Bill Text: NY S05608 | 2013-2014 | General Assembly | Amended

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Bill Title: Relates to the form of payment of retirement benefits for certain public retirees and beneficiaries; requires the payment of retirement benefits by the New York state and local employees' retirement system and the New York state and local police and fire retirement system by direct deposit or debit card.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2014-01-21 - PRINT NUMBER 5608A [S05608 Detail]

Download: New_York-2013-S05608-Amended.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                        5608--A
                              2013-2014 Regular Sessions
                                   I N  S E N A T E
                                     May 24, 2013
                                      ___________
       Introduced  by Sen. GALLIVAN -- (at request of the State Comptroller) --
         read twice and ordered printed, and when printed to  be  committed  to
         the  Committee  on  Civil  Service  and Pensions -- recommitted to the
         Committee on Civil Service and Pensions in accordance with Senate Rule
         6, sec. 8 -- committee discharged, bill amended, ordered reprinted  as
         amended and recommitted to said committee
       AN  ACT  to amend the retirement and social security law, in relation to
         the form of payment of retirement benefits for certain public retirees
         and beneficiaries
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section  1.  Section  100 of the retirement and social security law is
    2  amended to read as follows:
    3    S 100. Payment of retirement allowances.    A.  Retirement  allowances
    4  shall  be  payable on the first day of each and every month beginning on
    5  the first day of the month following the effective date  of  retirement.
    6  Upon  the  death  of a retired member, however, the retirement allowance
    7  due for that part of the month prior to his OR HER death shall  be  paid
    8  forthwith.
    9    B.  1. BEGINNING ON A DATE TO BE DETERMINED BY THE COMPTROLLER, BUT NO
   10  SOONER THAN JANUARY FIRST, TWO THOUSAND SIXTEEN, ANY RETIREMENT  BENEFIT
   11  PAID  IN  REGULAR  PERIODIC INSTALLMENTS TO A PERSON WHO IS A RETIREE OR
   12  BENEFICIARY OF THE RETIREMENT SYSTEM PRIOR TO, ON OR AFTER THE EFFECTIVE
   13  DATE OF THIS SUBDIVISION SHALL BE MADE BY DIRECT DEPOSIT OR DEBIT  CARD,
   14  AS  ELECTED  BY  SUCH RETIREE OR BENEFICIARY, AND ADMINISTERED ELECTRON-
   15  ICALLY, IN ACCORDANCE WITH SUCH GUIDELINES AS MAY BE SET  FORTH  BY  THE
   16  RETIREMENT  SYSTEM.  THE RETIREMENT SYSTEM SHALL NOTIFY ANY OF ITS RETI-
   17  REES AND BENEFICIARIES THAT ARE CURRENTLY NOT RECEIVING THEIR RETIREMENT
   18  PAYMENT BY DIRECT DEPOSIT OF THE PROVISIONS OF THIS PARAGRAPH  PRIOR  TO
   19  SUCH PARAGRAPH BEING IMPLEMENTED.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD09754-07-3
       S. 5608--A                          2
    1    2.  A  RETIREE  OR BENEFICIARY MAY SUBMIT A REQUEST FOR EXEMPTION FROM
    2  PARAGRAPH ONE OF THIS SUBDIVISION ON A FORM PROVIDED BY  THE  RETIREMENT
    3  SYSTEM. THE RETIREMENT SYSTEM MAY APPROVE SUCH REQUEST PURSUANT TO REGU-
    4  LATIONS PROMULGATED BY THE COMPTROLLER UPON A DEMONSTRATION OF HARDSHIP.
    5    S  2.  Section 400 of the retirement and social security law, as added
    6  by chapter 1000 of the laws of 1966, is amended to read as follows:
    7    S 400. Payment of retirement allowances.    A.  Retirement  allowances
    8  shall  be  payable on the first day of each and every month beginning on
    9  the first day of the month following the effective date  of  retirement.
   10  Upon  the  death  of a retired member, however, the retirement allowance
   11  due for that part of the month prior to his OR HER death shall  be  paid
   12  forthwith.
   13    B.  1. BEGINNING ON A DATE TO BE DETERMINED BY THE COMPTROLLER, BUT NO
   14  SOONER THAN JANUARY FIRST, TWO THOUSAND SIXTEEN, ANY RETIREMENT  BENEFIT
   15  PAID  IN  REGULAR  PERIODIC INSTALLMENTS TO A PERSON WHO IS A RETIREE OR
   16  BENEFICIARY OF THE RETIREMENT SYSTEM PRIOR TO, ON OR AFTER THE EFFECTIVE
   17  DATE OF THIS SUBDIVISION SHALL BE MADE BY DIRECT DEPOSIT OR DEBIT  CARD,
   18  AS  ELECTED  BY  SUCH RETIREE OR BENEFICIARY, AND ADMINISTERED ELECTRON-
   19  ICALLY, IN ACCORDANCE WITH SUCH GUIDELINES AS MAY BE SET  FORTH  BY  THE
   20  RETIREMENT  SYSTEM.  THE RETIREMENT SYSTEM SHALL NOTIFY ANY OF ITS RETI-
   21  REES AND BENEFICIARIES THAT ARE CURRENTLY NOT RECEIVING THEIR RETIREMENT
   22  PAYMENT BY DIRECT DEPOSIT OF THE PROVISIONS OF THIS PARAGRAPH  PRIOR  TO
   23  SUCH PARAGRAPH BEING IMPLEMENTED.
   24    2.  A  RETIREE  OR BENEFICIARY MAY SUBMIT A REQUEST FOR EXEMPTION FROM
   25  PARAGRAPH ONE OF THIS SUBDIVISION ON A FORM PROVIDED BY  THE  RETIREMENT
   26  SYSTEM. THE RETIREMENT SYSTEM MAY APPROVE SUCH REQUEST PURSUANT TO REGU-
   27  LATIONS PROMULGATED BY THE COMPTROLLER UPON A DEMONSTRATION OF HARDSHIP.
   28    S 3. This act shall take effect on the one hundred eightieth day after
   29  it  shall  have  become  a law. Effective immediately the comptroller is
   30  authorized to promulgate any rules and regulations and  take  any  other
   31  measures necessary to implement this act on its effective date.
   32    FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   33    This  bill would require the payment of retirement benefits by the New
   34  York State and Local Employees' Retirement System (ERS) and the New York
   35  State and Local Police and  Fire  Retirement  System  (PFRS)  by  direct
   36  deposit or debit card, beginning on a date to be determined by the comp-
   37  troller, but no sooner than January 1, 2016. A retiree or beneficiary of
   38  these  Systems  prior  to,  on  or after the effective date of this bill
   39  shall elect either form of payment. Additionally this bill would allow a
   40  retiree or beneficiary to submit  a  request  for  exemption  from  this
   41  requirement.
   42    If  this  bill is enacted, we anticipate that the printing and postage
   43  savings will exceed the small initial administrative costs.
   44    Summary of relevant resources:
   45    The membership data used in  measuring  the  impact  of  the  proposed
   46  change  was  the same as that used in the March 31, 2013 actuarial valu-
   47  ation.  Distributions and other statistics can  be  found  in  the  2013
   48  Report  of  the  Actuary  and  the  2013  Comprehensive Annual Financial
   49  Report.
   50    The actuarial assumptions and methods used are described in the  2010,
   51  2011,  2012  and  2013  Annual  Report  to  the Comptroller on Actuarial
   52  Assumptions, and the Codes Rules and Regulations of  the  State  of  New
   53  York: Audit and Control.
   54    The Market Assets and GASB Disclosures are found in the March 31, 2013
   55  New  York  State  and  Local  Retirement System Financial Statements and
   56  Supplementary Information.
       S. 5608--A                          3
    1    I am a member of the American Academy of Actuaries and meet the Quali-
    2  fication Standards to render the actuarial opinion contained herein.
    3    This  estimate,  dated  December  23,  2013, and intended for use only
    4  during the  2014  Legislative  Session,  is  Fiscal  Note  No.  2014-49,
    5  prepared by the Actuary for the ERS and PFRS.