Summary of 2003 Legislation
The following is a summary of 2003 NYSTRS-related legislation
that was signed into law:
Political
Deductions
Highlights:
- Enable retirees to authorize a pension
deduction for voluntary contributions to their employee organization's
political committee.
Effective Date: September 17, 2003
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Mailing
Options
Highlights:
- Authorizes the NYSTRS Retirement Board
to expand the postal services that members may use to have the date
they mailed a document to NYSTRS deemed their filing date.
Effective Date: June 30, 2003
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Eligibility for
Lump-Sum Benefit
Highlights:
- Allows retiring members to elect
a lump-sum benefit payment in lieu of a Maximum service retirement
pension that would total $2,400 per year or less. Previously,
only members who would have a Maximum pension of $1,000 per year
or less had this option.
- Enables certain current service retirees,
as well as certain beneficiaries currently receiving a lifetime
benefit (other than a Tier 3 or 4 accidental death benefit), to
"cash out" their benefit entitlements if their annual
benefit is no more than $2,400 per year. To do so, they must elect
the lump-sum benefit within 120 days of the law's effective date.
NYSTRS must receive all completed election forms by the November 19,
2003 filing deadline.
Effective Date: July 22, 2003
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Interest
Rate for Calculations
Highlights:
- Authorizes NYSTRS to use the interest
rate on 10-year U.S. Treasury obligations when calculating certain
benefits, such as the amount to pay a member who elects to receive
a lump-sum payment in lieu of a service retirement benefit that
would not exceed the maximum amount permitted by law. NYSTRS
was previously required to use the interest rate on 30-year U.S.
Treasury obligations, but the Treasury has ceased issuing 30-year
bonds.
Effective Date: January 1, 2004
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Restoration to Service
Highlights:
- Enables Tier 2 retirees who suspend
their pension and restore their active status to receive an additional
benefit after two extra years of service credit. By extension,
this new law also covers members who retire under Tier 4.
Previously, Tier 2 and 4 retirees had to complete five extra years
of service credit to be eligible for an additional benefit.
Notes:
Members who receive an additional benefit
will still lose any state retirement incentive service previously
credited.
To be eligible for a recalculated benefit
based on their service credit both before and after restoring their
active status, members would still need to a) complete
five years of service credit after restoration, and b) repay
the System the benefits they received before restoration, plus interest.
Effective Date: July 22, 2003
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