The New York State Teachers' Retirement System (NYSTRS) was established by the Legislature in 1920 (chapter 503). In 1947 (chapter 820), the laws creating the system and enumerating the powers of its board of trustees were re-codified as Article 11 of the Education Law. This article, along with Section 177 of the Retirement and Social Security Law give the Board its principle authority to invest the system's funds. The system's board of trustees is made up of a combination of educational professionals, financial executives, and state government officials. These include three teacher members, elected one each year, by delegates at an annual membership meeting; one NYSTRS retiree elected by a mail vote of all retired members; two school administrators appointed by the Commissioner of Education; two present or former school board members, experienced in the fields of finance and investment, appointed by the Board of Regents from recommendations of the New York State School Boards Association; one present or former bank executive appointed by the Board of Regents; and the State Comptroller or the Comptroller's designee.
Each board member serves on several of the board's eleven committees, all of which ultimately report to the full board. Beginning in 1973 (Chapters 382 and 1046), concern over the rising cost of public employee pensions has repeatedly resulted in legislation that changed retirement plans for system members, gradually scaling back benefits. Since Article 5, Section 7 of the State Constitution prohibits the elimination or diminishment of a benefit once it has been granted, each new law applied only to members joining on or after the effective date of the law. The result has been the creation of four retirement plans or "tiers," each with different benefit calculations and eligibility requirements.
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The New York State Teachers' Retirement System (NYSTRS) provides retirement, disability, and death benefits to eligible New York State public school teachers and administrators, excluding those employed in New York City. NYSTRS retirees are guaranteed a monthly benefit payment for life. Depending on the benefit payment choice made at retirement, a retiree's beneficiary or beneficiaries may continue to receive a benefit following the retiree's death.
A ten-member Board of Trustees sets policy and oversees NYSTRS operations. Board members are responsible as fiduciaries to protect the long-term value of the system's investment portfolio, to provide benefit security for members, and to do so at the lowest possible cost to participating employers. As of 2005, NYSTRS included over 260,000 active members and 125,000 retirees and beneficiaries.
State Constitution, Art. 5, Sect. 7; Education Law, Art. 11; Retirement and Social Security Law, Sect. 177; L. 1920, Ch. 503; L. 1947, Ch. 820; L. 1973, Ch. 382, 1046.
