2000 NYS Legislative
Session
New York State Teachers'
Retirement System
Summary of Laws Affecting STRS Members
For Active
Members
Benefit Enhancement (Article 19)
Tiers 1 and 2: Upon retirement, eligible members will receive one month of additional
credit for each year of service earned, up to a maximum of 24 months (two years of
credit). Tiers 3 and 4: Members will stop having 3% STRS mandatory
contributions deducted from their paychecks after they achieve 10 years of membership
or 10 years of service credit.
Prior Service
Members of all tiers are eligible to receive credit for prior New York State or New
York City public and teaching service (full-time, part-time and substitute) that was
or would have been credited in a New York State public retirement system. In
addition, members of all tiers are eligible for prior service credit (with payment,
if required) after two years of member service.
Tier Equity
The Tier 4 age reduction formula for those retiring before age 62 with fewer than 30
years of credit was replaced with the more favorable Tier 2 formula. This change to
the age reduction formula, which is used in the retirement benefit calculation, will
increase payments for those Tier 4 members retiring with a reduction.
Military Service Credit
This law amends the one that went into effect December 21, 1998. This change makes it
more affordable for eligible veterans to purchase this credit. Under the new law, for
each year of credit purchased, the cost for active members is 3% of salary earned in
the school year prior to the one in which a claim is made. Total credit, combined
with any previously claimed military service in a New York State public retirement
system, may not exceed three years. (Those who retired from STRS on or after December
21, 1998 are also eligible to claim this credit.)
In-Service Death Benefit
Tier 2, 3 and 4 members are now covered by the most advantageous in-service death
benefit, regardless of what selection they made when joining the Retirement System.
Members who join after Jan. 1, 2001 will automatically be covered by the Paragraph 2
death benefit, which essentially offers one year's salary after a year of service and
increases to a maximum of three years' salary after three years or more of
service.
For Retired
Members
Cost-of-Living Adjustment
(COLA)
This automatic, annual adjustment to pension benefits will impact all current and
future eligible retirees. The law includes a "catch-up" increase, which already is
being implemented, for those who retired prior to 1997, allowing eligible retirees to
receive an increase to their benefit in accordance with a formula based on the
Consumer Price Index (CPI). In September 2001, all eligible retirees will begin
receiving an annual 1%-to-3% increase based on 50% of the CPI.
Earnings Limit
Increase
The earnings limit in retirement for New York State public employment increased to
$18,500 for calendar year 2001. |
