2024 Legislation
The following is a summary of 2024 NYSTRS-related legislation that has been signed into law.
Earlier Recalculation for Retirees Who Suspend Pension
Chapter 578 of the Laws of 2024 (S7462B/A10529)
Signed into Law December 13, 2024
This act takes effect on or after 60 days from the date it was signed into law, that being February 11, 2025. This legislation applies to 503.11 memberships that are active on or after February 11, 2025.
This act amends Section 503 (subdivision 11) of the Education Law to allow a NYSTRS service retiree who: a) returns to active service, b) suspends their pension benefit, and c) earns at least two years of service credit after their restoration to active service, to elect a full recalculation upon retiring again. That recalculation would combine the service credit and salary they earned before their initial retirement with the service credit and salary they earned after their restoration to active service. Under current law, members must attain five years of service credit since restoration to active service to be eligible for a full recalculation.
With this recalculation election, the member must return the amount of pension previously received plus interest, either in a lump sum or by an actuarial reduction of their recalculated pension.
Earnings in Retirement
Chapter 55 of the Laws of 2024
Specifically Part GG
Signed into law April 20, 2024
Effective April 20, 2024
Expires June 30, 2025
Part GG is a one-year extension of Chapter 55 of the Laws of 2023 (Part V), which was due to expire June 30, 2024. The provision 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, 2025 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 55 of the Laws of 2024
Specifically Part KK
Signed into law April 20, 2024
Implementation Date: School year beginning July 1, 2024
Part KK is a two-year extension of Chapter 56 of the Laws of 2022 (Part SS), which was due to expire June 30, 2024. This provision 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 calculated using only a member's annual base wages for contributions to be made during the two fiscal years ending June 30, 2025 and June 30, 2026. 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.
Final Average Salary Calculation for Tier 6
Chapter 56 of the Laws of 2024
Specifically Part QQ
Signed into law April 20, 2024
Effective April 20, 2024
Part QQ amends the Retirement and Social Security Law to change the definition of final average salary (FAS) for Tier 6 members to be based on the wages earned during any three consecutive years which provide the highest average salary. This legislation also reduces the calculation lookback to the same requirements as applicable to Tier 4; namely, the FAS calculation will exclude any yearly increases in salary that exceeds 10% of the average of the previous two years' salaries.