Bill Text: NY A06422 | 2023-2024 | General Assembly | Introduced

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Bill Title: Provides for the payment of retirement benefits to members of the New York state employees retirement system who reentered service after retiring before January 1, 1980, pursuant to chapter 666 of the laws of 1990.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2024-01-03 - referred to governmental employees [A06422 Detail]

Download: New_York-2023-A06422-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          6422

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                      April 6, 2023
                                       ___________

        Introduced by M. of A. BRABENEC -- read once and referred to the Commit-
          tee on Governmental Employees

        AN  ACT  to  provide  for  the payment of retirement benefits to certain
          members of the New York state employees' retirement system  who  reen-
          tered public service pursuant to chapter 666 of the laws of 1990

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Notwithstanding the provisions of chapter 666 of  the  laws
     2  of  1990,  as  amended, or any other provision of law to the contrary, a
     3  member the New York state employees' retirement system who was  entitled
     4  to  elect  to  be  deemed  retroactively  to have transferred his or her
     5  membership in the New York state police and fire retirement system  from
     6  which  he  or she retired to such other retirement system in which he or
     7  she would otherwise have been entitled to membership and who has paid in
     8  full the necessary pro rata contributions, plus interest  as  determined
     9  by  the actuary pursuant to chapter 666 of the laws of 1990, as amended,
    10  shall be entitled to receive a  retirement  allowance  computed  on  the
    11  basis  of the total service credit to which such retiree was entitled at
    12  the time of his or her earlier retirement and the total  service  credit
    13  earned  in the retirement system to which he or she transferred provided
    14  such member retired from such previous public employment before  January
    15  1, 1980.
    16    § 2. This act shall take effect immediately.
          FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
          This  bill  would  allow  members  who  retired  under a special 20 or
        25-year retirement plan from the New York State  and  Local  Police  and
        Fire  Retirement  System  (PFRS)  before January 1, 1980 and returned to
        work in the New York State and Local Employees' Retirement System  (ERS)
        to transfer their PFRS service credit into the ERS and receive a pension
        based  on  the  combined  service as long as the necessary contributions
        plus interest were made as set forth under Chapter 666 of  the  Laws  of

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05347-04-3
        A. 6422                             2

        1990.  Currently, these pensions are actuarially reduced for the pension
        payments  received  while  retired from the PFRS and actively working in
        the ERS.
          The  number  of  retirees  who  could  be affected by this legislation
        cannot be readily determined. To benefit from  the  provisions  of  this
        legislation,  an eligible retiree must file a written request to the New
        York State Comptroller within one year of the effective date of the act.
          If this bill is enacted during the 2023 legislative session,  pursuant
        to  Section  25  of  the Retirement and Social Security Law, those costs
        arising in the ERS would be borne solely by the State of New  York.  The
        cost  for  the  one  retiree  known  to benefit from this legislation is
        approximately $58,300. This estimate assumes that payment will  be  made
        on  March  1,  2024. Similar costs for other impacted individuals can be
        expected and will be calculated and billed to the State of New York when
        application is made.
          Summary of relevant resources:
          Membership data as of March 31, 2022 was used in measuring the  impact
        of the proposed change, the same data used in the April 1, 2022 actuari-
        al  valuation.  Distributions  and  other statistics can be found in the
        2022 Report of the Actuary and the 2022 Annual  Comprehensive  Financial
        Report.
          The  actuarial assumptions and methods used are described in the 2020,
        2021, and 2022 Annual Report to the  Comptroller  on  Actuarial  Assump-
        tions,  and  the  Codes, Rules and Regulations of the State of New York:
        Audit and Control.
          The Market Assets and GASB Disclosures are found in the March 31, 2022
        New York State and Local  Retirement  System  Financial  Statements  and
        Supplementary Information.
          I am a member of the American Academy of Actuaries and meet the Quali-
        fication Standards to render the actuarial opinion contained herein.
          This  fiscal note does not constitute a legal opinion on the viability
        of the proposed change nor is it intended to serve as a  substitute  for
        the professional judgment of an attorney.
          This  estimate, dated March 31, 2023, and intended for use only during
        the 2023 Legislative Session, is Fiscal Note No.  2023-65,  prepared  by
        the Actuary for the New York State and Local Retirement System.