The Rules and Regulations found on this website have been promulgated by the New York State Teachers’ Retirement System ("System") pursuant to enabling legislation in Article 11 of the Education Law, Articles 14 and 15 of the Retirement and Social Security Law and other statutes. These Rules and Regulations are the official rules and regulations of the System, and have the force of law in all legal proceedings. They have been filed with the Secretary of State, and are also published in volume 21(c) of the Official Compilation, Codes, Rules and Regulations of the State of New York. They are promulgated by the System’s Retirement Board and may be amended by said Board from time to time as the Board deems necessary.
The System’s Rules and Regulations, like those of other State instrumentalities, are divided into a number of separate ‘Parts’, each of which addresses a specific topic. Each Part incorporates all relevant statutes and case law.
The following is a brief summary of the Rules and Regulations:
Membership: Membership rules are found in Part 5000 (general provisions relating to membership); Part 5006 (rules relating to cessation of membership); and Part 5008 (transfers of memberships between the various public retirement systems of New York State). In addition, Part 5025 governs the reinstatement of previous expired memberships in public retirement systems in certain cases; and Part 5026 contains rules governing admission of teachers in charter schools to membership in the System.
Benefits, Rights and Features: Rules dealing with eligibility for and the computation of benefits are to be found in Part 5001 (service credit); Part 5002 (prior service); Part 5003 (Final Average Salary); Part 5009 (vesting and deferred retirement); Part 5020 (disability retirement); and Part 5024 (accelerated death benefit). Part 5004 sets forth rules pertaining to loans, while Part 5007 addresses refunds of contributions. Part 5010 addresses employee contributions required of certain Tier III and IV members.
Beneficiaries: System members when retiring are entitled to select from a number of different retirement options. These retirement options are described in detail in Part 5014. Part 5011 establishes a group life insurance plan under rulings issued by the Internal Revenue Service. Under Part 5011, the first $50,000 of an in-service death benefit is group life insurance for tax purposes. Pursuant to § 5011.5, this plan will exist so long as the favorable IRS rulings remain in effect. Part 5012 governs the creation of savings accounts for beneficiaries under a legal disability, and Part 5013 governs the designation of trusts as beneficiaries.
Actuarial Assumptions: The System is a defined benefit plan. In other words, benefits provided by the System are calculated on the basis of statutory straightforward formulas, for example, in the case of retirement benefits, based upon (i) years of service credit and (ii) final average salary. Employer and employee contributions to the System go to fund all benefits and are not allocated to individual members. If and to the extent contributions, and investment earnings thereon, do not sufficiently provide for the payment of plan benefits, employers must make additional contributions to fund those benefits.
The calculation of certain benefits requires the use of actuarial assumptions, including with respect to life expectancies of members and their beneficiaries. In addition, the required level of employer contributions must be determined using actuarial assumptions, including with respect to rate of return on investment, salaries and mortality. These assumptions are set forth in Part 5018.
Miscellaneous: Other topics are covered in Part 5015 (employer responsibilities); Part 5016 (election of delegates to the System’s annual meeting); Part 5017 (amendment of the Rules and Regulations); Part 5019 (requests for information under the Freedom of Information Law); Part 5021 (election of retired teacher board member); Part 5022 (direct roll-over of certain benefit distributions); Part 5023 (employment of System retirees).