valuation was used in determining this cost. The most recent data

distributions and statistics can be found in the System's Annual Report

for the fiscal year ended June 30, 2025. System assets are as reported

in the System's financial statements which can be found in the System's

Annual Report. This data will also be provided in the System's Actuarial

Valuation Report as of June 30, 2025.

Methods and Assumptions:

A summary of actuarial assumptions and methods will be provided in the

System's Actuarial Valuation Report as of June 30, 2025. Further details

can be found in the most recent Recommended Actuarial Assumptions 2025

Report.

Actuarial Certification:

We, the undersigned actuaries for the New York State Teachers' Retire-

ment System, certify the following:

1. The actuarial assumptions, methods, and data used are reasonable

for the purposes of this fiscal note, internally consistent and are in

accordance with standards of practice prescribed by the Actuarial Stand-

ards Board and generally accepted actuarial principles and procedures.

2. We relied on member data supplied by the participating employers of

the New York State Teachers' Retirement System and assets as supplied in

the annual Financial Statements by NYSTRS' Finance Department.

3. Results were prepared based on our current understanding of the

proposal as of the date of this fiscal note. If the language or our

understanding of the proposal changes, the results could change and

require the issuance of a new fiscal note. The next annual update of the

actuarial valuation could also produce different results. Results should

not be relied upon for any other purpose.

4. This fiscal note was prepared in accordance with New York State

Retirement and Social Security Law, New York State Education Law, appli-

cable Internal Revenue Code, and accepted actuarial standards of prac-

tice as of the date of this fiscal note. This fiscal note does not

constitute a legal opinion on the viability of this legislative

proposal.

5. We are members of the American Academy of Actuaries and the Society

of Actuaries, and we meet the Qualification Standards of the American

Academy of Actuaries to render the actuarial opinion contained herein.

We are currently compliant with the Continuing Professional Development

Requirement of the Society of Actuaries.

Fiscal Note Identification:

This Fiscal Note, 2026-40, dated April 4, 2026, was prepared by the

Office of the Actuary of the New York State Teachers' Retirement System

and is intended for use only during the 2026 Legislative Session.