Bill Text: NY A07882 | 2017-2018 | General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relates to allowing Harry L. Sidor eligibility to apply for military service credit in the NYC teachers' retirement system.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2018-05-09 - print number 7882a [A07882 Detail]

Download: New_York-2017-A07882-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          7882
                               2017-2018 Regular Sessions
                   IN ASSEMBLY
                                      May 18, 2017
                                       ___________
        Introduced by M. of A. CURRAN -- read once and referred to the Committee
          on Governmental Employees
        AN  ACT  to  authorize  Harry L. Sidor eligibility to apply for military
          service credit in the New York city teachers' retirement system
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section  1.  Notwithstanding  subdivision  6  of  section  1000 of the
     2  retirement and social security law, Harry L. Sidor, a retired member  of
     3  the New York city teachers' retirement system, who was on active duty in
     4  the  United  States  Navy from May 25, 1951 until May 19, 1955, shall be
     5  eligible to apply for military service  credit  in  the  New  York  city
     6  teachers'  retirement  system  as  otherwise  provided  pursuant  to the
     7  provisions of section 1000 of the retirement and social security law.
     8    § 2. This act shall take effect immediately.
     9    FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
    10    PROVISIONS OF PROPOSED LEGISLATION: With respect to the New York  City
    11  Teachers'  Retirement  System  (NYCTRS), the proposed legislation would,
    12  notwithstanding Section 1000 of the Retirement and Social Security  Law,
    13  provide  Mr. Harry Sidor the opportunity to apply for additional retire-
    14  ment service  credits,  up  to  three  years  (inclusive  of  any  prior
    15  purchases  of  military  service  credit)  for his military service. The
    16  additional service will not be considered in meeting any service or  age
    17  requirement  for  pension  eligibility  purposes.  For  purposes of this
    18  Fiscal Note, we  have  assumed  that  the  additional  service  will  be
    19  reflected  in  his  retirement  benefit  prospectively  from the Date of
    20  Enactment.
    21    All costs associated with the implementation of this  proposed  legis-
    22  lation would be borne by NYCTRS.
    23    The  Effective  Date  of the proposed legislation would be the Date of
    24  Enactment.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD08524-02-7
        A. 7882                             2
     1    BACKGROUND: Chapter 644 of the Military Law of 1998  permitted  public
     2  employees to purchase military service credit in their retirement system
     3  for  the  length  of  time  of that military service, up to three years.
     4  Harry Sidor was a member of NYCTRS  from  February  1,  1988  until  his
     5  retirement on July 17, 1997. Since Mr. Sidor retired before December 21,
     6  1998,  the  effective  date of Chapter 644, he was not eligible to apply
     7  for military service credit under such provision.
     8    Mr. Sidor began receiving a pension of $9,729.25 per  year  under  the
     9  100%  Joint and Survivor with Pop-Up form of payment since July 17, 1997
    10  and has been receiving annual Cost of Living Adjustments beginning  five
    11  years  after  his  date  of  retirement  from NYCTRS. Under this form of
    12  payment, pension is payable to him as long as he is alive  and  100%  of
    13  the benefit continues to his beneficiary after his death; if the benefi-
    14  ciary  predeceases  Mr.  Sidor, the pension benefit "pops up" or reverts
    15  back to the maximum benefit.
    16    If this legislation is passed,  Mr.  Sidor  would  receive  a  pension
    17  reflecting  the  additional  military service purchased. For purposes of
    18  this Fiscal Note, we have assumed that Mr.  Sidor  will  purchase  three
    19  years  of  military  service  credit  and  that the cost to Mr. Sidor to
    20  purchase the service would be $4,472 based on his salary during his last
    21  12 months of service.
    22    FINANCIAL IMPACT - ACTUARIAL PRESENT VALUES: The  estimated  financial
    23  impact  of  this  proposal  as  of  June 30, 2016 has been calculated as
    24  follows: (1) the actuarial present value of the retirement benefits  Mr.
    25  Sidor  is  expected to receive if this proposed legislation were enacted
    26  (reflecting the additional military service  purchased),  less  (2)  the
    27  actuarial present value of the retirement benefits Mr. Sidor is current-
    28  ly  receiving,  less  (3) the employee cost of purchasing the additional
    29  military service.
    30    Based on the actuarial assumptions and methods described  herein,  the
    31  enactment  of  this  proposed  legislation  would increase the Actuarial
    32  Present Value of Benefits (APVB)  and  the  Unfunded  Actuarial  Accrued
    33  Liability (UAAL) of NYCTRS by approximately $15,000 as of June 30, 2016.
    34    FINANCIAL  IMPACT  - ANNUAL EMPLOYER CONTRIBUTIONS: In accordance with
    35  Section 13.638.2(k-2) of the Administrative Code of the City of New York
    36  (ACNY), new UAAL attributable to benefit changes are to be amortized  as
    37  determined by the Actuary but generally over the remaining working life-
    38  time of those impacted by the benefit changes.
    39    For  this  proposed legislation, since Mr. Sidor is retired the entire
    40  increase in UAAL of approximately $15,000 based on the Actuary's actuar-
    41  ial assumptions and methods in effect on June 30, 2016 would  be  recog-
    42  nized in the first year.
    43    If  enacted into law during the 2017 Legislative Session, the increase
    44  in employer contributions would be recognized in Fiscal Year 2019.
    45    OTHER COSTS: Not measured in this Fiscal Note is the impact on  admin-
    46  istrative costs.
    47    ACTUARIAL  ASSUMPTIONS AND METHODS: Additional APVB, UAAL and employer
    48  contributions  presented  herein  have  been  calculated  based  on  the
    49  Actuary's  actuarial  assumptions and methods in effect for the Prelimi-
    50  nary June 30, 2016 (Lag)  actuarial  valuation  used  to  determine  the
    51  Preliminary Fiscal Year 2018 employer contributions of NYCTRS.
    52    STATEMENT  OF ACTUARIAL OPINION: I, Sherry S. Chan, am the Chief Actu-
    53  ary for, and independent of, the New York City Pension Funds and Retire-
    54  ment Systems. I am a Fellow of the Society of Actuaries, a Fellow of the
    55  Conference of Consulting Actuaries and a Member of the American  Academy
        A. 7882                             3
     1  of Actuaries. I meet the Qualification Standards of the American Academy
     2  of Actuaries to render the actuarial opinion contained herein.
     3    FISCAL  NOTE  IDENTIFICATION: This Fiscal Note 2017-11 dated April 25,
     4  2017, was prepared by the Chief Actuary for the New York City  Teachers'
     5  Retirement  System.  This  estimate  is intended for use only during the
     6  2017 Legislative Session.