New York State Teachers' Retirement System

 

Summary of 2002 Legislation

The following is a summary of 2002 STRS-related legislation that was signed into law:

Retirement Filing Flexibility

Highlights:

  • The mandatory 30-day filing requirement for service retirement applications is eliminated. Members can now file an application up until the effective date of their retirement. (The maximum 90-day filing window still applies.)
  • Members can withdraw their service retirement application up to 14 days after their date of retirement.
  • Members have 30 days from their date of retirement to select or change their benefit payment choice.
  • Tier 1 and 2 members can withdraw their Annuity Savings Fund (ASF) up to 30 days after their date of retirement.

Effective Date: June 30, 2002

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Excess ITHP Retention

Highlights:

  • For Tier 1 and 2 members who transfer from the New York City Teachers' Retirement System with at least 20 years of total service credit, this law allows STRS to allocate to their Annuity Savings Fund (ASF) any excess Increased-Take-Home Pay (ITHP) reserves not needed to fund their benefit.  At retirement, members can receive this amount in a lump sum or as part of their monthly retirement benefit.

  • The law is retroactive to July 1, 1998.  Members who retired on or after July 1, 1998 will receive a lump sum payment of any excess ITHP plus 5% annual interest from their date of retirement to their payment date.

Effective Date:  July 1, 1998

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Military Payment Refunds

Highlights:

  • Permits a refund of payment made by veterans to purchase military service credit if, at retirement, the military service credit does not produce a greater benefit.

Effective Date:  December 21, 1998 

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Age for Unlimited Post-Retirement Earnings 

Highlights:

  • Lowers the age at which public retirees can re-enter New York State public employment without affecting their retirement benefits from age 70 to 65. 

Effective Date: August 20, 2002

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Article 19 Eligibility Change

Highlights: 

  • Allows Tier 1 and 2 members who were in active service for at least 20 days in any one school year on or after July 1, 1992 to be eligible for Article 19 credit if they retire or die on or after June 1, 2000. 

Effective Date: June 1, 2000

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Credit for NYC Teaching Service 

Highlights: 

  • Allows members to obtain service credit for teaching in New York City public schools at a time when they were STRS members and were prohibited from joining a NYC retirement system. Any such service prior to July 1, 1990, would be creditable. To obtain credit, members need at least two years of STRS service. In addition, Tier 3 and 4 members would have to pay 3% member contributions for the service plus 5% annual interest from the date of service until payment is made.

Effective Date: June 30, 2002

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Optional Retirement Program Rules

Highlights:

  • Simplifies rules originally enacted to prevent "double credit" for the same service for STRS members who join the optional retirement program. 

Effective Date: June 30, 2002

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Earnings After Retirement 

Highlights:

  • Increases the earnings limit for New York State public employment under Section 212 of the Retirement & Social Security Law to $25,000 a year for calendar year 2003. 

Effective Date: January 1, 2003

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Credit for NYC Substitute Service

Highlights:

  • Creates a window during which eligible STRS members who were employed as permanent substitute teachers by the New York City Board of Education can obtain a retroactive date of membership. To be eligible, a member must have taught in a NYC school for a period of not less than 20 days during a school year and must have been in active service on or after June 30, 2002. The window for applying will close on June 30, 2003. 

Effective Date: June 28, 2002

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Retirement Incentive

Highlights:

School districts have the option of whether or not to offer Part A of the incentive. Part B is available to all Tier 2, 3 and 4 members. Members eligible for both Part A and Part B can elect only one part of the incentive.

Part A:

  • Provides one-twelfth of a year of additional service credit to an eligible member for each year of service credited at retirement, to a maximum of three years of additional credit. (This is in addition to the two years of service credit for which Tier 1 and 2 members may be eligible under Article 19 / Benefit Enhancement.) 

  • To be eligible, members must be age 50 or older with 10 or more years of service, or age 55 with five or more years of service. In addition, members must have been in active service on February 1, 2002, and remained in continuous active service through the end of the school year or the beginning of their employer's open period.

  • Districts that choose to offer Part A of the incentive have to specify a 30- to 90-day window for eligible employees to file for retirement.

  • The window for school districts cannot extend beyond Aug. 31, 2002; beyond December 31, 2002, for community colleges and SUNY; and beyond March 31, 2003, for the State Education Department. 

Part B:

  • Allows Tier 2, 3, and 4 members age 55 or older with 25 years or more of service to retire without an age reduction. To be eligible, members must have been in active service on February 1, 2002, and must remain in continuous active service through the end of the school year or the beginning of their employer's open period.

  • The open period for school districts was June 3, 2002, through August 31, 2002. The 90-day open period for community colleges, SUNY and State Education Department employees cannot extend beyond March 31, 2003.

Effective Date:  May 20, 2002

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