Bill Text: NY S05100 | 2009-2010 | General Assembly | Introduced

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Bill Title: Provides for payment of interest on payments due and owing, beginning with the 31st day after a NYS teachers' retirement system member's effective date of retirement; provides the rate of interest paid will be 5% and shall be paid at the time such outstanding benefits due and owing are made.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2010-01-06 - REFERRED TO CIVIL SERVICE AND PENSIONS [S05100 Detail]

Download: New_York-2009-S05100-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         5100
                              2009-2010 Regular Sessions
                                   I N  S E N A T E
                                    April 27, 2009
                                      ___________
       Introduced  by  Sen.  SAVINO -- read twice and ordered printed, and when
         printed to be committed to the Committee on Civil Service and Pensions
       AN ACT to amend the education law, in relation to payment of interest on
         delayed benefits for members of the New York state  teachers'  retire-
         ment system
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. The education law is amended by adding a new section 540 to
    2  read as follows:
    3    S 540. PAYMENT OF INTEREST ON DELAYED  BENEFITS.  NOTWITHSTANDING  ANY
    4  OTHER  PROVISION  OF LAW, INTEREST, AT A RATE OF FIVE PERCENT PER ANNUM,
    5  SHALL ACCRUE ON  THE  OUTSTANDING  AMOUNT  OF  BENEFITS  DUE  AND  OWING
    6  COMMENCING  WITH THE THIRTY-FIRST DAY AFTER SUCH MEMBER'S EFFECTIVE DATE
    7  OF RETIREMENT IN ACCORDANCE WITH RULES AND REGULATIONS  ADOPTED  BY  THE
    8  RETIREMENT  BOARD.  PAYMENT  OF  SUCH INTEREST SHALL BE MADE AT THE SAME
    9  TIME THAT THE PAYMENT OF SUCH OUTSTANDING  BENEFITS  DUE  AND  OWING  IS
   10  MADE.
   11    S  2. This act shall take effect immediately and shall be deemed to be
   12  in full force and effect on and after June 30, 2009 and shall  apply  to
   13  any member of the New York state teachers' retirement system who retires
   14  on or after such date.
         FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
         This  bill  amends  the  Education  Law by adding a new section 540 to
       provide for the payment of interest on benefits due and owing, beginning
       with the thirty-first day after a member's effective date of retirement.
       The rate of interest paid will be 5% and shall be paid at the time  such
       outstanding benefits due and owing are made.
         The  annual  cost  to  the  employers of members of the New York State
       Teachers' Retirement System for this benefit is estimated to be $720,000
       or .005% of payroll if this bill is enacted.
         The source of this estimate is Fiscal Note 2009-20 dated February  27,
       2009  prepared by the Actuary of the New York State Teachers' Retirement
       System and is intended for use only during the 2009 Legislative Session.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD10666-01-9