Summary of 2003 Legislation

The following is a summary of 2003 NYSTRS-related legislation that was signed into law.

• Political Deductions signed into law on September 17, 2003 as Chapter 556.
• Mailing Options signed into law on July 29, 2003 as Chapter 248.
• Eligibility for Lump-Sum Benefit signed into law on July 22, 2003 as Chapter 167.
• Interest Rate for Calculations signed into law on July 22,  2003 as Chapter 140.
• Restoration to Service signed into law on July 22, 2003 as Chapter 136.

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

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

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.

Please Note: 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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