AAC-31-13-00003-P Calculation of Benefits for Restored Members
7/31/13 N.Y. St. Reg. AAC-31-13-00003-P
NEW YORK STATE REGISTER
VOLUME XXXV, ISSUE 31
July 31, 2013
RULE MAKING ACTIVITIES
DEPARTMENT OF AUDIT AND CONTROL
PROPOSED RULE MAKING
NO HEARING(S) SCHEDULED
I.D No. AAC-31-13-00003-P
Calculation of Benefits for Restored Members
PURSUANT TO THE PROVISIONS OF THE State Administrative Procedure Act, NOTICE is hereby given of the following proposed rule:
Proposed Action:
This is a consensus rule making to amend section 354.6 of Title 2 NYCRR.
Statutory authority:
Retirement and Social Security Law, sections 11 and 311
Subject:
Calculation of benefits for restored members.
Purpose:
To conform the existing regulation to certain time frames and benefit calculation options set forth in current law.
Text of proposed rule:
§ 354.6 Calculation of benefits for restored members.
Upon retirement of a restored member, benefits shall be payable as follows:
(a) If the member has not earned at least [five ]two years of member service credit subsequent to restoration of membership, there shall not be a recalculation of benefits. Rather, the original retirement allowance under the option previously established shall be reinstated, and member contributions made since such restoration shall be refunded to the member by the Retirement System. The original retirement date shall remain applicable for the purposes of determining eligibility for post-retirement death benefits.
(b) If the member has earned at least [five ]two years of member service credit after restoration, such member shall, at his or her option, be eligible to retire with [the ]either of the following benefit calculations:
(1) The member shall be credited with all member service earned subsequent to restoration to membership, and receive a retirement allowance which shall consist of the actuarial equivalent of the pension which the member was receiving immediately prior to the last restoration to membership, plus a pension based upon the member service credit earned subsequent to restoration to membership. Such latter pension shall be computed as if he or she were a new member when he or she last became a member.
(2) The total service credited at the time of the earlier retirement may, at the member's option, again be credited, in addition to all member service earned subsequent to restoration to membership, if the member returns to the Retirement System the actuarial equivalent of the amount of retirement benefits received, plus interest at the rate of five percent per annum. In the event such amount is not so repaid, such actuarial equivalent shall be deducted from the subsequent retirement allowance.
Text of proposed rule and any required statements and analyses may be obtained from:
Jamie Elacqua, Office of the State Comptroller, 110 State Street, Albany, NY 12236, (518) 473-4146, email: jelacqua@osc.state.ny.us
Data, views or arguments may be submitted to:
Same as above.
Public comment will be received until:
45 days after publication of this notice.
Consensus Rule Making Determination
This is a consensus rulemaking proposed for the purpose of conforming the existing regulation to certain timeframes and benefit calculation options set forth in current law. These technical amendments relate to the calculation of benefits for restored members and it has been determined that no person is likely to object to the adoption of the rule as written.
Chapter 136 of the Laws of 2003 amended RSSL § 441(b). Prior to amendment, RSSL § 441(b) required a retiree returning to service to render 5 years of service before the retiree would be entitled to receive an additional benefit based upon his/her additional service. Chapter 136 amended RSSL § 441(b) so as to reduce the period of required service from 5 years to 2 years.
The amendment to RSSL § 441(b) also benefits retirees who retired under RSSL Article 15. This is because Article 15 has no provision comparable to RSSL § 441(b). Rather, RSSL § 614(a) requires the System to apply the rules of the earlier tiers to retirees under Article 15. Since the rule has been liberalized, the liberalization applies to RSSL Article 15 retirees as well. Hence, members retiring under RSSL Article 15 and later returning to service only have to render 2, not 5, years of additional service in order to receive an additional benefit for service subsequent to their initial retirement.
