"Summary of 2000 Legislation Affecting STRS Members"
November 2000
Issue No. 13

Copy of Latest Administrative Bulletin

Dear Delegate:

For your information, we are providing you a copy of our most recent Administrative Bulletin which was recently sent to all Chief School Administrators, College and University Presidents and School Principals.

A copy of the Summary of Legislation is also enclosed. Please feel free to make copies and distribute as you see fit to help spread the word to our members about all the legislative changes.

Thank you for your assistance.

   The enclosed notice (see below) summarizes recently passed legislation affecting STRS members.

Additional information is available on our Web site at www.nystrs.org and in the August and December 2000 issues of our newsletter Your Source. (NOTE: The December issue will be mailed in a few weeks.)

We ask you to please post this notice in a spot readily accessible to our members. Feel free to make additional copies as necessary, to ensure those affected by this new legislation are informed.

Thank you for your help.

Enclosure

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.