The following is a summary of 2022 NYSTRS-related legislation that has been signed into law.
COVID-19 Public Employee Death Benefit
Chapter 783 of the Laws of 2022 (S9119/A10022)
Signed into law December 23, 2022
Effective Date: March 1, 2020
Chapter 783 amends various provisions of law in relation to once again extending the COVID-19 accidental death benefit to statutory beneficiaries of active New York State public employees (including NYSTRS members) who worked on or after March 1, 2020, contracted COVID-19, COVID-19 was the cause or contributed to the employee’s death and the employee then dies on or before December 31, 2024. Please refer to Chapter 78 of the Laws of 2021 for additional information.
For more information regarding eligibility and claiming this benefit, please refer to our COVID-19 Accidental Death Benefit Fact Sheet or Death Benefits page.
Investments Made by Public Pension Funds
Chapter 775 of the Laws of 2022 (S8532A/A9668A)
Signed into law December 23, 2022
Effective Date: December 23, 2022
Chapter 775 amends Section 177 of the Retirement and Social Security Law to increase the percentage of assets which may be invested by a public retirement system of the state of New York under the “basket clause” provision from 25% to 35%.
Ordinary Death Benefit Change
Chapter 720 of the Laws of 2022 (S6619-B/A7730-A)
Signed into law December 16, 2022
Effective Date: April 1, 2023
Chapter 720 amends Retirement and Social Security Law Sections 448, 508 and 606 to change the age at which reductions in the ordinary death benefit commence for active (non-retired) NYSTRS members.
By statute, the ordinary death benefit is reduced by four percent per year commencing at age 61. Effective April 1, 2023, this chapter changes the age at which reductions commence from age 61 to age 62 for members with a date of membership prior to April 1, 2012, and from age 62 to age 63 for members with a date of membership on or after April 1, 2012. Since a percentage of the ordinary death benefit carries into retirement, the post-retirement death benefit would also be affected.
Death benefits are available to members who meet certain eligibility requirements. Visit the Benefits > Death Benefits page for more information.
Earnings in Retirement
Chapter 56 of the Laws of 2022 (S8006-C/A9006-C)
Specifically Part HH
Signed into law April 9, 2022
Effective Date: April 9, 2022
This law was to expire June 30, 2023; however, it was extended for one year under Chapter 55 of the Laws of 2023. Please see the 2023 Legislation page for details.
Part HH amends Section 211 of the Retirement and Social Security Law to allow a NYSTRS retiree to be employed and earn compensation in a position at a school district or board of cooperative educational services (BOCES) without suspension or diminution of their retirement allowance. Earnings received from April 9, 2022 to June 30, 2023 will not be applied to the standard Section 212 earnings after retirement limitation of $35,000 in New York State public employment per calendar year. Post-retirement employment with a charter school, community college, SUNY, or any other public employment is not covered by this law and is still subject to the $35,000 calendar year earnings limitation.
Employee Contribution Rate for Tier 6 Members
Chapter 56 of the Laws of 2022 (S8006-C/A9006-C)
Specifically Part SS
Signed into law April 9, 2022
Effective Date: April 1, 2022
Implementation Date: School year beginning July 1, 2022
Part SS amends the Retirement and Social Security Law to permit the employee contribution rate for Tier 6 members (members with a date of membership on or after April 1, 2012) to be determined using only a member's annual base wages for contributions to be made during the two fiscal years ending June 30, 2023 and June 30, 2024. Compensation earned for extracurricular programs or any other pensionable earnings paid in addition to the annual base wages will not be included in the employee contribution rate determination, as it ordinarily would.
Note: Although the contribution percentage rate for those years will be calculated only on annual base wages, Tier 6 members must pay the applicable contribution rate on all of their pensionable earnings in those years.
Vesting for Tier 5 and 6 Members
Chapter 56 of the Laws of 2022 (S8006-C/A9006-C)
Specifically Part TT
Signed into law April 9, 2022
Effective Date: April 9, 2022
Part TT amends the Retirement and Social Security Law by reducing the number of years of credited service required for vesting to five years for Tier 5 and 6 members for purposes of eligibility for a service retirement benefit or a deferred-vested retirement benefit.
Prior to this change, Tier 5 and 6 members needed to have 10 years of credited service to be vested for a service retirement benefit or a deferred-vested retirement benefit. Members who cease teaching with five – ten years of service credit will have the option of either receiving a refund of their accumulated member contributions or receiving the deferred-vested retirement benefit when eligible.
Note: Although members can generally retire as early as age 55, deferred vested Tier 6 members cannot retire until age 63. Please see our Active Members’ Handbook for age factors that also might apply.